The Federal Government on Thursday constituted a seven-member task team to overhaul the nation’s media advertising industry to attain sustainable advertisement ecosystem.
The Minister of Information and Culture, Alhaji Lai Mohammed announced this in Lagos at a meeting with the members of the Association of Advertising Agencies of Nigeria (AAAN).
Mohammed directed the seven-member team of industry experts to work out best practices relating to Audience Measurement Systems.
He specifically tasked the team to Identify best practice Audience Measurement System that will support the sustainable growth of the Nigeria Creative and Entertainment Industry;
The minister said the team should recommend a framework for supporting the sustainability of the Audience Measurement System, independent of the Federal Government;
He added that the task team should recommend a Payment and Disbursement Framework among the key stakeholders in the industry that will ensure that system is transparent and rewarding.
The stakeholders, according to the minister are; Broadcasting Organisations ofNigeria (BON), Media Independent Practitioners Association of Nigeria(MiPAN) and Advertisers Association of Nigeria (ADVAN),Mohammed said the Administration is concerned on how to make advertising and creative industry work in the country to create jobs for the teeming youths that constitute 60 per cent of the population.
He noted that, despite Nigeria’s position as a leading African economy, its media advertising total industry volume had historically performed below the global average benchmark relative to the country’s GDP.
Mohammed underscored the need for an objective and scientific Audience Measurement System that articulates the value of the content to consumers as well as the value of the Audience to Advertisers in the television sector and the Outdoor Segment.
“Lack of authentic and real data poses a great challenge to the advertising industry.“In 2018, Price Water House reports that Nigeria’s total advertising revenue performed very poorly (0.12 %), when compared with South Africa (0.83%), Kenya (0.35%), Ghana (0.29%) and even Tanzania (0.18%).
“This is attributable directly to a lack of Measurement and Currency of trading, a most basic requirement in all developed markets for the success of the Production industry.
“The current value of the Nigeria television advertising market is estimated at 200 million dollar, despite a population of about 200 million, which translates to 1 dollar per person,“In Ghana, its 3 dollar per person, in South Africa, its 18 dollar per person and in Kenya 7 dollar per person.
“If Nigeria only reaches Ghana’s level of spend, this would triple the size of the TV advertising market to 600 million dollar per annum, which is an extra 400 million dollar par annum.90 per cent or more of this increase would go directly to the businesses and the talents creating the content ,” he said.
Mohammed said the challenge had resulted in under-investment in the sector asadvertising community had continued to rely on subjective factors when making decisions on the content they want, as opposed to how many viewers the content truly attracts.
The minister reiterated that the value of Nigeria’s Broadcasting Advertising Market isnot proportionate to the country’s population, when compared to the top 3 markets in the Sub-Saharan Africa region.
“Despite having a population more than three times that of South Africa, Nigeria’sTelevision Advertising Revenue in 2016, 309 million dollar, was 76 per cent behindthat of South Africa (1,301 million dollar).
“By the end of 2020, the gap between South Africa and Nigeria is projected to marginally decline to 72 per cent.
“Similarly, in the radio sector, the value of Nigeria’s 2016 advertising revenue of 81million dollar was 75 per cent behind its peers, South Africa and Kenya, both at343 million dollar.
“In both countries, the value and growth rate of the Broadcasting Advertising Revenue is largely influenced by the availability of a scientific Audience Measurement System that provides confidence to Advertisers in measuring their Return-On-Investment,” he said.
The minister reiterated the need to urgently put in place an Industry Framework that will ensure that content producers receive their just due for the value of the content they create.
He said bringing the Nigerian TV advertisement market up to par could result in additional 400 million dollar of revenue to the industry, based on current comparisons with other African countries.
He assured that his ministry would act as a catalyst for putting in place a robust Audience Measurement System that is in line with global standards and supports the realisation of the potential that the Nigerian Creative Industry.
NAN reports that the members of the task team included Alhaji Garba Kankarofi, Mr. Obi Asika, Hajia Sa’aa Ibrahim, and Mr. Mahmoud Ali Balogun.Others are Mrs Pauline Ehusani, Mr. Joe Mutah and a representative of Association of Advertising Agencies of Nigeria (AAAN).
Mohammed said that the Task Team will be inaugurated at a date to be announcedEarlier, Mr. Steve Omojafor, the Chairman Board of Trustee of AAAN underscored the need for the association to work closely with the ministry to move the industry forward.
The Vice President of the association Mr Steve Baba-Eko enjoined the minister to fast track the constitution of the management team of Advertising Practitioners Council of Nigeria (APCON)
He also seek the support of the minister towards a successful hosting of the Annual General Meeting of AAAN coming up in Abuja in April.
NAN reports that the Acting Director-General of National Broadcasting Commission, Prof. Armstrong Idachaba and the Acting Registrar of APCON, Mrs Ijedi Iyoha attended the meeting (NAN)
