The Nigeria Media Scene Nov 2010 Abridged

NIGERIA MEDIA SCENE

This is Nigeria 2009

This presentation provides an insight into the Nigerian market - it’s people,

their different lifestyles, Media habits and communication opportunities

The data sources, insights and opinions are gathered from a number of

sources including AMPS (the All Media and Product Survey), Provisional

2006 Census, Nigerian Central Statistics, The Internet, various Trade and

consumer publications and client/agency market immersions


A land of opportunitiesA land of contrasts

A land of complexities (Communication)

Nigeria

Nigeria is in West Africa.

Borders: Niger, Chad, Cameroon, Benin, Atlantic Ocean

Geographic Location of Nigeria in Africa

Source: www.suwaneedental.com/Nigeria


Nigeria Overview

Source: www.motherlandnigeria.com , www.phenig.org/public_health

Nigeria consists of 36 states plus the capital

Capital Abuja (FCT)

Population: 140m (2006 Prov. Census)

Fertility Rate 6% (est.)

Annual Growth 2.83%

Life Expectancy 43,5 - 47 years

Commercial “Capital”: Lagos

774 Local Governments

Official Language: English

More than 250 Ethnic Groups with different

dialects but the 3 major ethnic groups are:

Hausa (North), Igbo (East) and Yoruba (West)


Nigeria Overview (Contd.)

Total area: 924,666 sq. km

Climate:

South: Tropical 90 F.

North: Sub- tropical 60-100 F

Two Seasons: “Rainy” - May to September in the

North, March to November in the South & “Dry”

season – rest of year.

Hammarttan “cold” and dry (Dec/ Jan)

Currency: Naira Exchange Rate:

US$1 = 150 Naira

Euro = 220 Naira

Rand = 20 Naira

Pound = 250 Naira

Source: www.motherlandnigeria.com , www.phenig.org/public_health, www.corporateinformation.com/Currency-Exchange-Rates


Nigeria is a land of opportunities, a land of contrasts and a land

of complexities and consumer communication is no exception

We have differences between the North and the South, Christian

and Moslem living side by side with the Moslems dominating in

the North and Christians the South

Education, income, lifestyles, Media access, and Shopping needs

and Habits differ widely

We have densely crowded and sparsely populated cities and

states

Motor vehicles from 20 year old ‘Tokunbos’ to the latest BMW,

Prada and Hummer Jeep

Mass transport crowded rickety buses to top ultramodern metro

and intercity buses

Welcome to Nigeria

Welcome to NigeriaNo national TV or Radio, but over 100 TV and over 100 Radio stations

Print Media have very low circulations - True Love magazine for

example claims to have the highest magazine circulation at 27,000

copies. Majority print around 5,000.

7 most circulated general interest Newspapers have a total circulation

figure of 294,000 and a daily Sales figure of 205,251

We have Cable TV operators: DSTV has 379,728 subscribers, HiTV

has 187,878 subscribers

Cybercafes proliferate and today registration for JAMB schools and

university entrance exams are done online. Social networking sites such

as Facebook, Twitter etc. are increasing internet audience among

youths

We have oil and gas, over 50 million Cell phone users and a population

of 140+ million

Many living on less than $2 a day and the Super rich. 90% can be

classified in the CDE Social CLasses (LSMs 1-8)

Central bank Central Bank of Nigeria (2009)

Reserves of foreign exchange and gold $72.04 billion (31 December 2008 estimate)

Gross Domestic Product - GDP 212,080 millions of US dollars (2008)

GDP (Purchasing Power Parity) 315,030 millions of International dollars (2008)

Real GDP growth 2.9% (2009 estimate) 5.0% (2010 forecast)

GDP per capita - current prices $1,089 (2009 estimate)

GDP per capita - PPP $2,199 International Dollars (2009 estimate)

GDP (PPP) - share of world total 0.489% (2010 forecast)

GDP - composition by sector agriculture: 18% industry: 50.9% services: 31.1% (2008 estimate)

Inflation 11.6% (2008)12.0% (2009)11.2% 2010P)

Unemployment rate NA

Government Bond Ratings Standard & Poor's: B+/Stable/BMoody's rating: -Moody's outlook: -(Foreign Currency Government Bond Ratings; Data updated March 2009)

Market value of publicly traded shares US$86.35 billion (31 December 2007)

Largest companies in Nigeria First Bank of Nigeria, United Bank for Africa (2009)

Country Overview - Economic statistics


Source: BusinessDay Newspaper

0

40

80

120

160

200

108

178146 162

87 9437 57

94132

• According to Annual Rating conducted by the World Bank and the International Finance Corporation

World Ranking in Business Friendliness of countries, Nigeria is in 120th position with the war torn

Rwanda in #1 position and Liberia 10th position.

Country Overview - NIGERIA’S BUSINESS FRIENDLINESS RATING

Current account balance US$ 13.685 billion (2008)

Shares in world total merchandising export 0.47% (2007)

Shares in world total commercial services export 0.18% (2007)

Total exports US$83.09 billion f.o.b. (2008 estimate)

Export commodities petroleum and petroleum products 95%, cocoa, rubber

Total imports US$46.36 billion f.o.b. (2008 estimate)

Import commodities machinery, chemicals, transport equipment, manufactured goods, food and live animals

Exports - major partners US 51.6%, Brazil 8.9%, Spain 7.7% (2007)

Imports - major partnersChina 10.6%, Netherlands 7.9%, US 7.8%, South Korea 6.6%, UK 5.7%, France 4.3%, Brazil 4.2%, Germany 4.1% (2007)

Inward FDI flows by host economy US$12,453.74 million (2007)

Value of cross-border M&A, by country of purchaser

US$173.684 million (2007)

Best countries for doing business(ranking by country on a basis of 181, the first is the best)

Overall ranking: 118(2009)Subcategories:Starting a business: 91(2009)Employing workers: 27(2009)Registering property: 176(2009)Getting credit: 84(2009)Protecting investors: 53(2009)Trading across border: 144(2009)

Global competitiveness ranking(ranking by country on a basis of 133, the first is the best)

99 (2009/2010)

Economic freedom index55.1(2009)(100=totally free 0=totally repressed )

Country Overview-Trade & Competitive Stats.

Source: http://www.gfmag.com/gdp-data-country-reports/207-nigeria-gdp-country-report.html


• 2006 Census only provisionally released.

Top line only. Male and Female by State

• No demographic data so Research results

by demographics are still at 1991 Census

levels.

• Poverty still is major problem particularly in the

North which probably accounts for the low

incidence of penetration by most FMCG brands

even at sachet (LUP) level.

• 16 States including Lagos are above the

national average 3 are in line and 18 below

2004 National Incidence of Relative Poverty

National (54.4)

Below

AboveSource: Poverty Incidence National Bureau of Statistics World Bank- Poverty Profile for Nigeria 2004

Section 1: Country Profile Population

Population Distribution By State, 2006 Census & Poverty Indicator

ADULTS BY SEX & AGE

Sources: AMPS

Adults 16+ Years 79.5m

16-24 years 39%

25-34 years 35%

Female 49%

35-49 years 19%

50 plus 7%

Distribution by Age Group

Male 51%

74% of Adult Population under 34 years of age A young market growing up in the New Media era of cybercafes, computers,

Internet, Mobile phones.

Mobile phones is becoming their Medium of choice for entertainment, news and communication in the coming years.

48 million 16-34 year olds claimed to own/use cellphone at the end 2008

47% made call on cellphone yesterday climbing to 77% over 4 weeks

15 million had access to the Internet / email past 4 weeks

They register for JAMB and WAEC, check exam results, post comments on Facebook, follow friends on Twitter on the internet via

their phones and computer system

AMPS POPULATION DISTRIBUTION

AMPS Population Distribution by Region

Adults 16+ Years 79.5m %

Lagos 10

South West 22

South East 12

South South 10

North West 22

North East 10

North Central 14

54% of the AMPS population live in the Southern half of Nigeria and 44% in the North

Sources: AMPS

BY AMPS REGION

AMPS POPULATION DISTRIBUTION

English is the official language 75% claim to understand and or are able to read English For Communication English and Pidgin English important to the language mix and mother

tongue for deeper communication, emotional bonding and understanding Hausa important for the North – Over 3m claim to listen to non-commercial BBC Hausa Service

daily Hausa dialects differ across the North and are more “pure” the more Rural State Radio Stations broadcast in the dominant language/dialect of that State

LANGUAGES

SOURCE: AMPS

LANGUAGE Read/ Understand Home Language

ENGLISH 75 19

HAUSA /FULANI 19 23

YORUBA 20 20IGBO 12 15PIDGIN 22 3OTHERS 13 19

MEDIA SCENE OVERVIEW

Mainstream Media Supply

Medium Quantity

Television Over 160 Stations

Radio Over 90 Stations

Outdoor 21,000 sites

Newspapers Over 98 Titles (Dailies, Weekend,Sports/Business)

Magazines Over 45 Titles(Weeklies & Monthlies, News Magazine, Sports/Business, Foreign/ International Titles)

Cinema 17 Houses

MEDIA SCENE OVERVIEW

Media Scene Tomorrow TV will continue attracting high share of spend

GSM as Medium of contact with younger targets. Also Internet and particularly the social

networks will continue to boom among the young targets.

TAMS and RAMS to expand from 10 to 15 Key Markets

2010 NAMPS to include Rural Areas

New investment by Foreign Media companies

New Retail investment in Malls like we are witnessing in Lagos, Abuja and other major

cities

Outdoor Clutter to be more cleaned up - will result in higher Outdoor prices

Media Rates to be performance related not cost driven (ADVAN-MIPAN)

Digital/Online media will receive more adsend and investment as the digital divide reduces

Media Inflation to be reduced to single digit

LIFESTYLE ACTIVITIES

MEDIA USAGE & LIFESTYLE ACTIVITIES: TRADITIONAL

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Religious M

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0%20%40%60%80%

Chart Title

0%

20%

40%

60%

80%

100%

Chart Title

Past 4 Weeks

0%

20%

40%

60%

80%

100%Chart Title

BOTH

MALE

FEMALE

MEDIA IMPLICATION:

Like their exposure to the traditional media, Nigerians are

more disposed to watching home video via VCD, DVD.

Visiting Friends and attending Religious Meetings is also one

of the most common lifestyle of Nigerians.

TRADITIONAL MEDIA

MEDIA USAGE & LIFESTYLE ACTIVITIES: TRADITIONAL

BOTH

MEDIA IMPLICATION:

Radio

Watch

ed TV

Sighted O

utdoor

Read Newsp

aper

Read Magazin

e

0%

20%

40%

60%

80%

87%

63%52%

31%

16%

Chart Title

Liste

ned To Radio

Watch

ed TV

Sighted O

utdoor

Read Newsp

aper

Read Magazin

e

0%

20%

40%

60%

80%

100% 91%86%

69%

45%

20%

Chart Title

Liste

ned To Radio

Watch

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Sighted O

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Read Newsp

aper

Read Magazin

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0%40%80%

89% 85%67%

39%23%

Chart Title

MALE FEMALE

By implication, the Print Media has less penetration among

Nigerians. Caused by low reading habit among the general

population. Meanwhile Television and Radio could be said to

be the staple media. This means advertisers would spend

more on the electronic media than print.

Medium National Lagos South South South East South West North EastNorth

Central North West

Radio 89% 90% 89% 92% 91% 93% 88% 82%

TV 92% 96% 89% 94% 92% 95% 95% 85%

Outdoor 67% 51% 75% 75% 66% 73% 77% 57%

Posters 66% 55% 73% 73% 63% 73% 74% 57%

Internet 25% 27% 13% 29% 26% 25% 31% 23%

Newspapers 40% 42% 41% 44% 39% 42% 46% 32%

Magazine 28% 27% 33% 41% 20% 34% 30% 24%

Source: AMPS. Figures were based on Media Activities Past 4 Weeks. C2, C1, AB, Female, 25-34 Years, 35-49 Years

MEDIA PENETRATION BY NATIONAL & REGION

Traditional Media of TV, Radio and Outdoor have high penetration among Nigeria as a result of their

cheapness and mass appeal, Meanwhile, Newspapers’ penetration has lesser penetration because of

the economic situation ($1 A Day problem-poverty). Still Internet access among Nigerians is steadily

growing among Nigerians.

ISSUES IN NIGERIAN MEDIA

• FURTHER AUDIENCE FRAGMENTATIONTV and Radio

• UNSTRUCTURED RATE INCREASES First Newspaper Circulation Check Certified by

Advertisers Association of Nigeria (ADVAN March – April 2009)

Low Print Orders – Supplies (295,000) and sold (205,251) Top 7 Newspapers

Rates Based on Cost not performance

RESEARCH DATA SUPPORT FORGood for Clients

• ENERGY SUPPLY CRISIS AND ELECTRONIC MEDIA

• COMPLIANCE & MONITORING REQUIREMENTSDebt SituationNegotiation

TELEVISION

TV Stations Watched Yesterday Total Audience

NTA Any (45 STATIONS) 26,312,978

AIT Any (10 STATIONS) 18,684,919

Channels Any (2 STATIONS) 3,013,515Silverbird TV 2,902,446LTV, Channel 8 2,873,347

Galaxy Any (2 STATIONS) 2,340,224

TV Continental (TVC) 2,156,648MiTV 2,087,737OSRC Akure 1,914,253

RSTV Port Harcourt 1,521,771Superscreen 1,506,151

GTV Channel 25, Abeokuta 1,428,284Katsina State TV 1,419,876Delta TV Asaba 1,205,034

BCOS Channel 28, Ibadan 1,042,009DBS Warri 1,020,781Ekiti TV 1,018,414ITV Benin 1,002,250

Silverbird TV, Benin 996,747

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18,684,919

TV Stations Watched Yesterday

• NTA with 45 network stations leads others combined leads and in most States outside

Lagos is the No. 1 or 2 station AIT follows in No.2 spot with AIT Lagos contributing 2.2m

viewers. After the top 20 stations, daily audience per station when measured on a national

scale drops off rapidly, however some stations within their states/ area of broadcast are

dominant.

MEDIUM STRENGTH AND AUDIENCE PATRONAGE

TV TRANSMISSION HOURS

• Average – 8 – 24Hours Weekends

• 4p.m – 12 Midnight, Weekdays Peak 9 -10p.m

• Only NTA Network is received Nationally, In Nigeria during Network News and Programmes, AIT Network currently covers only 8 locations.

• Cable stations DSTV and HITV runs 24 hours

• The Private Stations in conjunction with State Tv Stations have the potential of creating alternative Network transmission during Major Sporting Events under the platform Broadcasting of Nigeria (BON)

• key Programmes generating high audience amongst mums are: – Superstory (Local Soap Operas circled around families daily life

issues mostly for women and children)– News –Network News and Newsline on Sundays mostly Softsale

contents of industry events, Political News and National News.– One Love – Family oriented drama featuring father, mother and

very sharp and intelligent kid about 10-14 years.– Dear Mother – Featuring career oriented busy single mother with

grown up teenagers and grand mother

Content, Product Placement & Sponsorship

Nigeria TV - a market open for advertisers to provide content

• One of the challenges is that of content

• Content that will attract audiences

• Be entertaining

• Be relevant for particular audiences

• Have quality production values and standards

• In most parts of the world TV stations commission content from Content Providers or Independent Producers. IP’s also approach TV stations to sell to them content or programmes, the TV station provides the airtime and generates revenue from ad sales. Not in Nigeria.

• Here the mode of business is ‘Go bring money’ to quote Nigeria’s leading content provider Bayo Adebiyi MD Proudly Africa Media. ‘ It’s a cash and carry’ business. the CPs or IPs pay for everything - Production and Airtime. They also sell the ads and programme distribution is limited to participating TV stations.

• Prohibiting factors - Up front payments and High Production costs

• Opportunity to get involved up front

• Most FMCG brands have over the years been involved from Superstory sponsored by Unilever to Maggi Chef, Milo Kids, Ribena’s KKB to the latest trend - Reality TV. This the breweries, gsm companies and now the Banks are taking to new levels

Content Provision Case Study - Nigeria: Radio Drama Shows Dramatic Results

Source: Population Media Center (PMC)

• Key learning: Use of language of area, use local writers, Involve through storyline over timePMC’s

radio serial drama, Gugar Goge (“Tell me Straight”) went on air in June 2006 broadcasting throughout

Kano and Kaduna in Hausa. The program aired on Radio Nigeria-Hausa Service and FM 96.5. After a

few months the program displayed impressive results.

Objective:The serial drama is aimed at preventing obstetric fistula, through delaying marriage and the

onset of childbearing until adulthood. Rotary is doing surgical repairs for fistula victims. PMC’s program

not only models behavior that will prevent the condition, but it also encourages fistula victims to seek

help for the treatable problem.

Results:PMC Center partnered with Planned Parenthood Federation to conduct a preliminary

monitoring report based on client exit interviews at three clinics, one hospital, and one basic health post

in Kano and Kaduna.

663 clinic exit interviews conducted. After two and a half months of broadcasting, 44 percent of all

clients had listened to the program. In all, 30 percent of the reproductive health clients and 47 percent

of the fistula clients said that the serial drama was their primary motivation for seeking services.

Content, Product Placement & Sponsorship

With Outdoor/ OOH we have the Standard Formats for mass reach, but the opportunities for attracting attention and standout - ‘talkability’ are endless and are only limited by Timing, Budget, Location and the Imagination

Outdoor Formats in Nigeria

BILLBOARD SIZES IN NIGERIA

• Gantries

• Gantries 9Span across the Road)

• Bridge Panel

• Pedestrian Bridge

• Mobile Adverts (Commercial)

• Mobile Adverts ( Non-Commercial)

• Digital Electronic Billboard

• Liquid Crystal Display (LCD)

• Spectacular

• Lamppost

• Inflatable• Indoor Outdoor Wall Sites

BILLBOARD SIZES IN NIGERIA

• Super 48 sheets ( High street)

• Super 48 sheets (Restricted Area)

• Super 48 sheets (Normal)

• 96 sheets ( Non-Illuminated)

• RoofTop

• Backlit

• Portrait (Minimum size 3m x 6m)

• Ultrawave

• Unipole

• Wall Drapes

Bus Shelter located at various Bus Stops POS Dynascan Shoprite/ Galleria - 3600 TV

Unipole 1, 2 or 3 facings Cross Road/ Gantry

Outdoor Examples

OOH

In-door Digital Display Screens

Digital Led Screens

See our ‘Going Digital’ Our Nigeria’s Digital Media Database for information

Street Pole Ads Lamp pole

Mobile Advertising Truck

Super 48 Sheet Portrait

Brand Replica

OOH CONT’D

WALL DRAPE

HELIUM/INFLATABLE

Moving display

Bus Branding/Transit Advertising Displays

Flying banners

Pop-up boards

Key Media Players

Nigerian Television Authority (NTA)

African Independent Television (AIT)

Silverbird Television

Independent Producers

Nollywood

Freedom Fm Kano

Cool FM

Rhythm FM

Star FM

Federal Radio Corporation of Nigeria (FRCN)

Silverbird Cinemas

Nu- Metro

National Theater

Optimum Exposure

PMO Global

Wetherheads

Afromedia

Sun

Punch Newspapers

Vanguard

Guardian

Thisday

Businessday

The Nation

DSTV

HiTV

MyTV

Daarsat

Yahoo

Google

Facebook

Twitter

Youtube

Goal.com

Television

Radio

Cinema

Outdoor

Newspapers

True Love

Genevieve

City People

Hints

TW (Total Woman

Magazine

Pay/Satellite TV

Websites

Television (AIT @ 163% Increase)

Market 2010 2011 2012 2013 INDEXCost = 100+ 14 8 4 8 134Aud. = 100+ 2.83 2.83 2.83 2.83 111

Aud. Weighted Plan Cost per Aud. Market 100+ 14 4.7 1.03 4.93 125

Television (AIT @ 50 % Increase) Market 2010 2011 2012 2013 INDEXCost = 100+ 5.1 8.3 4.2 8.5 126Aud. = 100+ 2.83 2.83 2.83 2.83 111

Aud. Weighted Plan Cost per Aud. Market 100+ 5.2 5.3 1.34 5.52 117

TV Inflation Forecast 2010 - 2013

The main driver of TV inflation in Nigeria is the AIT 163% increase in rates without a significant increase in audience rating, has a projected cost index of 134 by 2013. Although, it has been rejected by the industry. Meanwhile, if the industry negotiates its down to 50% increase, it projected that by 2013, the index should be 126.


Buying 100 GRPs in Lagos is twice as expensive as the national

Average. This is as a result of fragmentation and frequently inflated

rates. While in other regions, 2 stations will deliver 100 GRPs

because of little or no fragmentation of the audience.

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11690 83 78 67 59

REGIONAL COST INDEX BREAK DOWN-TV

TOP 20 BRANDS JAN - JUNE 2009

2007 full Year Local

currency'000s

2008 full Year Local

currency'000s

2009 half year local

currency'000s CHANGE % 2008/2007

1 MTN 2,602,622 5,782,045 3,690,452 1222 GLOBACOM 1,261,706 3,469,520 3,122,799 1753 ZAIN 1,833,958 7,379,709 2,843,371 3024 ETISALAT(EMTS) 0 1,322,600 1,728,013 5 UNITED BANK FOR AFRICA 538,443 1,473,082 1,071,554 174

6 INTERCONTINENTAL BANK PLC 309,389 1,410,642 838,945 3567 BANK PHB PLC 562,716 1,593,972 680,737 1838 NOKIA PHONES 595,147 919,883 662,351 559 PEAK MILK 674,605 1,153,350 512,733 7110 SKYE BANK 508,991 920,572 409,055 8111 GUINNESS STOUT 1,179,219 1,614,887 381,283 3712 ZENITH INT' BANK 209,071 320,028 406,483 5313 PEAK CHOCO 0 145,748 341,326 14 STAR 683,427 871,734 665,337 2815 INDOMIE NOODLES 1,179,219 582,716 295,087 -5116 DETTOL 381,507 457,934 477,539 2017 FIRST BANK 259,563 608,982 305,476 13518 MALTA GUNNESS 33,778 634,690 305,476 1,77919 CLOSE UP TOOTHPASTE 323,679 610,305 255,506 8920 KIA RANGE 202,954 121,629 249,127 -40

TOTAL 13,339,994 31,394,028 19,242,650 135

Top 20 Advertisers 2007-2009 Half Year

TOP 20 SPENDING PRODUCT CATEGORIES 2007 2008

2009 (Half Year Jan - June)

CHANGE %

2008/20071 COMMS AND TELECOMMS (GSM) 6,724,844 19,947,967 7,024,845 1972 BANKING AND FINANCE 5,706,036 11,339,729 4,488,577 993 ENTERTAINMENT, LEISURE, TOURISM 5,249,822 5,978,485.0 2,981,943 144 CORPORATE 856,558 3,166,101 1,892,181 2705 BEER 2,882,945 3,883,803 1,625,000 356 MOTOR VEHICLES 801,646 1,722,850 1,178,530 1157 MALT DRINKS (NON ALCOHOLIC) 1,076,460 1,722,850 841,700 608 MILK AND DAIRY 1,251,169 1,635,913 636,686 319 COCOA/MALT/CHOCO BEVERAGES 502,088 989,821 614,314 9710 EDUCATION 412,370 428,370 605,623 411 TECOM ACCESSORIES 897,152 1,651,158 602,463 8412 SKIN CLEANSING 615,778 801,499 467,560 3013 PASTA /NOODLES 1,820,599 752,484 412,813 -5914 ORAL CARE 550,417 574,865 411,933 415 CARBONATED SOFT DRINKS 986,747 1,257,451 372,175 2716 TRAVEL AND TRANSPORT 372,617 691,029 355,771 8517 ELECTRICAL GOODS 557,525 945,351 350,179 7018 SEASONING(SAVOURY) 588,558 657,554 305,202 1219 ENERGY DRINK 81,504 82,846 292,336 220 HOTEL & CATERING 314,200 317,035 249,371 1

TOTAL

23,298,311.00 58,547,161 25,709,202 151

Top 20 Category 2007-2009 Half Year

TOP 20 FMCG BRANDS 2007 2008 2009 half year local

currency'000s CHANGE % 2008/2007

CHANGE % 2009/2008

GUNNIESS STOUT 1,179,219 1,614,887 637,009 37 STAR BEER 683,427 871,734 524,343 28 PEAK 674,605 814,049.0 513,267 21 DETTOL 381,507 457,934 477,539 20 MALTA GUNNIESS 333,778 634,690 463,847 90 INDOMIE NOODLES 1,151,578 582,716 295,087 -49 CLOSE UP RANGE 323,176 348,645 256,752 8 LUCOZADE BOOST 193,760 244,721 223,549 26 MALTINA 369,812 539,125 213,478 46 GULDER 568,824 671,755 194,425 18 HEINEKEN BEER 213,873 302,520 184,034 41 COCOA COLA 330,231 246,962 174,757 -25 YOYO BITTERS 352,106 172,941 MILO 186,047 157,930 162,763 -15 BOURNVITA 183,362 268,228 140,405 46 COWBELL RANGE 143,757 301,049 117,702 109 PANADOL 114,768 32,183 114,861 -72 LIPTON TEA 99,696 111,516 DRUMMER AIRWICK 106,948 88,604 101,490 -17 PAMPERS 99,430 93,299 95,328 -6

TOTAL 4,727,290.00 8,722,833 5,175,093 85

Top 20 Category 2007-2009 Half Year

WHAT IS NEW?

1. Growing Internet Audience

2. Social Networks/ Mailing Platforms

3. Digital Out of Home LCD Outdoor brads

Indoor Display Screens

In-Transit Displays Screens

Mobile Vans/Bus Shelters

• 43.9 million Nigerians have access to the internet

• Nigeria currently has over 60 million mobile phone users- www.ncc.gov.ng

• Nigerians spend more time on their mobile devices than on their pc/laptops – social networking and playing online games.

• 84% post a personal message each week on their social network and 82% chat online.

• 57% upload a photo each week on their social sites.

• Over 10 million page views on BBC mobile from Nigeria alone monthly- BBC

• Opportunities:– Consumer engagement platforms: internet and mobile devices. – Increased Viral messaging and marketing– Consumers become brand ambassadors– Increased awareness and visibility for brands at reduced cost

Source: A report from the ITU Conference, 2010 (International Telecommunication Union)

Basic Facts…

http://www.ncc.gov.ng/

Digital Media Trends

Digital media has been growing steadily in Nigeria in recent times. Consumers now make use of their mobile

phones to send SMS, browse the internet, send email and view/listen apart from using it to call

their friends and families.

SMS replacing greeting cards exchange in Nigeria. People now use SMS to send greetings to

their loved ones during special occasions like Birthdays, Christmas, Valentine, Mother’s day

etc. Greeting cards are no longer selling due to this trend.

Internet has also become another major means of reaching consumers in Nigeria as brands

now take advantage of the internet to advertise their products. The financial sectors are

making good use of this medium especially during IPO’s, application forms could be download,

filled and submitted online. The internet has become status symbols as brands that are not on

net are seen as not viable brands. The internet is seen as status conferral in Nigeria.

Newspapers are now online on the internet for readers to read. This trend has greatly reduced

newspapers patronage in Nigeria, but provides cross media buying opportunity.

Information on Nollywood and films to be shown at Silverbird Cinemas for a particular day can also

be gotten through the internet.

Advertisers are now looking for ways to use mobile phones to advertise their products without

necessarily irritating the consumers as they believed that the mobile phones is always with

consumers 24/7.

Advertisers are also looking for ways to use traditional media differently.

Digital Media Trends

Source: NCC, Teledendity Report 2009, www.ncc.gov.ng

Mobile Trends

2001 2002 2003 2004 2005 2006 2007 2008 20090

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

266,461 1,569,050 3,149,209

9,174,209

18,295,895

32,184,861

40,011,296

56,935,98559,510,629

GSM FIXED WIRELESS CDMA

• Current telecoms subscribers indicates a huge potential in mobile marketing for advertisers on the platform of GSM. In recent times, many advertisers have taken advantage of the platform in the areas of SMS promotion and advertisement, WAP ad placement etc.

See our ‘Going Digital’ Our Nigeria’s Digital Media Database for more information

MALE

FEMALE

DIGITAL/NEW MEDIA

Radio/TV Talk Show-SM

S

Radio on Mobile

Phone

Used Email

TV Mob. P

hone

Email on M

ob. Phone

Sales Pro

mo Thru SM

S

0%20%40%

Chart Title

Past 4 Weeks Music

On M

obile Phone

Radio on Mob. P

hone

Used Email

TV On M

obile Phone

Email on M

obile Phone

Event Pro

mo Thru SM

S

0%20%40%

Chart Title

Past 4 Weeks

Music

Thr iPod

Used Email

Event Pro

mo Thru SM

S

Radio Thru M

ob. Phone

Radio/TV Talk Show-SM

S

Email Thru

Mob. P

hone

0%15%30%45%

Chart Title

Past 4 Weeks

MEDIA IMPLICATION:

Digital penetration is low among Nigerians, Current trend

shows that its usage is growing among Nigerians. Advertisers

are currently budgeting and using the medium to target

young educated adults. See our ‘Going Digital’ Our Nigeria’s Digital Media Database for a detailed information.

BOTH

1.Growing Internet Audience/Penetration

Source: AMPS

2010

2009

2008

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

29%

22%

13%

Nigeria Internet Usage Trend

Trending the growth from 2008 to 2010, Internet Penetration in Nigeria has increased with about 7% in 2010 as a result of cheaper Internet access, Increase in access points and formats e.g. Mobile, Laptops, PCs etc.

New Media Suppliers

Nvox Innovations (specializes on SMS/IVR, Banking transactions alert, etc)

Shouting SMS (Specializes on SMS/IVR)

Itouch (Specializes on ringtones/wallpapers/screen savers downloads, charting, SMS/IVR, etc)

Cellulant Technology Park (Mobile entertainment services – ringtones, wallpapers, SMS)

Seed Media (Yahoo! Inc. & MSN Representatives in Nigeria)

Wildfusion (Facebook Representatives in West Africa)

Mtech (provides ringtones, SMS/IVR, wallpapers download, etc)

Vibe Download (provides ringtones, SMS/IVR, wallpapers download, etc)

Enownow (Socio networking forum site)

Text-Nigeria

etc

Source: AMPS

Where Used the Internet

At Wor

kplac

e

At Own

Home

At Ano

ther

's Hom

e

At Coll

ege

At A C

yber

cafe

At Sch

ool

On

Mob

ile P

hone

Oth

ers

0.00%20.00%40.00%60.00%80.00%

100.00%

6.70% 4.90% 1.20% 0.80%

89.80%

3.90% 1.10% 0.60%11% 10% 2% 4%

81%

5% 5% 3%

2008 2009

Although Cybercafé is the single most important place where Nigerians access the Internet, Other

means of accessing the Internet are increasing. Access at Workplace 6% in 2008 to 11% in 2009.

Internet access via Mobile phone has risen from 1% to 5%. Access points like School, Home and

Others have witness increase from 2008 to 2009.


Activities On Website Visited MO

Email

s

Info

rmat

ion

Chatti

ng

Schoo

l Rela

ted

Sports

Browsin

g

Enter

tainm

ent

Emplo

ymen

t

Tradin

g0%

10%20%30%40%50%60%70% 62%

39%

12%7% 5% 5% 3% 3% 2%

Nigerians surf the Internet for sending and receiving mails. Information and Chatting is also increasing. However, the boom in the use of social Networks such as Facebook and others might make chatting and Information be at par.


Website Visited

Yahoo

.com

Goo

gle.c

om

Faceb

ook.

com

Hotm

ail.c

om

www.MTN.c

om

Oth

ers

0%

10%

20%

30%

40%

50%

60% 52%

23%

2% 2% 1% 4%

Yahoo.com is the leading website 52%. This lead is buttressed by the use of the Internet for Mail purpose. Google.com follows as a result of its popular use for Internet search. Facebook, a social network website and Hotmail are also visited MO by Nigerians.


Social Network

As at April 2009, Facebook has at least 350,000 Daily Unique Users, making the country the fastest

growing Facebook community in Africa. Facebook users in Nigeria cut across all demographics with

a dominance of visitors between the ages of 16-40yrs. Facebook users are the urban, educated,

mobile and active population.

Source: http://www.facebook.com/advertising/Ben Lorica O’Reilly Research radar.oreilly.com/research radar.oreilly.com/ben twitter.com/dliman

Social Network

Monthly Page Impressions and Unique users• Homepage Ads

• Daily Active users: 348,000• Ad Impressions: 213 million

• ASU Ads• Monthly active users: 1.1 million• Ad Impressions: 3.36bn

Statistics and Demographics

6%

33%

44%

16%

13-17 years18-24 years25-34 years35+

Age Group

66%

34%

Male Female

Gender

• As at August 31, 2010, there are 1,075,000 Nigerians active on FB• Dominance of visitors between the ages of 16-40yrs: urban, educated, mobile and active population.

• The Facebook growth rate among Nigerian users is at an exponential rate.

• March, 2009: about 220,000 Nigerians on Facebook.

• March 2010: about One million Nigerians on Facebook.

http://www.wildfusions.com

http://www.wildfusions.com/

Who is Using Facebook?

Many advertisers are using Facebook to market their brands. Top 10 advertisers are also dominant:

GTBank

MTN

GLO

Etisalat

Zain

Unilever and many others are advertising to the Nigerian Facebook community.

Nigeria is the largest user of Yahoomail . As at April 2009, an average of 7million Nigerians are unique

users daily on Yahoomail. Unlke Facebook where major ity users are between the age of 16-40 years,

Yahoomail’s audience cuts across all the demographic and psychographic strata of the society.

Moreover, many advertisers are advertising on Yahoomail. From the top 10 advertisers to financial

services, utilities and other product categories: Unilever and many others are advertising to the Nigerian

Facebook community.

Mailing Platforms: Yahoomail

Source: Yahoomai Analytics supplied by Seed Media, the Country Representative of Yahoomail in Nigeria.

Rates & Cost Implications

All other things being equal, it will cost N1288 (on average ) to buy 1000 impressions and about N1.2mllion to buy 1million impressions on any of the leading websites such as Yahoomail and Facebook. It is however predicted that rates might increase as more advertisers continue to use the platforms.

*Rates provided by Seed Media

Issues and Concerns

Nigeria has AMPS conducted yearly and four quarterly Radio and TV diaries (TAMS & RAMS).

Concerns on Sample size, structure and length of questionnaire, encoding

Difficult to get LSM 10 or AB Social Class respondents

Underweighted at top end overweighted at bottom end but has been addressed.

Fine for brands targetting middle to lower LSMs and CDE Social classes. Not so for top end Brands and Media

Radio data low/suspect as stations only have 100km broadcast radius by law (Like Community Radio)

Software antiquated and cumbersome. Cannot do accurate ¼ ratings only Mon-Sun and timebelt averages

Telmar and MPS in discussions/tests

ADVAN-MIPAN and NPAN constituted ABC January 2008 following two years of discussions and development. Yet to get off

ground.

June 2008 NPAN pulled out of ABC planned and the body is still imaginary.

Media Research Data

Audit Bureau of Circulation

Issues and Concerns

Level of Compliance was between 65% and 75%. Some clients are now achieving up to 85% to

95%. Initiative instituted Compliance Award for those achieving 95% to100%

Need to sit on Monitoring companies to ensure accuracy and quality recording/reporting

Competition (Audio Auditing) entering market and existing companies like MMS and Mediatrak are

now forced to up their game.

Media Monitoring Services provides data, however at ROS rates. 25% to 150% under reporting as

most advertisers pay some form of Fixed Time and Sponsored Programme Production costs. IM

have developed a gross up factor to reflect reality for budget setting.

As with Compliance Monitoring we have to sit on research suppliers and Monitoring companies to

ensure quality of data and monitoring

Compliance Monitoring

Share of Voice and Adspend

Change in shopping habits with government drive to be a modern example society

And the change is beginning with the emergence of modern trade - large supermarkets and shopping malls. Transition from shopping in the ‘Open market’ to these shopping malls is happening as shoppers seek choice, quality, hygiene, price, environment and entertainment

Advertisers need to upgrade in-store POP from tinplates and poor display to communicate in these emerging environments. However we still will have for a while the majority of shoppers using the ‘open market’ and we have to find ways to upgrade POP in ‘Open markets’ and Neighbourhood shops

Open market Lagos

BusinessDay 07/10/07

In Shoprite in The Palms Mall

In-Store & Point of Purchase (POP)

More Open Markets


Abuja Poultry marketJos Main Market

Open market in S.E. Open market Lagos


Small Supermarket


Neighbourhood shop

In Shoprite in The Palms Mall

Inside The Palms Mall Lagos

Government demolishing untidy, unclean markets and encouraging traders to operate from Retail malls

View of an Oshodi Open Market LagosBefore After


From Rural Roadshows, Market storming to Modern trade,face to face education, communication, sampling and selling

Experiential and Sampling

Thank you.

The Nigeria Media Scene Nov 2010 Abridged

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