Experts see digital Ad budget rising in 2017
by Daniel Obi
January 10, 2017 | 2:18 pm| | | Start Conversation
This year, some companies who want to attract the youth attention to deepen their product penetration are likely to increase their digital marketing investments in order to reach the category estimated in Nigeria at about 100 million, but some marketing communication operators have told the firms to apply caution in this strategy.
The advice comes on the heels of rising tide of Ad blocking in the internet coupled with the practice that most online content have not been resonating with some targeted audience, thereby missing the objective.
Kantar Millward Brown, global research agency specialising in advertising effectiveness, strategic communication, media and brand equity research, recently noted that to reach the youth, marketers actually need to develop creative content that appeals to the imagination and emotions of the Gen Z consumer, if they want to be accepted by this key group but cautioned that brands will have to create better connected consumer journeys that are less intrusive with a smarter and more measured approach that discourages Ad blocking.
Bolaji Abimbola, CEO of Indigo, a PR firm based in Lagos with the account of Nigerian Bottling Company in its portfolio noted that currently digital is the trend but companies investing in that direction need to ensure they have expertise for online content.
Though online advertising is the current trend to reach the larger audience of the market and for targeting purposes but Abimbola also observed that some companies are already cautious on this trend as credibility and ethical question surround the platform.
Abimbola who believed that the Integrated Marketing Communication industry would fare well this year as more companies would invest in publicity and politicking preparatory to 2019 election begins later this year, suggested the mix in the use of platforms including offline and online by companies to reach various audience.
Today, it is said that digital advertising is growing very fast from about N5 billion about 6 years ago to about N18 billion today which is over 10 percent of total above the line N93 billion Ad spend. Globally digital Ad is expected to grow to about $185.4 billion.
“Digital advertising has doubled in about four years. I think it will grow further to about 20 percent of the total advertising budget in a few years. Nigeria is a young market where almost 50 percent of the population is younger than 25 years. These guys are not watching TV everyday; they are more engaged with their mobile phones and other digital access points”, says another media expert.
Charles Igbinidu CEO of TPT International, a PR firm was convinced that companies would vote more budget for digital marketing this year as the platform would play more role in brand perception management. This, according to him is because the youth is getting more information online.
He also believes that online advertising is cheaper compared to other media platforms. Those employing digital marketing need to understand consumer targeting and learning about consumer behavior and how to connect to the consumer.
On the information that some clients are creating in-house departments for the marketing communication activities, Charles and Abimbola noted that the practice is not the best. Charles said the combination of internal and external consultants would be robust and effective for such companies. He said external consultants bring external perspectives to projects.
Recently, Steve Babaeko, the CEO of X3M Ideas, a creative agency that handles Etisalat believed that clients going for in-house-agency option is not a brilliant choice. “Firstly I think it is a major distraction for the clients, instead of focusing on the core of their essence which is to create great products they now get sucked into the daily hassle of running an Ad agency. Secondly, creativity suffers because just like most agencies may not become great manufacturers of products, most clients are not outstanding at running Ad agencies”.
Sometimes, it is said that in-house practitioners don’t tell the management the truth largely due to panic of the consequence.
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