Latest Mediafacts has revealed that Lagos State alone attracted N51. 7 billion which is 56.8 per cent of total N91 billion advertising spend in 2016.
Lagos is far ahead other regions as the closest is North Central which received N11 billion advertising expenditure amounting to 12 per cent while South-South attracted N8.9 billion which is 9.7 per cent. South West got N8.1 billion representing 9.7 per cent. South East N6.8 billion which is 7.5 per cent while North East got N0.1 billion.
The spread showed that TV stations in Lagos got N15 billion, Press N18 billion while outdoor and radio got N14 and N5 billion respectively. North East stations recorded no mentions of displays.
Top advertising categories showed that GSM service providers spent N16.4 billion in 2016 which is 18 percent of the N91 billion total spend. Personal paid advertisement recorded N7.2 billion amounting to 8 percent while Banking and Finance spent N6.3 billion. Corporate adverts stood at N5.8 billion, Beer spent N5.3 billion while soft drinks spent N3.5 billion in advertising. Noodles spent N1.9 billion.
On top advertisers, sundry advertisers accounted for N10.8 billion representing 12 percent. MTN, NBL, Airtel and Etisalat (9mobile) spent N5.6 Bn, N4.3 bn, and N3.8 bn respectively. Globacom spent N3.2 bn while Coke spent N2.7 billion. Out of N1.9 spent by noodles, De United Industries, maker of Indomie spent N1.8 billion.
However, there was 7% reduction in the value of total advertising spend for 2016 against 2015. The spend decreased from N97.9 billion in 2015 to N91.0 in 2016.
The drop, according to the Mediafacts, a key media resource for marketing professionals in West and Central Africa released by the mediaReach OMD could have been accounted for by the economic recession which started in late 2015 and certain policies of the present administration such as foreign exchange restriction which limited operations of companies.
In the recent time, manufacturers had decried the prevailing harsh business operating environment including, poor infrastructure, insecurity, import restrictions and high interest rate which had led to some companies downsizing or closing shops due to the worsening high cost of production.
The worsening environment led to many companies drastically cutting their marketing communication budget.
According to the publication, television stations attracted the highest advertising expenditure of N31.5 billion (35 percent of the total media spend) which was also a drop against N39 in 2015.
The document also put the advertising expenditure that went to the radio, outdoor and press stations at N12.6 billion (14 %), N28.8 billion (32%) and N18.1 billion, (20%) respectively. All showed decline from their figures in 2015.