LAGOS – A new report commissioned by the Advertising Regulatory Council of Nigeria (ARCON) and funded by various industry associations has shed light on the advertising sector’s contribution to the nation’s Gross Domestic Product (GDP), its value and multiplier effect, which it put at N605. 2 billion and multiplier effect at N1 to N16.5.
The report was carried out by PricewaterhouseCoopers (PwC) and presented to stakeholders today at a media briefing in Lagos.
Speaking at the unveiling, ARCON Director General Dr. Olalekan Fadolapo expressed optimism about the industry’s recent strides, including the launch of an Audience Measurement initiative last week. He thanked the sectoral groups including the Experiential Marketers Association of Nigeria (EXMAN), Association of Advertising Agencies of Nigeria (AAAN), Outdoor Advertising Agencies of Nigeria (OAAN), Media Independent Practitioners Association of Nigeria (MIPAN) and the Broadcasting Organisation of Nigeria, (BON) for funding the study.
Strongly emphasizing the need to quantify the industry’s size and impact as an economic enabler, Dr. Fadolapo remarked, “We cannot continue to guesstimate the size of the industry. This report lays the foundation for us to assess the advertising space and its multiplier effect on the economy every year going forward.”
Fadolapo added that the findings of the report underscore the industry’s paramount role as a catalyst for consumer demand, business expansion, employment, and innovation across sectors.
As part of strides that ARCON has undertaken to advance the growth of the industry, Dr Fadolapo added that in addition to the Audience Measurement and the GDP Multiplier effect report, the apex regulatory body is also set to hold an event on the audacious rebrand Nigeria project that it had undertaken alongside other projects as part of resolutions from the communique of the National Advertising Conference.
Tunji Adeyinka, Chairman of the National Advertising Conference, provided context on the study’s genesis. He explained that the 2022 conference highlighted a gap in understanding the industry’s GDP contribution, prompting the decision to engage PwC for a credible assessment.
He added that the report examined two key aspects: the advertising industry’s direct monetary contribution to GDP and its multiplier effect – the amplified impact of advertising investment on overall economic output.
In his presentation, Dr. Femi Adelusi, Chairman of the Multiplier Study Committee, revealed the profound impact of Nigeria’s marketing communications industry on driving the nation’s economic growth.
Addressing critical industry stakeholders and members of the press, he presented comprehensive findings.
“The marketing communications sector has emerged as a formidable economic powerhouse. The study estimates that for every N1 spent on marketing communications in Nigeria, the nation’s GDP increases by a staggering N16.5 – a multiplier effect that highlights the industry’s substantial value contribution.”
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