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Whereas advertising expenditure of Nigerian telecoms hovered at N81bn this year, a far cry from 2018 N88bn, a report released by Business Hilights Intelligent Unit (BHIU) on Sunday in Abuja, showed that spending in 2020 will surpass 2019.
BHIU, an independent member of Media Hilights Group, publishers of Business Hilights online news channel, specializes in business intelligence and market research for both local and international entities in need of her services.
The report averred that “Though spendings by Nigerian firms in both banking and telecoms segments on advertising slowed in 2019 due to general economic stress on the populace occasioned by government’s policy inconsistency, weak fiscal and monetary policies synergy, inflation and weak disposal income of many Nigerians to buy into telecoms and banking services with ease, the emerging chances of having a national budget passed early enough may spark off high customer chase in 2020 which will translate to mega advert spending.”
“Come 2020, there are strong indications for serious customer chase amongst telecoms and banks as Mobile Money (MoMo) activities are expected to take centre stage as Nigeria innovates to full digital economy.
BHIU Report further averred that “In response to the new CBN’s policy on LDR coupled with planned recapitalization in the banking sector, banks will be left with no other option than to step up customer loyalty campaigns with innovative fintech services.
“Going forward next year, telecoms brand war may rage higher following the hurried launch of 5G by MTN Nigeria recently in Abuja. This is based on the fact that there will be high veiled contest amongst telecoms in terms of brand loyalty in the areas of seamless service deliveries on new services and existing offerings.
“A pointer to the expected stiff competition can be observed from the recently released industry data from the regulator, the NCC which showed that Globacom has crossed the 50 million customer-base mark just last month.
“With the feat, the stage may be set for MTN Nigeria and Glo to fight to finish in terms of brand loyalty come 2020 and the fight will be based on a number of factors including quality of service, new services and deepening financial inclusion with innovative products.
“However, MTN Nigeria may have stepped forward earlier enough this year with the securing of MoMo licence from the CBN and it had since been penetrating nationwide with its Agent Banking mop up and awareness crusades.
According to the BHIU Report, “Other telecom firms mainly Airtel and 9Mobile may spark off surprises with innovative products as part of their drive to shore up subscriber base.
“In general, both banks and telecoms will serve as leading pivots of the expected economic jump towards fourth industrial revolution from 2020 and the reversed national budgeting calendar of the federal government which will for the first time, since after the military rule, start from January, will serve as trigger.
“In all, the build up to follow up the new budgeting calendar, will among other things, trigger early enough, corporate spending on advertising and media spending as a way of driving relevance in the economy after all,” the BHIU Report added.
“On the dimension of the projected advert push, whereas visibility on the tube (TV), newspaper and outdoor advertising will remain dominant, more banks and telecom giants will enter online advertising considering skyrocketing penetration of internet access via android and other smartphones and devices.
“Otherwise, 2020 will see Nigerian banks and telecoms measuring up with their peers in the US and EU in terms of visibility on the internet using several platforms including online publishing outfits and other forms of corporate visibility formats.
According to the concluding segment of the Report, “Other sectors of the economy including energy concerns, property firms and even transport sector businesses will likely join banks and telecoms in advert spending as a way of raising their game and sectors’ investment drive come 2020 and beyond,” the BHIU Report concluded.
Speaking at the launch of the Report document in Abuja weekend, founder of Business Hilights Group, Prince Stan Okenwa agreed that “Nigerian firms are clearly becoming technology-savvy in driving their businesses especially in the last couple of years when it became clear that internet presence remains the key to success in every sector.”
Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.