A new report commissioned by the Advertising Regulatory Council of Nigeria but funded by industry associations has shed light on the advertising sector’s contribution to the nation’s Gross Domestic Product , revealing its value and multiplier effect.
Strongly emphasising the need to quantify the industry’s size and impact as an economic enabler, Fadolapo stated: “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.”
Chairman of the National Advertising Conference, Tunji Adeyinka, 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 further said 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.
According to the study, the total expenditure on marketing communications reached an impressive N605.2b in 2023, having grown at a remarkable compound annual growth rate of 18.7% over the past six years, from N216b in 2018.