Home News Unemployment…Creative sector to the rescue

Unemployment…Creative sector to the rescue

by easyclick
Spread the love

With over 60 per cent of Nigeria’s population under the age of 35 and youth unemployment a challenge, the creative industry is capable of creating meaningful and rewarding jobs for them. However, this will not be achieved if the major source of revenue for the sector, which is advertising, is performing far below par, Assistant Editor (Arts) OZOLUA UHAKHEME reports.

Worried by the Nigerian media advertising industry below average performance relative to the country’s Gross Domestic Products (GDP), the Federal Government has resolved to establish a Task Team of industry experts to work on three objectives to redress this development, according to Information and Culture Minister Alhaji Lai Mohammed.

Members of the Task Team are Alhaji Garba Bello Kankarofi, Mr. Obi Asika, Hajia Sa’aa Ibrahim, Mr. Mahmoud Ali Balogun, Mrs Pauline Ehusani, Mr. Joe Mutah and a representative of Association of Advertising Agencies of Nigeria. The Task Team will be inaugurated at a date to be announced.

According to the minister, the team is expected to identify best practice audience measurement system that will support the sustainable growth of the Nigerian creative industry, recommend a framework for supporting the sustainability of the audience measurement system, independent of the Federal Government and recommend a payment and disbursement framework among the key stakeholders in the industry.

The minister, who spoke at an interactive session with members of the Association of Advertising Agencies of Nigeria (AAAN), in Lagos, said bringing the Nigerian TV advertisement market up to par could result in additional $400 million of revenue to the industry, based on current comparisons with other African countries. This, he said, is our next task and ‘we invite all well-meaning practitioners of this industry to join hands with us to achieve this.’

He stressed that there is a need for an objective and scientific audience measurement system that articulates the value of the content to consumers as well as the value of the audience to advertisers, particularly in the television sector but also in the outdoor segment.

He identified lack of authentic and real data as a great challenge to the advertising industry, noting that the Nigerian media advertising total industry volume has historically performed below the global average benchmark relative to the country’s GDP, when compared with leading global and African markets (despite Nigeria’s position as a leading African economy).

“In 2018, Price Water House reports that Nigeria’s total advertising revenue performed very poorly (0.12 per cent), when compared with South Africa (0.83 per cent), Kenya (0.35 per cent), Ghana (0.29 per cent) and even Tanzania (0.18 per cent). This is attributable directly to a lack of measurement and currency of trading, a most basic requirement in all developed markets for the success of the production industry,” he added.

He stated that the current value of the Nigeria television advertising market is estimated at $200 million, despite a population of about 200 million, which translates to $1 per  person adding that in Ghana, its $3 per person, in South Africa, its $18 per person and in Kenya $7 per person.  He reasoned that if Nigeria reaches Ghana’s level of spend, this would triple the size of the TV advertising market to $600 million per annum, which is an extra $400 million per annum. And 90 percent or more of this increase would go directly to the businesses and the talents creating the content.

“This challenge has resulted in under-investment in the sector, which is necessary to foster the growth of the industry. The advertising community continues to rely on subjective factors when making decisions on the content they want, as opposed to how many viewers the content truly attracts.

“As a consequence, television platforms are subjected to renting out space on their channels to sustain their businesses, while content producers have become increasingly over-reliant on sponsorship, which unfortunately skews the authenticity of their creative output in favor of a few decision makers, instead of the millions of TV viewers.

The existing model will never enable the Nigeria’s Creative Industry to reach its full potential. It stunts the quality of the content that can be created and also limits the capacity of television platforms to invest in dynamic offerings that consumers will be attracted to.

“Also, the value of Nigeria’s Broadcasting Advertising Market is not proportionate to the country’s population, when compared to the top 3 markets in the Sub-Saharan Africa region. Despite having a population more than three times that of South Africa, Nigeria’s Television Advertising Revenue in 2016, US$309 million, was 76percent behind that of South Africa (US$1,301 million).  By the end of 2020, the gap between South Africa and Nigeria is projected to marginally decline to 72 percent,” he said.

Mohammed also observed that similarly in the radio sector, the value of Nigeria’s 2016 advertising revenue of US$81 million was 75 percent behind its peers, South Africa and Kenya, both at $343 million.

In both countries, he said the value and growth rate of the broadcasting advertising revenue is largely influenced by the availability of a scientific audience measurement system that provides confidence to advertisers in measuring their return-on-investment.

For the minister, it is thus imperative that ‘we urgently put in place an industry framework that will ensure that content producers receive their just due for the value of the content they create, as well as provide objective guarantees to the advertising community on their return-on-investment on media placements. This will then have the overall effect of guaranteeing greater spend by the advertisers, who are all seeking to grow their market share.’

This industry framework, he added, can only happen if the Ministry of Information and Culture acts as a catalyst for putting in place a robust audience measurement system that is in line with global standards and supports the realisation of the immense potential that the Nigerian creative industry.

Continuing, he said: “The Federal Government has already taken a critical long-term decision to support the Nigeria Creative Industry by ensuring and funding the inclusion of a middleware that is capable of scientific Audience Measurement on FREETV DTT Set-Top Boxes.

Currently, government is expected to subsidise signal distribution because the Channels cannot pay for the carriage of their channels by the licensed signal distributors, who on their part have invested in equipment and technology for Digital transmission. Things cannot continue like this and the economics of the Channel owners has to change. Government cannot fund television forever. We must create a sustainable ecosystem.”

AAAN Board of Trustee chairman Sir Steve Omojiafor, who led the members to the interaction, commended the minister for honouring the association’s invitation after many ‘futile’ attempts to reach him. In his remark, Vice President of the association, Mr. Steve Babaeko sought the minister’s intervention in reconstituting the APCON council, the absence he described as an airport without a control tower.

“The legal arm with which we can make sure that all the laws enacted to bring APCON to be and the laws that can guide advertising to play its role in national development, without the APCON Council, we are hamstrung. We can simply not function. We definitely need you to helpin this regard,” he said.

On the seeming gap between the ministry and the advertising industry, Babaeko wished for a better, closer and improved relationship. He noted that as professionals they really want to serve. He also used the opportunity of the session, which the minister described as ‘family meeting’ to seek the minister’s consent to be at the association’s annual general meeting holding later this year in Abuja.

 

You may also like

Leave a Comment

Powered by Live Score & Live Score App