COMPLETE SCHOOL PROJECT TOPICS & MATERIALS :
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Abstract
The study identifies the meaning of advertising and traced its earliest history in Nigeria. The study mentioned some of the new trends in advertising in Nigeria which include the practice of Integrated Marketing Communications (IMC); which is the combination of various marketing communication techniques like advertising, public relations, publicity, sales promotions, events marketing, etc, in carrying out a promotional campaign. Other new trends include the setting of up of some independent media agencies and international affiliations by many ad agencies in Nigeria. The study identifies proliferation of adverising agencies as one of the challenges facing advertising in Nigeria. Other challenges include poor economy, poor purchasing power and lack of enough trained advertising professionals. However, advertising in Nigeria has come a long way and has achieved some developments. Despite this feat, ad practice in Nigeria still needs a lot of improvement to compete with other countries in terms of advertising. The study suggests that professionalism in advertising practice in Nigeria should be pursued with increased vigour. There should be proper monitoring of advertising in Nigeria. APCON should establish more offices nationwide to enhance their operations. There should be improved welfare packages by employers to reduce proliferation of and agencies.
CHAPTER ONE
INTRODUCTION
Background to study
Advertising in Nigeria has grown from its earliest beginning of using the town criers to announce availability of goods and services to become a big industry in Nigeria. Advertising is now very important in the economy of the nation, considering the fact that it serves as a source of information about goods and services and also persuades consumers to patronize the advertised goods and services. The aim of this paper is to critically appraise the practice of advertising in Nigeria. The paper will discuss the development of advertising in Nigeria and the latest trend in the practice of advertising. The study will also appraise the challenges faced by advertising in Nigeria and the prospects of the industry. Suggestions will be proffered on how to improve advertising practice in Nigeria.
Different scholars and practitioners have variously described advertising to reflect their understanding of the concept. An attempt will be made to evaluate some of these definitions. According to Arens (1999:7):
Advertising is the structured and composed non-personal communication, usually paid for and usually persuasive in nature about products (goods, services and ideas) by identified sponsors through various media.
Furthermore, Encyclopedia Americana (1997:113) defines advertising as “the techniques and practices used to bring products, services, opinions, or causes to public notice for the purpose of persuading the public to respond in a certain way toward what is advertised”. Also, Osunbiyi (1999:8) posits that: “advertising is a controlled persuasive communication, paid for by identified sponsor(s), about products, services or ideas and disseminated through the mass media to a target group”. The Advertising Practitioners Council of Nigeria (APCON) in their The Nigerian Code of Advertising Practice defines advertising as “a form of communication through the media about products, services or ideas paid for by an identified sponsor” (2005:5).
A critical assessment of the above definitions exposes the following that advertisement must be paid for by an identified sponsor and that the aim of advertising is to disseminate information, ideas, etc., about goods or services and to persuade people to take action by patronizing the goods and services advertised. Daramola (2003:191) opines that the objective of advertising is to induce immediate action, to create liking and preference for a product or organization, and to create awareness about a product or service. Some advertisements also seek to build a respected corporate identity for a company, product, and brand name or make all familiar to the public.
The functions of advertising are well captured by the AIDA formula as postulated by Bel-Molokwu (2000). AIDA stands for Attention, Interest, Desire and Action. He states that the reason for every advertisement is to create awareness about products and services; which in turn elicits the interest of potential customers. Consequently, a desire to acquire the product is aroused. This finally leads to action. Action implies acquiring the product or services by potential customers.
In a World Federation of Advertisers and the French Advertisers Association (USA) commissioned to study the importance of advertising towards the economic growth showed three correlations that provide evidence of the impact of advertising on consumption, a key element of economic growth. As per the study the correlations are
The countries in which media advertising investment rate is highest are those in which the propensity for consumption is also highest.
An increase in the advertising investment rate is followed some months later by a rise in consumption.
The sectors which either undertake extensive advertising or which have increased their efforts in this field are experiencing greater growth (Nayaradou, 2006).
Advertising is a powerful tool of competition. It provides valuable information about products and services in an efficient and cost-effective manner. In this way, advertising helps the economy to function smoothly—it keeps prices low and facilitates the entry of new products and new firms into the market (Arrow & Stigler 1994).
Commercial advertising media can include wall paintings, billboards, printed flyers, radio, cinema and television adverts, web banners, mobile telephone screens, web popups etc. Today the fastest growing advertising segments are the internet and the mobile advertising. For example in USA since 2010 internet advertising growth has been fuelled by a 123% CAGR in mobile advertising compared to 12% in non mobile (PWC 2014).
Statement of problem
It is well known that economy drives advertising. When an economy is robust companies increase their advertising budgets. As per a recent estimate by Zenith Optimedia, spend on above-the-line advertising that is directed at mass audiences topped $465 billion globally in 2011, at the 2009 fixed exchange rate, or close to 1 percent of GDP. This number would easily exceed $1 trillion, or more than 2 percent of GDP, if below-the-line promotional media for niche audiences—such as direct-to-consumer mailings, e-mail marketing, coupons, and product samples—were included (knightdigitalmediacenter.org).
However advertising as a part of the overall media landscape is also a good indicator on a country’s economy and growth. Bughin & Spittaels (2012) in their research found that advertising fuelled about 15 percent of growth in GDP for the major G20 economies over the past decade because it generates new business.
In a report by Deloitte commissioned by the Advertising Association, London, it was found that on an average, £1 of advertising spend generated £6 for the economy. That means the £16 billion spent on UK advertising in 2011 generated £100 billion in the UK economy. It goes on to state
It provides a third of all TV revenues and two-thirds of newspaper revenues; it supports sectors from photography to film production. We estimate that over 550,000 people work in jobs that are funded by advertising revenues, or involved in the commissioning, creation and production of advertising across the relevant supply chains. However, the overall impact of advertising is much broader. It has a critical role in making the economy function. Advertising is at the centre of a virtuous circle of competition, innovation and market expansion, to the benefit of consumers and businesses (Deloitte 2013).
Advertising and Economy can be looked as the proverbial chicken and egg situation. However this paper takes the advertising point of view. This paper will trace the growth of advertising industry in India and China along with the growth of advertising industry in one of the fastest growing economy of Africa i.e. Nigeria and explore the linkages between the growth of advertising sector in Nigeria and the increase of trade between Nigeria and Indo-China.
Objective of the study
the broad objective of the study is to examine the contribution of advertising to the economy. The study specifically will determine;
- the impact of advertising industry has on the economy.
- The challenges facing the advertisement industry
- The prospect for advertisement in Nigerian economy
Research question
The research questions for this study are:
- What is the impact of advertising industry has on the economy?
- What are the challenges facing the advertisement industry?
- What are the prospect for advertisement in Nigerian economy?
Research hypothesis
The hypothesis for this study are:
HO1the impact of advertising industry has on the economy.
HO2 there is no significant relationship between advertisement contribution in the economy and the economic growth
Significance of study
In this regard, the significance of study will be both on the theoretical levels and Practical levels. Theoretically, this study seeks to highlight and widen scholarly perceptions on the contribution of advertising industry. Practically study will be a response to the intellectual challenges involved in enhancing an understanding of the unending but continually and changing new forms of economic activities.
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Scope and limitation of the study
The scope of this study incorporates a proper description of advertising industry in Nigeria. It will house the challenges, trends and effect of the industry in Nigeria using APCON as case study.