We had a change in government with a ‘change agenda’. Downturn in the global oil market dampening Nigeria’s economic outlook. Advertising industry had it rough in spite of the election windfall. Weakened economies of many states dislocated disposable income of consumers across the country. A new political leadership brings optimism with the biggest budget in Nigeria’s history. In 2016, agencies will have to do more with less, get more creative and widen their scope of competence. Boom in modern retail would increase brand activation and BTL campaigns. Technology would continue to change the way brands and consumers relate but the latter would take more control of their media consumption. We can’t predict the future. This outlook is an expression of our expertise and consistent thought leadership.

1. NIGERIA’S MARKETING & MEDIA IN 2016
*Review *Insights *Predictions

2. WARNING & DISCLAIMER
Deliberate efforts were made to make this review as factual,
complete & accurate as possible, but no warranties regarding
its contents, whether fact, speculation or opinion, are made
nor is fitness for any use implied. Information provided is on
an “as is” basis. All cited sources, tool vendors and SBI Media
shall have neither liability nor responsibility to any person or
entity with respect to any loss or damages arising from the
information contained in this book. For full information about
SBI Media visit: www.sbimedia.com.ng.com or via mail:
samuel.odusami@sbimedia.com.ng

3. ABOUT SBI MEDIA
A next generation media agency built on the culture of bravery, thought leadership and innovation. Serving a diverse
clientele of technology, aviation, automobile, telecoms, eCommerce, FMCGs financial services and allied industry. SBI is
headquartered in Lagos with 20 media professionals in media strategy, research, planning and exchange.
ABOUT STREAMS
A full service brands’ innovation centre, Streams provides clients with brand and branding development strategies, brand
messaging, concept development and production. With a team of talented young techies, Streams support brands with
unparalleled digital design in: web, mobile and apps, user interface and experience designs, digital marketing.

4. ENQUIRIES
For more information how we can be of help to your business and or other specialist
services we offer, please contact:
Mail:
info@sbimedia.com.ng
info@streamsng.com
samuel.odusami@sbimedia.com.ng
MOBILE: (+234) 8095053642, 8089832602, 8083823455, 8174663986
WEB:
www.sbimedia.com.ng
www.streamsng.com
ADDRESS:
SBI Limited & Streams Media and Communications Network,
17, Ololade Avenue, Off Association Avenue, Shangisha, Ikeja, Lagos
Nigeria.
© Copyright 2015, SBI Media Limited.
17, Ololade Avenue, Off Association Avenue, Shangisha, Ikeja, Lagos
Nigeria
Published in Nigeria.
December 31, 2015.

5. TERMS AND ACRONYMS AS USED
GDP- Gross domestic product
BTL- Below-the-line. All media activities and campaigns done outside mainstream media
CAPEX & OPEX- Capital expenditure and Operating expenditure
ATL- All advertising activities and campaigns done in mainstream media, this also includes digital
OOH- Out of Home Media. All panels and signs for outdoor advertising
ARPU- Average revenue per user
YTD- Year to date
ATL- Above-the-line media
APC- All Progressives Congress
Adspend- Advertising spend
Leverage- use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable
OTT- Over the top services e.g Whatsapp, Skype, BlackBerry Messenger
LAP- Lagos, Abuja and Port Harcourt (River state)
TSA- Treasury single account
COT- Commission on turnover
FX- Foreign exchange
CBN- Central Bank of Nigeria
Burn rate- the rate at which a new company spends its initial capital

6. THIRD PARTY IMAGE SOURCES
To avoid copyrights infringements all images in this report that are not own by SBI
Media are duly attributed below:
Prize of Change- pulse.ng
The Biggest Windfall- blog.mint.com
OOH- typeverything.com
payTV- spyhollywood.com
2016- www.farrowjamieson.com
Gloom and Bloom- memeburn.com
eCommerce- www.mycity-web.com
Cardless- www.nasdaq.com
Teelecoms- www.brandpowerng.com
Happy New Year- www.happynewyear2015pictures.net
Banking Sector- www.smh.com.au

7. INTRODUCTION.
What a year! We had a change in government with a ‘change agenda’. Downturn in the global oil market dampening
Nigeria’s economic outlook. Advertising industry had it rough in spite of the election windfall. Weakened economies of
many states dislocated disposable income of consumers across the country. A new political leadership brings optimism
with the biggest budget in Nigeria’s history. In 2016, agencies will have to do more with less, get more creative and widen
their scope of competence. Boom in modern retail would increase brand activation and BTL campaigns. Technology would
continue to change the way brands and consumers relate but the latter would take more control of their media
consumption. We can’t predict the future. This outlook is an expression of our expertise and consistent thought
leadership. Happy reading!
TAP TO NAVIGATE INTRODUCTION 2015 REVIEW- #1 2015 REVIEW- #2 2015 REVIEW- #3
2015 REVIEW- #4 2016 OUTLOOK

8. THE PRIZE OF CHANGE
The much awaited 2015 General Elections was conducted amidst palpable fear and uncertainty. At last, doomsday prediction and the 'end
of Nigeria' as we know it did not come to pass. April 1, 2015 was a breather for the Nigerian social, economic and business outlook.
Moreover, the coming of 'change' and the change in government came with a total overhaul of an existing political and economic
leadership which took a great deal of time to materialize. It created an atmosphere of confused business and consumer confidence,
triggered a massive sell-of in the equities market (fell by 16% YTD). Major advertisers cut their budget by 30%-60%. However, with the
cabinet full formed and an ambitious 2016 budget, the coast although foggy, will get clearer with time.
TAP TO NAVIGATE INTRODUCTION 2015 REVIEW- #1 2015 REVIEW- #2 2015 REVIEW- #3
2015 REVIEW- #4 2016 OUTLOOK

9. THE BIGGEST WINDFALL
It is a once-in-four year trend. The entire media and advertising industry gets a windfall from political campaigns. However, 2015 was
exceptional with an unprecedented estimate of N50 billion spent on ATL media within three months of intense politicking and media
campaigns. However, the near-collapse of OOH and Print media companies in the wake of a bearish economic climate speaks volume about
the existing leadership and corporate governance of media owners and agencies, a culture that needs to be corrected.
TAP TO NAVIGATE INTRODUCTION 2015 REVIEW- #1 2015 REVIEW- #2 2015 REVIEW- #3
2015 REVIEW- #4 2016 OUTLOOK

10. The uncertain hiatus in business and economic direction of the country after the birth of the new APC Party government ravaged the entire
marketing communication landscape. Because of its soaring rates and opaque process of systems, major advertisers who had axed their
budget saw OOH medium as scape goat. In the face of dwindling revenue, Lagos (the biggest OOH market with 55% of total billing) with a
new government, bullish but pressured to make a good impression (at least politically) became aggressive, revising taxes for all OOH
hoardings. With higher dependence on leverage than any other media suppliers, OOH companies must prepare for a tough year ahead.
CRISIS IN OOH
TAP TO NAVIGATE INTRODUCTION 2015 REVIEW- #1 2015 REVIEW- #2 2015 REVIEW- #3
2015 REVIEW- #4 2016 OUTLOOK

11. COMMODITISED PAYTV MARKET
The payTV market received a boost with 5 new entrants launching marketing campaigns across the country. Moreover, DSTV's leadership
remained unchallenged as new comers lack differentiation. While advertisers might benefit from increased options and channels, the
continuous fragmentation will stretch media budget making TV advertising more expensive in the long term. One major challenge of the
category is the dearth of original content. While DSTV’s leadership cannot be divorced from its investment and acquisition of contents,
new entrants are merely offering duplicated bouquet of channels. A trend that will commoditise payTV. Agencies and advertisers would
struggle to make good use of a positive development in the payTV market.
TAP TO NAVIGATE INTRODUCTION 2015 REVIEW- #1 2015 REVIEW- #2 2015 REVIEW- #3
2015 REVIEW- #4 2016 OUTLOOK

12. TAP TO NAVIGATE 2016 OUTLOOK MEDIA SCENE BANKING INDUSTRY eCOMMERCE
GO CARDLESS TELECOMS STREAMS

13. GLOOM
he new APC party government would make their ‘first impression’ in 2016. Citing the persistent slowdown of the Chinese economy, loom
cession in Russia and continuing weakness in the Eurozone, the World Bank projected Nigeria’s GDP growth rate for 2016 at 3.7% but
overnment with a lean but bullish posture forecasts 4.37% with a N6.08 trillion budget (N30.05 billion above 2015 budget). As the bud
mplementation takes off from the middle of Q1, we expect advertisers who scaled-down their investment in 2015 cautiously increasing t
eighting across less expensive and measurable media. Digital and Radio would be the most favoured beneficiary of the uptake. We see O
cing a tougher year in 2016. As states mobilise to increase IGR, new taxes and tougher conditions awaits suppliers and by extensions adverti
nd agencies. As more payTV operators increase their footprints, subscription rate would continue to crash, more terrestrial audience mov
ayTV. In general, prevailing lower interest rates would provide respite for suppliers and agencies with huge leverage. Media rates are expecte
e stable in the long term of 2016.
BLOOM&
TAP TO NAVIGATE 2016 OUTLOOK MEDIA SCENE BANKING INDUSTRY eCOMMERCE
GO CARDLESS TELECOMS STREAMS

14. THE BANKING SECTOR AND THE TURBULENCE AHEAD
The change in government shook the banking industry to its foundations. First was the introduction of TSA (No more rent-seeking for idle
government deposits). Drastic FX restrictions (caused by the paucity of foreign earnings from oil) and the CBN’s cancellation of COTs on all
banking transactions as from January 1, 2016 will make the banking sector the toughest category for 2016. Many banks will have to
refocus their marketing and service delivery systems for efficiency. With an attractive interest rates to businesses and borrowers, we expect
some players doing away with toxic assets and diverting attention to the real sector of the economy. All these efforts to fight for their lives
will see the banking sector investing in marketing campaigns to adapt to the new normal.
TAP TO NAVIGATE 2016 OUTLOOK MEDIA SCENE BANKING INDUSTRY eCOMMERCE
GO CARDLESS TELECOMS STREAMS

15. THE YEAR OF eCOMMERCE
2015 was the year of the smart phone. 2016 will be the year of eCommerce. We would see more online retailers coming into the scene.
The year on year success of the category’s end of year sales events (Black Friday) proves that eCommerce has come to stay in Nigeria. In
2016, well run eCommerce sites with huge but depleting investment capital will increase their CAPEX on enterprise logistics value chain,
fulfilment technologies while cutting down on OPEX to reduce their burn rate, gain efficiency by trimming manpower (right-sizing) and
attracting more talents to drive etail innovations. Many would review their business models by getting out of offerings with less or no
margin. eCommerce sites would lock horns with many brick and mortar retailers who in the long run of the year are expected to
synergise with eCommerce to sell across digital channels. eCommerce companies will play a major role in the advertising sector across
Radio, Digital and TV in that order. Their exposure to OOH would be event and season driven.
TAP TO NAVIGATE 2016 OUTLOOK MEDIA SCENE BANKING INDUSTRY eCOMMERCE
GO CARDLESS TELECOMS STREAMS

16. RISE OF mCOMMERCE & CARDLESS PAYMENT
The year 2016 will further cement mobile, banking and telecoms integration that pervaded the tail end of 2015. NFC and cardless payment services would take
center stage. More startups are expected to open shops in the mobile payment category. We see the year 2016 heralding the extinction mobile airtime recharge
cards. Mobile money vendors and other relevant operators would put on their thinking caps to increase their offerings. Major beneficiaries of this shift are
retailers whose exposure to cash transactions would decrease. Financial engineers would get creative to develop consumption/purchase-linked credit product
to benefit from the value chain. The payment category is expected to contribute majorly to the industry adspend by the end of the year.
TAP TO NAVIGATE 2016 OUTLOOK MEDIA SCENE BANKING INDUSTRY eCOMMERCE
GO CARDLESS TELECOMS STREAMS

17. RUMBLE ON THE MAST
If 2015 was a rough year for telecom companies defined by fines and stricter regulation, 2016 will be a defining moment in their
lifecycle. Stiff competition in 2015 sent ARPUs to an all year low. Fast-spaced adoption of smart phones alongside the niceties of OTT
apps enjoyed by customers have further weakened revenues of telecom brands who placed their bets on increased data subscriber
base to hedge against falling voice revenue. As more data providers open shop across LAP and Tier 2 markets, in 2016, we expect
data subscription rates to further crash due to intense competition and the scrabble to acquire new customers and gain loyalty. In the
long term, telecom vendors with huge investment in voice would cut ATL advertising budget to push retail and trade marketing for
data services. In their quest to develop new revenue streams many ideas would be exploited that will still keep the sector in the
forefront of the ad industry’s billing.
TAP TO NAVIGATE 2016 OUTLOOK MEDIA SCENE BANKING INDUSTRY eCOMMERCE
GO CARDLESS TELECOMS STREAMS

18. STREAMS: INNOVATION POWER HOUSE
In our aim to continue iterating and broaden our competence, we launched Streams Media and Communications Network. Streams is
an unconventional creative agency out to disrupt the market. From January 2016, an innovation center called Streams will open its
doors to young and brave mind with ideas and solutions for brands and businesses. Streams will create ready-made solutions that
companies can plug into to build their brands, sell more and make their customers happier.
TAP TO NAVIGATE 2016 OUTLOOK MEDIA SCENE BANKING INDUSTRY eCOMMERCE
GO CARDLESS TELECOMS STREAMS