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14.6M NIGERIANS ABANDON THE INTERNET: ARE MARKETING MANAGERS PANICKING YET?

Nigeria is losing internet subscribers at an outrageous rate, as seen in the NCCs monthly published data of Internet subscriptions. Too many businesses’ marketing managers across the country, this is horrible news.

Internet subscribers in Nigeria


It is already shocking to see the consistent drop in internet subscribers since November 2020. One would have thought that the Internet has become an essential possession to the general Nigerian population, following food and shelter. That Nigerians are quitting the internet is an ominous sign to everyone, even worse for marketers.

According to data from Statista, businesses in Nigeria advertise more on TV than anywhere else. Out-of-Home (or Outdoor) advertising follows and then the Internet comes in 3rd place. Click here to read their report.


Image: See increasing Ad budgets from 2018 to 2020 across the top 4 channels

But research by Nairametrics suggests that although TV takes more Ad budget than the internet and will continue to be so in the foreseeable future, by 2023, Internet (especially mobile) advertising is poised to receive more attention;

“The study revealed that although television advertisement will remain the ad leader in Nigeria by 2023, internet advertisement will outperform TV ad in terms of net additions”.

That is quoted from this article.

So, in summary, marketing budgets are increasing while Internet users are reducing. As if that's not enough, mobile subscribers are reducing at an alarming rate. 

See images below;

Notice the drop from Nov'20 to June '21


Nigeria Communications Commission statistics
See the shocking drop from December 2021

If you are spending billions marketing and the messages end with the media, how do you hope to recoup your spending?

Assuming the lockdown returns with covid 19 lashing out newer variants than we are able to handle in Nigeria, expect Out-of-home Ads to crash further. It doesn’t even matter that TV advertising will increase; naturally, mobile phone ads ought to be growing in Ad-spend.

But why would TV advertising drop? 

TV is powered by energy from the national grid together with privately generated electricity. WE ARE AT THE EDGE OF a fuel price hike, especially with the Petroleum Industry Bill just being signed into Law by President Buhari. On the other hand, agitators from the Niger Delta are bitter by the provisions of that Law and could disrupt things if they are not assured in a hurry.

There is no hope for an improvement in power supply in the foreseeable future. The citizens are left with their mobile phones, practically. So, if they are unsubscribing from the internet services, for whatever reasons, the country could be heading into a media blackout.

And that is terrible for advertising, terrible for Marketing strategists.

Anyways, according to Mr Idowu Adewale of the Media Rights Agenda, the Federal Government can step in and arrest the situation. In an article from the MRA website, Adewale listed the high cost of data and devices such as smartphones and computer equipment as reasons for the increasing drop in internet service subscriptions in Nigeria.

If those 3 are the only or the major causes of the worrisome trend, maybe things won’t be as bad as it seems right now. They only need to treat the Telco sector with more respect and we'd be fine, for a time at least.

As a Marketing Comms strategist myself, I will be watching the Federal Government to see if they even notice the trend or where it is taking the country down to. And how they will respond.

 Uduak Umo writes from Jabborro PR, Uyo


 

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