Are you looking for the cost of advertising in Nigeria? With so many tools and platforms on hand at your disposal, it’s never been easier to grow your small business through online advertising.
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That being said, there are still some significant things that you’ll need to consider when developing an online advertising strategy.
Advertising in Nigeria is a promotional activity or marketing tactic that involves making payment for spaces to promote a service, product, or cause.
It is one of the oldest forms of marketing which attempts to influence the actions of its target audience to either buy, sell, or take a specific action using a highly tailored message called advertisements or ads for short.
The goal of advertising at the end of the day is to reach people willing to pay for a company’s products or services and entice them to buy.
Running an advertising campaign would incur advertising costs which are a type of financial accounting that covers expenses associated with promoting an industry, entity, brand, product, or service.
They cover advertisements in print media and online venues, broadcast and radio time, and direct mail advertising.
Ad costs will in most times fall under sales, general, and administrative expenses on a company’s income statement and so it is essential to know the cost of advertising in Nigeria in order to plan adequately and reap Maximum rewards.
To know the cost of advertising in Nigeria you must first understand Advertising Costs. Advertising costs are a category in financial accounting associated with promoting an industry, brand, entity, product, or service.
Advertising costs are sometimes recorded as a prepaid expense on the balance sheet and then moved to the income statement when sales related to those costs come in.
Understanding the Costs of Online Advertising
Advertising costs are often recorded as a prepaid expense on the balance sheet and then moved to the income statement when sales that are directly related to those costs come in.
For a company to put down advertising expenses as an asset, there must be a reason to believe those specific expenses are tied to specific future sales. Then, as those sales take place, those advertising expenses are moved from the balance sheet (prepaid expenses) to the income statement.
For example, if a company launches a direct mail campaign and it knows that future sales are due to that campaign, it will record the cost of the campaign on its balance sheet as an asset, a prepaid expense. Over time, as customers react to the campaign, those direct mail expenses will be taken from the prepaid expense category to the advertising cost category.
The company must be able to demonstrate that those advertising expenses are directly related to those sales. It may use historical data as proof to do so.
That is, if the company knows, for example, that in the past when it sent out 1 million pieces of direct mail, it received 100,000 responses, it may apply this ratio to future sales coming from a future direct mail campaign.
Advertising in Nigeria is much older than most other marketing activities like search engine marketing and email marketing. Since the internet has become the status quo, advertising has been separated into traditional advertising and digital advertising.
Traditional advertising relates to print, TV and radio advertisement which have been popular for more than 50 years. Print advertising is the most effective advertising for businesses as it involves a target audience getting the ad through flyers, newspapers, and the mail personally.
Digital advertising involves any advertising activity online, for example, display advertising, PPC, Social Media advertising, etc. This cost of this type of advertisement in Nigeria leans towards the cheaper end and it is easier to track so it has become a more widely used form of marketing.
Why Is Advertising Important in Marketing?
Creating product advertisements is a vital first step in a product lifecycle. It acts as a product intro and is a really good way to get your brand name out into the world.
Before a product is produced, sales projections are calculated to rationalize the cost of production. Once a product is created sales become a necessity and effective advertisements are the way that businesses can introduce the product to the world.
Control and Track
Digital advertising has become a science today. Companies can be can track every conversion from an ad with just the click of a button. This control and traceability make advertising super important in marketing for the likes of attribution modelling and conversion rate optimization (CRO).
Advertising allows you to pit your business against your competitors publically. How you and your competitors react is hugely important as it shapes the form the market takes eventually. As part of a fierce marketing campaign, promotional advertising alongside your competition can equal big wins really quickly.
Advantages of Online Advertising
1) Reduces Per-Unit Cost:The massive appeal of advertisements increases the demand for the product which benefits the organization as it capitalizes on the economies of scale.
2) Helps in Brand Building: Advertisements work effectively in brand building. Brands who advertise are rated higher than those who do not.
3) Helps in Launching New Product: Launching a new product is easy when it is backed by an advertisement.
4) Boosts Existing Customer’s Confidence in the Brand: This is due to the feeling of pride triggered when they see an advertisement of the product or the brand they use.
5) Helps in Reducing Customer Turnover: Strategic advertisements for new offers and better service helps reduce customer turnover.
6) Attracts New Customers: Attractive advertisements help the brand in gaining new customers and expanding the business.
7) Educates the Customers: Advertisements inform the customers about different products that exist in the market and also educate them on what they should look for in an apt product.
It is, therefore, necessary to know the cost of advertising in Nigeria to help better prepare and know the best strategies to get your product or service in front of your target audience, but before knowing the cost let us take a look at some of the types of advertising available to us.
Types of Advertising
Whether in a magazine, newspaper, periodical, or a flyer, advertising with print is one of the most effective ways to get your name out there.
Placed on big buildings and highways across the world billboards can be mobile or static product advertisements for almost anything.
Television advertising used to be the most popular way of getting a product in front of target markets for over 50 years. Its appeal has only receded slightly since digital and mobile marketing came onboard. This makes it a really good channel to get your brand name out there.
Radio advertising, although limited to just audio, without imagery to pair with it, is still quite effective. There are two notable audiences: the older audience and those who listen to the radio to and from work. When creating ads for radio it is important to make sure they are short and straight to the point to keep listeners interested; anything more will overwhelm or bore them.
Social Media Advertising
Social Media platforms have grown in popularity and, with this trend, came advertising on the platforms. Placing promotional advertisements on these popular sites are great as you can target demographics more closely than ever before.
You can also choose your age bracket, interests, locations, and so much more with little stress.
Given Google’s status as the most popular search engine, it is no surprise that Google Ads is the world’s largest online ad platform.
When you run online advertising campaigns with Google, you get the chance to put your brand message in front of customers who are searching for businesses like yours in Nigeria on both the search engine and Google maps.
Search and Display Advertising
Search engines have also taken advantage of effective advertising with the use of search and display ads that are tailored to keyword searches. This form of promotional advertisement is great for retargeting and remarketing to people who have visited your website already.
Mobile use has grown tenfold in such a short period that it is no surprise that advertising has been introduced as part of it.
Mobile-first advertising could include SMS ads, app ads, and website advertisements aimed at mobile users. The options are endless when you are marketing to an audience who are always on their device.
Over 50% of mobile searches lead to purchase. When the search is related to a local business, the number is even higher: 78% of local mobile searches end in offline purchases and search terms indicate high intent to purchase as well. There are a variety of options that agencies have when it comes to mobile advertising, such as mobile YouTube ads, in-app advertising, and campaigns to boost mobile app installs.
Websites are always trying to get more traffic or conversions and sales in the pipeline. Effective ads are one of the best ways to achieve this. Using popups that include calls to action are a great idea. Entice someone back to a page when they are about to leave through an exit popup.
Popups that provide discount codes or a link to the exact product you are searching for can make all the difference to a prospect.
Advertising in Nigeria is a great and almost necessary marketing tactic to promote a service, product, or cause, making it necessary to know the cost of advertising in Nigeria to help better prepare and know the best strategies to get your product or service in front of your target audience.