In the last three years, numerous Nigerian businesses have amped up their marketing efforts to carve out a niche in the highly competitive market. This heightened push in marketing has caused a significant increase in brand awareness among consumers.
A trend analysis of marketing budgets from 2021 to 2023 indicates a 35.9% uptick, a clear recovery following the 2020 pandemic’s economic impact. Even with a slight dip in the growth rate in 2023, the year still marked a 5.8% increment compared to 2022. This upward trend was primarily driven by sectors such as technology and health, demonstrating resilient growth amid market flutters.
However, 2023 marked a notable shift in advertisement spending. Companies like Nigerian Breweries Plc chose to trim down their marketing outlays, while other budding businesses like FBN Holdings and Fidelity Bank hiked their advertising spending. Sectors such as FMCG witnessed divergent spending trends.
Intensifying marketing efforts in Nigerian businesses
Unilever Nigeria kept a stagnant budget, whereas Nestle Nigeria and Cadbury Nigeria increased their marketing investments. Many start-ups prioritized digital marketing channels to attain broader reach with less cost.
Companies like GTCO and Zenith Bank consistently ramped up their marketing budget in line with their business growth and consumer reach objectives. Contrarily, Flight Fed Aviation redirected its budget from promotional activities to product development and quality improvements to offer superior, value-added services.
Nestle Nigeria in 2023 almost tripled its 2022 marketing budget. Other companies like International Breweries Plc and Coca-Cola Hellenic Bottling Company balanced their marketing expenses to resonate effectively with their target market. Despite a slight dip in 2023, Unilever Nigeria Plc focused on digital marketing and partnerships, while Procter & Gamble Nigeria sought to strengthen their product position by upping their marketing spend by around 20%.
In the banking sector, UBA demonstrated year-on-year growth in marketing investment, and Zenith Bank registered a significant increase in its marketing budget aimed at enhancing customer engagement. Banks including Sterling Bank Plc and FCMB Group Plc showcased innovative campaigns and maintained a strong presence in their target markets despite restrained increases in their marketing budgets.
