In recent years, Nigeria has witnessed a significant growth in the Digital Out-of-Home (DOOH) advertising landscape. As the economy continues to expand and technology adoption increases, the DOOH sector in Nigeria holds immense potential for both advertisers and consumers. This article aims to provide an update on the current state of the digital OOH industry in Nigeria, highlighting the challenges and opportunities it presents.
(Credit: November 2021 Compliance photos, Marketing and Media)
Current State of the Digital OOH Landscape in Nigeria:
- Growing Spend: The DOOH spend in Nigeria has been on an upward trajectory, reflecting the increasing importance of the medium in advertising strategies. From the end of Q4 2022 to Q1 2023, spend rose from 60% to 66%, indicating a positive growth trend in the industry.
- Low Penetration: Despite the growth in spend, the penetration of DOOH advertising remains relatively low in Nigeria. Lagos, the country’s commercial hub, dominates the market with over 70% of the DOOH share. This concentration limits the reach and impact of digital OOH campaigns, leaving opportunities for expansion in other cities and regions.
- Electricity Supply Challenges: One of the major challenges faced by the DOOH industry in Nigeria is the lack of reliable electricity supply. This issue affects the seamless operation of DOOH networks as inconsistent power provision leads to increased operational costs, as alternative power sources such as generators have to be employed. This can hinder the growth of the sector and increase expenses for advertisers and DOOH vendors alike. However, thanks to advancements in technology, the new generation of LED screens requires lower power consumption. This development has opened doors for renewable energy solutions, such as solar panels, allowing advertisers to overcome the electricity hurdle and unlock the full potential of DOOH.
- Light Regulation: While the lights emitted by digital screens enhance visibility and illuminate the surroundings, some vendors fail to regulate the brightness at night. Excessive brightness levels can be detrimental to viewers’ eye health. Regulatory agencies need to play a more active role in enforcing standards to ensure appropriate light levels and protect the well-being of the audience.
- 3D/Anamorphic Displays: Anamorphic displays provide captivating and immersive experiences, offering new creative possibilities for advertisers to engage with their target audience. Nigeria is yet to fully embrace the global trend of anamorphic displays in the DOOH space. Although some vendors are making efforts to introduce screens with the capacity for anamorphic content, but the market has not fully achieved this potential. In fact, I am quite thrilled about the test of 3D/Anamorphic LED technology in the market. It all began with Motomedia’s random test using a flat screen LED in late 2022, which surprisingly caught people’s attention. Then, in May 2023, Alpha and Jam, one of the fastest growing practitioners in the African market, installed an L-Shaped screen at the local airport, creating a significant buzz. However, the big question remains: Is the market truly ready for this revolutionary technology? With more practitioners introducing these new types of screens into the market, it begs the question of whether we are prepared to fully embrace it. Are there enough local animators skilled in creating mesmerizing animations that leverage the Anamorphic feature? And are clients willing to explore the endless possibilities this technology offers?
- Lack of 3D Content Creators: Another challenge following the 3D Screens in the Nigerian DOOH landscape is the scarcity of skilled 3D content creators for it. The demand for visually appealing and interactive content is increasing, but the availability of professionals who can produce high-quality 3D content remains limited. Bridging this skills gap would unlock new creative opportunities and enhance the overall effectiveness of DOOH campaigns.
- Struggles with Programmatic Scheduling: Programmatic scheduling, which allows advertisers to purchase specific time slots for their campaigns, is an area where the Nigerian DOOH industry still faces challenges. Implementing programmatic scheduling would enable more efficient and targeted advertising, reducing costs for clients and providing greater value for their investments. The industry should focus on developing robust programmatic solutions to streamline campaign management.
(Credit: Alpha & Jam, compliance photos June, 23)
(Credit: Alpha & Jam, compliance photos June, 23)
Opportunities for Growth and Development:
- Regional Expansion: Expanding the DOOH market beyond Lagos presents significant opportunities. Other major cities, such as Abuja, Kano, and Port Harcourt, have untapped potential for digital advertising. By diversifying their presence, advertisers can reach broader audiences and maximize their impact.
- Collaboration with Energy Providers: Partnerships with energy providers could help address the electricity supply challenges faced by the DOOH industry. Exploring renewable energy solutions, such as solar power, could offer a sustainable and cost-effective alternative to traditional electricity sources, reducing operational costs and increasing profitability.
- Embracing Technological Advancements: The market is slow in adopting new techs in OOH business especially for Digital such Programmatic DOOH, 3D Displays. Adopting anamorphic displays, investing in 3D content creation capabilities and embracing programmatic would unlock new possibilities for advertisers. By staying at the forefront of technological advancements, the Nigerian DOOH industry can capture the attention of consumers and deliver impactful campaigns. The introduction of 3D/Anamorphic LED screens is undoubtedly going to open up numerous opportunities for local 3D animators specialising in illusional animations. They will be at the forefront of driving innovative campaigns and elevating the value of Out-of-Home (OOH) advertising in the Nigerian market. It’s an exciting prospect that has the potential to transform the advertising landscape and push creative boundaries to new heights.
- Education and Skill Development: Investing in training programs and workshops for content creators and industry professionals would contribute to the growth and development of the DOOH sector. By nurturing local talent and enhancing skills, Nigeria can become a hub for innovative DOOH campaigns that resonate with both local and international audiences.
In conclusion, the digital OOH landscape in Nigeria is experiencing growth, but it also faces challenges that need to be addressed for the industry to reach its full potential. By focusing on regional expansion, collaborating with energy providers, embracing technological advancements, and investing in education and skill development, Nigeria can unlock exciting opportunities and drive the transformation of the DOOH landscape. With the right strategies and regulatory support, the African edition of the DOOH industry holds promise for both advertisers and consumers alike.
Location Marketing Maestro and OOH Enthusiast who has over 10 years industry experience spanning from Operations to Agency strategy and planning to educational programmes for the Industry.
He is the founder of Out of Academy Nigeria and the Convener of Location Marketing Awards (LOMA). He is currently striving to build knowledgeable OOH practitioners in Nigeria and ensure rewards of the achieving professionals in Nigeria Market.