After two years of the rumoured acquisition, Publicis Groupe, the world’s second largest advertising conglomerate with strong foothold in Europe, Asia and America, has finally sealed up its 25% stake it bought in Troyka Holdings, Nigeria’s largest advertising group.
At a press conference organised in Lagos, the Group Chairman of the company said the decision to partner with Publicis was majorly value-driven. The deal which was prepared by both PWC and EY, include 6 companies within Troyka Holdings- Insight Communications, All Seasons Media, Media Perspectives, Leo Burnnet, The Quadrant Company and Hotsauce, a digital marketing agency.
Publicis was formerly represented in Nigeria by Rosabel Leo Burnnet and Starcom Media, but as a result of Publicis’ audit of the local advertising market, it decided to pitch its tent with Troyka Holdings. According to a release by Publicis “Publicis Groupe will launch its network in Nigeria from within the Troyka Group, creating a powerful communications entity that will allow for competitive advantage across all areas of operation in the West African landscape.”
To unpin its intention that Nigeria is a big deal to the group, Publicis said “Nigeria is Africa’s most populous nation and is predicted to be a top 20-world economy by 2030 according to McKinsey Global Institute. The advertising market in Nigeria is worth approximately $1 billion and has seen a 21% compound annual growth rate in the last ten years. According to ZenithOptimedia, advertising expenditure is expected to generate a 3.9% growth in 2016 and reach 4.7% at current prices by 2017.”
Upbeat Biodun Shobanjo said “we are indeed excited with the opportunities being thrown open with this partnership. The choice of Publicis as an equity partner advents a new epoch in marketing communication services in Nigeria as it up-scales the value we currently deliver to clients. Being the first of its kind in the Nigerian environment, the Publicis/Troyka partnership, will avail us access to global tools, process and platforms while helping to redefine route to market for the brands we work for, the ultimate consequence being better outcomes in terms of market expansion and growth.”
Nigeria is the largest advertising market in West Africa and the second largest in Africa after South Africa. This acquisition might be another eye-opener to Omnicom Group and WPP to increase their exposure to the market.