At the height of Nigeria’s recession in 2016, one segment of the media industry was the worst hit-out-of-home advertising (OoH).
The OoH market was badly ravaged by deep cuts in marketing and media budget across various brand categories.
Touted as the most expensive medium, advertisers started shaving their budget by exiting major outdoor contracts and focusing more radio and below-the-line platforms.
Things have recently changed and it seems the outdoor business was not in any downtime in less than two years ago. As a confirmation that the outdoor business has fully recovered from doldrums, new foreign direct investment has flowed into the market for the construction of bigger and bolder projects.
Recently, the world largest outdoor advertising company, JCDecaux Group, made an entry into the Nigerian market for the first time after several years of operating in South Africa.
The French outdoor giant is said to be planning more public service infrastructure in Lagos and other cities which it will then monetize through advertising. However, this does not mean the outdoor market will not falter should another macroeconomic shock hits Nigeria.
An analyst in the market said the recent experience will further calibrate the business for stronger players who can manage the financial crisis better through stronger capital management and corporate governance.
First published on NEXTGEN, A weekly newsletter of SBI Media Limited