Market Insights: The Online Soft Drink Advertising in Nigeria

Fast-Moving Consumer Goods are essential to people’s daily life across the world, meeting their basic needs and contributing significantly to a country’s economy. In Africa, FMCG has a broader market yet to be fully tapped into, with many global brands waiting to be introduced and expanded, and significant market demand providing an excellent environment for the growth of emerging brands. Nigeria, being the largest soft drink market in Africa, holds key representative significance. It is worthy of being studied as a typical case to serve as a reference for the development of soft drink brands across the African market, and also to provide assistance to the brand strategies of local emerging enterprises.

This article will be divided into three parts: market insights, brand strategy and advertising guidance. Firstly, it provides an insight into the Nigerian digital advertising market of soft drinks to understand the current market trends. Secondly, it discusses the effective branding strategies of global brands such as Coca-Cola & Pepsi, and local brands such as Rite Foods’ BIGI COKE and Aje’s Big Cola through case studies. Finally, it introduces the process of digital advertising production, as well as the different channels and buying methods.

Market Insights

The revenue of non-alcoholic beverages in Nigeria rose significantly from 2017-2023 and is expected to continue its upward trend in the coming years. Soft drinks accounted for the highest revenue share in the non-alcoholic beverages market, accounting for more than 60% (Figure 1).

(Figure 1)

According to a report released by PwC, Nigeria is one of the largest advertising markets in Africa, but contrary to the trends in North American and European markets, most advertising spending in Nigeria from 2018 to 2020 was for TV and Video, followed by OOH advertising, and then digital advertising (Figure 2) (PwC). However, in developed markets, online ads dominate and OOH spending is gradually declining. It is foreseeable that in the future, online advertising expenditure in Nigeria will also gradually increase, but TV advertising and OOH advertising cannot be ignored at this stage.

(Figure 2)

A survey of digital advertising touch points in Nigeria in March 2023 (Figure 3) showed that social media webpages & apps are the most common way of reaching advertisements, with 66% of respondents admitting to seeing product advertisements in this way. Next are advertisements on video sites such as YouTube and search engines such as Google. These three methods are the most exposed digital advertisements. Additionally, ad spots in more segmented apps can also be considered depending on different brand tonalities and product characteristics.

(Figure 3)

Brand Strategy

Among soft drinks, Coca-Cola and Pepsi have the largest market share in the world and have created many famous advertising cases. As global brands, they have both global campaigns and market-specific local campaigns; the former is based on the brand tone and is more fixed, such as Coca-Cola’s ‘Coke with Meals’, which creatively binds food with Coca-Cola and uses family as the occasion, targeting a larger age range of the audience. It is a long-term brand strategy.

ewsinu

Doctoral student in Communication and Journalism//Research interested in affective social media//Former strategy planner in advertising, served the Coca-Cola Company//Former project manager in economic daily

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