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.
Meanwhile, Pepsi is strongly tied to music, organizing music festivals or concerts every year, inviting local singers and bands, which is more seasonal than Coca-Cola’s year-round campaign ‘Coke with Meals’, and the target audience is more youthful.
Apart from global brands, local African brands in Nigeria are also competitive in the market. Aje’s product, Big Cola, has established an official account on Instagram, maintaining a characteristic design style of the brand and enhancing brand recognition.
Rite Foods’ product BIGI COKE is marketed in many African countries, but there are few online advertisements, mainly on TV, involving variety shows, music, etc.
Compared to global brands, local brands do not have enough investment in advertising, yet online ads cost less compared to offline ads and TV, and if there are brand-recognizable visuals it would be a highlight. Cooperation with KOLs or singers and celebrities is also considerable.
Advertising Production and Placement
In cooperation with advertising agencies, the process of advertising production and placement is divided into four steps: creativity, strategy, execution and optimization. Firstly, the brand will brief the idea to the creative agency, and the creative agency will design the KV and TVC; meanwhile, the media agency will formulate the strategy plan, including estimating the cost and effect of advertising, confirming the target audience, the period, and the media purchasing and spots. In the execution stage, after receiving the confirmed KV and TVC, the resize agency will resize them into the required format according to the requirements of the advertising spots on the media. Finally, the media will launch the advertisements on line, and follow up on the advertisement performance for continuous optimization.
Agency
Production
Creativity
Creative agency
KV & TVC
Strategy
Media agency
Strategy plan
Execution
Resize agency
Materials
Optimization
Media
Performance report
According to Bardowicks and Busch, “Programmatic advertising describes the automated serving of digital ads in real time based on individual ad impression opportunities.” This means that programmatic advertising is highly personalized, driven by precise audience targeting, which enhances efficiency and is a commonly used digital advertising technique today. If the data fails to meet the standards during the advertising process, issues should be promptly addressed, and the delivery method should be adjusted based on factors such as ad placement, time period, audience tags, and jump paths.
In conclusion, the Nigerian soft drinks market has experienced significant growth in recent years and is expected to continue to rise in the future. Digital advertising is expected to grow in importance, but for the time being, traditional media such as TV and OOH advertising continue to account for a large market share.
The analysis of brand strategies in this article highlights the differing approaches of global and local brands. Global brands like Coca-Cola and Pepsi-Cola shape their brand image through established campaigns like “Coke with Meal” and music festivals. Despite limited advertising investment, local brands like BIGI COKE and Big Cola effectively use social media to increase brand awareness, attract consumers, and boost brand loyalty.
Overall, this article aims to help emerging businesses in the Nigerian soft drink industry understand market trends, develop brand strategies, and navigate the dynamic Nigerian market through effective advertising strategies.
References
“Digital Advertising Touchpoints in Nigeria.” Statista, https://www-statista-com.eu1.proxy.openathens.net/forecasts/1389057/digital-advertising-touchpoints-in-nigeria.
“Nigeria: Internet Ad Revenue by Device.” Statista, https://www-statista-com.eu1.proxy.openathens.net/statistics/508877/nigeria-internet-ad-revenue-by-device/.
“Nonalcoholic Beverages and Soft Drinks Worldwide.” Statista, https://www-statista-com.eu1.proxy.openathens.net/study/10631/nonalcoholic-beverages-and-soft-drinks-worldwide-statista-dossier/.
Bardowicks, B., and O. Busch. “Diskussionspapier: Programmatic Advertising.” bvdw.org, 12 Aug. 2013, p. 4, http://www.bvdw.org/medien/bvdw-diskussionspapier-beleuchtet-entwicklungen-im-realtimeadvertising?media¼5002.
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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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