- The top ten adverts in Nigeria were compiled using three main yardsticks.
- Has your decision to purchase anything been influenced by these ads?
Ever since she became self-aware, Ngozi has always been fascinated by advertisements. As a teenager, she knew all the radio jingles by heart and could analyse the adverts on TV much better than she could analyse Nollywood movies. This level of interest has continued until today, and it doesn’t come as a surprise that every product/service she purchases is partly influenced by how much she likes the adverts marketing them.
Nairametrics has teamed up with her to analyse some of the best adverts so far this year. But before we get right into it, let us briefly examine the importance of marketing communication.
Adverts: Why they’re important
Across the world, manufacturers and service providers typically operate in saturated markets where competition is rife. The situation is not any different in Nigeria. To stand out, it is not enough for companies to offer high-quality products and services; they must also be able to adequately communicate the benefits of their products and services to customers in order to attract their patronage. This is the whole essence of marketing communication.
Top Adverts in Nigeria
So far in 2019, a lot of companies have done the most in this regard. We have seen some of the most creative advertisements in the forms of radio jingles, TV adverts, newspaper adverts, social media campaigns, web banners, etc., but are all of them having quite the impact?
Note that for the sake of this ranking, we have chosen to focus only on video adverts. Specifically, we are examining companies’ 2019 adverts on YouTube by using such yardsticks as creativity, total views, and viewers’ engagement to analyse them. We will also be looking at how these adverts have reflected on the companies’ bottom lines. That said, below are the top ten adverts in Nigeria, in no particular order. Enjoy.
1. Vex Money by Stanbic IBTC
Let us begin with one of the trendiest video adverts in Nigeria this year —Vex Money. There are so many reasons why we like the advert, including the fact that it is hilarious of course. Imagine that you (as a young female professional) are on a date with a prospective lover. The restaurant is fanciful and all the meals on the menu appear delicious. You are both conversing while waiting for the food to arrive, then your date tells you that you’d be heading straight home with him after he pays for the meal!
Agreed, some people may not be offended by this, but the female character in this advert, who is apparently an independent woman, is quite pissed off. Not only can she afford to pay for the meal, she also has her Stanbic IBTC card. So, she “vexes”, whips out her Stanbic IBTC card, pays for the expensive meal, and walks away.
As expected, this ad resonated with a lot of Nigerian women, some of whom might have found themselves in similar situations. Ngozi was particularly proud of this one; she had to open a Stanbic IBTC account after watching it. Many other women like her flooded the comment section of Stanbic IBTC’s YouTube page with remarks like, “This ad was made for us!!!!!! Yesssss girl!!!!”
It should be noted that the Vex Money ad has garnered over 1.1 million views since it was published on May 26th, 2019.
2. Family Benefit Plan plus by Leadway Assurance
This is another advert we really like here at Nairametrics. It tells the story of a financially handicapped middle-aged man who is running around to raise the funding needed for his mother in-law’s burial. All the relatives he goes to for help ridicule him whilst offering no help. This experience teaches him an important lesson. He also discovers the Leadway Assurance Family Benefit Plus which is a special kind of insurance package that takes care of burials.
Fast-forward to one year later, the man’s father is dead, and his relatives are grumbling that he would come again to ask for money. Instead, he surprises them by simply inviting them for the burial. Apparently, the insurance package has taken care of all the expenses.
With this ad, Leadway Assurance hopes to teach Nigerians the importance of taking charge of personal finance by way of insurance coverage. Sadly, the ad has received a rather lukewarm reception by Nigerians who have only viewed it 288,162 times since it was published on the 21st of March 2019.
3. Seize the moment with your UBA Cards by UBA
If there is anything we know for a fact here at Nairametrics, it is the fact that United Bank for Africa Plc does not joke around when it comes to its advertising budgets. The company goes all the way to endear itself to customers because it understands the importance of advertising in the marketing mix.
Needless to note that UBA adverts are always top-notch. A case in view is the latest advert for UBA cards. In the minute-long clip, the company successfully portrays the cards as must-haves, especially for sophisticated single Nigerians hoping to mingle.
The ad was published on August 8th and it has already garnered 275,309 views in less than a month.
4. 4G-Blender by Airtel
There is no gainsaying the fact that Airtel has successfully mastered the art of marketing communication. Its video adverts are always on genius levels and quite relatable. In this particular ad for its 4G product, the service provider continues with its long-running series depicting the “bad blood” between the mothers of a newly-wedded couple. While one of the mothers is old school and prefers to perform chores manually, the other one knows how to use home appliances to fast-track her chores.
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With this funny advert, the company is trying to inform its loyalists and prospective customers that 3G networks may be working for them, but 4G is better. And based on the fact that more than 2.3 million people have viewed the ad since January, it is best to assume that the message has been successfully passed. A customer who watched the video said, “You guys have the best and entertaining advert… I never skip it before the actual video. Kudos to the brains behind.”
5. More than a tag by Access Bank Plc
This advert by Access Bank is simply heart-felt in that it seeks to uplift low-income earners who typically comprise the bulk of bank customers across the banking sector. In the ad, the bank portrays a wide range of low-income earners such as a petty trader, a physically-challenged girl, a bus driver and others, telling them that they matter because they are more than their present situations. In other words, Access Bank knows that low-income earners can become so much more in the future, and this is why the bank cares.
The video has been viewed 609,265 times since it was published on YouTube on April 2nd of this year. Olufemi Ogunpehin wrote that it is a beautiful ad that has “…struck a note in me.”
6. Zero Account Opening Requirement by Zenith Bank
This feel-good advert with its catchy chorus is really one of the trendiest Nigerian adverts so far this year. Thanks to the agency that developed it and, of course, the creative genius of comedian Emma Oh My God, the video has generated quite a buzz; it has been viewed 632,756 times since it was published on July 19th, 2019. One of the commentators on the ad wrote, “This is the only ad I’ve watched to the end on YouTube.”
The message is simple — prospective Zenith Bank customers can now easily open zero balance bank accounts by simply dialing *966*0#.
7. Signature Jollof by Nestle
Nestle Nigeria Plc is yet another company that is known for its very creative advertisements, especially as it relates to Maggi brand.
This particular advert is simple and brief, with a soothing Nigerian song, telling viewers about the newly-launched seasoning cube, its basic ingredients, and its qualities.
As at the time of compiling this report, a total of 794, 187 people had viewed the ad on YouTube, barely two months after it was published on June 17th, 2019.
8. Own your Journey by Nigerian Breweries Plc
Nigerian Breweries Plc is currently the largest brewer in the country, based on its earning power in H1 2019. Now, one of the main movers of the company’s market share is its Gulder brand. It is, therefore, not surprising that the company puts down cool cash for the development of the right marketing campaigns that will endear the product to consumers.
In this latest ad, the company is simply telling young entrepreneurs to relax, take a bottle of Gulder, and then re-strategise for greater outcome, especially when faced with doubt.
It was published on June 7th and has been viewed 311,679 times.
9. Jumia Anniversary Sale by Jumia
This advert, which was published on June 19, has received a total of 955,511 views on YouTube. The views are still counting. Upon watching the 30 seconds-long clip, it becomes unsurprising to see why it has garnered so many views – Nigerians like free things and the advert is promising how customers can buy products at very subsidized rates.
10. This is Showmax by Showmax Nigeria
Showmax Nigeria’s 30 minutes-long introductory adverts have garnered over 1.2 million views on YouTube. It is safe to say that even though the advert is interesting enough, most of those who watched it only did so out of curiosity. Somebody wrote “I saw Dwayne Johnson so I clicked,” while someone else observed that Showmax is late to the show because “there’s this awesome thing called Netflix though…”
From this end, we wish the company all the best of luck nonetheless.
In conclusion, advertisements are inevitable in the world of business. For this reason, companies are ever willing to expend billions of naira per year for the development and dissemination of befitting ads. So far this year, the ads highlighted above are the ones that really caught our attention. Have you been influenced by them to purchase?
Strong performance from Stanbic IBTC, despite weak retail banking position
Will Stanbic IBTC be able to generate profit from its personal banking division by full year?
Stanbic IBTC made a profit after tax of N45.2billion, growing its profit by 24.7% when compared with this period last year.
The feat is remarkable; given that a majority of financial institutions responded as expected to the economic downturn triggered by inflationary pressures, oil price instability, and lack of notable business activities, necessitated by the corona-virus pandemic that has characterised the 2020 business calendar year.
These other organizations reflected positions worse off than their escapades in 2019. In cases where improvements in bottom-line were seen, it was only marginal.
Stanbic IBTC was not exempted from these economic trials, their immensely diversified business portfolio boosted their numbers on multiple fronts. Robust presence in Asset Management paid off, as commissions and fees represented a massive 62% of general fees and commission income. It’s Corporate and Investment division continues to produce astoundingly, contributing the highest and growing profit after tax of 49.2%.
This focused and efficiently monitored diversification, is turning Stanbic IBTC into world-beaters, reflecting in the expansion of its gross earnings by 7.8%, from N117.4billion in HY’2019 to N126.6billion so far this year.
This position could have appeared even better; had STANBIC been able to demonstrate in its personal and business banking segment, the same excellence, noticeable in its other business segments (Wealth, Corporate and Investment).
It’s Personal banking (generally regarded as Retail banking), encompasses the provision of banking and financial services to individual customers and SME’s (Small and Medium scale enterprises), mortgage lending, leases, card products, transactional and lending activities such as telephone banking, ATM’s, etc. The segment suffered this year, closing with a loss of N3.2billion, despite being responsible for over 58.4% of general staff costs. This poor position was sponsored by a reduction in income levels, especially non-interest income from fees and commission.
Unsurprisingly, given CBN’s policy at the start of the year to implement a much-reduced transfer fee rate, an increase in Non-performing loans is another causal factor for its loss this half-year. STANBIC cannot afford to bask in the euphoria of the massive successes of its Wealth and Corporate segment, at the expense of Retail banking.
Retail banking is fundamental to any bank looking to be a force, or preserve its going-concern status in this critically competitive economic environment. It has been the subject of immense research in the last decade, with many banks devising strategies to acquire a large chunk of the market share in this business segment. The banking landscape is evolving amidst growing competition, such that a bank that generally does well in its retail banking segment, is perceived as strong by the public. This has an underrated capacity to effortlessly attract more customers. Banks need to revisit the drawing board and re-embrace their sacred purpose of serving the basic and pure needs of their individual customers.
Michael Lafferty, Chairman of the Lafferty Group, whilst describing Retail banking said, “Retail banking is the foundation on which global banks are built,” It is a vast retail and consumer banking market, pointing out that the world’s biggest banks built their financial empire from the mass market.
Stanbic IBTC must be conscious in its quest to provide universal banking and find a balance in product and service offerings across its business segment.
A summary of the performance parameters in its financial statement, shows growth in gross earnings, from N117.4billion to N126.6billion, and improvement in earnings per share from 342kobo to 419kobo.
Attention now shifts to the impact of the bank’s new super app, supposedly a one-stop-shop for its diverse offerings, including banking, investing, pensions, trading, and insurance, and how it affects the bottom line in subsequent quarters.
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Lastly, will Stanbic IBTC be able to generate profit from its personal banking division by full year? We await their H2’2020 results.
Is Zenith Bank thriving on the strength of sound financial indices?
Zenith Bank posts N103.8bn profit in half-year financial result.
Sound financial indices have made Zenith Bank one of the largest banks in the Nigerian banking Industry. It was recognized as the Most Valuable Banking Brand in Nigeria 2019, in the Global Banker magazine Top 500 Banking brands; and Best Commercial Bank in Nigeria 2019, by the World Finance.
Zenith Bank has successfully bolstered this narrative even further with the release of its Half Year 2020 Financial Report, where it closed with a profit of N103.8 billion.
Growing profit position in these perilous times, speaks remarkably of the suppleness and elasticity of any establishment. A lull in economic activity caused by inflationary pressures, precariousness of the market, and the coronavirus pandemic has forced most Deposit Money Banks (DMBs) to cave in, and reveal achievements worse off than their 2019 results y/y – but not Zenith Bank Plc. The institution has showcased beyond reasonable doubt, that the apparent limitations are incapable of distorting its active growth pattern.
Zenith Bank closed H1 2020, 16.8% better off than it did in 2019 y/y, in terms of profit after tax. Although this massive leap, hugely resulting from tax paid as profit before tax, noted just a 2.2% growth. Further analysis of its HY’2020 results, demonstrates more efficiency, a focused cost of fund optimization, and an aggressiveness in generating income across its business heads and segments. This strategy had begun since 2018, and was shared by the bank when it disclosed planned implementation of an improved core banking system, hoping it would ultimately enhance efficiency while reducing costs.
Zenith Bank has thrived on the strength of its sound business model, corporate governance, conservative risk management, and strategic corporate social investment. The bank has been very forceful in the market, improving massively across all of its income generating segments, despite the plausible and obvious hindrances. This is a testament to its superiority, and sponsors its claim for supremacy.
The bank made N22billion from foreign exchange revaluation gains and despite evidence to the contrary, it endeavored in operating expenditure (OPEX). OPEX may have grown by 7.7%, but disclosures and note to the accounts shows that in virtually every expense head, costs dropped. The 7.7% was triggered majorly by Information Technology related costs, fuel and maintenance, and an increase in the compulsory banking cost fund, set up for the Asset Management Company of Nigeria (AMCON) by the CBN.
Now, like every hero susceptible to their hubris, Zenith has its own problems, which questions its position at the top. Yes, the bank may have an amazing and constantly improving interest expense to interest income ratio, but it does not possess the finest result in this regard as of yet. HY 2019 interest expense took as much as 33.6% of its income, while HY 2020 dropped to 27.4%. This is good, but still considerably high, if we carry out a peer-to-peer analysis with Guarantee Trust Bank Plc (masters of low-interest expenses), whose ratio stands at 16% for HY 2020.
However, Zenith has sustained the momentum of positioning itself as the crème de la crème in the Nigerian Banking Industry for quite some time. The bank’s pattern of growth and performance, strongly indicates its capabilities to manage its interest expense in subsequent quarters. It will be interesting to see how this pans out by year end.
In summary, despite economic difficulties this year, with most bank’s bottom-line at a worse position than the corresponding period last year, Zenith posted improved profit yet again. Could this be enough to portray supremacy?
UBA Plc H1’2020 results, a true reflection of its rightsizing decision?
UBA’s H1 2020 result is yet another demonstration of the resilience of its business model.
The upward review in benefits of some employees and directors this year, coupled with the rising operational costs, constitutes the hot topics from the 2020 semi-annual results released by UBA Plc.
Widely regarded as the banking sector’s largest employer of labour in Nigeria, the bank in December 2019, embarked on a ‘rightsizing’ exercise, which partly resulted in new hires, as well as promotions, improved remunerations, and benefits for existing employees.
The Group Head, Media and External Relations, UBA Plc, Nasir Ramon commenting on this said, “over 5000 staff of UBA Plc, started the new year with a lot of cheer, as the bank promoted to new grades, coupled with salary upgrades. Beneficiaries of this exercise will receive up to 170% increase in their salaries and benefits, whilst a good number have been moved to higher grade levels.”
Directors saw their emoluments amplify by 177.7% (Fees and Sitting allowances) as demonstrated in the financial statements of the bank. Rising to N50million in June 2020, from N18million in 2019 y/y.
Now, Deposit Money Banks (DMB’s) might be adjudged to be honorable in all of their objectives, but the truth is they are neither self-sacrificing nor are they expected to be. DMB’s are established for profit, and would incessantly prioritize business good sense over social empathy, for the sake of their owners. The import of this is, UBA Plc expects its colossal investments in employees and directors to overwhelmingly reflect in its bottom-line.
Half-year 2020 results is clearly not in sync with this philosophy, as it reflects a weakened position compared to the corresponding period last year, despite the investments in human capital. Profit before tax dropped by 18.7%, from N70.3billion recorded in HY’2019 to N57.1billion in the current period. Profit after tax waned as well by 21.7% to N44.4billion from N56.7billion in HY’2019.
Interestingly enough, the top-line fared pretty well. Interest income and fee income showed improvements, albeit marginally by 0.3% and 6.7% respectively. This makes it illogical to attribute the entirety of the decline in profit to the recent austerity measures put in place by the CBN, reducing funds transfer fees and card maintenance charges.
The Coronavirus pandemic played a big role too, by widely stunting the economy in the second quarter of 2020, and negatively impacting profit. But even these do not provide substantial and sufficient convictions as to why the Tier-one bank did not hit the profit-bar it set for itself, from its truly emphatic 2019 financial year. Does this mean that UBA Plc got the decision wrong at the start of the year?
Six months seem too short a period to immediately class management’s decision to jack up the benefits and emoluments of its internal customers as a failed one. Although, no one anticipated the travails of COVID-19 and its resulting consequences, investments in human capital is widely proven to yield tremendous growth in the long haul. Besides the fact that it has given UBA Plc a solid reputation in the market place, it also makes the company very attractive to the very best of industry talents. Furthermore, employee engagements of this nature, foster brand loyalty which ultimately trickles down to how passionately these personnel undertake their tasks and deliverables. The true bearing of this investment is expected to reflect in due course, in subsequent quarters.
Commenting on the result, UBA’s Group Managing Director/Chief Executive Officer, Mr Kennedy Uzoka said, “Our H1 2020 results is yet another demonstration of the resilience of our business model in an extremely uncertain and tough operating environment. We recorded commendable growth in our underlying business in terms of customer acquisition, transaction volumes, and balance sheet whilst inflation, depressed yield environment and exchange rate volatility impacted our net earnings as anticipated.”
In today’s increasingly aggressive marketplace, where consistently generating revenue, is paramount to preserving the longevity and going-concern status of any establishments, costs must also be accorded as much attention and significance. Tightening and managing costs with the aim to improve and generate profit is genius strategy especially in today’s banking industry. The banking industry is under threat from ruthless competitions. Multifarious streams that had hitherto been available for generating income for DMB’s are being severely hindered by the ‘austere’ policies (from the perspective of commercial banks) from the apex bank, making effective cost management a survival mechanism.
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Employee benefits rose by 20% from N37.2billion in HY’2019 to N44.6billion in HY’2020, while Directors’ emoluments (Fees and Sitting Allowance) as earlier stated, surged by 177% from N18million in 2019 to N50million in 2020 y/y. The total operating expenses increased 22.6% in 2020. UBA Plc, unavoidably expended N22.4billion on Banking Sector Resolution cost trust fund, in compliance with the CBN’s requirement to contribute to the cause of the Asset Management Company of Nigeria (AMCON). Security and other payments for core services experienced increase as well compared to the preceding year.
Avoidable expenses like Penalties and Premises Maintenance Charge, should be extensively reviewed and extinguished wherever possible, to improve bottom line. UBA plc has forked out N565million in penalties so far in 2020, representing 6177.7% increase from just N9million in 2019 y/y. This is a prime example of the operational brick walls, UBA Plc must properly address to improve its fortunes in subsequent quarters.