- 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.
[Read Also: Keystone Bank gets new directors]
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?
CBN “Naira 4 Dollar Scheme” Explained
What the CBN’s Naira 4 Dollar scheme means for your money.
In what appears to be an attempt to incentivize dollar remittances by all means possible, the Central Bank of Nigeria (CBN) released a circular to Deposit Money Banks (DMBs), International Money Transfer Operators (IMTO), and the General Public, advising that remittances paid into a bank account will attract an additional credit alert for every USD$1 received!
Yes, you read that correctly. The CBN will facilitate a special additional credit alert of N5 for every USD$1 received. In other words,
- if someone sends you $10,000, you get an additional special credit alert for N50,000.
- If someone sends you $100,000, you get an additional special credit alert for N500,000.
Who is eligible?
To be eligible, the diaspora remittances need to be processed and received from one of the registered IMTOs and funds received into a Bank account operated by the DMBs. (So, if you are receiving funds via Crypto sorry you are not eligible).
Additionally, the circular says this “incentive runs from Monday 8th March 2021 to Saturday 8th May 2021″. So, if you have plans to receive dollars, you can plan accordingly.
The circular is not clear how exactly the commercial banks will know which account to pay the extra special credits into. Although, that may be a question diaspora funds recipients will need to ask their DMB accounts officers to clarify for them.
How will this be funded?
The circular notes that the “CBN shall through commercial banks, pay to recipients the N5 incentive for every USD$1”. In other words, it is the CBN funding the cost of this special extra credit.
- One would argue that given the costs of alternative incentives to attract dollars such as the special OMO window for FPI, this may be a cheaper alternative for the CBN.
- But we will need to see the volume of expected remittance to be certain of that. Nigeria attracts about $5billion per quarter in remittances and only trails oil in terms of foreign earnings.
Why this matter to Nigerians?
Following the collapse of US Dollar inflows into the country, the CBN initially tried to balance its current account deficits and avoid an official devaluation by tackling FOREX demand (Think ban of 41 items, etc).
- However, in recent times, CBN is now trying to address the challenge of FOREX supply. In 2019, CBN restricted OMO bills for FPIs, and this year, CBN directed all IMTOs to discontinue the practice of not remitting dollars into the country but keeping it overseas and sending Naira.
- Also, the IEFX rate has been allowed to continually diverge from the official rate. As at close of business on Friday 5th March 2021, the IEFX rate of N412.50 is 8.8% premium to the official rate of N379.
- Some may point out that, if the CBN is looking to have ordinary Nigerians enjoy some benefits from its ongoing FX subsidy largesse then maybe that is “arguably” more palatable than the prior focus on FPIs.
Finally, this short-term Naira-4-Dollar scheme will not be called an official Naira Devaluation. But a question is what do we call the new short-term price of N412.50 + N5.00? Maybe we can call it Naira Modulation.
Nigerian Breweries leveraging, but stacking cash through rising input costs
The marathon continues for Nigerian Breweries with its 2020 financials.
Humanity might need more booze to survive the increasingly daunting intricacies of life, but Nigerian Breweries 2020 financial statement is proof that even the best can get caught up in the reality of changing business lifecycles.
Nigerian Breweries Plc had floored the market providing both alcoholic and non-alcoholic premium quality beverages across the nation. But with brands like Star lager beer launched as far back as 1949, Gulder lager beer launched in 1970, and even the family-friendly Maltina introduced as far back as 1976, it is only natural that both the old and new generation competition gives them a run for their market share.
Much like other old money companies, Nigerian Breweries has done its bit to remain relevant in the industry from creating new variants of existing favoured brands to paying dividends consistently annually for the past few years. Yet within the same period, the company’s financial statements have been a testament to its streamlined market share and reducing profits. The marathon continues with its 2020 financials. The industry giant may as well be setting itself up for a debt quagmire peradventure its projections do not match the true reality of events.
2020 financials: A tale of higher costs & larger debts
2020’s unfavourable financial/ business environment led to the increase in the prices of raw materials and disruptions in logistics for many Nigerian-domiciled businesses including Nigerian Breweries. Raw materials and consumables witnessed a 17% increase despite the marginal growth in revenue.
While the group’s 2020 results revealed a 4.35% increase in revenue from N323 billion in the prior year to around N337 billion, these gains were curtailed by a higher-than-par increase in cost of sales which had risen by 13.9%, from the N191.8 billion expended in 2019 to N218.4 billion as its 2020 financials reveal and interest rates going way up.
The company’s lower operating expenses were not enough to salvage the disruption caused by the raging interest expense following increased charges paid on bank loans and overdraft facilities as well as the significant increase in overall debt. Between 2019 and 2020 alone, long term loans and borrowings increased by 974% from N4.8 billion to as much as N51.8 billion. Even trade and other long term payables increased by 35%.
In its financials, the company noted that it has revolving credit facilities with five Nigerian banks to finance its working capital. The approved limit of the loan with each of the banks range from ₦6 billion to ₦15 billion (total of ₦66 billion) and each of the agreements had been signed in 2016 with a tenor of five years. The Company had also obtained Capital and Working capital finance from the BoI in 2019.
It is no news that the company is involved in diversified lease arrangements. Following reclassifications made in 2019 to some of its lease assets, the 2020 asset base also witnessed significant increase in Right of Use Assets which increased by 288%% from N11.1 billion to N42.9 billion. Yet, the fact that in one year, interest expense on Lease Liabilities rose from N19.7 million in 2019 and to a whopping N4.171 billion shows that the company is taking way more debt than its books require.
But what’s it using all the cash for?
Beyond rising material costs, borrowing costs have been huge and the annual interest payment by virtue of these loans make the possibility of higher profits for the company a mirage. That said, the overall increase in total liabilities might not have been such a bad idea if the funds were being used to increase revenue and profits. But having a huge chunk of all that money in cash creates a different kind of challenge. Cash and bank values in its statement of financial position significantly increased by 377% from N6.4 billion in 2019 to N30.4 billion in 2020.
Is the cash being held to mitigate possible challenges of the volatile economy or are they being used to pay dividends? Even at a share price of N52 per share, the company’s price-to-book value sits at 2.5816, testament of its dire overvaluation. Consequently, there is an ardent need for the company to come up with newer ways to attract the wider market and keep its book in the green with a little less external funding.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.