Minister of Information and Culture, Lai Mohammed, said on Tuesday that lack of scientific audience measurement system was responsible for the underdevelopment of the nation’s broadcasting sector.
The minister stated this in Lagos at the third international summit on Digital Broadcasting in Nigeria organised by the Broadcasting Organisation of Nigeria (BON).
“We need an objective and scientific Audience Measurement System that articulates value of the content to consumers, as well as value of the audience to advertisers, particularly in the television sector,” he said.
He said the factor had contributed to the less optimal investment by key stakeholders in the television broadcasting value-chain.
“The consequence is that TV platforms are subjected to renting out space on their channels to sustain their businesses while content producers become over reliant on sponsorship
“This existing model unfortunately skews the authenticity of creative output in favour of a few decision makers and not the millions of TV viewers.
“It stunts the quality of the content that can be created and limits the capacity of television platforms to invest in dynamic offerings that consumers will be attracted to.
“It will never enable the Nigeria’s creative and entertainment industry to reach its full potential.”
The minister said the lack of audience measurement also rendered the nation’s broadcasting advertising market non-proportionate with its population when compared to South Africa and Kenya
“Despite having a population three times more than South Africa, Nigeria’s television advertising revenue in 2016, at $309 million, was 76 per cent behind that of South Africa, at $1.301 billion.
“By 2020, the gap between South Africa and Nigeria is projected to marginally decline to 72 per cent. Similarly, in the radio sector, the value of Nigeria’s 2016 advertising revenue of $81 million was 75 per cent behind its peers, South Africa and Kenya, both at $343 million dollar.
“Kenya is projected to overtake South Africa in 2017 as the leading radio advertising market. In both territories, the value and growth rate of the broadcasting revenue is largely influenced by the availability of a scientific Audience Measurement System.
“It provides confidence to Advertisers in measuring their Return-On-Investment.”
He said the framework must ensure that content producers receive their just due for the value of the content they create, while advertising community “will be guaranteed return on their investment on media placements.”
Mohammed announced that his ministry was ready to take the important first step in addressing the challenge by organising an Audience Measurement Conference.
He said the conference, which would hold on October 3, in Lagos, would afford stakeholders opportunity to contribute to efforts in coming up with a scientific Audience Measurement System that would boost the sector.
