The impending launch of the Audience Measurement System by the Federal government has sparked anticipation within the industry, yet renowned professionals have underscored the persistent challenge of insufficient data, which has hindered growth and effectiveness in deploying advertising budgets. Notably, the absence of reliable data compromises Return on Investment (ROI) evaluation, leaving advertisers unable to justify spending decisions.
During a Roundtable Discussion organized by The Brand Colossus, industry leaders such as Dozie Okafor, Managing Director of PHD Media and Dolapo Otegbayi, Principal Consultant of DKO Consulting, voiced expectations for the new measurement system to address existing gaps in data accuracy and timeliness. They emphasized the need for enhanced stakeholder engagement to bolster the system’s effectiveness in providing real-time, reliable data crucial for informed decision-making.
Mr. Okafor highlighted the shortcomings of Nigeria’s current audience measurement system, emphasizing its reliance on outdated diary-based methodologies. He stressed the need for a modern, passive data collection system akin to Google which would eliminate human error and provide real-time insights. Additionally, he lamented the long lead times associated with data collation and analysis under the current system, hindering agile decision-making and omitting key media types like out-of-home and digital.
He further emphasized the necessity of a single buying currency based on accurate audience measurement to facilitate transparent pricing and improved reporting. He underscored the potential benefits for media owners, empowering them to justify pricing based on concrete data and strengthening their negotiating position.
“It’s also reliant on human recall, which can be prone to errors. A passive data collection system, similar to what DSTV uses, would be far more accurate. Imagine a system that sits in the background and captures viewership data without relying on people to fill out diaries days after the fact. That would be a game-changer for the industry. Real-time data will enable more informed decision-making and eliminate ‘perception buying’ based on assumptions,” Mr. Okafor said.
With a single buying currency based on accurate audience measurement, Mr. Okafor envisioned a win-win situation for all stakeholders, fostering transparency and facilitating effective communication between advertisers and media owners.
He said: “With a single currency, advertisers can say, ‘I want to reach this many viewers,’ and media owners can clearly demonstrate how their platform can deliver that reach. This would lead to more transparent pricing, improved reporting, and ultimately, a win-win situation for all stakeholders.”
Reiterating similar sentiments, Dolapo emphasized the critical need for complementary tools in audience measurement, highlighting the evolving landscape of the industry. She underscored the significance of accurate data as the foundation for decision-making among clients and organizations. Dolapo pointed out the scarcity of sufficient data in Nigeria, emphasizing its unique challenges within the industry. In a volatile, uncertain, complex, and ambiguous (VUCA) period, marketing and commercial directors face critical choices, heightening the importance of audience measurement.
She stressed that without comprehensive and accurate data, estimating the impact of advertising campaigns becomes challenging. Dolapo illustrated the risk of inefficient spending and emphasized the importance of seizing missed opportunities. Comparing it to shooting in the dark, she emphasized the need to recognize and build upon existing platforms. Dolapo highlighted the challenge of data accessibility, particularly in remote areas, advocating for triangulated data to address the diverse measurement needs.
“For us Commercial Directors, the existing Audience Measurement significantly impacts our advertising spend. Without accurate and comprehensive data on audience reach, engagement, and demographics, we run the risk of allocating our budgets effectively. This can lead to inefficient spending, missed opportunities, and challenges in measuring the success of advertising campaigns.
“The absence of quality data and insights hinders commercial leads’ in our decision-making processes in several ways. Firstly, it limits our ability to target the right audience segments, resulting in lower campaign effectiveness and potential wastage of resources. Secondly, without reliable data, we sometimes rely on intuition or outdated metrics, increasing the risk of making suboptimal decisions.
“For example, its sometimes difficult and challenging to choose between investing in traditional media channels with limited measurement capabilities or digital platforms where data is more accessible but still lacks comprehensive audience insights. Also, regionally speaking, the northeastern part of Nigeria is underserved. Due to past political and social unrest, the region has been taken off key audience measurement. This can lead to trade-offs in the overall campaign performance”.
The Marketing Amazon expressed enthusiasm for the new audience measurement system and emphasized the importance of increased stakeholder engagement and the consolidation of existing tools.
“It is necessary to acknowledge the significant contributions of Media Planning Service, an agency founded by Mr. Afolabi is the pioneering audience measurement agency in Nigeria. Since its inception, significant advancements have been achieved in the space of audience measurement” she added.
The conversation focused on the promise of the new government-introduced system, which is expected to launch in July 2024. The system plans to deploy 7,000 panels across Nigeria, with 3,000 being distributed in Lagos in the first phase. This is a significant increase compared to the 5,000 panels currently used in South Africa.
