Business

Banks spend N60b on marketing, advertising costs

by JOHNMARK UKOKO

A new research has revealed that commercial banks spend N60 billion on marketing and advertisements, with First Bank Holding topping the list of banks with the highest marketing and advertising budget.

The Trumpet learnt that 12 Nigerian banks listed on the stock market spent N60 billion on marketing and advertisement in 2021, a marginal increase compared to N59.85 billion recorded in the previous year.

This was disclosed in an analysis carried out by Nairalytics the research arm of Nairametriccs based on the financial statements released by the banks on the Nigerian Stock Exchange (NGX), just as the compilation showed that FBN Holding topped the list of banks with N9.49 billion.

Advertisement is one of the major means through which companies gain market presence and expand their customer base. It also serves as a medium to communicate with customers and maintain a positive public image.

Therefore, companies across all sectors prioritise advertisement and promotions in their marketing strategies. These advertisements could be done through the print media, television, radio jingles, billboards and various online platforms.

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In recent times, the use of social media and other platforms as mediums of advertisement has risen significantly as more Nigerians become increasingly digital savvy. Promotion as one of the Ps of marketing has been dubbed as a major indicator of revenue growth.

In the year under review, the 12 listed banks in Nigeria rake in N2.84 trillion, as inference income, growing by 5.8 per when compared with the previous year, while Nigerian banks have spent about N294.55 billion on advertisements in the last five years.

The data also showed that other banks, apart from Access Bank, Fidelity Bank and Zenith Bank, recorded an increase in their advertisement expenses.

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