As expected, all the tier-1 banks (FUGAZ) spent big on advertising/marketing during the first quarter of the year. However, the biggest spender was Fidelity Bank Plc, a tier-2 bank which incurred as much as N2.6 billion. This is then followed by First Bank which spent about N2 billion. Meanwhile, Sterling Bank Plc spent the least amount which is N223 million.
See below for a full list of the banks and their expenses on adverts/marketing in Q1 2020.
- Fidelity Bank Plc: N2.6 billion
- First Bank: N2 billion
- Guaranty Trust Bank Plc: N1.8 billion
- Zenith Bank Plc: N1.8 billion
- United Bank for Africa (UBA) Plc: N1.7 billion
- Access Bank Plc: N1.4 billion
- FCMB Group Plc: N790 million
- Stanbic IBTC Holdings Plc: N394 million
- Wema Bank Plc: N329 million
- Union Bank of Nigeria Plc: N267 million
- Sterling Bank Plc: N223 million
It should be noted that virtually all the banks spent more on marketing and advertising in Q1 2020 except for the likes of Sterling Bank and Union Bank; both of whom significantly reduced their expenses. First Bank, on the other hand, kept its advertising expenditure constant year on year.
Meanwhile, the banks collectively generated gross earnings of about N935 billion during the first quarter period. Further analysis also showed that Fidelity Bank, which spent the most on advertising and marketing, did not generate the most revenue during the period. Instead, Access Bank did, having recorded a whopping N181.6 billion.
On average, Nigerian banks tend to spend more on advertising compared to companies in other sectors of the economy. And this usually influences their financial performances.
Advertising and Public Relations are two of the most powerful tools that are utilised in the business world to communicate brands’ benefits and create awareness about new or existing products. These, in turn, helps companies to reach newer markets or consolidate existing ones. In light of this, the importance of advertising and public relations can never be underestimated, as no company can really survive without them.