The Nigerian media is a sector to look up to in Africa. It's a mixture of private and government-owned media firms, and they are both of national financial importance. The media in Nigeria is a fast-growing industry, and it has generated millions of naira in revenue.
Each state has more than one radio and TV station, making it easy for Nigerians to catch up on important news reports and information. Also, Nigerians abroad can get updated news reports from the country with the help of technology and digital information platforms.
Due to the COVID 19 pandemic, many activities were disrupted worldwide, and people had to look for alternative ways of doing things, including the media.
Since the COVID 19 pandemic, Nigerians have seen the benefits of technology and the digital space. This has helped media development in Nigeria in recent years.
However, our concern in this article is how money flows in the Nigerian media. How revenue is being made, and how funds are being generated to develop the sector.
Money is a major driving force in media development in Nigeria, Africa, and other parts of the world. Today's media started as a public service with the government responsible for its security, costs, and revenue generation. You should know government funding doesn't apply to the private sector.
Like every other sector, the media has experienced some financial implications of the COVID 19 pandemic. This has caused a loss of revenues and other negative impacts on the industry. But the government has tried to keep things in check.
The government relies on different means to fund and control the media. This includes funding media outlets that are politically profitable to the government goals. Also, the government relies on public funding and market disruptive measures such as new laws and policies to keep the public media running.
The government also generates revenues by setting up laws and policies with the private media companies on the receiving end. The private media firms and companies that default on the policy end up paying fines. Money gotten from this is then diverted to the development of public media.
Most of the time, the government doesn't put much effort into public media as they do with other sectors. However, funding the public media create a form of financial inclusion that helps develop public media in Nigeria.
Also, monetary policy and security measures have been implemented to guide communication and media affairs.
The central role of making policy and security measures concerning media operations involves understanding the media in Nigeria, the new technological improvement, and the financial implication.
One of the bodies that make this possible is the Central Bank of Nigeria (CBN). The CBN is responsible for anything relating to the naira and provides secure financial systems in Nigeria.
Media houses accept donations from people willing to support them or a specific programme on the radio, TV, or other media. Also, people may donate after a successful advertisement or campaign. Donations could be in cash, infrastructure, useful materials or other things that can help to keep the media running.
The media industry also makes money and generates revenue via advertisement and content marketing.
Advertising aims to inform the public about new products and services, giving the company visibility and sales. Whether on Tv channels, radio stations, or digital platforms like Twitter, one of the major ways of making money from the Nigerian media is via advertisement.
The media isn't only for news reports. Brand and business promotion are also possible with the media. One of the conventional ways of advertising is using radio and TV stations that sell advert placements.
Business companies, new brands, schools, banks, and other organisations often buy advert placements from reputable radio and TV stations to advertise their products and services. People also pay these media platforms to use some time for a shout-out and announce events.
Furthermore, an effective way of advertisement is using the digital space, also known as social media platforms. The common space for business advertisements is Twitter, Instagram, and Facebook.
There are people or agencies called digital influencers. These people create a reputable brand for themselves with a large fan base and followers who trusts every service they promote. So, new business firms and companies usually reach out to these influencers to get visibility.
This is often mistaken for advertisement and marketing. While their goal is similar, the process is quite different. Advertisement is done to draw people's attention through promotional content. Content marketing involves using well-thought content to market business products and services to people.
It involves using content to gain people's attention, engage them, and persuade them to take positive action.
This is done with written, video, and audio content to address the pain point of potential customers by providing answers to their questions. This way, it will be easy to sell to them. To earn from content marketing, you need to build a reputable brand or approach someone who does.
Many content marketing agencies are available in Nigeria, which is also part of the media. They help small and large companies with visibility and business expansion. Moreover, content marketers and agencies generate income from the service they offer.
They gain money from donations and subscriptions people make to their websites.
They also make an income indirectly by creating relatable content and building strong relationships with the audience, thus making them potential customers.
Investment is a common thing in this digital age. Thanks to technology, Nigerians can easily buy shares in the media market of their interest. Aside from the returns investors get, the private and public media sector enjoys investment benefits. With this, they're able to generate money to develop their firms.
The media industry is a big plus to the country's financial growth as everyone engages with the media daily. Investing in the Nigerian media, especially the private media, is a gold mine.
Many people see investing as one of the ways to put their money into good use since they'll be getting huge returns from it. A good example is WAP TV, Iroko TV, and other private Nigerian media that has generated over $10 million in revenue.
Technology plays an essential role in the development of media in Nigeria. The growth might not be as massive as in other developed countries, but it's not what it used to be in previous years.
The naira currency devaluation is taking its toll on the national economic growth. However, this creates an opportunity for people to invest in media companies and save money from the ongoing inflation.
Another sure way to make money from the media is from subscriptions. In the case of subscriptions, the content is always available when customers subscribe to video, audio, or written content.
This usually lasts within the duration customers are willing to pay. It could be monthly, quarterly, or annually.
Subscription applies to many things, including premium YouTube community, exclusive email subscriptions, and video subscriptions such as GOTV, DSTV, etc.
This way, only subscribed customers will access exclusive information, reports, or videos from the media platform they subscribe to. So, companies that offer these services focus on creating new and relevant content that keeps customers around.
One thing you should know about subscriptions is that customers only subscribe to services or brands they trust. Nobody will pay for something they won't get value from. The privilege that comes with monetising digital content is recurring revenue.
The better you deliver, the more subscribers keep returning and the more referrals you get.
To make this possible, building an audience who trusts you can lead to building an audience who can pay for the services you have to offer.
The media banks on sponsored programmes to generate income. They lend their space to people who will pay them in return.
Media space markets people's companies, brands, products, or services. An example is an advertisement you get in between movies and TV programmes. It applies to radio shows as well. Social media platforms like YouTube, Instagram, Facebook, and Twitter use the sponsored advert method to make money.
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