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24 % of Consumers Ignore Brands Online

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  • 24 % of Consumers Ignore Brands Online

Nigerian consumers are turning their back on branded content as 24 per cent ‘actively ignore’ social posts or adverts from brands, a report by a global research consultancy, Kantar TNS, has revealed.

The report said brands struggle to get people to engage them as many consumers feel bombarded by local brands on social platforms, with 34 per cent of them saying they feel ‘constantly followed’ by online adverts.

In the report, which covered over 70,000 consumers, there is a global scepticism on purchasing brands online, with 57 per cent of respondents from Scandinavian countries (the highest), such as Sweden and Denmark, recorded, adding that they ignore content from brands.

At the other end of the scale, 15 per cent of those in Saudi Arabia and 19 per cent of Brazilians avoid branded content.

China and South Africa sit closer to the global average with 24 per cent and 26 per cent of respondents expressing cynicism.

Meanwhile, the popularity of Instagram and Snapchat has soared in the last two years globally as people seek out real, personal and ‘in-the-moment’ content.

Accordingly, about one out of five, representing 16 percent of Nigerian internet-users, are on Snapchat, an increase from 12 percent two years ago.

Instagram has also seen a surge in popularity, with local use jumping to 41 per cent, up from 16 percent in 2014.

Kantar TNS Global Director, Michael Nicholas, said: “The rise of Instagram and Snapchat taps into people’s desire for instant, entertaining content from friends, peers and influencers, often enhanced by fun filters and editing.

“There is a real opportunity for brands to tap into this trend by creating “personalisable” and shareable content, such as videos and stories. The challenge is how to focus the right content to the right people, on the right platforms and at the right moments.

“Some brands are getting it spot on; in the past year, we’ve seen the likes of Disney, Starbucks and McDonald’s use Snapchat’s filters to engage consumers in a way that doesn’t feel intrusive.This is key to overcoming many people’s fundamental negative perceptions of brand activity online.”

However, the study found that influencers and celebrities hold the key to swaying people’s views of brands, especially the younger generation of Nigerians.

Accordingly, two out of five (43 per cent) of 16 to 24 year olds said in the survey that they trusted what people say online about brands more than ‘official’ sources, such as newspapers, brands’ own websites or TV adverts.

While young people are the biggest social media users across all platforms, the rise of the ‘Instagram’ is also gaining momentum.

The report stated that 34 per cent of Nigerian internet users age between 55 and 65 use Instagram, a 35 per cent jump since this time last year.

The appeal of in-the-moment photo-sharing is also growing in this group with 17 percent of those aged 55 – 65 on Snapchat, up from nine percent last year.

The firm stated in the study that the rise in users of all ages spells opportunity for brands that can create engaging and shareable content.

However, with 29 percent of Nigerians objecting to the idea of their online behaviour being tracked by adverts, they need to tread carefully.

“Younger people are more influencer-oriented than ever before, trusting bloggers and peers rather than information from brands. The older generation’s ‘influencer network’is still primarily friends and family, but considering this group’s adoption of other trends, we may very soon see them going online for inspiration and information,” said Nicholas.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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