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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 and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Crude Oil

Brent, WTI Benchmarks Settle Lower as Investors Weigh Supply, Demand

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Oil prices settled lower on Friday with Brent crude oil futures settled down 36 cents, or 0.45%, at $79.04 a barrel, while the US West Texas Intermediate (WTI) crude futures settled down 29 cents, or 0.38%, to $75.56 per barrel.

Investors weighed factors such as possible supply disruptions in the Middle East and Hurricane Milton’s impact on fuel demand in Florida.

For the week, however, both benchmarks rose by more than 1 percent.

Market analysts warned that development over Israel continues to hold over the market even after weeks since Iran’s massive missile attack.

There are talks that if Israel destroys Iran’s oil and gas infrastructure, prices will rise.

Crude benchmarks spiked so far this month after Iran launched more than 180 missiles against Israel on October 1, raising the prospect of retaliation against Iranian oil facilities.

However, Israel has yet to respond.

US President Joe Biden has warned Israel against hitting oil facilities in Iran, one of the world’s biggest producers.

Iran has warned that any attack on its infrastructure would provoke an even stronger response, with analysts warning that it could resort to placing pressure on important transit chokepoints like the Strait of Hormuz.

For years, Iran has threatened to block the strategic Strait of Hormuz, through which around 20% of the world’s oil supply flows.

A major disruption to the flow of oil and gas from the Middle East would affect the Chinese economy, which has faced its own challenges.

China imports an estimated 1.5 million barrels of oil a day from Iran, accounting for 15% of its oil imports from the region.

Weather development in the US weighed on prices as Hurricane Milton blew through Florida, leading to petrol shortages as drivers stocked up ahead of the hurricane.

There are indications that the destruction could go on to dampen fuel consumption in the hurricane’s aftermath.

Florida is the third-largest petrol consumer in the US, but there are no refineries in the state, making it dependent on waterborne imports.

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Energy

FG Says Oil Marketers Can Now Buy Petrol Directly From Dangote Refinery

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The Federal Government has said all petroleum marketers can now negotiate and buy products directly from the Dangote Refinery, Lagos.

A statement by the Ministry of Finance indicated that the decision to allow oil marketers to deal directly with the refinery firm was reached at a meeting of the technical committee headed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

The meeting was held in Abuja on Friday.

The leeway given by the Federal Government has ended the arrangement in which the Nigerian National Petroleum Company Limited (NNPCL) was acting as the sole off-taker of the Dangote Refinery products.

Edun said its decision followed the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, adding that the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, of which he chaired held its second review meeting on Wednesday, October 10, 2024.

He said the meeting focused on assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS) and addressing the change in the purchasing model for petroleum product marketers.

Giving key update on New Direct Purchase Model, the minister said the most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries, saying that this marks a departure from the previous arrangement where the NNPCL served as the sole purchaser and distributor of PMS from the refineries.

According to him, “This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.

“Local Production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions. This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians.”

Edun stated that the committee recognizes that there are questions and discussions regarding this change in the market structure, adding, “We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process the Minister informed.”

He described the direct purchase of PMS by petroleum product marketers as a new era of growth and development for Nigeria’s petroleum industry and reassured stakeholders that the Committee will continue to provide clarity and engage with stakeholders to ensure the success of this new regime.”

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Markets

Ogun Govt Begins Sale Of ₦40,000 Rice, vows to Take Subsidized Foods to LGAs

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The Ogun State government under the leadership of Dapo Abiodun has commenced the sale of 50kg bags of rice for 40,000 Naira in the state.

Investors King reported that the subsidized rice program is part of the strategies by President Bola Tinubu’s government to address the economic hardship in the country.

Governor Dapo Abiodun, during the launching ceremony of the initiative held at the Arcade ground, Abeokuta, the Ogun State capital, revealed plans by his administration to extend the subsidized food initiative to the twenty local government areas of the state.

He noted that the subsidized food initiative would not be limited to rice only, other items including garri, rice, and beans would be available for purchase at significantly reduced prices.

The governor said, “We will soon be implementing our own version of this scheme from each local government, meaning we will implement this across the twenty local government areas of the state to deepen the reach into our grassroots.

“We will be selling food items like garri, rice, and beans at heavily subsidized prices.”

“The distribution will include various groups such as federal and state civil servants, private sector organizations, craftsmen, trade unions, NGOs, student groups, market vendors, community development groups, and religious and traditional groups,” he added.

He reassured the state’s citizens that the Head of Service’s office, the Ministry of Agriculture, and the NSA’s office had created a comprehensive plan to ensure the fair distribution of the product throughout the state’s 20 local government areas.

The governor emphasized the need for accountability, noting that cash payments would not be accepted. 

However, he revealed that payments would be made via Point of Sales (PoS) machines.

Abiodun warned against double registration, adding that beneficiaries’ NIN will be verified after a physical screening at the point of sale.

According to the governor, the launch of the subsidized rice sale in Abeokuta for Ogun Central Senatorial District, Ilaro for Ogun West Senatorial District, and Ijebu-Ode for Ogun East Senatorial District will commence immediately.

“To ensure accountability, there will be no cash payments; payment will be made through Point of Sales (PoS) machines, and beneficiaries will undergo physical verification at the point of sale.

“No double registration will be allowed; NIN will be verified to ensure that we prevent any sharp practices.

“This distribution will be carried out transparently and fairly, ensuring that these palliatives reach those we have targeted,” he said.

Governor Abiodun concluded by describing the initiative as a sign of President Tinubu’s dedication to addressing the problem of rising food prices and cushioning the effect of the fuel subsidy removal.

On October 2, the Federal Government announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

 

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