- 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.
Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd
The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.
The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.
The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.
The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.
Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.
The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.
Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins
Oil Prices Recover from 4 Percent Decline as Joe Biden Wins
Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.
This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.
Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.
On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.
“Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.
“There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.
“Either you’re crimping energy demand or consumption behavior.”
Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020
Revenue of OPEC Members to Drop to 18 Year Low in 2020
The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.
EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.
“If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.
The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.
It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.
It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.
“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”
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