The Africa Fintech Summit (AFTS) has released its Nigeria Fintech Marketing Outlook 2024 report, shedding light on marketing strategies’ current and future direction within the nation’s booming fintech industry.
Since 2017, the Africa Fintech Summit has led trade missions, bilateral partnerships, ecosystem tours, investment initiatives, and launches with startups, multinational corporations, and governments alike.
Explaining the motivation behind the report, Charles Anijekwu, co-author, states, “We wanted to understand the fintech marketing landscape better and identify the true drivers of growth.” Co-author Jeremiah Ajayi adds, “There was a data gap on marketing trends within fintech, especially in key areas. We aimed to bridge this gap with the report and foster a data-driven culture within the industry.”
The report reveals that paid advertising was the dominant channel for customer acquisition across key Nigerian fintech verticals in 2023.
Sectors like Merchant Payments, Point-of-Sale (POS), Investment & Wealth Management, and Digital Lending witnessed substantial customer acquisition costs in 2023.
The report also indicated that fintech companies are prioritizing efficient marketing strategies. A noteworthy 50% of marketing budgets are allocated to the most effective channels for each specific vertical.
Regarding generative AI ,the report shows an increase in terms of adoption as the industry seeks new avenues for engagement, 29% of surveyed fintech companies have already adopted Generative AI for content creation, showcasing a willingness to explore innovative marketing tools.
The report predicts that organic channels, like social media and search engines, will become increasingly important for fintech marketing in 2024 and the coming years. This is one of 16 forecasts included in the report.
The report contextualizes these findings within the broader Nigerian fintech landscape. It acknowledges the “bull run” of 2020-2022, where abundant capital fueled aggressive customer acquisition strategies like celebrity endorsements and reality TV sponsorships. However, the funding winter of 2023 forced a shift towards leaner operations and tighter marketing budgets.
Charles Isidi, Head of Marketing and Communications at Africa Fintech Summit, emphasizes the report’s broader relevance. “Nigeria, Africa’s leading fintech hub, is a valuable case study for the continent,” he states. Home to giants like Flutterwave and Paystack, Nigeria boasts a thriving ecosystem that informs pan-African strategies.
