Description
The business environment today has been undergoing unprecedented changes and many companies are seeking new ways to stand out from the competition by sustaining their competitive advantage. In today’s highly competitive global marketplace, there is pressure on organizations to find new ways to persuade and make their products known to customers and ICT is being applied in many organizations in a wide range.
ISSN: 2276-7835
Influence of Information
Communication
Technology on the
Advertising Industry in
Nigeria: A Case Study of
Lagos State
By
Omotunde Muyiwa
Babatunde Ogunshipe
John – Dewole A.T.
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 220
Research Article
Influence of Information Communication Technology
on the Advertising Industry in Nigeria: A Case Study
of Lagos State
1*
Omotunde Muyiwa
2
Babatunde Ogunshipe
3
John – Dewole A.T.
1
School of Computer Science, Mathematics and Information Technology, Houdegbe North American University,
Republic of Benin.
2
Afe Babalola University, Ado Ekiti, Nigeria.
3
Department of Computer Science with Electronics, Faculty of Information Technology & Applied Sciences,
Lead City University, Ibadan, Nigeria.
2
Email: [email protected]
*Corresponding Author’s Email: [email protected]
ABSTRACT
The business environment today has been undergoing unprecedented changes and many companies are seeking new
ways to stand out from the competition by sustaining their competitive advantage. In today’s highly competitive global
marketplace, there is pressure on organizations to find new ways to persuade and make their products known to
customers and ICT is being applied in many organizations in a wide range. In present study, one hundred questionnaires
from five advertising companies, basically medium and large scale companies formed sample of this study based on
random sampling technique. The descriptive statistics was adopted and data were analysed using chi-square test at 0.05
significance level to test hypotheses. The study shows that advertising company has shifted to ICT based advertisement
which has influenced advertising industry in the area of coverage, time saving, accuracy, patronage of the industry and
it has also brought financial benefit to both the advertising company and advertisers.
Keywords: Influence, ICT, Advertising, Media.
1. INTRODUCTION
Advertising was derived from the Latin word ‘ad vertere’ which means "to turn the mind toward". Advertising is a
major tool in the marketing of products, services and ideas. The idea is to sell products, services or ideas to
consumers. The companies certainly think it is a good method of selling, and have increased their advertising year
after year (Taflinger, 1996).
It is a form of communication use to encourage, persuade, or manipulate an audience (viewers, readers or
listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to
drive consumer behaviour with respect to a commercial offering. Advertisement can also be used as a means of
reassuring employees or shareholders that a company is viable or successful. Advertisement messages are usually
paid for by sponsors and viewed via various transmission media such as newspaper, magazines, television
commercial, radio advertisement, outdoor advertisement or direct mail; or new media such as blogs, websites or text
messages.
Commercial advertisers often seek to increase consumption of their products or services through "branding"
which involves associating a product name or image with certain qualities in the minds of consumers.
Non-commercial advertisers who spend money to advertise items other than a consumer product or service
include political parties, interest groups, religious organizations and government agencies. Non-profit
organizations may rely on free modes of persuasion, such as a public service advertising (PSA) (Manohar, 2012).
Advertisement can be classified as having six characteristics: it is a paid form of communication, the sponsor
is identified, most advertisement persuade or influence consumer, message is conveyed through different types of
media, advertisement makes message to reach large audience of potential consumers, advertisement is a form of
mass communication (Taflinger, 1996).
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 221
According to Bovee and Arens (1992), defined advertisement as personal or non-personal communication of
information usually persuasive in nature about products, services or ideas through various media paid for by an
identified sponsor.
According to Somuyiwa (2010), advertisement is also promotion of a company's products and services
carried out primarily to drive sales of products and services which is usually done to build a brand identity and
communicate changes in old products or introduce new product/services to the customers.
The use of Information Communication Technology (ICT) has become more integrated into most aspects of
life including advertising. ICT means all forms of media used to handle and convey messages about a product or
service to the consumers. ICT based ads continues to gain an edge over other non-computerized advertising
materials such as brochures, posters or billboards because of advantages it has in promotional messaging
(Somuyiwa, 2010).
2. MATERIALS
Advertising in Nigeria has evolved from the days of black and white television ads, black and white handbills, fliers
and posters to the days of coloured digital ads both in print and media.
In 1977, knowledge and information-based activities contribute almost half of the gross national product and
employed 47% of developing countries workforce (Aysar and Recascino, 2006). Advertisement has become an
essential element of the corporate world and hence companies allot considerable amount of resources towards
advertising budget (Manohar, 2012).
A wide range of new technologies have given the advertising industry access to faster communication and
not only that businesses have the old and conventional methods but also the contemporary methods which involves
the use of technology including the internet, text messages (SMS), email, blogs etc., all summed up as ICT methods
(mamaghani, 2006).
Experts have attributed the steady progress in the sector to factors such as a free market economy,
improved educational standards as well as appreciable growth in the standard of living (Adewakun, 2010).
According to Manohar (2012), advertisement can be done through many mediums, such as wall
paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television
adverts, web banners, mobile telephone screens, shopping carts, web pop-ups, skywriting, bus stop benches, human
billboards and forehead advertising, magazines, newspapers, town criers, sides of buses, banners attached to or
sides of airplanes, in-flight advertisements; on seatback, tray, tables or overhead storage bins, taxi doors, roof
mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands, on disposable
diapers, doors of bathroom, stalls, stickers on apples in supermarkets, shopping cart handles, the opening section of
streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an
"identified" sponsor pays to deliver their message through a medium is advertising.
ICT has opened door of opportunities for advertising companies and employees willing to explore non-
traditional work arrangement. According to Alan (2006), “91% of advertising agencies allow more population of
employees to work at home occasionally”.
According to research carried out in America, it shows that in the last three quarters of 2009 mobile and
internet advertising grew by 18.1% and 9.2% respectively. Older media advertising saw declines: ?10.1% (TV),
?11.7% (radio), ?14.8% (magazines) and ?18.7% (Newspaper Association of America, 2012).
According to Gignac (2005), observed that another significant trend regarding future of advertising is the growing
importance of the niche market using niche or a targeted ad which is brought about by Internet and theory of The
Long Tail. A perfect example of Niche Marketing is Google Ad Sense. Google Calculates the primary purpose of the
website and adjusts ads accordingly. Using this method, Google pioneered an ingenious method of putting ads right
where it is needed.
According to Yuan et al. (1998), observed that the use of internet for advertisement can be grouped into pure
direct, pure indirect and bundling advertising in which their choice depends on their relative costs and benefits to
advertisers.
ICT has provided new ways to store, process, distribute and exchange information both within companies,
customer and suppliers in the supply chain.
3. METHODS
This research assesses influence of Information communication technology on advertising industry in Nigeria using
Lagos State as a case study. Lagos state is one of the commercial centres in Nigeria; nearly all the companies in
Nigeria have their head office in the state. The research was done by sampling of hundred (100) staffs of five ( 5 )
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 222
different advertising companies, Insight Communication Limited, Bates Cosse Limited, Front Page Advertising
Limited, Hunters Advertising Limited and Advertising Place Limited in Lagos state, Nigeria, through a self-
administered questionnaire. The data collected from these questionnaires were presented and analyzed using
descriptive statistics, and chi-square to test three hypotheses formulated.
?
?
=? ?
?????
??
?
?
???
2
Where o
i
is the observed value, e
i
is the expected value and ?
?
is the chi –square
and v = (row-1)(column-1) to determine its degree of freedom.
4. RESULTS AND DISCUSSIONS
Hundred questionnaires were distributed to respondents of five selected companies at average of twenty copies per
company; all copies of the questionnaires were duly completed, returned and found usable for this study. It was
found that, respondents’ falls into the 21 to 49 years of age group, which comprises the 70 per cent of respondents
who were males and 30 per cent females. This high response was recorded because enough time was given and
several visits were made to the selected companies to retrieve the questionnaires.
category
No Of
Respond
ent %
Bsc/Phd 23 23
HND 25 25
OND 34 34
SSCE/WAEC 18 18
Bsc/Phd
23%
HND
25%
OND
34%
SSCE/WAEC
18%
Figure I: Percentage of Educational Qualification of the Respondent
Question: How did you accept the introduction of ICT?
Table 1: Level of Acceptability of ICT
Company Fully
Accepted
Partially
Accepted
Not
Accepted
Total
Insight Comm. Ltd 17 3 0 20
Bates Cosse Ltd 20 0 0 20
Front Page Advertising Ltd 18 2 0 20
Hunters Advertising Ltd 12 8 0 20
Advertising Place Ltd 16 4 0 20
Total 83 17 0 100
From the table 1, it shows that 83% of the respondents agreed that ICT has been fully accepted by their
organizations while 17% agreed on partially accepted.
Question: To what extent would you say the shift in approach from conventional advertising methods to ICT based
advertising methods benefit your clients and your company?
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 223
Table 2: Shift in Approach Benefit Effect
Company Very Large
Extent
Large
Extent
Low Extent Total
Insight Comm Ltd 17 3 0 20
Bates Cosse Ltd 15 5 0 20
Front Page Advertising Ltd 10 10 0 20
Hunters Advertising Ltd 19 9 0 20
Advertising Place Ltd 13 7 0 20
Total 74 26 0 100
Table2 above shows that 74% of the respondents agreed that shift in approach from conventional advertising
methods to ICT based advertising methods benefitted their client and their company to very large extent while 26%
respondents agreed to large extent while non-responded to low extent.
Question: How ICT has influenced the activities in your company
Table 3: Influence of ICT on Company Activities
Company Ease
of Use
Time
Saving
Accuracy Wider
Coverage
Total
Insight Comm Ltd 2 5 3 10 20
Bates Cosse Ltd 1 7 4 8 20
Front Page Advertising Ltd 3 1 4 12 20
Hunters Advertising Ltd 1 2 1 16 20
Advertising Place Ltd 1 2 3 14 20
Total 8 17 15 60 100
Table 3 above shows that ICT has influenced activities in the advertising industry by notably increasing the area of
coverage, also saves time and increase service accuracy (60%, 17%, and 15% respectively) while ease of use has
8%.
Question: To what extent has ICT influenced patronage of advertisement in your company?
Table 4: Influence of ICT on Advertisement Patronage
Company Very Large
Extent
Large
Extent
Low Extent Total
Insight Comm Ltd 11 9 0 20
Bates Cosse Ltd 19 1 0 20
Front Page Advertising Ltd 18 2 0 20
Hunters Advertising Ltd 16 4 0 20
Advertising Place Ltd 20 0 0 20
Total 84 16 0 100
Table 4 shows that ICT has influenced patronage of advertising industry to very large extent, 84% of the respondents
agreed to very large extent while 16% agreed to large extent.
Test of Hypotheses
The following research hypotheses were formulated to determine the influence of ICT on the Advertising Industry.
Hypotheses One:
H
o
: ICT based advertisement has not been fully accepted by the advertising industry.
H
1
: ICT based advertisement has been fully accepted by the advertising industry.
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 224
To test this hypothesis, Table 1 was used.
Chi-Square calculation table 1
Serial Nos Observed Expected O - E (O - E)2 (O - E)2/E
1 17 16.6 0.4 0.16 0.0096
2 3 3.4 -0.4 0.16 0.0471
3 20 16.6 3.4 11.56 0.6964
4 0 3.4 -3.4 11.56 3.4
5 18 16.6 1.4 1.96 0.1181
6 2 3.4 -1.4 1.96 0.5765
7 12 16.6 -4.6 21.16 1.2747
8 8 3.4 4.6 21.16 6.2235
9 16 16.6 -0.6 0.36 0.0217
10 4 3.4 0.6 0.36 0.1059
Total 100 100 0 70.4 12.4735
Degrees of Freedom = (Rows - 1) (Columns - 1) = (5- 1)(3 - 1) = 8
The table value of chi-square at 0.05 significance level with 8 degrees of freedom is 2.733. The calculated value of
12.473 is greater than the table value of 2.733, therefore; null hypothesis (H
0
) was rejected and alternative
hypothesis (H
1
) was accepted which means that ICT based advertisement has been fully accepted by the advertising
industry.
Hypotheses Two:
H
o
: The shift in approach from conventional advertisements to ICT based advertisements has not benefitted
advertiser and advertising company.
H
1
: The shift in approach from conventional advertisements to ICT based advertisements has benefitted advertiser
and advertising company.
To test this hypothesis, Table 2 was used.
Chi-Square calculation table 2
Serial Nos Observed Expected (O - E) (O - E)2 (O - E)2/E
1 17 14.8 2.2 4.84 0.327
2 3 5.2 -2.2 4.84 0.931
3 15 14.8 0.2 0.04 0.003
4 5 5.2 -0.2 0.04 0.008
5 10 14.8 -4.8 23.04 1.557
6 10 5.2 4.8 23.04 4.431
7 19 14.8 4.2 17.64 1.192
8 1 5.2 -4.2 17.64 3.392
9 13 14.8 -1.8 3.24 0.219
10 7 5.2 1.8 3.24 0.623
Total 100 100 0 97.6 12.683
Degrees of Freedom = (Rows - 1) (Columns - 1) = (5 - 1) (3 - 1) = 8
Using chi-square at 0.05 significance level with 8 degrees of freedom is 2.733 and the calculated value is 12.683,
which is greater than the table value of 2.733; therefore, the null hypothesis was rejected (H
o
) and alternative
Hypothesis (H
1
)
was accepted which means that migration from conventional advertisement to ICT based
advertisement has benefitted the advertiser and advertising industry.
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 225
Hypothesis 3:
H
o
: The ICT has not influenced patronage of advertising industry.
H
i
: The ICT has influenced patronage of advertising industry.
To test this hypothesis, Table 4 was used.
Chi-Square calculation table 3
Serial Nos Observed Expected (O - E) (O - E)2 (O - E)2/E
1 11 16.8 -5.8 33.64 2.002
2 9 3.2 5.8 33.64 10.513
3 19 16.8 2.2 4.84 0.288
4 1 3.2 -2.2 4.84 1.513
5 18 16.8 1.2 1.44 0.086
6 2 3.2 -1.2 1.44 0.45
7 16 16.8 -0.8 0.64 0.038
8 4 3.2 0.8 0.64 0.2
9 20 16.8 3.2 10.24 0.61
10 0 3.2 -3.2 10.24 3.2
Total 100 100 0 101.6 18.9
Degrees of Freedom = (Rows - 1) (Columns - 1) = (5 - 1) (3 - 1) = 8
Using chi-square at significance level of 0.05 with 8 degrees of freedom is 2.733, the calculated value is18.9 which is
greater than the table value of 2.733; therefore, the null hypothesis (H
o
) was rejected while the alternative hypothesis
(H
1
)
was accepted which means that ICT has influenced patronage of advertising industry.
5. CONCLUSION
This research was conducted to assess the influence of Information communication technology on advertising
industry in Nigeria using Lagos State as a case study.
The study show that advertising companies have accepted ICT based advertisement which has influenced
their efficiency in all aspects especially in the area of coverage, time saving and accuracy, it was also noted that it
has brought increase in patronage of the industry, which led to benefit in terms of profits and returns on investment
for both the advertiser and the advertising industry.
REFERENCES
Adewakun Akin., 2010. Advertising in Nigeria: Over-regulated or under-regulated? Nigeria Tribune Newspapers,
Thursday, 13 May 10-15, 2010.
Alan Standley.,2006. Set Your Workers Free? Baylor Business Review Journal 25:50-55.
Aysar Sussan, and Recascino Anthony., 2006. The Impact of E-Mail Utilization on Job satisfaction: The Case of Multi
Locations, The Business Review, Cambridge 6:70-78.
Bovee,C.L., and Arens,W.F., 1992.“Contemporary Advertising”, 4th ed., Richard P. Irwin Inc., Homewood, IL, 1992.
Gignac Francine., 2005. Building Successful Virtual Teams, Boston Artech House, Inc., 2005.
MamaghaniFarrokh.,2006. Impact of Information Technology on the Workforce of the Future: An Analysis.
International Journal of Management 23:845.
Manohar Uttara., 2012.Modern Advertising Methods. [Online]Available:http://www.buzzle.com/articles/modern-
advertising-methods.html.
Newspaper Association of America (NAA), Trends and Numbers. 2012. [Online]
Available:http://www.naa.org/Trends-and-Numbers/Advertising-Expenditures/Annual-All-Categories.aspx
Somuyiwa, O.A., 2010. Analysis of Logistics Cost in the supply Chain Management of Manufacturing Companies in
South-western Nigeria, Nigerian Journal of Management 4:66 -73.
Taflinger Richard.,1996. An Overview of Advertising. [Online] Available:http://www.wsu.edu/~taflinge/addefine.html.
Yuan Yoehong, Caulkings, J.P., and Rosehrig Stephen.,1998. The Relationship between advertising and Content
Provision on the Internet, European Journal of Marketing, 32:677-687.
doc_257468617.pdf
The business environment today has been undergoing unprecedented changes and many companies are seeking new ways to stand out from the competition by sustaining their competitive advantage. In today’s highly competitive global marketplace, there is pressure on organizations to find new ways to persuade and make their products known to customers and ICT is being applied in many organizations in a wide range.
ISSN: 2276-7835
Influence of Information
Communication
Technology on the
Advertising Industry in
Nigeria: A Case Study of
Lagos State
By
Omotunde Muyiwa
Babatunde Ogunshipe
John – Dewole A.T.
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 220
Research Article
Influence of Information Communication Technology
on the Advertising Industry in Nigeria: A Case Study
of Lagos State
1*
Omotunde Muyiwa
2
Babatunde Ogunshipe
3
John – Dewole A.T.
1
School of Computer Science, Mathematics and Information Technology, Houdegbe North American University,
Republic of Benin.
2
Afe Babalola University, Ado Ekiti, Nigeria.
3
Department of Computer Science with Electronics, Faculty of Information Technology & Applied Sciences,
Lead City University, Ibadan, Nigeria.
2
Email: [email protected]
*Corresponding Author’s Email: [email protected]
ABSTRACT
The business environment today has been undergoing unprecedented changes and many companies are seeking new
ways to stand out from the competition by sustaining their competitive advantage. In today’s highly competitive global
marketplace, there is pressure on organizations to find new ways to persuade and make their products known to
customers and ICT is being applied in many organizations in a wide range. In present study, one hundred questionnaires
from five advertising companies, basically medium and large scale companies formed sample of this study based on
random sampling technique. The descriptive statistics was adopted and data were analysed using chi-square test at 0.05
significance level to test hypotheses. The study shows that advertising company has shifted to ICT based advertisement
which has influenced advertising industry in the area of coverage, time saving, accuracy, patronage of the industry and
it has also brought financial benefit to both the advertising company and advertisers.
Keywords: Influence, ICT, Advertising, Media.
1. INTRODUCTION
Advertising was derived from the Latin word ‘ad vertere’ which means "to turn the mind toward". Advertising is a
major tool in the marketing of products, services and ideas. The idea is to sell products, services or ideas to
consumers. The companies certainly think it is a good method of selling, and have increased their advertising year
after year (Taflinger, 1996).
It is a form of communication use to encourage, persuade, or manipulate an audience (viewers, readers or
listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to
drive consumer behaviour with respect to a commercial offering. Advertisement can also be used as a means of
reassuring employees or shareholders that a company is viable or successful. Advertisement messages are usually
paid for by sponsors and viewed via various transmission media such as newspaper, magazines, television
commercial, radio advertisement, outdoor advertisement or direct mail; or new media such as blogs, websites or text
messages.
Commercial advertisers often seek to increase consumption of their products or services through "branding"
which involves associating a product name or image with certain qualities in the minds of consumers.
Non-commercial advertisers who spend money to advertise items other than a consumer product or service
include political parties, interest groups, religious organizations and government agencies. Non-profit
organizations may rely on free modes of persuasion, such as a public service advertising (PSA) (Manohar, 2012).
Advertisement can be classified as having six characteristics: it is a paid form of communication, the sponsor
is identified, most advertisement persuade or influence consumer, message is conveyed through different types of
media, advertisement makes message to reach large audience of potential consumers, advertisement is a form of
mass communication (Taflinger, 1996).
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 221
According to Bovee and Arens (1992), defined advertisement as personal or non-personal communication of
information usually persuasive in nature about products, services or ideas through various media paid for by an
identified sponsor.
According to Somuyiwa (2010), advertisement is also promotion of a company's products and services
carried out primarily to drive sales of products and services which is usually done to build a brand identity and
communicate changes in old products or introduce new product/services to the customers.
The use of Information Communication Technology (ICT) has become more integrated into most aspects of
life including advertising. ICT means all forms of media used to handle and convey messages about a product or
service to the consumers. ICT based ads continues to gain an edge over other non-computerized advertising
materials such as brochures, posters or billboards because of advantages it has in promotional messaging
(Somuyiwa, 2010).
2. MATERIALS
Advertising in Nigeria has evolved from the days of black and white television ads, black and white handbills, fliers
and posters to the days of coloured digital ads both in print and media.
In 1977, knowledge and information-based activities contribute almost half of the gross national product and
employed 47% of developing countries workforce (Aysar and Recascino, 2006). Advertisement has become an
essential element of the corporate world and hence companies allot considerable amount of resources towards
advertising budget (Manohar, 2012).
A wide range of new technologies have given the advertising industry access to faster communication and
not only that businesses have the old and conventional methods but also the contemporary methods which involves
the use of technology including the internet, text messages (SMS), email, blogs etc., all summed up as ICT methods
(mamaghani, 2006).
Experts have attributed the steady progress in the sector to factors such as a free market economy,
improved educational standards as well as appreciable growth in the standard of living (Adewakun, 2010).
According to Manohar (2012), advertisement can be done through many mediums, such as wall
paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television
adverts, web banners, mobile telephone screens, shopping carts, web pop-ups, skywriting, bus stop benches, human
billboards and forehead advertising, magazines, newspapers, town criers, sides of buses, banners attached to or
sides of airplanes, in-flight advertisements; on seatback, tray, tables or overhead storage bins, taxi doors, roof
mounts and passenger screens, musical stage shows, subway platforms and trains, elastic bands, on disposable
diapers, doors of bathroom, stalls, stickers on apples in supermarkets, shopping cart handles, the opening section of
streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an
"identified" sponsor pays to deliver their message through a medium is advertising.
ICT has opened door of opportunities for advertising companies and employees willing to explore non-
traditional work arrangement. According to Alan (2006), “91% of advertising agencies allow more population of
employees to work at home occasionally”.
According to research carried out in America, it shows that in the last three quarters of 2009 mobile and
internet advertising grew by 18.1% and 9.2% respectively. Older media advertising saw declines: ?10.1% (TV),
?11.7% (radio), ?14.8% (magazines) and ?18.7% (Newspaper Association of America, 2012).
According to Gignac (2005), observed that another significant trend regarding future of advertising is the growing
importance of the niche market using niche or a targeted ad which is brought about by Internet and theory of The
Long Tail. A perfect example of Niche Marketing is Google Ad Sense. Google Calculates the primary purpose of the
website and adjusts ads accordingly. Using this method, Google pioneered an ingenious method of putting ads right
where it is needed.
According to Yuan et al. (1998), observed that the use of internet for advertisement can be grouped into pure
direct, pure indirect and bundling advertising in which their choice depends on their relative costs and benefits to
advertisers.
ICT has provided new ways to store, process, distribute and exchange information both within companies,
customer and suppliers in the supply chain.
3. METHODS
This research assesses influence of Information communication technology on advertising industry in Nigeria using
Lagos State as a case study. Lagos state is one of the commercial centres in Nigeria; nearly all the companies in
Nigeria have their head office in the state. The research was done by sampling of hundred (100) staffs of five ( 5 )
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 222
different advertising companies, Insight Communication Limited, Bates Cosse Limited, Front Page Advertising
Limited, Hunters Advertising Limited and Advertising Place Limited in Lagos state, Nigeria, through a self-
administered questionnaire. The data collected from these questionnaires were presented and analyzed using
descriptive statistics, and chi-square to test three hypotheses formulated.
?
?
=? ?
?????
??
?
?
???
2
Where o
i
is the observed value, e
i
is the expected value and ?
?
is the chi –square
and v = (row-1)(column-1) to determine its degree of freedom.
4. RESULTS AND DISCUSSIONS
Hundred questionnaires were distributed to respondents of five selected companies at average of twenty copies per
company; all copies of the questionnaires were duly completed, returned and found usable for this study. It was
found that, respondents’ falls into the 21 to 49 years of age group, which comprises the 70 per cent of respondents
who were males and 30 per cent females. This high response was recorded because enough time was given and
several visits were made to the selected companies to retrieve the questionnaires.
category
No Of
Respond
ent %
Bsc/Phd 23 23
HND 25 25
OND 34 34
SSCE/WAEC 18 18
Bsc/Phd
23%
HND
25%
OND
34%
SSCE/WAEC
18%
Figure I: Percentage of Educational Qualification of the Respondent
Question: How did you accept the introduction of ICT?
Table 1: Level of Acceptability of ICT
Company Fully
Accepted
Partially
Accepted
Not
Accepted
Total
Insight Comm. Ltd 17 3 0 20
Bates Cosse Ltd 20 0 0 20
Front Page Advertising Ltd 18 2 0 20
Hunters Advertising Ltd 12 8 0 20
Advertising Place Ltd 16 4 0 20
Total 83 17 0 100
From the table 1, it shows that 83% of the respondents agreed that ICT has been fully accepted by their
organizations while 17% agreed on partially accepted.
Question: To what extent would you say the shift in approach from conventional advertising methods to ICT based
advertising methods benefit your clients and your company?
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 223
Table 2: Shift in Approach Benefit Effect
Company Very Large
Extent
Large
Extent
Low Extent Total
Insight Comm Ltd 17 3 0 20
Bates Cosse Ltd 15 5 0 20
Front Page Advertising Ltd 10 10 0 20
Hunters Advertising Ltd 19 9 0 20
Advertising Place Ltd 13 7 0 20
Total 74 26 0 100
Table2 above shows that 74% of the respondents agreed that shift in approach from conventional advertising
methods to ICT based advertising methods benefitted their client and their company to very large extent while 26%
respondents agreed to large extent while non-responded to low extent.
Question: How ICT has influenced the activities in your company
Table 3: Influence of ICT on Company Activities
Company Ease
of Use
Time
Saving
Accuracy Wider
Coverage
Total
Insight Comm Ltd 2 5 3 10 20
Bates Cosse Ltd 1 7 4 8 20
Front Page Advertising Ltd 3 1 4 12 20
Hunters Advertising Ltd 1 2 1 16 20
Advertising Place Ltd 1 2 3 14 20
Total 8 17 15 60 100
Table 3 above shows that ICT has influenced activities in the advertising industry by notably increasing the area of
coverage, also saves time and increase service accuracy (60%, 17%, and 15% respectively) while ease of use has
8%.
Question: To what extent has ICT influenced patronage of advertisement in your company?
Table 4: Influence of ICT on Advertisement Patronage
Company Very Large
Extent
Large
Extent
Low Extent Total
Insight Comm Ltd 11 9 0 20
Bates Cosse Ltd 19 1 0 20
Front Page Advertising Ltd 18 2 0 20
Hunters Advertising Ltd 16 4 0 20
Advertising Place Ltd 20 0 0 20
Total 84 16 0 100
Table 4 shows that ICT has influenced patronage of advertising industry to very large extent, 84% of the respondents
agreed to very large extent while 16% agreed to large extent.
Test of Hypotheses
The following research hypotheses were formulated to determine the influence of ICT on the Advertising Industry.
Hypotheses One:
H
o
: ICT based advertisement has not been fully accepted by the advertising industry.
H
1
: ICT based advertisement has been fully accepted by the advertising industry.
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 224
To test this hypothesis, Table 1 was used.
Chi-Square calculation table 1
Serial Nos Observed Expected O - E (O - E)2 (O - E)2/E
1 17 16.6 0.4 0.16 0.0096
2 3 3.4 -0.4 0.16 0.0471
3 20 16.6 3.4 11.56 0.6964
4 0 3.4 -3.4 11.56 3.4
5 18 16.6 1.4 1.96 0.1181
6 2 3.4 -1.4 1.96 0.5765
7 12 16.6 -4.6 21.16 1.2747
8 8 3.4 4.6 21.16 6.2235
9 16 16.6 -0.6 0.36 0.0217
10 4 3.4 0.6 0.36 0.1059
Total 100 100 0 70.4 12.4735
Degrees of Freedom = (Rows - 1) (Columns - 1) = (5- 1)(3 - 1) = 8
The table value of chi-square at 0.05 significance level with 8 degrees of freedom is 2.733. The calculated value of
12.473 is greater than the table value of 2.733, therefore; null hypothesis (H
0
) was rejected and alternative
hypothesis (H
1
) was accepted which means that ICT based advertisement has been fully accepted by the advertising
industry.
Hypotheses Two:
H
o
: The shift in approach from conventional advertisements to ICT based advertisements has not benefitted
advertiser and advertising company.
H
1
: The shift in approach from conventional advertisements to ICT based advertisements has benefitted advertiser
and advertising company.
To test this hypothesis, Table 2 was used.
Chi-Square calculation table 2
Serial Nos Observed Expected (O - E) (O - E)2 (O - E)2/E
1 17 14.8 2.2 4.84 0.327
2 3 5.2 -2.2 4.84 0.931
3 15 14.8 0.2 0.04 0.003
4 5 5.2 -0.2 0.04 0.008
5 10 14.8 -4.8 23.04 1.557
6 10 5.2 4.8 23.04 4.431
7 19 14.8 4.2 17.64 1.192
8 1 5.2 -4.2 17.64 3.392
9 13 14.8 -1.8 3.24 0.219
10 7 5.2 1.8 3.24 0.623
Total 100 100 0 97.6 12.683
Degrees of Freedom = (Rows - 1) (Columns - 1) = (5 - 1) (3 - 1) = 8
Using chi-square at 0.05 significance level with 8 degrees of freedom is 2.733 and the calculated value is 12.683,
which is greater than the table value of 2.733; therefore, the null hypothesis was rejected (H
o
) and alternative
Hypothesis (H
1
)
was accepted which means that migration from conventional advertisement to ICT based
advertisement has benefitted the advertiser and advertising industry.
Greener Journal of Science, Engineering and Technology Research ISSN: 2276-7835 Vol. 3 (7), pp. 220-225, August 2013.
www.gjournals.org 225
Hypothesis 3:
H
o
: The ICT has not influenced patronage of advertising industry.
H
i
: The ICT has influenced patronage of advertising industry.
To test this hypothesis, Table 4 was used.
Chi-Square calculation table 3
Serial Nos Observed Expected (O - E) (O - E)2 (O - E)2/E
1 11 16.8 -5.8 33.64 2.002
2 9 3.2 5.8 33.64 10.513
3 19 16.8 2.2 4.84 0.288
4 1 3.2 -2.2 4.84 1.513
5 18 16.8 1.2 1.44 0.086
6 2 3.2 -1.2 1.44 0.45
7 16 16.8 -0.8 0.64 0.038
8 4 3.2 0.8 0.64 0.2
9 20 16.8 3.2 10.24 0.61
10 0 3.2 -3.2 10.24 3.2
Total 100 100 0 101.6 18.9
Degrees of Freedom = (Rows - 1) (Columns - 1) = (5 - 1) (3 - 1) = 8
Using chi-square at significance level of 0.05 with 8 degrees of freedom is 2.733, the calculated value is18.9 which is
greater than the table value of 2.733; therefore, the null hypothesis (H
o
) was rejected while the alternative hypothesis
(H
1
)
was accepted which means that ICT has influenced patronage of advertising industry.
5. CONCLUSION
This research was conducted to assess the influence of Information communication technology on advertising
industry in Nigeria using Lagos State as a case study.
The study show that advertising companies have accepted ICT based advertisement which has influenced
their efficiency in all aspects especially in the area of coverage, time saving and accuracy, it was also noted that it
has brought increase in patronage of the industry, which led to benefit in terms of profits and returns on investment
for both the advertiser and the advertising industry.
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