Nigerian businesses are facing an avalanche of losses as a result of the Twitter ban
Nigerian businesses are facing an avalanche of losses as a result of the Twitter ban
On Saturday, June 5th, Wunmi*, a digital marketer, lost a $600,000 ($1,200) gig. The marketing campaign was scheduled to begin the following day, but she received a call from the client informing her that they were unable to proceed due to 'orders from above.' She was taken aback.
That same day, approximately 39 million Nigerians awoke to find themselves unable to access Twitter without using VPNs. MTN and Airtel, two Nigerian Internet Service Providers (ISPs), had blocked all access to Twitter.
When Peju, the owner of Abebi Organics, describes the day the ban was implemented, she describes how the jokes continued to pour in until people realized they could no longer tweet.
It's been more than two weeks since the ban took effect, and the consequences have been far from amusing for businesses like hers that grew their customer base through Twitter.
The ban came a day after Nigeria's government announced an indefinite suspension of Twitter. According to the minister of information, Twitter was banned because it "consistently made its platform available to those threatening Nigeria's corporate existence."
While Wunmi was still mourning the loss of her first job, she was laid off from another for the same reason.
“Everything felt pointless. Worse yet, another 700,000-dollar ($1,400) transaction ended up in the mud. The client paid at least 150,000 ($333) for the small job I completed,” she explained.
The economic impact on businesses
This ban has impacted how many Nigerians stay informed, build relationships, and obtain opportunities. On the other hand, businesses have seen a decline in engagement and sales.
In the case of Nifries, an online food delivery service that relies on Twitter to connect with its customers, customers aren't responding as they once did.
Feranmi Ajetomobi, founder of Nifries, explained that the Twitter ban has impacted anon (short for anonymous) sales, which account for approximately 20% of Nifries' total revenue. Anonymous sales occur when individuals surprise strangers or friends by purchasing goods on their behalf without disclosing their identity.
“We've discovered that when we contact a few people and receive no response, it's either because they've taken a break or the Twitter ban has had an effect on them. We know it's a ban because when we reach out to these individuals to get them online, they attribute their absence to the fact that using a VPN is confusing,” he explained.
Sales via Twitter have been impacted for Habib, who runs Smiley Socks, a clothing company that also thrives on the 'anon sales' phenomenon. He's also noticed a decline in tweet engagement.
This has caused him to switch to alternative channels. He's had to devote more time to his Instagram page and optimize his e-commerce website's SEO in order to increase conversation.
He's also begun experimenting with TikTok, with astounding results thus far. Within a day of launching his new TikTok page, he had already amassed 100 followers. His few videos have already accumulated at least 500 views, with the highest reaching over 4,000.
“It's insane when you consider that this is a brand-new page and we are not following anyone. Regardless of the level of engagement, the larger question is how we will convert these numbers into sales. For the time being, we'll focus on increasing our influencer and affiliate marketing efforts until we figure out what works," Habib explained.
Wunmi*, who recently lost two deals totaling more than $2,500, is now considering venturing into uncharted channels such as IG Reels and TikTok.
“I use Twitter for clients who do not mind me using a VPN. Regrettably, those clients are few and far between. Nobody wants to offend President Buhari at the moment for fear of being blacklisted by the government or, worse, of being forced to close their business. Clients conjure up numerous negative scenarios for how the government might retaliate; they can be quite amusing at times, but who can blame them?” she said.
Twitter in comparison to other platforms
Charles Isidi, a growth marketer and digital consultant, agrees on the importance of diversifying one's digital marketing channels, but issues a cautionary note. He has personally witnessed the decline's impact. With a following of approximately 17,000, his monthly impressions have decreased from 3.8 million to less than 500,000.
He asserts that the ban will have a negative impact on advertising spend and results across other digital marketing channels, as Nigerian Twitter users who use VPNs will also have their locations distorted across all other apps.
“How can you reach your most valuable audience if they live in a country you are unfamiliar with?” he asked.
He also questioned whether people understand how to use VPNs safely.
“A large number of people make use of free VPNs. Within the next six months, we may see an increase in theft. We'll need to determine how much money we've lost as a result of cybercrime.”
Businesses may need to transition to other social media platforms, but Twitter offers more favorable marketing returns.
In comparison to other advertising channels, Twitter is a less expensive and stressful option.
He's been attempting to run a billboard campaign for three months but has been unable to do so due to Lagos' paid advertising approval process. For digital advertisements, the advertisement is approved and begins delivering value to the business in less than an hour.
“In comparison to other social media platforms, consider Facebook. A post on a typical 10,000-follower page will reach 3% of your audience. Meanwhile, an organic tweet can be retweeted on Twitter. There is a reason why people love Twitter in terms of shareability and virality. I can say something and 3 million people will see it even if I only have 100 followers.”
That's more difficult on Instagram, where you have to create an explore page or use a popular hashtag to achieve a similar result.
How much money is being wasted?
As an example, he stated, "If you currently manage a brand with 20,000 followers, it will receive an average of 1-3 million impressions." To be conservative, the brand will gain an average of 1,000–3,000 new customers at a 0.1 percent conversation rate.”
“Assuming the average transaction value per customer is $3 per month, that equates to an average loss of $3,000 – $9,000 due to the ban. When we multiply it by the total number of businesses in that range, we see that the figure is enormous.”
Nigerian businesses that previously benefited from Twitter's massive reach now face an avalanche of losses if the decision is not reversed soon.
And, if we are optimistic and imagine a world in which the ban is lifted, how much irreversible damage has been done to the potential audience reach that these businesses previously possessed? We'll find out in due course.
*Names have been changed to protect the subjects' identities
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