Good times are here for integrated marketing communication (IMC) agencies considered as “underdogs” as they corner most sought after accounts. Senior Correspondent, GODDIE OFOSE, writes on how established agencies are licking their wounds.
There is plenty of talk in integrated marketing communication (IMC) about how smaller agencies in creative advertising and public relations are succeding at business contests against long standing agencies of repute.
It was unheard of that a medium size agency would beat a renowned PR or advertising agency in an objectively contested pitch in Nigeria. These tales were usually shared by those who have practised outside this country.
Nigerian businesses (local and multinational) did not create an environment conducive enough to encourage a level playing field between new, inexperienced and old, experienced agencies during pitches.
However, the tables have turned. What happens in European and other Western markets are being replicated in Nigeria. New agencies now pick up juicy accounts at the expense of incumbent and experienced ones.
From lull to vibrant
The first quarter of the year was dull because of the general election, compounded particularly by the postponement of the presidential vote from February 14 to March 28.
But immediately after the election, which was surprisingly peaceful, corporate bodies swung into action. Pitches were called and the results are now felt across the board.
Skye Bank was quickest off the block with its PR business though Centrespread has been home to the creative side of the business. Very tough with fewer agencies contesting, but in the end The Quadrant Company (TQC) grabbed it.
The renaissance has started with several others planning to inject excitement or sadness, depending on the side of the bed one lies on.
Airtel, Guinness, MTN, and Etisalat have gone to town with new advertisements, and their impact is felt deep.
Paradigm shift
It used to be predictable which agency would come out victorious at every business pitch. Smaller agencies in advertising were not expected to pitch against formidable ones such as Insight Communication, DDB Lagos, Prima Garnet, TBWA, SO&U, Rosabel, and STB McCann and win.
In PR, any agency that stepped into the ring with CandF, CMC Connect, JSP, and TQC were already considered failure because the result was predictable. These agencies have long years of experience and had friends and associates across all business sectors.
The jinx was broken by Modupe Tokunbo’s TPT International which won BAT, Guinness, and briefs in the early 2000s. This was followed by Akin Adeoya’s MarketingMix in 2004 when it defeated Nn’emeka Maduegbuna’s CandF at an MTN pitch.
After a while, the old habit resurfaced where old agencies dominated. But now, the young ones are back, according to the managing director of a PR agency based in Ikeja, who pleaded anonymity.
The most recent sign is the announcement of the success of Jaiye Opayemi’s Chain Reaction at an Etisalat pitch. Chain Reaction defeated the incumbent TQC at the second stage of the presentation to warehouse the PR business of the telecom company.
Prior to this, MTN, the biggest IMC business in Nigeria, parted ways with MarketingMix; which had been on the account for 12 years, and Xlr8 which held it for four years; to pitch tent with inexperienced Sola Fijabi’s Brooks and Blakes and DKK Associates.
The trend continued this time in creative advertising as Lanre Adisa’s Noah’s Ark, barely six years old, sacked a renowned STB McCann from the lucrative Airtel creative brief.
A-not-too-old Xlr8 was recently appointed to manage Guinness corporate instead of very experienced agencies with decades of non-alcoholic and alcoholic beverage briefs.
Fading emphasis
A senior PR practitioner, Kazeem Adewale, said no organisation is interested in any agency’s long history and heritage anymore, it is about what it can bring to the table that would benefit the brand.
“The era of communication for communication sake is gone, your strategy must align with your client’s strategic policy targeted at sales and volume; and that is bottom line,” Adewale stressed.
Connection in high places, long years of organisation, first mover advantage, insider advantage, bribery (tips) and corruption are the main factors used to determine who wins what during pitches.
But such emphases are fading fast because these days clients are more concerned with the bottom line and competition.
There is nothing like underdog when a level playing field is enthroned, said MediaPoint Chief Executive Officer (CEO), Nkese Umoren.
This is a welcome development. Agencies are allowed to test their strengths and weaknesses and the best agency should be allowed to implement its thought and ideas for the industry to remain competitive and healthy.
Commendation for the process
Pitch process used to be heavily doctored, particularly in the fast moving consumer goods segment. P&G was reportedly the only agency in the segment to have a flawless pitch process.
Most pitches then were what the industry referred to as “kangaroo”.
However, practitioners have testified that the playing field is better now.
Despite the fact that there were pockets of grumbling after the MTN PR pitch winners were announced, the process was lauded by others who participated.
It was learnt that one of the contestants, JSP CEO, Phil Osagie, called MTN Head of Corporate Communications, Funmi Omogbenigun, to congratulate the company for a transparent and credible exercise despite the fact that he lost.
The Etisalat pitch was also said to be very credible, with its Managing Director, Matthew Willsher, spending over four hours with the team in the second stage involving TQC and Chain Reaction, the eventual winner.
“Things have changed,” said a reliable source. “I saw the MD of Etisalat jettisoning other activities of the day to be a part of the process, and I marvelled.”
Winners and losers
Different strokes for different folks is exactly what is happening in these agencies. Winners are going on recruitment and poaching spree, losers are planning retrenchment.
The negative effect may not be so much because some who lost out in the pitches have their sights to other ventures.
Xlr8 which lost MTN has won Guinness corporate, CandF did not make the second round at Etisalat but it has been awarded Guinness (Diageo brands).
Sources said TQC, which expects Phillip Morris to kick start its Nigeria campaign, would soon make an announcement that would surprise everyone.
