George Thorpe has dispelled the rosy picture painted of accounts in advertising and marketing services, and wants words such as “lucrative” and “juicy” used with caution.
Thorpe, Market Space Chairman, and co-founder of MediaReach OMD, Tequila and TBWA Concept, said the affluent image of advertising should be challenged to engender rapid growth in the industry.
George ThorpeHe spoke in Lagos where he highlighted the ‘10 myths’ of advertising and marketing services in Nigeria at a summit which marked the 10th year anniversary of MarketingEdge magazine.
When an agency wins multinational accounts, he noted, it becomes a major headline, prompting adjectives such as ‘lucrative’ and ‘juicy’, whereas the agency is broke while working for the client round the clock.
He lamented that in the bid to create a perception of financial healthiness to lure more clients, agencies buy new cars for their chief executive officers (CEOs) and repaint offices.
Said Thorpe: “When an agency wins new accounts, the marketing publications give a caption such as juicy accounts and you see it in the CEO’s car and the agency throws a party.
“Nobody asks how the company is doing financially because people measure the success of the business with a four-wheel drive and office architecture, rather than the balance sheet profit and loss account.”
He acknowledged that mobile telephone companies “spend some money you can never imagine” but for agencies none of them qualifies as a juicy account.
“When you have a GSM account, you will throw a party and increase your workforce because of the demands of handling such accounts.
“But at the end of the year you don’t have a good cash balance. I don’t think any of our clients qualify as juicy accounts or lucrative.”
Nonetheless, Troyka Group Chairman, Biodun Sobanjo, affirmed that there will always be juicy accounts. He urged agencies should deliver.
“They ask for a guarantee and you deliver. Owners must eyeball the clients. Many agencies want to hang on to the brief and accept anything, and when the procurement guy gets involved he starts to cut down on margin,” Sobanjo said.
Former MTN Marketing Director, Bola Akingbade, argued that 50 per cent of advertising budget is wasted by media agencies.
“I do not want to critique what Thorpe said,” he stated. “But often 50 per cent of ad budget is a waste. People do not know how to manage media budget.
“There are many blind media buying but credit should go to Thorpe for bringing accountability to the media buying through media star which enhances accountability.”