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Home Marketing Niche Clients, agencies quiver over kickbacks for pitches, briefs

Clients, agencies quiver over kickbacks for pitches, briefs

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Bribery and corruption are a regular fair in the private sector. The two vices are widespread in the public sector and have become the norm in corporate setting to getting briefs and pitches swing to the side of an advertising agency.

 

Diamond Bank Managing Director, Uzoma Dozie
Diamond Bank Managing Director, Uzoma Dozie

The client/agency relationship dates back to when outsourcing was introduced to ease pressure on internal staff while allowing briefs to be handled by professionals for a fee.

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That innovation gave birth to a number of service agencies in the integrated marketing communication (IMC) industry, and ensured efficiency, accountability, effectiveness, and professionalism in corporate businesses such as reputation management, advertising, events, media buying, and brand management.

 

The model heralded the pitch system where agencies chase an account through presentation on the plan and implementation of a brief. Industry experts said it was at this point that bribery, which others referred to as lobbying, set in.

 
In the 80’s and 90’s

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The competition in the industry nowadays was never envisaged. Today, several agencies chase few businesses. It was different in the 80’s. In those days, pitches were won on professionalism and briefs given to registered agencies.

 

Ethics was utmost in everybody’s mind, recalled communication lecturer, Uwak Onofiok.

 

But what was obtained in the 80’s and 90’s seems to have escaped from the window because pitches and briefs are now won by those who consider themselves “smart”, who make dubious portrayals.

 

A senior practitioner who once worked on the client side and now runs an agency but pleaded anonymity recounted that “in the 80’s, briefs were given to registered agencies or selected agencies for a pitch or pitches as the case may be.

 

“Briefs were detailed and sent to agencies dully signed by senior staff in hard copies and delivered professionally.

“However, in the 90’s, briefs had become slightly watered down in content and detail. Clients started cutting corners and sending briefs less professionally.

 

“Most briefs in the 90’s were never signed but sent electronically. Sometimes agencies got briefs ahead of agreed time just to favour and make them be ahead of other agencies.”

 

Public Relations Consultants Association of Nigeria (PRCAN) Vice President, Muyiwa Akintunde, added that “going by what I heard from those who were in practice then, even as there were fewer agencies there were fewer briefs as not a few clients had their own managers running communication.”

 
21st century reality

Several agencies in advertising, experiential marketing, public relations, media buying, and others have worked out of the so-called lucrative businesses because of the overbearing attitude of marketing directors, brand managers, and corporate affairs/communication managers.

 

“In my opinion, pitches are no longer as credible as they used to be since marketing and brand managers are looking for friends and relations to give the account to,” said Brand Insight Chief Executive Officer (CEO), Kolawole Adenusi.

 

This is one of the most critical issues in the industry. Though some pitches are still very credible, industry experts said the exercise is compromised in many corporate organisations.

 

In 2013, Ken Egbas’ TruContact threatened to sue Diamond Bank to court for pitch infraction.

 

It was also reported that Kola Ayanwale’s CentreSpread pulled out of a lucrative Etisalat advertising business it shared with Bunmi Oke’s 141 Worldwide because of irreconcilable differences between the client and the agency.

 

Akintunde argued that “pitches the world over will always be subjective given that they are managed by humans. You can never rule out preferences as hard as those who control the process may try.

 

“But agencies must always apply themselves adequately and give pitches their best performance.”

 
Incredible pitches

It is still a question of whether pitches nowadays are credible or not.

 

“Take away the subjective nature which is not peculiar to our environment, pitches are credible. As much as possible, participants are provided a level playing field. In a few cases however, it is about working from the answer to the question,” Akintunde said.

 

For Adenusi, “the pitch process in Nigeria is 60 per cent credible. The remaining 40 per cent goes to ethnicity, kickbacks, brotherhood/relationships and other varied vested interests.”

 

 

Industry antics

Investigation showed that agency people are more culpable in this avoidable menace. Inducement for briefs is the order of the day, lamented a renowned brand activation practitioner.

 

“Pitches are no longer won on merit but on who can out-pay who. It is very sad our industry is turning out like this,” he lamented.

 

Several other practitioners, from PR to advertising, are complaining over these sharp practices. In some instances, pitch presentations are just mere formalities. Those who will pick up the business are already known and organisations are just carrying out this exercise to be seen as credible.

 

While those on client side may not be exempted from the blame game, most of them usually demand kickback, between 10 per cent and 30 per cent, of total profit of the brief. Some ask to be a part owner of the agency before a brief is given out.

 

The industry has outgrown the gift-for-brief practice, the usual thing in the late 90’s and early 2000’s.

 

Now, the marketing director, brand manager, marketing manager or corporate affairs manager would want to be a stakeholder in the agency. Or else the juicy brief is lost.

 
Buhari’s influence

Many believe that President-elect Muhammadu Buhari’s influence would play a positive role in reversing the trend in the private sector. The effects of this practice are so enormous that businesses lose money because briefs are given to unprofessional agencies.

 

Brand activation and PR are a major hit. If a company’s reputation portfolio is handed to an inexperienced and unmerited agency and it messes up, what would be the future of that business, queried reputation manager, Nnamdi Okore.

 

However, PR expert, Danladi Baku, warned that “I don’t even believe that Buhari’s administration will curb corruption in the public sector let alone in the private sector.

 

“I see a lot of very corrupt people around him. ‘Who pays the piper they say, dictates the tune’.

 

“He cannot control the private sector because the government does not own it and may never have a loud voice in its reform. Besides, the public sector is more than enough for him to handle.

 

“New means will only be for corruption in the private and public sectors just to conform to the slogan – Change.”

 

Akintunde countered that “it may take a while, but if we are able to reduce corruption in the public sector, it will have positive ripple effects on the private sector.”

 

Experts implored industry sectoral groups to come together and look for a solution before the corporate world drifts into the public sector menace.

 

The groups include PRCAN, Association of Advertising Agencies of Nigeria (AAAN), Advertisers Association of Nigeria (AAN), Media Independent Practitioners Association of Nigeria (MIPAN), Experiential Marketers Association of Nigeria (EMAN).

 

Also urged to join in the crusade are institutions such as the National Institute of Marketing of Nigeria (NIMN), Advertising Practitioners Council of Nigeria (APCN), and Nigeria Institute of Public Relations (NIPR).

 

Another school of thought believes that the CEOs of multinational agencies should check the activities of bribe givers and takers.

 

But P&G is probably the only company in Nigeria that has such a fool-prove system.

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