Out of home (OOH) advertising practitioners are groaning under uncontrollable, unregulated and indiscriminate regulation as well as multiple taxation.
These factors contribute to making the medium the most expensive compared with radio, television, print and online.
Yinka Adepoju, OYSAA Chief Executive
The evolution of signage and advertisement agencies in states has also contributed to the slow pace of OOH.
The residual list of the Nigerian Constitution empowers councils to regulate the industry, but state governments have usurped that responsibility by setting up regulatory agencies.
Among them are Oyo State Signage and Advertisement Agency (OYSAA), Lagos State Signage and Advertisement Agency (LASAA) and Ondo State Signage and Advertisement Agencies (OSAA).
Some state governments go as far as outsourcing regulation to private firms to boost internally generated revenue (IGR).
Another source of problem for practitioners is the pressure to invest in modern OOH facilities. But this is hampered by their inability to access bank loans with interest raise set at 24 per cent.
Investigation showed that even when OOH agencies have all the facilities, corporate organisations delay paying fees or fail to pay altogether.
Outdoor Advertising Association of Nigeria (OAAN) President, Charles Chijide, moaned at the Exhibition and Poster Awards in Lagos that the levy government agencies impose on practitioners is unfair.
“We are not opposed to regulation and sanitisation, to the extent that such is within the limits of identifiable laws of the land. It is difficult to understand why all of a sudden most state governments look in the direction of outdoor advertising to boost IGR,” he said.
The 2013 edition of Mediafacts, a publication of MediaReachOMD on the annual media performance of media groups on billing, reported that outdoor advertising in 2012 went down by over 40 per cent, which translated into over N40 billion.
Mediafacts identified the activities of the signage agencies as the sole reason for the poor performance, and warned that it may get worse as more states and councils have introduced signage agencies along with tax regimes.
The place of outdoor advertising in marketing communication mix cannot be overemphasised. The medium increases exposure and is the most flexible compared with other formats.
“OOH is highly efficient as it helps to reach a higher number of viewers, repeatedly making it the most cost effective, for it has the lowest cost per thousand,” Chijide said.
Before signage agencies, outdoor advertising was poorly regulated and littered the environment. The industry became an all comers affair, particularly in Lagos, as the OAAN lacked the initiative to solve the problem caused by the indiscriminate placement of boards.
LASAA became a blessing in disguise for the environment but a curse for practitioners, who lost billions of naira during the sanitisation process. Several boards were classified invalid and practitioners rendered jobless.
One surviving czar of the advertising profession, a first generation practitioner, Ayo Awoborode, recalled that most outdoor advertising agencies in the early years were poorly organised, had untrained staff, and were ill-equipped.
The transformation of the sector gladdens his heart, but he decries the way regulators operate.
“This is worrisome, considering the fact that it has taken a serious toll on outdoor business growth,” Awoborode said.
He criticised regulators for competing with operators, saying the duplication of roles has resulted in the dwindling fortunes of the business.
He urged stakeholders to salvage outdoor advertising from imminent collapse.
Advertising Practitioners Council of Nigeria (APCON) Registrar and Chief Executive Officer, Bello Kankarofi, cited a lack of communication between regulators and practitioners.
Said he: “I remember that the reform started in 2006 and was later shut down. But when the current Chairman of Council, Lolu Akinwunmi, came on board in 2009, the reform came alive again.”
LASAA Managing Director, George Noah, allayed the fears of practitioners about the plan to collaborate with other state agencies.
“I don’t think anybody should be apprehensive. I am focused on promoting and helping the business. All we are doing is to protect this industry. I will not be involved in jeopardising its interest. OAAN is my primary constituency,” he assured.
But OOH has become a cash cow, such that even the federal government wants to regulate it.
The hope is that practitioners will still get by, in line with the position of Senate Media and Communication Committee Chairman, Enyinnanya Abaribe, who has urged the National Assembly to make a law that ensures that the sector is not over taxed.