• Agencies decry clients’ deferred payments
• Clients task agencies on value based service
By Goddie Ofose
Senior Correspondent
Stakeholders in integrated marketing communications (IMC) cannot wish away 2015 in a hurry.
The industry has been described as tough with quite a few casualties knowing full well that the spate of marketing communication activities is one of the key determinants of the vibrancy of the economy.
The year started with several stakeholders expressing optimism. But eventually the blip began to show as general election approached.
Though sectoral industries believed to have benefited from the spoils of the general election include core advertising, out-of-home, experiential marketers, public relations and media independent.
Despite the huge communications outlays from two political parties – the Peoples Democratic Party (PDP) and All Progressive Congress (APC) – IMC agencies have claimed that the budget was given to quacks.
Year in perspective
Assessing 2015, Prima Garnet Africa Group Managing Director, Lolu Akinwunmi acknowledged that “it’s not been a good year for the profession. Our economy went into a spin from 2014 and simply played out in 2015.”
Akinwunmi is a former Advertising Practitioners Council of Nigeria (APCON) chairman.
In his view, two challenges impacted negatively. “One, clients literally stopped spending. Two, when they did, they didn’t pay on time or didn’t pay at all.”
Leap Communication Chief Executive Officer, Muyiwa Akintunde, said the components acquitted themselves of their respective responsibilities in spite of the economic squeeze necessitated by the global downturn.
“Being an election year in Nigeria,” he added, “the industry was busier on the political front but the increasing interest global brands have in the country also provided opportunities for the industry to grow in terms of activities and revenue.”
General election lull
Some stakeholders blamed general election for the lethargy IMC experienced this year. Others believe the election was a life saver to some agencies.
The election delayed major brand activations and sales promotions which would have impacted positively on the bottom line.
Skye Bank rebranding of its integration with Mainstreet Bank was delayed as a result of the shift in the election from February 14 to April 28.
Other organisations also deferred their corporate and brand campaigns, but Coca-Cola’s Share a Coke campaign could not wait. It was one of the few launched prior to the general election.
Akintunde who echoed the views of those who think the election stalled activities, said “that is because most other aspects of our life were virtually suspended as a result of the political activities that ran through the entire year.
“The year also threw up a change of baton for the first time in our democratic experience.
“In addition, the new government took so much time in settling down and defining economic thrusts.”
Akinwunmi insisted that “On the contrary, the election produced some impetus. Agencies were active as the political parties and candidates ran very expensive campaigns. For many agencies it’s a life saver.
“The industry high was the electioneering period. Anything after that has been a low.”
Assessment of regulators
This year will go down in history as the year that organisations and brands had it tough with their respective regulatory bodies.
APCON and Lagos State Signage and Advertisement Agency (LASAA) were overwhelmed during the election campaign with unsolicited commercials and advertising and irregular outdoor advertising materials all over Lagos and other parts of the country.
The industry saw one of the heaviest penalties meted out to an operator by the Nigerian Communication Commission (NCC), which could pass as the most active regulator in 2015.
It handed out several sanctions to telecommunications operators for different infractions, the heaviest being the N1.04 trillion fine slammed on MTN.
National Agency for Food, Drugs Administration and Control (NAFDAC) also made inroads by beating errant operators into line.
Guinness Nigeria became one of the victims with N1 billion fine over raw material breach.
The Consumer Protection Consumer (CPC) also tried by raiding shops in Idumota, Lagos and staging a confrontation at the head office of Multi-Choice Nigeria.
But Standard Organisation of Nigeria (SON) could not muster courage to deal with any organisation, even with the flood of substandard goods in the market.
“They have generally tried to discharge their responsibilities well. APCON of course has been in a comatose situation without a council in place. This has hampered the regulator’s work,” Akinwunmi explained.
Akintunde said the drive by the Nigerian Institute of Public Relations (NIPR) towards reforming PR practice “is commendable, and together with its consulting arm Public Relations Consultants Association of Nigeria (PRCAN), it has sent a clear message that the days of illegal practice are numbered.”
Cry of hardship
A seasoned advertising practitioner, who preferred to be anonymous, said the fourth quarter is the worst in the year.
Generally, sales volumes have continued to nosedive. And disposable income has also depleted.
Advertisers Association of Nigeria (AAA) President, David Okeme, said clients are desperately looking for consultants who can change perception and societal behaviour with just one image.
IMC in 2016
It is a pity that oil price is very low. Most likely, the government will have to borrow to fund activities which will put some life back in the economy, said Akinwunmi.
“Hopefully, anytime from the end of the first quarter we should see some gradual revival in the economy. Otherwise it may be another very tough year as we try to manage our recovery,” he added.
Akintunde stressed that increasing interest in Nigeria by global businesses portends a lot more activities for the industry and regulators must not relent in their determination to ensure that foreign agencies and their local collaborators comply with the law.