THE nation’s Integrated Marketing Communication (IMC) sector, was, without doubt, an interesting space in the out-gone year. It was the year it recorded the milestone of, making public its contributions to the the nation’s Gross Domestic Product (GDP).
What made the development hugely significant was the fact that that would be the first time, attempts would be made by regulators and practitioners in the industry, to know how much impact their activities were having on the nation’s economy.
Interestingly, Year 2025, is being touted, by industry watchers, to likely produce more of such milestones. This, they however hinged on the actions and inactions of some stakeholders, which they believed, would go a long way in determining the possibility or otherwise of such milestones being recorded in the new year.
One of such stakeholders, whose activities are likely to hugely impact the sector is the Director General, Advertising Regulatory Council of Nigeria (ARCON), Dr. Lekan Fadolapo.
Since being in charge of the apex regulatory body in the nation’s advertising space, on September 1, 2020, Fadolapo, has made it clear to whoever cares to listen that he is in that office to reposition the space, by enhancing the practice and make it globally competitive. Interestingly, in the past four years, he has been able to come up with different reforms aimed at achieving this purpose.
For instance, since taking over the mantle of leadership at the Council, the former Executive Director, at the Association of Advertising Agencies of Nigeria (AAAN) has spared no efforts at breathing some fresh air into the space, as evidenced in some ground-breaking reforms and policies which had drawn both ire and applause of the industry. For example, as soothing as the introduction of the Advertising Industry Standards of Practice (AISOP) is to many in the practice, it is also drawing the ire of some, who are of the strong opinion that the reform would curb the powers of ‘life and death’ they wield over the industry.
But the nation’s Chief Advertising Practitioner seems determined to clean the Augean Stable, and, in consequence, not ready to spare any efforts at achieving that.
It is generally believed that the activities of the agency in the new year, would go a long way in determining the shape the nation’s advertising space would take in the year
FCCPC and its interventions on the consumer space
That the consuming public, in Nigeria, continues to have its rights trampled upon is a common knowledge. But, of late, advocacy groups and regulatory authorities in the space seem to be gradually rising in its defence. For instance, the Federal Competition and Consumer Protection Commission (FCCPC), had to visit some popular markets in Abuja, Lagos and those in other parts of the country, last year, to identify why prices of commodities had continued to soar, despite efforts by the federal government, at stemming the tide.
The agency’s face-off with a popular airline, over consumer infraction was another of its several efforts at ensuring that the Nigerian consumers were protected, in the out-gone year. More of such interventions would be needed in the new year, especially in the power and transport sectors, where consumers seem to have thrown in the towel and resigned to fate.
The agency would, without doubt, need the support of advocacy groups, and the public to effectively function in the new year.
HASG and the implosion on the advertising space
One issue many industry watchers would continue to observe with keen interest, in the new year, is that involving the Heads of Advertising Sectoral Group (HASG), and some of its recalcitrant members, the Advertisers’ Association of Nigeria (ADVAN), and the Out-of-Home Association of Nigeria (OAAN). HASG is the umbrella body of all sectoral bodies in the advertising. But, of late, things seem to be falling apart within the ranks of this once solidly-united body.
For instance, last year, ADVAN, a frontline member, pulled out of the group, on the excuse that the body had veered off the course for which it was set up. While the industry was yet to recover from the shock of that pronouncement, another member, OAAN, was at dagger drawn with the leadership of the group regarding the group’s open disclaimer of the Chartered Out-of-Home Media Bill, presently on the floor of the national assembly. Unfortunately, the dusts raised by these two. incidents are yet to settle. The relatively new governing council of HASG, led by a frontline advertising practitioner, and Group Chief Executive of Noah’s Ark, Mr. Lanre Adisa, is being looked up to broker the much-needed peace, regarding these incidents capable of fragmenting the industry.
Adisa had, in one of his chats with the media, last year, assured concerned stakeholders of his council’s resolve to bring the warring parties to the table, and call a truce. How the Noah’s Ark’s boss and his council go about this, in the new year, would really matter to the industry, stakeholders believed.
Dealing with the knotty issue of reforms
The reforms embarked upon by the present administration, since taking over on May 29, 2023, are not without their effects on the sector. The figures, concerning the nation’s economy’s performance are gory. With inflation rate as high as 33 percent, unemployment rate at over 30 percent, poverty rate, according to the World Bank, at 40.7 percent and the nation’s Naira being one of the most underperforming currencies in the world, it is not surprising advertising is having its own fair share of the trickle-down effects of the sector.
For example, the continued exits of multinationals from the nation’s business space, and the increase in the number of unsold inventory, as a result of very weak purchasing power of the average Nigerian, have continued to serve as major disincentives to advertising, of late. Of concern is the fact that the declining purchasing power of consumers led to a 357.57 percent surge in the inventory of unsold finished products of manufacturers to N1 24 Trillion, in the second half of 2024, compared to N271 billion recorded in the same period in Year 2023.
Besides the increase in fuel price, and the devaluation of the naira, another factor, many believed, was responsible for that was the over 200 percent increase in electricity tariffs, imposed by the DisCos, thereby raising the cost of electricity for manufacturers, and brand custodians.
“The cost of providing alternative power continued to rise, with manufacturers spending N238.31 billion on alternative energy sources in H1, 2024, a 7.69 percent increase from H2 2023,” MAN had cried out, at one of its media interactions, last year.
Interestingly, the challenges are still there as the sector goes into the new year. And until the government made good its promise of reducing inflation to 15 percent, and addressing the issue of gross devaluation of the naira, these challenges may continue to dictate the pace at which the sector moves in the new year.
“It is illogical for a reasonable citizen to expect any positive change if the government does not change its approach to economic management”.
Perhaps the above submission of a finance and marketing expert, Mr Biyi Adesuyi succinctly captures the fate that awaits the industry and many others, as a new year begins.
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