Not a few practitioners and stakeholders at the just-concluded National Advertising Conference (NAC) , held in Abuja, echoed the sentiment. The advent of technology, new media and culture shifts poses an existential threat to the nation’s advertising industry. And, if advertising is to survive, new business models that would enable practitioners, in the nation’s advertising industry, leverage such technology in their operations, and encourage collaboration and consolidation, among agencies, for industry growth, have become imperative.
For instance, while setting the tone for the conversation organised by the apex regulatory body in the nation’s advertising industry, the Advertising Regulatory Council of Nigeria (ARCON), its Director General, Dr. Lekan Fadolapo, argued that the profound changes being witnessed in the industry no longer make the ‘business-as-usual’ model viable for practitioners and even regulators.
“We live in an era of technological advancements and cultural shifts. New business models are not just influencing our work, they are also reshaping the very foundation of it. Every industry, from healthcare to finance, education to retail, is being redefined by the digital revolution.
“At the same time, cultural shifts around consumer behaviour, workforce expectations, and sustainability are forcing us to reconsider our values, strategies, and the ways we conduct business. Even for us as a regulator, it can no longer be business as usual,” he stated.
The ARCON boss explained that the intention of the conference, tagged: ‘Navigating The Shifts: Technology, Culture and New Business Models’ was to enable stakeholders to discuss survival strategies, harness technology for meaningful impact and cultivate a ‘forward-thinking’ culture that embraces those shifts.
The President of the Association of Advertising Agencies of Nigeria (AAAN), Mr. Lanre Adisa, in his goodwill message to the audience also echoed same sentiments.
For the Noah’s Ark boss, who also oversees the affairs of the Heads of Advertising Sectoral Groups (HASG), believed operating in ‘silos’ is no longer fashionable if the industry is to frontally tackle the myriad of challenges it is presently grappling with.
He, therefore, called for collaboration among stakeholders to enable the industry contribute its own quota to the development of the nation’s economy.
Interestingly, former Guinness Nigeria chief executive, Mr. Seni Adetu, in his paper tagged: ‘Making A Case for Agency Consolidation’ argued that the essence of any business is to grow superior shareholder value, sustainably.
Besides, he added, for any business to be considered a success, such business must be built to last, must be shaping the destiny of the industry where it operates, and also be ready to grow talents.
“No matter how big you are as a business, you have to do everything possible to dictate and shape the destiny of the industry you operate in, because if you don’t do that, and the industry goes down, you are definitely going to go down with it,” he stated.
While acknowledging the giant strides the nation’s advertising industry has recorded in the past few decades, the Founder/Group CEO, First Primus West Africa, however, believed the sector is still being held down by a myriad of challenges.
Some of the challenges, he stated, include: outrageous demands from clients, the 120-180 days credit; commoditisation, talent recycling, poor corporate governance, regulatory constraints and sometimes disrespect from clients.
“I believe all these challenges are recipe for destruction if something drastic is not done,” the former Guinness Nigeria boss stated.
Like others, Adetu called for more collaborative efforts within the industry, especially among agencies and practitioners. He would also like to see an industry, ready to consolidate, with its practitioners and agencies, open to merger and acquisition deals.
He cited instances of the nation’s telecoms and banking sectors, where the consolidation strategy was adopted, and effectively implemented in the past, and which have now become the better for it.
“That is why today you hardly hear of bank collapse, as it used to be pre-consolidation. The decision by the regulators in the space to ask all the players in the industry to shore up their capital bases remains one of the reasons why we are seeing all these banks standing strong today,” he added.
Adetu argued that agencies should not wait for the regulators, as being suggested in some quarters, before adopting the consolidation option.
According to him, the fact that agencies in Nigeria, despite their numerical strength over their counterparts in South Africa delivered a paltry $1.5m, in 2023, far less than the double digits recorded in South Africa.
The former Guinness Nigeria boss queried the rationale of running an obviously ailing advertising agency when the options of merger and acquisition are available for such agency to turn around its fortunes.
“Unfortunately, one of the challenges here is that of ego. We believe in title, rather than performance. Besides, there is this crab mentality in the industry, you are not growing, and you are not ready to allow those with the growth potential to flourish. Instead of allowing them to grow, you are pulling them down,” he stated.
Though Adetu is of the belief that consolidation is not without its challenges, such as unnecessary competition, misaligned vision and values, and mistrust, it still remains a viable option among agencies in Nigeria.
He urged practitioners to avoid blame game and focus on what can be changed in the industry. “Many of us focused on what has happened or situations that can not be changed. I think that is not the right approach if we are really thinking of growing the industry,” he stated.
Adetu would also want practitioners to measure themselves against the best in the industry to enable them stay relevant.
Interestingly, despite the general consensus for that urgent need for a paradigm shift in the industry to enable practitioners to stay relevant, it’s left to be seen whether the practitioners will be ready to divorce themselves of the ‘crab mentality’, and jointly work towards the industry growth.
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