Brands & Advertising
Advertising industry relies on political campaigns, budget for live support in 2018
The operating environment in the outgoing 2017 was really tough and challenging for Nigeria’s marketing communication industry but some of the operators are hoping on political campaigns preceding 2019 elections and the possible full implementation of 2018 budget as succour.
In 2017, many companies who were hit by recession and other economic challenges tuned down their marketing communication budget which reverberated in the advertising industry forcing the industry to either owe salaries or operate with very lean staff.
However, some of the operators foresee the industry thriving again. Their optimism is predicated on the advertising expenses for the World Cup holding in Russia in June 2018; forthcoming general elections, with political campaigns kicking off next year and implementation of 2018 budget especially on infrastructure which is expected to buoy the economy.
Olusegun McMedal, Chairman of Lagos State Chapter, Nigerian Institute of Public Relations told BusinessDay that operating environment in 2017 was really very tough as a result of recession which started last year. “ It is a fact that integrated marketing communications business suffers in a recessed economy. Even this year, the implementation of the 2017 budget is less 40%. Mind you, government is the highest spender. There are a couple of agencies that packed up during this period”
He was however hopeful for a boom in 2018 partly because of the general elections coming up in 2019. “Government is expected to pump money into the economy to convince the electorates. That is expected to trickle to businesses and households”
He also sees FIFA World Cup as another factor that would shape 2018 for marketing communication industry.
Similarly, Lanre Adisa, CEO of Noah’s Ark, creative advertising agency said Marketing communication industry was not spared from the hardship as it operates within Nigerian economy which faced tough time.
“We have been told that we are out of recession, but we know that there a lot of people who are finding it difficult to make ends meet. If our clients don’t have it easy, it would also be tough for us in the advertising industry. We have seen the pains clients went through, especially with issue of forex and other matters. You need to be thankful if you are fortunate to have clients who are still in business”, he said
Lanre however believed that with the easing of recession and forex in this last quarter, there is optimism than before and based on that he believes that 2018 would be a better year for marketing communication industry. Again, some work for the 2019 election would be done in 2018, he said.
In his comment, the president of Outdoor Advertising Agencies of Nigeria, OAAN, Tunde Adedoyin also acknowledged that 2017 was really difficult for businesses but again that 2018 would be better because of the expenditure expected from political campaign and 2018 budget.
For some time, the Outdoor advertising industry has been facing plethora of challenges from regulatory agencies to competition, including multiple taxation and high rates. The Recession of 2016/2017 did not help matters as the consequences were severe as the industry had to content with media debt, cut in marketing communication and outright non-renewal of contracts by clients.
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