The Nation Newspaper

Category: Brand week

  • Gtext boosts e-commerce with new solutions

    Gtext Media and Investment Limited has unveiled eight new IT startups solutions into the market to further boost e-Commerce and allow seamless electronic economic transactions in the country.

    The Chief Executive Officer of Gtext Media and Investment Limited, Stephen Akintayo, at the press conference and launch of the new products held recently introduced the latest new start-up of the company which includes smeshouse.com.ng, dms.com.ng,

    onlinetradefare.com.ng , gstore.com.ng, trendingbooks.com.ng, trendingproducts.com.ng, trendingevents.com.ng and gtext.com.ng under the umbrella of Digital Marketing School, now a subsidiary Gtext Group.

    He pointed out that digital marketing as an online platform of marketing products and services and a big name encompassing email marketing, blogging or Web marketing, social media marketing and so on.

    “Digital marketing school and SME house empowers and train people in the digital marketing business. The knowledge of digital marketing school would enable people to earn more money than they have invested,” he said.

    Akintayo also pointed out that these products would help anybody who wants to set up his or her business and assist them to grow. He used the opportunity to urge everyone in any field to utilise the digital marketing methods as the best way towards boosting their income and bring about development as well.

    Speaking at the event Mrs. Moyo Jogunosimi, who is a facilitator, noted that digital marketing helps to foster better and stronger business relationships with people.

    She said digital marketing is not restricted to a specific location or persons, describing it as a necessity for every business as it earns more money than orthodox method of marketing.

  • Chicken Republic’s social media ads stir controversy

    Chicken Republic’s social media ads stir controversy

    Chicken Republic, a quick service restaurant, has provoked the social media community by using the travails of the National Secretary of the Peoples Democratic Party (PDP), Olisa Metuh, to market its brand. The advert, one that went unnoticed out of several, is being questioned on ethical ground by social media commentators and brand analysts, writes ADEDEJI ADEMIGBUJI.

    No one, perhaps, only a few, took the brand, Chicken Republic, a quick service restaurant, up on its series of advertising campaigns on social and political gaffes in the last one year, until the recent one. In a recent campaign that is generating a fuss, in the brands and marketing community, as well as the social media, the company used the travail of the National Secretary of the Peoples Democratic Party (PDP), Olisa Metuh, to create what some described as a mockery or satirical social media campaign.

    The controversy was inspired by the arrest of Metuh on allegation of corruption. Few days after his arrest, he was reportedly on hunger strike. Days later, when he was brought to the court, Facebook and Twitter in Nigeria almost collapsed under the weight of narratives about whether or not, it was right for the government to have brought him to court on handcuffs. Metuh was also rumoured to have attempted to “chew” his written statement, an issue that made the EFCC to level other separate charges of trying to destroy evidence against him.

    In the midst of his travail, Chicken Republic’s creative agency, BBDO, was inspired to create content; a cartoon where Chicken Republic was asking the rather funny question- why eat your words when you can eat our chicken? In the cartoon, a Chicken Republic “chicken” is seen flying to deliver a special food order for Metuh while he was in EFCC custody.

    Following the release of the creative material on social media, its audience who were unhappy with the way Metuh is being treated, vent their anger against the QSR on Facebook and twitter, calling for the boycott of the QSR on account of this.  ”Those who were piloting this ship even went as far as creating their own cartoons, some of which had pictures of people vomiting after eating at Chicken Republic,” says Brand-Analyst-Chief at Brandish.com.ng.

    That’s not the first of such controversial ad from the brand. The Nation sighted other social issue ads on Chicken Republic twitter @ChickenRepublic playing on some of the happenings in the country in the last one year. Some of the social media ads include: No More Black Friday Discount for Petrol on November 7; On appointment of Babatunde Fashola: Yoruba Dictionary, Okunrin meta ‘3-in-1 BRF’. The brand also used another one on Buhari with a campaign theme-Baba-Go-Fast and several hashtags on: þ@ChickenRepublic  8 Oct 2015 #UsainBuhari #PickingUpSpeed #BoltOfChange #HopeFortheFuture #BetterThingsToCome #ChickenRepublic. On March 21, the brand also used a cartoon with an theme: How to Woo Electorate. These are some of the social critic campaign from the QSR.

    Also, Chicken Republic has done another ridiculing of the ruling All Progressives Congress (APC) as well as former Chelsea Manager, Jose Mourinho.

    But the take on Metuh has generated much furore from social media audience believed to be his sympathisers. This according to some, could affect the market of the brand, especially in the areas that have soft spot for him. On the other hand, the some analysts believe it could further strengthen the brand instead.

    “You see, what these angry people were doing are exactly what Chicken Republic desired. The brand wanted conversations. ‘Let the people be talking about us,’ must have been the message to the agency behind the campaign. Chicken Republic is easily country’s biggest, operating 65 outlets in Nigeria and Ghana and looking like it is the only indigenous quick service restaurant that still makes money. In these days when traditional advertising really no longer works and folks are playing more in the content space, Chicken Republic seemed to have caught the bug quicker than most other players in and outside the QSR industry,” said Okuhu.

    He said to provoke conversations and generate viral buzz, Chicken Republic has chosen the very controversial, as themes for its content, designed mainly in the form of cartoons with real people, with real emotional arteries running through millions of individuals as subjects.

    “Its latest focus was Olisa Metuh and for a couple of days, it seemed like this was a wrong choice for this company that has clearly innovated better than the rest of the industry, especially the locals. Emotions ran wild, especially among those who are Metuh’s fans and supporters. And it worked!,” he said.

    “In less than 48 hours after the content was released, hundreds of thousands have shared it on Facebook. Countless others who are angry created their own messages and even called for boycotts. But nobody ever boycotted a business for doing such things. Chicken Republic seems to have understood social media even better than those who use it every day to share content and be up-to-date on news and information. They know that “sharing” is at the core of why we are on the social media. They also are aware that the more a particular content is shared, the more people talked about it and the higher they go in terms of top-of-mind,” said Okuhu.

    He said little wonder the brand has grown from $2 million at launch back in the early 2000s to over $150 million today. Okuhu affirms further: “A brand that prides itself as one for the young must firmly understand what drives this community and controversy is one of them.”

    Another commentator, Kelechi Deca in one of his comments on the controversial cartoon, said Chicken Republic will profit rather than lose at the end of the day. “Instead of boycott, more people will throng the restaurants for even more chicken,” he noted. He added, “Not all demarkating actually ends up demarkating a brand. It might lead to the emergence of another crop of supporters …”

    It will be recalled that few months ago, StanbicIBTC also mocked English Premier League side, Arsenal, on twitter after its goalkeeper let in cheap goals in the first game of the season against West Ham United.

    “As we said in a review of that campaign, especially when Arsenal fans were raving and ranting all over the place, the winner at the end of the day would be Stanbic IBTC. We had then made it clear that “content is critical to marketing these days. When you have the right content, what it does for the brand is to breed a sense of community via social conversations. Content has come to replace the old-reliable word-of-mouth communication and tends to be a lot more effective because it has a way of bringing a lot more people together,” Okuhu recalled.

    Whether the ad is in bad taste or not, there is a consensus among brand analysts that Chicken Republic has won yet again. “For the people on the side of Metuh, they have inadvertently spread the word on the brand, even with their boycott calls,” said Okuhu.

     

  • HP kicks off Star Wars campaign

    HP kicks off Star Wars campaign

    HP, a device manufacturing company, has partnered with Star Wars, the American epic space opera franchise, to create exceptional experience for its customers.

    The HP Star Wars campaign, which was kicked off recently, selected HP customers across Lagos, to have a feel of the campaign at a private screening of Star Wars: The Force Awakens VII.

    At the screening, customers had the rare opportunity of experiencing the new HP Star WarsTM Special Edition Notebook, loaded with customised Star Wars images and movies.

    The new campaign, which is global, is being run in Nigeria and Kenya simultaneously for the African market, with a consumer promotion built into it to ensure customers get full value for their money.

    Marketing Manager for HP West, East and North Africa, Tolulope Lawani, described the campaign as the brand’s way of further supporting its drive to reach the young and old.

    According to him, to localise the campaign, HP will be partnering with a Nigerian artiste, Ice Prince, to engage with their consumers and fans in the ‘Awaken Your Force Competition,’ where fans with the most creative entries and most likes are entered to win amazing HPdevices.

  • Hollandia Yoghurt out with ‘slurp it off’

    Chi Limited, makers of the Hollandia Yoghurt drink, has introduced new Hollandia Yoghurt Slurp it off Grab ‘n’ Go Packs- a handy 315ml pack.

    According to the Marketing Executive Sportslus Limited, Taiwo Adejare, the new Hollandia Yoghurt ‘Slurp it off’ handy pack is quite innovative and affords consumers the opportunity to refresh on the move.

    “Most times we are faced with options to savour our snacks but the Hollandia Yoghurt ‘Slurp it Off’ 315ml pack offers much more because it is healthy, nourishing, convenient and easily disposable,” he said.

    Managing Director, Chi Limited, Mr. Deepanjan Roy, said: “We know that many consumers desire Hollandia Yoghurt for different reasons, one of which is to enjoy their snacks along with their favourite yoghurt drink. We also know that health is one of the biggest motivating factors in consumers’ decision making process, so we decided to introduce the Grab’n’ Go pack for consumers who are on the move and desire a healthy drink with their meals. It is very affordable and offers consumers value for their money.’’

  • Osinbajo’s wife praises Airtel for supporting less privileged

    Osinbajo’s wife praises Airtel for supporting less privileged

    The wife of the Vice President, Mrs. Dolapo Osinbajo, has commended Airtel Nigeria for supporting the less privileged in Nigeria through the Airtel Touching Lives platform.

    Mrs Osinbajo, who was the Special Guest of honour at the premiere of Season 2 of Airtel Touching Lives, noted that Airtel Touching Lives programme has positively touched the lives of many Nigerians.

    “Support for those suffering and underprivileged should not be left in the hands of Airtel alone. It is the responsibility of us all. I was particularly touched by the Season 1 story of the Chime family whose children suffered various forms of physical disabilities. It shows that more attention and concern need to be shown to the less privileged people who are part of the society.

    The Managing Director/Chief Executive Officer of Airtel, Segun Ogunsanya, urged Nigerians to join efforts in supporting humanitarian causes.

  • Embracing CSR, the RCCG example

    Embracing CSR, the RCCG example

    Discussions on Corporate Social Responsibility (CSR) permeate all aspects of human life but the religious domain is often ignored. With the creation of Church/Christian Social Responsibility, a CSR unit of the Redeemed Christian Church of God (RCCG), religious organisations appear to recognise their roles in human and environmental development of the areas where they operate, write ADEDEJI ADEMIGBUJI and DAVID ADEJO. 

    Globalisation has influenced churches to be more committed to the social, economic, health and environmental concerns of their members. The government has failed to address some social needs, which dampened social values of citizens. So, corporate social responsibility (CSR) is crossing the border of corporate organisations,  perching on the altar of religious institutions.

    By implication, churches have found it worthwhile as a strategy to impact on the society without losing their primary objective-preaching salvation and making heaven. With armies of unemployed graduates, employed, poor populace, among other issues, who seek solutions from divinity, churches are beginning to explore CSR engagement tool as buffer for their congregations.

    To enhance better coordination of what some religious scholars also termed, Christian Coporate Social Responsibility (CCSR), some churches, especially those with highest congregation, now set up CSR/Sustainability departments to bind both faith in God and work for the betterment of the society beyond just feeding them with words of God.

    During a recent programme, the Redeemed Christian Church of God, Province 58, Ikorodu, Lagos organised an empowerment programme for its church members in  demonstration of care for the people who are swamped by social-economic challenges to deal with.

    After assessing their needs, the church paraded high profile human capacity development and empowerment professionals from the Bank of Industry (BoI), Fidelity Bank, Capacity Development and Skills Enhancement agencies to empower the church members in other to be job creators.

    The Chief Consultant, Capacity Development and Skills Enhancement, an NGO, Odewunmi Olatunji, said the CSR programme of the church had over 700 people who are learning various skills. He said some of them have learnt the business and art of bag making, shoe making, hair making, cinematography, make-ups, gele tying, manicure and pedicure, events management and decoration, catering, among others.

    He said the church has trained over 20,000 people since 2011 when the programme was introduced, adding that records have shown that most of them are doing well in their businesses.

    Explaining the rationale behind the empowerment programme, the Pastor-in-Charge of the province, Pastor Godwin Obadun, said the buy-in into CSR was occasioned by the state of the economy as a measure to reduce poverty in the country. “We have looked at the situation around us, the only thing we feel we can do to stop poverty is to enhance them with skills that will make them producers and service providers. This is why we have put together this two-week tuition free programme. The General Overseer, Pastor Enoch A. Adeboye, is the owner of this vision. He said: ‘Go out, don’t only preach the gospel, put something in their hands, let them have a job’ and this is what we are trying to do,” he said.

    He said further that the church also partnered with BoI to provide access to loans for startups after the training. “We have invited them because in some other programmes we have gone to, after training, the participants don’t have money or the capacity, or tools. We have, however, gone a step further by bringing in the BoI. We have given them tools. There is no way they can liaise with BoI without having an account with a commercial bank, and Fidelity Bank, as we all know, is a leading SME bank in Nigeria. So, we also brought them in to support. The people will not just learn the skills, but also have access to funds so they can start something. We are grateful to BoI and Fidelity Bank for coming. They have also promised to assist everyone,” he said.

    Meanwhile, the Regional Head of BoI, Mr. Ubaro Marvel Usah,who was at the event,  said the bank is ready to support anyone after the training in other to grow the economy and reduce poverty.

    ”We are here on the invitation of the Redeemed Christian Church of God (RCCG). They are having an empowerment programme to educate their members. They want to educate their members on the available products that BoI has which can be used to support their members in terms of empowerment and how we can provide financial support for their teeming members. So, essentially, we are here to tell them the products that are available for SME within BoI, then the requirements of Bank Support Scheme under each of the schemes that we have, and then what we can do to work with them to go and develop business so that we can develop our economy jointly and collectively,” he said.

    Besides BoI, the church also brought Fidelity Bank to ease access to loans for the trainees. One of the managers of SMEs for Fidelity Bank, Banksharon Nwaneri, assured the bank also intends to support the church’s CSR drive by getting the understanding that they can receive support to start up.

    “There is what we call commercial support overdraft. It provides short-term loans which last for about 30 days and a very market- friendly interest rate that we can make available. We also have the commercial support loan which lasts for 90 days. Then, we have our commercial credit facility that can run for about one year to expand their businesses.

    Then they can also access our CBN intervention funds which we work massively in,” she explained.

    One of the beneficiaries of the training, who preferred to be called by her first name, Kafayat, said though she doesn’t attend the church, she found the programme impactful.

    She said with the training, she can now be her own boss. “I heard about this programme from a friend. I am not a Christian or a member of this church. I came for the registration on Monday (this week), we started the training and now I can do some beads to sell. I also like it because we have the opportunity to borrow from the bank, soft loans with no collateral and little interest to pay,” she said.

    In the light of this, a Journal of Business Management and Economics stated the contribution from religious angle is few and peripheral. “Discussions on CSR permeate all aspect of human life –social, economic and environmental domains, but the religious domain is often ignored, perhaps based on the belief that social domain covers religion. The diverse and overlapping debate on CSR is so intense that it elicited criticism that ‘the field of corporate social responsibility (CSR) has become a religion filled with priests,” the journal stated.

    However, scholars said exploring CSR from religious lenses is justified because religion is now becoming a tool by governments across the world to elicit support for policies and for shaping people’s worldviews.

  • Five amazing things your Windows Lumia can do

    Five amazing things your Windows Lumia can do

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    There is no denial that our mobile phones have become an extension of who we are. They are our first port of call for communication, business, photography and entertainment.
    Microsoft’s range of Windows Lumia phones are no different. Not only are they sleek in design and easy on the wallet, but they also boast several features that make everyday life easier.
     
    We picked out the top five things you probably did not know your Lumia could do. We think they are game changers no matter what you use your phone for.
     
    1.       Unlock your phone just by looking at it
    Thanks to Windows 10’s new Hello feature and an iris scanner located in the top right hand corner of the Lumia, unlocking your phone has never been easier. You can unlock your phone easily and securely, simply by looking at it – no PIN or password required.
     
    To do this, go to Settings > Personalisation > Lock Screen > Sign-In Options. Find the Windows Hello option and once you’ve taken a few seconds to stare into the front-facing camera, you’re all set.
     
    2.       Turn your phone into a PC
    The Continuum feature allows you to turn your Lumia into a fully-fledged PC simply by connecting it to Microsoft’s Display Dock, a mouse and keyboard, and an external display. Just like that, all your phone’s content appears on the bigger screen, automatically adjusted to fit the new size and resolution. It looks just like Windows 10 on a PC.
     
    Even better, when your phone is connected to the external monitor and you are using the display to work in the Office apps or let your kids watch a movie, you can continue to use your phone to check emails and answer calls. If you don’t have an external mouse, you can also choose to use your phone’s screen as a trackpad.
     
    3.       Take great photos wherever you are
    The Lumia’s 20-megapixel sensor, Zeiss optics and triple LED natural flash all mean the photos you take on your phone are of higher quality than ever before. Added to this, the phone’s camera reacts to its environment so that you can get the best possible shot no matter the conditions. For example, if you’re trying to get a photo of your child on the soccer field, your phone will adjust its own shutter speed to capture the shot without the usual motion blur.
     
    4.       Make your phone child-friendly
    For those parents who know all too well how it feels to have children who are more tech-savvy than you are, this one’s for you. Windows Mobile’s Kid’s Corner feature separates pre-selected content such as apps, videos and games that your kids can access. No more worries about them getting their hands on unsuitable content or sending an inappropriate email to your boss.
     
    To activate this feature on your Lumia, go to Settings > Accounts > Kid’s Corner and select which content you’d like to make available. Once it’s set up, you can access Kid’s Corner by right swiping from the lock screen.
     
    5.       Track your movements to stay healthy
    It’s never been easier to keep track of your health and fitness, with a little help from your Lumia. The phone tracks your movements so that your health apps can use the data. To customise how this works on your phone, go to Settings > Extras > Lumia Motion Data and select your options. You can switch between basic and detailed data collection to choose whether to include your standing, walking, running, driving and cycling data.
     
    Making life easier
    Besides these features, the Lumia also has a host of shortcuts to make using your phone as easy as possible. For example, the Outlook email app has gesture-based actions and shortcuts; SMS Messages can integrate with Skype; and the Quick Reply feature means you can see your messages and pull down to reply to them without switching from whatever you are doing.
     
    Whatever you use your phone for – work or play – these features and shortcuts are designed to make your life easier. Give them a try and see how they work for you.
  • Year of convergence for sales, media

    Year of convergence for sales, media

    • Online, mobile video advertising investment to increase

    Millward Brown, a research agency, has predicted that both sales and media will be united by marketers in its annual digital and media predictions for 2016. The forecast also stated that more brands will invest heavily in online, particularly mobile video advertising, in the new year.

    For the eighth consecutive year, the company is providing marketers with a clear guide on navigating the challenges and opportunities of the next 12 months.

    The annual digital & media predictions outline the need to optimise video and mobile advertising, evaluate connected TV opportunities and develop inspiring branded content.

    According to the agency, one prediction in the 2016 report identifies the opportunity for marketers to develop clearer consumer journey maps, from awareness to purchase, in order to better integrate sales and media touchpoints.

    The agency said the opportunity will become possible as digital platforms blur to an unprecedented degree the lines between media and sales disciplines, allowing marketers to optimise the consumer journey more than ever before.

    Accordingly, three key trends are expected to drive this opportunity. One, the marketing research stated that the consumer journey is becoming device and channel agnostic as people buy at the moment and in the way that best suits them. Secondly, the transformation of e-commerce sites from pure sales channels into media touch-points (where people advertise) and thirdly, the transformation of ad creative that links directly to purchase opportunities on digital channels.

    “Marketers who develop detailed consumer journey maps will be able to follow consumers along this new path to purchase, allowing them to identify the most powerful touchpoints from both sales and marketing along the way. This will give brand owners the power to deliver the seamless brand experience that consumers desire and drive brand, market share and sales outcomes, simultaneously and in harmony,” the forecast stated.

    Meanwhile, the Global Brand Director for Digital at the agency, Duncan Southgate, also said: “Sales and media touchpoints have traditionally been separate, but changes to the digital landscape and consumer behaviour now allow marketers to unify them for the first time,” “In  2016, we expect advertisers to map marketing contexts to an integrated consumer journey so that sales and brand-building content complement rather than compete with each other.”

    Millward Brown anticipates additional important changes in the media landscape and describes in the 2016 predictions how marketers can “get media right”.

    The agency predicts that brands will invest more heavily in online and particularly mobile video advertising in 2016, yet many will waste millions by neglecting to adapt content across formats.

    Also, connected TV (or Smart TV) is expected to take over the television viewing experience, bringing profound changes to the way people consume content while experimentation with workable addressable TV advertising models is expected to begin, although live TV advertising will remain dominant for now.

    In a bid to overcome low digital advertising receptivity, the forecast stated that more brands will become content creators. “As marketing moves from disruption to attraction, inspiring content marketing will move up the corporate agenda,” it stated.

    However, the forecast stated that smart marketers will involve digital considerations much earlier in the creative process and pre-test more assiduously.

    “The recent rise of ad blocking software means that consumer receptivity will be a big issue in 2016. Brands that fail to target consumers appropriately adapt content across formats or rely solely on paid advertising contentare unlikely to build engagement and drive sales. The ability to connect in digital platforms at a time when consumers are willing to do so, and with great content in a format that is not intrusive, will separate the successful marketers from those that simply annoy,” said Southgate.

  • P&G unveils new campaign

    P&G unveils new campaign

    Procter & Gamble (P&G) Nigeria has announced that a new mom and popular R&B singer, Tiwa Savage will lead its new advertising campaign “Moms Know Best” for its flagship brand, Pampers Baby-Dry diaper.

    This was disclosed at the unveiling of the campaign with the new television commercial (TVC) of Pampers Baby-Dry Diaper held at Sheraton Hotels, Ikeja, Lagos,

    During the unveiling, the Brand Marketing Director, Procter and Gamble, Nigeria, Ehis Enekabor, said the Pampers ‘#MomsKnowBest’ Campaign is about encouraging moms to discuss what is best for their babies and share useful tips with one another.

    She said this is neccessary because the everyday decisions moms make about their babies, play a role in their overall healthy development.

    According to her, the campaign also aims to share the improvements on Pampers Baby-Dry that have made it the driest diaper in the Nigerian market as at today

    ”Moms know what is best for their babies as they always seek the best for them. That is why they need to know about the Pampers Baby-Dry diaper. Pampers diapers keep your baby dry up to 12 hours helping your baby get a dry and comfortable sleep. Part of the latest improvement is the new stretchy sides, which expands and relaxes with the baby’s tummy thereby preventing leakages. More so, the Super Gel locks wetness away better than any other diaper”.

    Meanwhile, Savage said she seems not to understand why many moms are discouraged from using the Nigeria Pamper, saying as a mother, her experience with the brand so far has been great.

    Tiwa said: “When I was in the UK, I used Pampers for my baby and when we came back, I decided to try the Nigerian Pampers out of many other diapers available in the market. My experience was just as great as with the one I used in the UK. It keeps my baby dry throughout the night. He wakes up full of strength and so I have come to trust it.”

    A Pampers Paediatrician doctor, Ronke Akinola, a fellow of the European Society of Paediatric Endocri-nologists, described Pampers Baby-Dry as a diaper that is well suited for the long hours of comfortable and sound sleep that the baby needs.

    Meanwhile, getting enough sleep is important to any baby. According to Pampers Paediatrician and fellow of the European Society of Paediatric Endocrinologists, Dr Ronke Akinola growth hormones are usually released throughout the day, but for kids the intense period of release is shortly after the beginning of deep sleep.

    “Wet babies do not sleep soundly, especially for those on napkin clothes, fake or substandard diapers. Pampers Baby-Dry guarantees a dry night, even when wet because of the gel that absorbs the urine and this will ensure your baby sleeps for a longer period with the resultant effect of aiding babies’ development,” she stated.

    Akinola said the stretchy sides which expand and relax with the baby’s tummy prevent leakages and keeps the baby comfortable all night. ‘’I commended Procter & Gamble (P&G) for improving on its Pampers Baby-Dry Diaper. It would significantly aid the general wellbeing and development of babies,’’ he said.

  • Good start, shaky end

    Good start, shaky end

    Marketing communication industry players hit it big during the elections. But after the polls, they started feeling the pains of the economic downtown, accentuated by falling oil prices. ADEDEJI ADEMIGBUJI writes.

    The year 2015 ended yesterday. Many players in the marketing communication industry appear happy that at least the year which started on a good note but ended poorly is over. For players in the public relations, advertising, media buying and experiential business, last year’s elections was a buffer for an industry that carried over the economic challenges the previous year on its shoulders.

    There were fears over dwindling marketing budget which was expected to affect the entire value chains of the industry such as newspaper, TV, outdoor, PR, experiential and advertising agencies. But the volume of political advertising turned the tide for the industry.

    According to the Group Managing Director, Prima Garnet Africa, Mr. Lolu Akinwunmi, major challenges of the year were related to the larger economy.

    He said: “The economy slumped as a result of declining demand for our oil in spite of the falling price. As a result, government was not making enough money and as the biggest spender, it could not finance the economy. This also affected the other sectors. Because of the huge cost of production and falling demands, many companies and service providers operated under capacity utilisation and at high costs that eroded their margins.”

    Noting that the advertising industry is not immune to the effects of economy realities, he said many clients cut down their budgets. “In a situation like this, the demand for advertising services slumped. Many clients cut back on plans and budgets. Many started buying media and other services directly. Several others began to owe their agencies. Agencies also started retrenching. Liquidity became a serious issue,” he said.

    Also, the Managing Director of The Quadrant Company (TQC), Mr. Bolaji Okusaga, said the year was strained as a result of macroeconomic realities. “The system is strained at the moment because of macroeconomic factors,” he said.

     

    Advertising regulation

    One of the areas that attracted so much attention was regulation. As a result of the elections, the Advertising Practitioners Council of Nigeria (APCON), Nigerian Institute of Public Relations (NIPR), among other communication regulatory agencies, could not curtail the excesses of players during 2015 elections. There were flagrant disregard for both self-regulation and government regulation. Though they were irked by some of the political advertising campaigns, APCON, Public Relations Consultants Association of Nigeria (PRCAN), Association of Advertising Agencies (AAAN) were helpless  even when it was clear that their members had violated their code of practice.

     

    Winners, losers

    After the boom occasioned by the general election, some agencies lost marketing businesses while some won new businesses. Chain Reactions, a top PR agency based in Lagos won a competitive public relations multimillion naira PR business. The PR agency, which moved its office to expansive space in Ikeja GRA,  from its former location at a street off Allen also in Ikeja, clinched the account with convincing strategies to handle the account. Chain Reactions, led by Israel Opayemi, took over the account from TQC after pitch among five top agencies -Chain Reactions, Xlr8, MediaCraft, The Quadrant Company and C and F Potter Novelli  Also, Brooks & Blakes, DKK smiled during the year after winning the juicy account of MTN, which has domiciled in Marketing Mix for over eight years.

     

    Treasury single account

    Earlier in February, the Central Bank of Nigeria (CBN) issued a circular directing all deposit money banks to implement the Remita e-Collection Platform. The Remita e-Collection is a technology platform deployed by the Federal Government to support the collection and remittance of all government revenue to the Consolidated Account domiciled with the CBN. This marked the beginning of the full implementation of Treasury Single Account (TSA) scheme in Nigeria.

    Despite the advantages of the system in curbing corruption in public sector in particular, most players handling government PR and advertising businesses complained about it affected their cash flows. Industry players, who confided in The Nation, said they could not meet some of their financial obligations as a result of the implemention of TSA.

     

    Expectation in 2016

    With tough business environment in 2015, there are fears that businesses will be tougher in the New Year despite the proposed 2016 budget which is expected to ease the burden. According to Okusaga, in 2016, clients will be shopping for value with “spend less, get more” becoming the mantra.

    “Agencies will have to not only become more creative but also more cost efficient,” he said.

    He however said players should not rejoice yet over the proposed budget as many factors would determine whether the good times are here or not. He said: “2016 budget is still pretty much a wish as opposed to a planning document. How realistic is the crude oil benchmark at $38 a barrel with oil projected to hit $20 in 2016? Where are we going to be be able to raise about N3 trillion in non oil revenues from? If government is proposing to borrow N2.2 trillion with domestic debt accounting for N900 billion of this, how will government debt instrument be priced? What is the implication of that on interest rates? We need to answer these questions before declaring the 2016 budget a “buffer”.

    On the other hand, Akinwunmi said for 2016 a lot will depend on the new government’s economic plan. The draft budget with the National Assembly, he believes, will rejuvenate the industry.

    “From all indications, the government plans to run a big budget of about N6 trillion. Nearly N2 trillion will be deficit financing. The key objective of the budget is to reflate the economy and kick start activities. This is good for advertising because when the economy is reflated then commercial activities and production should be revived. This scenario will require advertising and marketing services. This should be good for the agencies. Overall, the prognosis for the ad industry in 2016 looks good,” said Akunwunmi.