2022: Consumers will continue to rationalize expenditure— Kayode Oluwasona
By Felicia Nwosu
Ad expert and Past President of the Association of Advertising Agencies of Nigeria (AAAN) Kayode Oluwasona has projected that consumers will continue to rationalise expenditure and possibly down trade for more effective ways of utilising their meager resources.
On this backdrop, Olusona who also sits as the the CEO of 1201 Brandsway Ltd, an integrated marketing communications firm, called on brands to intensify efforts in unleashing new ideas and creativity, adding that the marketplace is waiting for the next new things to happen to attract new minds and leave first impression that lasts in people’s minds.
The former AAAN boss stated this in an interview with MARKETING EDGE. He averred that the challenges of a rapidly declining disposable income, high rate of unemployment propelled by high rate of inflation, has led to low purchasing power by consumers. He therefore posited that brands that will win in the future marketplace will be dependent on the adoption of strong characteristics such as creative ideas in terms of projects and programmes to aid their credibility, equity and authority.
His words: “For brands to excel, they must follow the consumer and government policy to enable them get the insights that are being displayed that will affect your product in totality, according to the way you deliver your product, in terms of distribution, pricing, packaging, such that you make such brands affordable unto the consumer. Look at inflation, though it is projected to come down this year, it is still in double digits and it is coming down on a base that is already elevated, which is still a problem. The economy is such that the consumer, the spenders will continue to watch and spend consciously”
Olusona predicted that with the elections in view, the economy may be opened, but advised agencies to be careful not to be too hopeful.
“There are implications, it is expected that the government will do things, possibly to reflect the economy. What has been tied up before will become a bit loose, more spending will be happening. Political spending is kind of like a funeral, they come and go. Political spending in 2019 was not as much as it was in 2015, so possibly, we should not even put much hope in political spending because the threshold has been established. The days of those slogans and campaigns when they were new and novel was fine.”
He reassured that the impact of the upcoming election on ad spend may not really be so visible but urged agencies to leverage the opportunity.
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