2024, year of transition, challenges,triumphs in the Nigerian advertising industry
By Felicia Nwosu
The Nigerian advertising and marketing landscape in 2024 was a dynamic and challenging terrain. The year began with a daunting economic headwind, with the President’s announcement of fuel subsidy removal, sending shock-waves through businesses. Yet, amidst these challenges, a remarkable story of resilience and innovation unfolded.
Brands navigated these turbulent waters with varying degrees of success. While some notable brands exited the Nigerian market due to economic pressures, others demonstrated remarkable adaptability. Individuals, agencies, and companies across the industry displayed exceptional resourcefulness, developing new tactics and strategies to navigate the turbulent economic terrain.
Many brands not only weathered the storm but expanded their offerings, launched new campaigns, and unveiled fresh product lines or revamped logos. Acquisitions like Tolaram Group’s strategic takeover of a majority stake in Guinness Nigeria Plc marked significant moments in the industry’s consolidation, while some companies launched new products into the market.
2024 was a year of innovation across the board. AI Media Communications expanded its presence with a strategic acquisition of a premium billboard from Elev8 Media, showcasing the growing importance of Out-of-Home (OOH) advertising. MediaReach OMD unveiled “The Red Room,” a platform dedicated to fostering transformative discussions on marketing and communication trends, while creative agencies launched new products and services.
Industry associations weren’t left behind in the year’s success stories. The Advertising Association of Nigeria (ADVAN) hosted its inaugural Partners Innovation Day, fostering connections and unveiling ADVAN-X, a platform designed to bridge the gap between advertising and marketing stakeholders.
The year also witnessed a changing of the guard within several associations. Femi Adelusi concluded his tenure as HASG Chairman, passing the baton to Lanre Adisa, who also emerged victorious in the AAAN elections, becoming the 20th President of the Association of Advertising Agencies of Nigeria. MIPAN (Media Independent Practitioners Association of Nigeria) saw Dozie Okafor took the reins as the new President, succeeding Dr. Femi Adelusi.
The National Advertising Conference in Abuja served as a crucial platform for industry leaders to address pressing concerns. The theme, “Navigating the Shifts: Technology, Culture, and New Business Models,” resonated deeply, highlighting the need to embrace technological advancements and evolving business models to overcome industry challenges.
Industry leaders convened to address concerns regarding regulatory and fiscal policy issues impacting the industry, engaging with relevant agencies to find solutions and ensure effective implementation of new regulations.
Despite the unifying spirit of the conference, 2024 also witnessed internal conflicts. Disagreements arose between industry groups regarding the proposed bill for a Chartered Out-of-Home Advertising sector. MIPAN expressed no objection, while AAAN and EXMAN voiced opposition, creating a stalemate within the Heads of Advertising Sectoral Group (HASG). This challenge is being carried over into 2025.
The year also saw an unpleasant development over agency indebtedness. The Broadcasting Commission of Nigeria, NBC, reported some media and creative agencies to EFCC on behalf of struggling radio and TV stations facing license renewal issues due to unpaid dues. This incident, largely unreported, exposed financial complexities within the industry. While some agencies were blameless, others fell short on their payment obligations.
Furthermore, agency indebtedness stemmed from advertisers’ reluctance to fulfill contractual agreements. This rising debt profile was exacerbated by the inability of agencies to report debtor advertisers to ADVAN and the Advertising Regulatory Council of Nigeria, ARCON for mediation, fearing a loss of business.
Additionally, the lack of a clear agreement on payment cycles, as advised by ARCON, further complicated matters. ARCON’s stipulated time-frame for advertiser payments clashed with the belief of some advertisers that contractual agreements were individual options. This led ADVAN to challenge ARCON’s reforms in court, although the case’s status remains unclear. This legal action has created an industry stalemate.
Feelers suggest that major multinational accounts will embark on massive agency reviews in the new year. The period between the first and second quarters is likely to witness a series of competitive pitches and bids. Companies that conducted reviews in late 2024 have already begun unbundling businesses to new agency partners.
The year 2024 also saw the dissolution of the Public Relations Consultants Association of Nigeria (PRCAN) leadership and the appointment of a Caretaker Committee headed by Mrs. Nkechi Ali-Balogun. This development aimed to revitalize the association.
One of the year’s most heartwarming highlights was the celebration of Dr. Abiodun Shobanjo’s 80th birthday. The advertising industry icon, revered as the “Doyen of Advertising,” was showered with tributes and recognition from individuals, companies, and associations. MARKETING EDGE’s “Evening of Tributes” and OAAN’s “Advertising Legend Award” ceremony were just a few of the remarkable events that celebrated Dr. Shobanjo’s immense contributions to the industry.
The Out-of-Home (OOH) advertising sector witnessed significant developments in 2024. OAAN, the Out-of-Home Advertising Association of Nigeria, inducted 15 new agencies into its fold and actively advocated for innovation and diversification within the industry.
The introduction of a bill for a chartered body in OOH media, sponsored by Senator Enyinnaya Abaribe, aimed to establish a regulatory body to oversee and professionalize the sector. However, this proposal received mixed reactions, with HASG expressing concerns about duplication and potential weakening of the existing regulatory framework.
Finally, ADVAN announced its formal withdrawal from the Heads of Advertising Sectoral Group (HASG), citing a lack of transparency, accountability, and inclusion within the organization.
There is no doubt that 2024 was a year of both significant challenges and remarkable triumphs for the Nigerian advertising and marketing industry. While the year presented numerous obstacles, it also showcased the resilience, innovation, and unwavering spirit of the industry players who continued to push boundaries and shape the future of marketing communications in Nigeria.
RECOMMENDED ARTICLES
Comment
No comments found.