AAAN proposes business palliatives to support ailing advertising agencies
The Association of Advertising Agencies of Nigeria (AAAN) disclosed it was thinking towards the possibilities of working out some favourable business palliatives with a view to supporting advertising agencies in its fold and enable them survive the harsh operating business climate in the country.
Specifically, the association said it was looking towards securing corporate level assistance from some financial institutions and banks in the country in forms of some favourable financial business terms and discount rates on loans to assist advertising agencies in their businesses.
Making the disclosure was President of the Association, Ikechi Odigbo, while speaking with MARKETING EDGE exclusively on occasion of the 46th Annual General Meeting (AGM) of the association which was held recently in Lagos.
According to him, the need to raise support for agencies was paramount and had been in the long term plan of the association, especially considering that “like in every other sector of the economy, Nigeria’s advertising sector is in doldrums with probably about 70 to 80 percent of agencies having really difficult times in terms of being able to sustain their businesses, meet various obligations and at the same time record some form of growth or the other”.
He added that beyond securing support of financial houses, the association was also considering raising assistance to the agencies in other areas such as in achieving some rate discounts from specific airlines discount rates on hotel accommodations so that agency operatives could carry out their businesses anywhere they go without having to spend heavily.
“Yes, we have thought about it, and that will be in form of achieving some rates discounts. For instance if you are a full fee paying member of the association, there are ways we can structure some discounts for our members in terms of flights, in terms of hotel accommodations so that as they conduct their businesses you are not having to spend heavily”.
He noted, however, that although the plans had been in the pipeline, the association was slowed down on implementing the support measures owing to the fact that the association was bugged down by several issues that bordered on fee payments by member agencies, in adding to the poor financial state of the association.
He stated that as the situation continues to improve and members show greater commitment to the course and significance of collaboration, the association would be hopeful to implement the support proposals with the promise of a brighter future for agencies and the industry at large.
Though he was unspecific on actual contribution to the GDP by the advertising sector, the AAAN boss noted, however, that financial performances of the industry was dwindling compared to previous records, pointing out that over all spend on advertising and marketing was continuously fragmenting, while the digital sector recorded the fastest growth in terms of budgets.
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