IMC Will Perform Better in 2nd half of 2016
For many operators in the integrated marketing communications industry, the first half of 2016 is a period that should be forgotten in a hurry; business was dull, mainly because of the general economic outlook. Now, the second half of the year has kicked in and some of them are beginning to sound a bit optimistic.
One of such optimists is Tayo Oyedeji, the Managing Director of Media Perspectives, one of Nigeria’s leading media independent agencies. In an exclusive interview with MARKETING EDGE recently, Oyedeji recalled that the first half threw up a lot of challenges for businesses in Nigeria, mainly due to the forex crisis which brought a lot of pressure on the economy and pushed businesses to the brink.
“The forex debacle created a lot of challenges for our clients. So when our clients have challenges, those challenges affect us as marketing communications professionals. Sometimes, they source dollars from oversees and also have to repatriate dollars to their head offices. But it is getting better because things are beginning to look up,” Oyedeji said.
The agency boss hinged his optimism on the fact that the economy is beginning to look up and that, according to him, is an indication that the second half of the years holds bigger promises than the first. Oyedeji’s sense of hope is perhaps inspired by the recent libralisation of the forex market by the Central bank of Nigeria, and the removal of fuel subsidy which seems to have nipped the challenge of fuel scarcity in the bud.
But even with these interventions, the Nigerian economic indicators have yet to significantly improved as expected by stakeholders, naira-dollar exchange rate still remains too high and inflation has stubbornly refused to lower in line with CBN’s expectations. However, Oyedeji has insisted that the policies are good and very soon the expected result will begin manifest, and the IMC will become busier.
“If the economy does better, the clients will do a bit better and eventually, there will be more money for advertising and the industry will stabilize.
A lot of stakeholders have expressed fears that the size of business in the IMC, which has been on the slide in the last couple of years, is most likely to continue in 2016, given the myriad of economic challenges which forced many clients to slash their marketing budget for the year. He noted that despite the prospect that the second half holds, it cannot possibly make up for the losses of the first six months of 2016.
But in the midst of these whirlwind of challenges, Oyedeji opined that owners of advertising media have enjoyed a better outing than the other arms of the IMC. “The suppliers have had a better years than the rest of us. As you know, no matter how bad things are, suppliers still find a way to make money. They get patronage from politics to institutional advertising, while the rest of us to a large extent depend of FMCG and brands to do well,” he said.
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