Adewunmi advocates premium pay policy for Nigeria’s advertising industry
An Integrated Marketing Communications (IMC) Industry Practitioner, Adedoyin Adewunmi has advocated for the adoption of premium payment policy across Nigeria’s advertising business spheres as a definite way to address the lingering controversies over debts and other payment challenges bedeviling the industry.
Premium payment policy applies generally to developed businesses across the globe and it requires that extra pay margins be placed on original costs of doing business. The extra cost margin becomes payable after a delay in payments for finished jobs by clients.
In addition, the policy presupposes that interest margins would be charged on finished jobs after the expiration of required payment period or agreed time duration of payments on finished jobs.
Giving insights on the premium pay proposals during an exclusive media interaction with MARKETING EDGE in Lagos, recently, Adewunmi, who is Managing Director/CEO, Creativezones Communications Limited, explained that the proposed pay pattern would allow also that agencies share in the profits of clients having worked for them on particular brands for a periodic space of time.
“There is so much we can borrow to leverage on global best practices. Look at this 120 days thing that we are talking about. Those are the things that we should begin to share for us to be able to prop up the practice of advertising in this country.
“In other climes, if you are the one funding the clients business, two things happen: one; they have to pay at a premium which means that for something that you would charge 100 naira for, you would probably go for 120 or 200 naira,” he said.
He continued: “Number two; when the client is supposed to pay, they must pay. If they do not pay at that exact time then it begins to generate interest.
“Number three; the agency usually shares in the profit of the client. So if you have worked for a client for a particular year, at the end of that year, when the client declares some profit, something goes to the agency that has worked for it.”
He added: “Those are the things that we should begin to share for us to be able to prop up the practice of advertising in this country.”
Also arguing in similar vein was a public relations consultant, Managing Partner at Mediamark Limited, Mr Izuchukwu Arinze, who opined that the uniform credit system should be adopted as a means of tackling the industry debt issues and payment challenges.
In his opinion, addressing the industry debt issues would require that a uniform credit system policy be put in place such that all industry debts be settled within a uniform period of 120 days among all across the sectors.
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