Advertising spend redirected as clients focus more on ROI – Experts

By Oghale Mafuru

In a bid to optimize advertising spend and ensure that the stringent budget for promotional activities are effectively utilized, clients are more cautious and prudent in their advert budgetary decisions.

Experts in the Integrated Marketing Communication industry who expressed this position in a recent interview with MARKETING EDGE maintained that clients are more value driven as opposed to relationship driven, noting that they are more tactical in their approach as the main aim is to ensure the judicious deployment of limited funds to attain the best results.

Renowned advertising professional and Managing Director of Starcom Media Perspectives, Jude Odia who averred that current economic situation has re-shaped the marketplace noted that clients are more focused on performance-based remunerations.

In his words: “Clients are now going into more tactical relationships because they are looking for that agency that can give the best solution.”

According to him, clients are redirecting their advertising budget to areas with more potential to yield for them more Return on Investment (ROI).

The advertising boss stated that clients’ businesses have been adversely affected by the pandemic as disposable income has reduced drastically exacerbated by inflation. He said: “Disposal income is dropping with consumers, inflation is off the roof. So, the ability to buy is no more as high as it used to be and it will affect revenue. Once clients want to watch their cost as a business, the first way to go is marketing spend.”

Mr. Odia posited further that clients would rather want to squeeze value out of whatever they are willing to spend. “It is now a situation where you have to sweat for every dollar they pay you and it is understandable because we are all here for business.”

On her part, General Manager of First Katalyst, Agnes Ailuelohia said that the decline in advertising spend started before COVID-19 pandemic, noting that there has been a shift in advertising budget to below the line, which is marketing budget.

She said: “We have witnessed this because clients are looking for the one to one contact with consumers. A lot of clients are looking for a quick return on investments for their brands. So, the decline had already started before now.”

Speaking further on clients response to the pandemic, Mrs. Ailuelohia affirmed clients’ readiness to optimize advertising spend to gain momentum as the series of lockdowns as well as other economic challenges have impacted significantly on their bottom-line.


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