Nigeria’s IMC operatives dismiss threat of consulting firms’ incursion into advertising
Agency operatives across Nigeria’s Integrated Marketing Communications (IMC) industry have variously reacted with mixed feelings to the latest development in the sector, which is the growing incursion of some traditional consultancy firms such as KPMG, Phillips Consulting among others into the advertising business landscape.
One common feature in the trend which is fast developing is that the Consultants in question, possessing the requisite tools, go ahead of the agencies, canvass for the juicy advertising deals from major multinational companies, and upon getting the business, turn around and outsource the businesses back to the agencies at a renegotiated fee.
However, the agency operatives who responded to MARKETING EDGE on this controversial subject have variously dismissed the development as a “mere fable” incapable of posing any serious threat to the growth and future of advertising business and the industry in general.
Their confident optimism is predicated on a common reasoning, which is that advertising business in Nigeria has become so well established, having evolved over long a period of years, hence to that extent, mere incursions by traditional consultants could not be a threat to the business.
Although virtually all the operatives who spoke with MARKETING EDGE on the the subject agreed to the fact that, truly the consultants were making aggressive inroads into advertising business, they, however, viewed the development with mixed reactions based on their different outlook on the issue and how they are affected by it.
First to speak on the subject was former President, Association of Advertising Agencies of Nigeria (AAAN) and Managing Director/CEO, Agile Communications Limited, Rufai Ladipo. Though he claimed not to be quite aware of “where and how” the trend was developing, he noted, however, that the trend of briefcase-carrying consultants veering into advertising business was real. He added that such development remains a sore point for the advertising industry that must be attended to by the apex regulator, Advertising Practitioners Council of Nigeria (APCON) through a thorough process of regularising the registration of advertising practitioners.
Also commenting on the development, President of the Media Independents Practitioners Association of Nigeria (MIPAN) and Group Managing Director, Insight Redefini, Dr Ken Onyali Ikpe alluded to the fact that the consultants’ incursion was true and was a “big threat” to the industry. He reasoned, however, that “in life and in business, there would always be a threat”.
According to the MIPAN boss, “what is important is what kind of strategy do you come up with from time to time to ensure that you immunise yourself against threats. He added that “if the sector (consultancy) is encroaching into our space, the response is to move away from downstream conversations, because if advertising remains downstream and remains commoditised, then pricing becomes an issue. The solution to the challenge, he insists, is for the advertising industry operatives to do a re-designing of how the chain of production is, what we are producing and how we are producing.
Also adding his views to the commentary, the Managing Director/CEO, Starcom Media Perspectives, Jude Odia noted that beyond the consultants eating into the business, what was rather eating into the business faster than anything else is technology.
According to him, “people need to understand that, fundamentally, the game has changed. There are really no dotted lines anymore; it’s all blurred. There is no difference between a creative agency, a media or a PR agency. It’s all a baggage now. What should be the ultimate thinking is how to occupy a superior position in offering the clients solutions. He added that “if it requires being a Consultant then be a consultant of note, if it requires being PR, then have it. It’s about collaborations and partnerships.”
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