Steve Babaeko urges collaboration in Nigeria’s ad market
By Zion Rufus
Coming against the backdrop of lull in the Nigerian creative advertising business, President of the Association of Advertising Agencies of Nigeria (AAAN) and CEO X3M Ideas, Mr. Steve Babaeko has canvassed for mergers and acquisitions amongst creative agencies in the country.
The President dropped the hint while giving his welcome speech during the umbrella body’s 48th Annual General Meeting and Congress which held at the prestigious Golden Tulip Hotel in Ibadan.
His words: “As we continue to brave the economic recovery journey of the following months and years to come, permit me to suggest what the Chairman of the Board of Trustees, Sir Steve Omojafor, has repeated for years: mergers and acquisition. The idea may have been muted way ahead of its time over a decade ago, but there’s no better time than now to give it a good shot.”
For years, stakeholders and advertising practitioners have deliberated on the importance and imperatives of mergers and acquisition in the advertising industry in Nigeria. Mergers and acquisition in the ad ecosystem is widely considered as a strategic tool for strengthening brand equity.
The AAAN President cited an age where the Telcos used to be in the race for which network will be the first to cover Nigeria by erecting the most mast, with each company incurring cost of installation, power, and security amongst others. He noted the essence of collaboration where over time, the Telcos were able to massively slash their cost of coverage when they realized the power of co-location.
The global advertising figure specifically applauded some members of the association who have been demonstrating and embracing collaboration as a way of further enhancing business opportunities and growth.
“We have also seen more collaborative efforts among our members,” Babaeko pointed out. “Take for example the SPV team of DDB, TBWA and YBR working together for more than 3 years on one of the big Telco businesses in the country. I believe we need to have a special session where they hopefully can share some of the key learnings of such unprecedented partnership with us all. Indeed our industry is crying for more of that kind of mutually beneficial relationship.”
He asked: “The economic headwinds that informed that brilliant collaboration are blowing us in the face right now. The big question is: are we brave enough to seize the opportunity it presents us?”
The President further explained that the industry has been dealt a devastating blow because of the general economic situation occasioned by the Covid-19 especially in the last one year within which his group had assumed the baton of leadership.
“When this Exco was sworn in July 2020,” he continued, “ I had my fears because we were in the middle of one of the most devastating pandemic the world has seen at least in about a century. So, my fears were: Would we even be able to deliver against our campaign promises; When the dust of the pandemic settles, would we still have an industry or business; With everyone struggling to stay afloat would our members be able to rally round the Exco to push our association forward? One year after, I am here to report to you that my fears are not just unfounded, the state of our union and our association remains stronger than ever before.”
It should be recalled that Mr. Babaeko emerged the AAAN President in 2020 during the body’s virtual 47th AGM/Congress while the Covid 19 pandemic rocked the industry which earned him the nickname “The Pandemic President”.
He has placed the Nigerian ad market on the global scope being the first Nigerian to sit on a panel at Cannes Lions Festival of Creativity in France. He was also recognized by Forbes Africa as one of the two leading marketing communications voices in Africa.
RECOMMENDED ARTICLES
Comment
No comments found.