Why consulting firms are veering into advertising business – Odigbo
President of the Association of Advertising Agencies of Nigeria (AAAN), Ikechi Odigbo has offered fresh insights in support of the recent trends of incursion by traditional consulting firms into spheres of the advertising business.
Speaking recently during an exclusive interview with MARKETING EDGE in Lagos, Odigbo observed that it was an expected development adding that the trend was normal and healthy for the growth of the business.
According to him, judging from the global perspectives on the share of revenue, Consultancies controlled just a lean size of the client’s budget far less than other components of the marketing mix notably, advertising, media and productions. To that extent, he opined that the trend was not a threat to growth of advertising business.
“It’s only to be expected because if you have a global perspective of the share of revenue, you would find that the consultants earned much less than advertising and media. They earn less than the pie of the client. Indeed the percentage on consulting is far much less.
“Advertising, media and production is about five times the size of consulting, and if you were in their shoes and you are able to get to the board room, you would say ‘why am I not making more money by adding the advertising offering into my portfolio of services?’
According to the Association boss and former Managing Director at DBB Lagos, “We tend to see these things in shades of white and black, but it’s not as clear cut as we think”. He added “ DDB worldwide is a network which I belong to and it also owns a very strong and robust consulting company, a management consulting company”.
“So, you see a lot of cross fertilisation of offerings and I believe at the end of the day that is where these things become very relevant. It’s not so much of what you offer as much as the level of innovation, but the level of the strategic input and value you bring to the table.”
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