- Group Laments Impact of Recession on Advertising
The Outdoor Advertisers Association of Nigeria has lamented the impact of recession on the advertising industry.
The President, OAAN, Tunde Adedoyin, gave the indication in an interview with journalists in Lagos, as he affirmed that “recession has impacted all sectors of the Nigerian economy.”
He maintained that people must advertise, the recession notwithstanding and faulted the practice by most companies of always looking towards the advertising budget whenever they wanted to cut costs.
He said, “Unfortunately, when most marketing directors or companies face recession, the first area they look at cutting costs is media and advertising.
“That is why in the last two years, the recession has been very severe on advertising, media placement and buying.”
Adedoyin reasoned that in spite of the slight progress that the economy had recorded, the country was obviously still in recession because clients were not spending money.
He said, “Some are cutting budget, even the huge spending ones. Before now, clients did media placement for 12 months, but these days, they have come up with all forms of tactics. They now place one month or highest, three months, in order to save money. That has been the style in the last three years.”
The OAAN president however expressed hope that things would get better, adding, “It is all about managing our economy”
On the rates charged by regulators for billboard adverts, he stressed that the rates must be friendly in order for business to thrive.
He said in the last 10 years, the organisation had been battling the regulatory agencies concerning the rates.
Adedoyin said, “We need a rate that is not only friendly to business but to our clients as well. This money is not our money and at the end of it all everyone will pay for it because if you charge Cadbury or Coca-cola very high on their billboards, they are going to spread it on their products and it is the consumer that will eventually buy.
“So, if government thinks it is making money, the money is coming back to us in a way. What has happened in the last 10 years is that they made our medium so expensive that it is only the multinationals that can place adverts or campaigns on billboards.”
He added, “In the past, when we started, we had the likes of barbing salons, tailors and importers of Christmas items placing campaigns on billboards because it was reasonable.
“Today, you hardly find them on our billboards. This has reduced our capacity. To invest is even becoming impossible because it is as if one is sharing the profit with the government. At the same time, clients are running away because they believe that your rates are very high.”
