Nigeria’s Marketing Communications Industry and the Battlefield
By Azeez Disu
Conflict has long echoed through the corridors of business ventures, and the marketing communications industry in Nigeria exemplifies this reality vividly. As the saying goes, “When elephants fight, it is the grass that suffers.” This African proverb succinctly encapsulates the predicament faced by stakeholders amid a tussle between powerful forces in the industry.
As spending in Nigeria’s marketing communications sector is projected to reach a staggering ₦893 billion by 2028—up from ₦605.2 billion in 2023 according to the PricewaterhouseCoopers (PwC) report—this industry now stands at a pivotal crossroads, confronting ethical dilemmas, regulatory scrutiny, and a fragmented vision for its future.
The Industry Landscape
Noteworthy, Marketing communications extend beyond traditional advertising to encompass a multitude of avenues, including direct marketing, online presence, public relations, sponsorships, branding, and more. This complex ecosystem is built on three foundational pillars: brand owners also known as advertisers, agencies, and regulatory bodies. Each stakeholder has a vested interest in the growth and sustainability of the industry, yet friction among them poses significant risks.
Central to this conflict are the Advertising Regulatory Council of Nigeria (ARCON) which is the regulator, the Advertisers Association of Nigeria (ADVAN) which is the advertiser, and the Heads of Advertising Sectoral Group (HASG) whose members are mostly heads of advertising agencies.
Sadly, there are divisions and infighting within the HASG. Its members comprise the Association of Advertising Agencies of Nigeria (AAAN), Media Independent Practitioners Association of Nigeria (MIPAN), Out-of-Home Advertising Association of Nigeria (OAAN), Experiential Marketers’ Association of Nigeria (EXMAN) and Broadcasting Organisations of Nigeria (BON) including ADVAN which pull out from the group in 2024.
ADVAN claimed that its interest is not well protected. Also,o there are indications that OAAN may soon pull out if HASG and its members continue to oppose the proposed Chartered Out-Of-Home Media Practitioners of Nigeria (Establishment) Bill before the National Assembly, a bill after OAAN’s heart.
The Rise of Regulation: Necessity or Overreach?
ARCON noted that its regulations are met to enhance advertising standards and protect the integrity of the industry.
However, various stakeholders, including the ADVAN, argue that some of these measures encroach on their operational freedom. For instance, the call for stringent regulation of online advertisements has been met with anxiety. While some believe that such measures can bolster accountability, others view them as overreaching, potentially hindering the responsiveness required in an era dominated by quick-moving trends.
Charter OOH Controversy: The Divergent Views
In another vein, the proposed Chartered Out-Of-Home Media Practitioners of Nigeria (Establishment) Bill has sparked heated debate within industry circles. OAAN argues that the bill when made into law will foster professionalism and protect investments, while opponents claim it risks adding another layer to an already complex regulatory environment.
Stakeholders like AAAN, EXMAN, and BON, have vehemently opposed it with HASG issuing a press statement disassociating itself from the bill. In response, OAAN also issued its own press statement stating it fully supports the bill and that it will help grow the OOH advertising industry while it claimed that HASG issued the press statement without its consent.
Interestingly, ADVAN and MIPAN backed OAAN on the proposed bill before the National Assembly, stating that they are optimistic that when the bill is passed into law, it will promote sanity, excellence, and professionalism in the Out-of-Home media ecosystem.
Opposing the bill, the President of AAAN and HASG, Lanre Adisa stated that the bill when passed into law would put the industry on the path of confusion.
“At the moment, no less than six sectoral bodies are regulated by ARCON. We can only imagine the confusion and complexity created if every other sectoral group decides to opt for a parallel regulatory entity in the name of shoring up professionalism and protecting its investment. We at AAAN believe these issues can be managed successfully under the current situation if we apply the creativity we offer our clients to our practice and business,” he said.
In response, OAAN President ‘Sola Akinsiku explained “The OOH practice in Nigeria stands on two legs. There is the advertising leg which has to do with content. This is effectively managed by ARCON. But, there is also the other leg relating to the platform locations/sites, which directly impacts the environment. This nonadvertising leg has been a cause of worry and challenges to business sustainability over the years.
“With this bill, the advertising aspect of OOH practice which rests in the hands of ARCON is intact and all obligations will continuously be fulfilled,” he said.
He added “The bill when passed into law will bring order to the aspect that relates to acquisition and ownership of billboard locations. It will remove the ambiguity and inconsistencies currently associated with this aspect of the business.”
Legal Battle: A Tug-of-War
The friction has escalated to legal confrontations, as ADVAN has filed a suit against ARCON. They argue that specific provisions in the new ARCON law infringe upon the constitutional rights of advertisers and challenge the legality of ARCON’s expanded regulatory powers. The assertion is that the law overreaches by attempting to regulate entities that do not directly participate in advertising, thereby questioning established norms in regulatory frameworks.
ADVAN in a statement made available to the press cited some of the aspects of the new ARCON law. It explained that ARCON wants to regulate advertisers and that is contrary to global best practices. It stated that ADVAN members who are also advertisers belong to various industries and are regulated by the appropriate regulators. It stated that in the legal profession, for example, the Nigerian Bar Association regulates lawyers, not clients.
“ADVAN Members belong to various industries and are regulated by the appropriate regulators of those industries.“Here ARCON states in its new law, that it now regulates advertisers (All corporate entities that utilize advertising) even though they do not engage in the business of advertising,” it stated.
It added “ADVAN is asking the court to clarify if a regulator can move beyond its mandated regulatory jurisdiction, to regulate the clients/ beneficiaries of services of its regulated (e.g. Who does the Nigerian Bar Association regulate? Lawyers or clients of Lawyers?)
“Our understanding of regulation globally is that regulations are for those registered in an industry or profession, not the clients or beneficiaries of the services.”
On the other hand, ARCON maintains that its jurisdiction is integral to ensuring the robustness of Nigeria’s advertising landscape, highlighting that regulatory structures must evolve as market dynamics shift.
Speaking at an industry forum, the Minister of Information and National Orientation, Mohammed Idris urged ADVAN to embrace the reforms being implemented in the industry by ARCON, which are mainly aimed at aligning the conduct in the industry to global best practices.
“Let me at this juncture use this platform to call on ADVAN to embrace the reforms being implemented in the industry by the Advertising Regulatory Commission of Nigeria (ARCON), which are mainly aimed at aligning our conduct in the industry to global best practices,” he said.
Impact on Consumers and the Economy
The ensuing conflicts and legal battles inevitably trickle down to consumers and the economy at large. A fragmented marketing communications industry leads to inconsistencies in messaging and service delivery, ultimately impacting consumer trust.
Moreover, a lack of harmony among stakeholders can hamper investment opportunities within the sector, inadvertently stunting job growth and economic contributions.
The Path Forward: Collaboration Over Conflict
The future of Nigeria’s marketing communications landscape is contingent upon dialogue and collaboration among all stakeholders. As the industry continues to mature, there lies an urgent need for regulators to engage in meaningful discussions with advertisers and agencies. Stakeholder feedback is critical for crafting regulations that foster growth without undermining individual agency.
Also, continued advocacy for consumer protection and self-regulation could usher in a more resilient and ethical industry, ensuring that Nigeria’s marketing communication landscape flourishes in the wake of its current upheaval.
Despite the challenges facing Nigeria’s marketing communications industry, there lies an opportunity to rise from the ashes of conflict and discord. By embracing open dialogue and focusing on collective goals, stakeholders can navigate the turbulent waters and steer toward a more unified future. The stakes are incredibly high, but with a concerted effort, this industry can transform its battleground into a flourishing territory where all players thrive. Only then can the marketing communications industry stand as a pillar of innovation and robustness within Nigeria’s economic landscape.