The head of the National Advertising Conference Planning Committee, Tunji Adeynka, discusses this year's event and its anticipated effect on the sector.
What influenced the selection of this year's theme: 'Marketing Communication: Transforming Businesses and Driving Growth in Difficult Periods'?
Therefore, the discussions at the conference form a continuous flow, so if you wish to examine what each conference is focusing on, it aims to tackle the pressing issues that are particularly engaging at the moment the conference occurs, which has been the case in recent years.
This year, for instance, we have examined the economy since marketing and marketing communications function within it, and we have also considered the current state of the economy.
One of these realities is that the economy is emerging from a phase of reform, and these changes were triggered by specific disruptions within the economic system. As a result, these reforms have been difficult to accept, particularly for consumers, and have also impacted many advertisers in various ways.
It has influenced productivity and has also impacted the operational environment for the businesses we support in various ways. What we aimed to examine was how the new administration, which is more than two years old, has managed to bring about a certain degree of stability from an economic perspective. Exchange rates and inflation appear to be decreasing slightly, and we are witnessing stability in pricing and a few other aspects of the economy.
So you mentioned growth, which is extremely important, how has the industry performed during this time amid various reforms?
Therefore, since the industry is a component of the economy, it cannot expand beyond the economy's growth. If you review the latest report, the economy is expanding at approximately 4% GDP. However, what typically occurs is that we examine what we refer to as the industry. The industry rests on three pillars. The first pillar consists of advertisers, brand owners, and brand advertisers. The second pillar includes service providers, agencies that offer services to advertisers. The third pillar is the media.
Whether discussing the reform agenda and its impact on the industry, it has influenced the sector in various ways. For instance, starting with advertisers, many businesses previously faced instability in the foreign exchange market because a significant portion of their production inputs came from outside Nigeria, making it difficult to anticipate the cost of foreign exchange at any given time.
The second issue was also related to liquidity problems, which meant they couldn't access foreign currency, thereby impacting their production. I'm speaking now from the advertiser's viewpoint. However, the second challenge for them was that increasing costs and inflation left consumers with less money to purchase the products they previously bought. This represented another difficulty that affected that area. As a result, it was a significant negative factor for them. This situation is similar for agencies as well. I would even say the same applies to media.
Things have gotten even more challenging for the media industry because of a digital disruption. The funds that previously supported traditional media have been redirected, with more investment now flowing into digital platforms. This has created a difficult period, and it has influenced some of the issues we highlighted when examining the situation from a conference perspective.
For instance, last year, one of the key messages we emphasized particularly within the agency sector was that we need to start seeing more consolidation, as the market is overly fragmented. If there are many players in a market, it affects their ability to set prices effectively. Additionally, low entry barriers can lead to commoditization, which in turn impacts both price and value.
You mentioned that one of the results from last year's conference was a push towards integration; has there been any reaction to this in the market?
Consolidation doesn't occur quickly, but the first step is to start having those discussions and to bring the issue into the open. The industry is then examining ways to tackle it. There have been ongoing conversations, and even more are taking place in this area. So I believe we will be able to focus more on the theme.
Which of the three sectors in the industry suffered significantly due to the economic situation?
Every sector has been severely impacted. It's like a chain reaction. Therefore, the economy operates as a cycle. Everyone is affected.
The industry is being transformed by technology; can you portray it as a friend or an enemy?
It's a companion for the industry. Wherever you look at technology and it's properly applied, you're discussing either a decrease in expenses, an increase in efficiency, definitely. So if it used to take me 10 hours to complete a task, it would now probably take me three hours, meaning I have an additional seven hours available for that task.
We have observed that particularly in fields such as artificial intelligence, where we possess tools that are highly beneficial and significant in generating concepts and fostering creativity, as well as supporting manual creativity and conceptual development, these tools provide you with instant ideas—not fully formed ones, but ones that allow for rapid results and a faster pace in completing your tasks.
For instance, in the media sector, there are tools designed for media planning and analysis that can clearly indicate the necessary actions or help you decide what to focus on. Similarly, in the digital marketing field, it's possible to track expenditures and minimize waste.
Therefore, technology has been a beneficial force and will remain so. That's why, at the conference, we have a dedicated session focusing on examining it from the perspective of the brand, transformation, and technological advantage. We aim to explore case studies and examples where technology has revolutionized a business.
Nevertheless, there are numerous conversations taking place regarding the management of technology. When focusing particularly on AI, you are addressing matters of regulation, moral concerns, and issues that require careful consideration, asking yourself whether you are overstepping boundaries or remaining morally sound.
These are the concerns being addressed globally to ensure technology remains beneficial rather than problematic, and I suppose these are some of the topics we will discuss.
On the other hand, regulation is also evolving. The approach to regulating a market that isn't heavily involved in technology differs from how we regulate current markets, particularly within the industry we are part of. Additionally, regulators are exploring new methods.
What steps have been implemented to manage online ads?
The Advertising Regulatory Council of Nigeria (ARCON), a law enacted roughly three years back, differs from the APCON Act and empowers it to oversee all types of advertising or marketing communication found in both online and offline environments.
In recent years, ARCON has faced one or two instances where legal challenges occurred, as occasionally individuals take matters to court to contest its authority. Recently, a case was brought to court challenging ARCON's authority over digital advertising, and the court ruled in favor of the challenge.
The Federal High Court clarified the authority of ARCON to oversee influencers, content creators, and social media platforms. This decision supported the legislative goals of those who drafted the law. The ruling took place in the Federal High Court and marked a significant judgment that explained the powers granted to regulate advertising, including supervision of ads on social media sites.
However, the fact remains that regulation will always lag behind technology, but the intention is very clear since an advertisement could lead to chaos, violence, or riots if the content does not follow specific guidelines. Therefore, it is essential to have the appropriate laws in place, which is ultimately what is featured in the play.
What do you foresee as the growth trajectory in the industry following this conference?
This conference won't inherently drive growth, but it has the potential to ignite it. It's one of those factors that should stimulate growth. However, if I look at the PwC report on advertising in Nigeria, that report was published in 2023, and now we're in 2025. The overall market size is approximately N652 billion, but the crucial point is that it also features a Compound Annual Growth Rate (CAGR), which represents the yearly growth rate projected through 2029 at 7.2 percent.
Nigeria is expected to experience a significant growth rate of more than 18 percent, with its economy anticipated to reach 893 billion by 2028. Thus, the trend of growth is set to continue. The key question is where this growth will originate. It is evident that the digital sector will be the main source of this expansion, as this is occurring globally, with the largest share of growth coming from the digital domain.
Are there any training initiatives offered by the conference for students?
ARCON offers various programs. Therefore, the industry remains active and ensures ongoing collaboration between academic institutions and the community. During the conference in Abuja, there are three distinct sessions on the third day, along with four different breakout rooms.
One of the breakout sessions is focused on academic discussions covering various subjects, led by individuals from the academic community, including professors and others in similar roles. Therefore, it is set up in this way.
Apart from conferences, what are the additional initiatives for skill development?
Numerous initiatives are taking place in schools through ARCON, the sectoral groups, and other marketing and communications organizations. Much is happening within educational institutions, with significant cooperation occurring among academy members, as it is crucial to enhance learning across all industries.
Provided by SyndiGate Media Inc. (Syndigate.info).