Advertising
Reviewing AISOP for Nigeria’s Industrial Growth
Nigeria’s advertising sector appears to be in quiet unrest with the contentious Advertising Industry Standard of Practice (AISOP) introduced by the Advertising Practitioners Council of Nigeria (APCON) set to be operational in 2022. Advertisers, majorly in the private sector have identified certain policies they deemed detrimental as it impugns their right to enter into a contract with the advertising agencies. This, they believe affects their constitutional right to freedom of contract and want APCON to engage practitioners on how to resolve the disputes. Legal and business experts weigh in as they said it will set the sector backward.
The Advertising Industry Standard of Practice (AISOP) as formulated by the Advertising Practitioners Council of Nigeria (APCON) is meant to revitalize the advertising sector and grow the Small and Medium Enterprises (SMEs) operating in the space. They also came to the fore as part of the measures to cushion the effects of the COVID-19 pandemic on businesses in the country.
The AISOP, according to the formulators, is expected to create a standard operating system that will stimulate advertising practice and the Integrated Marketing Communications (IMC) environment as a whole. This came about as a result of various calls by stakeholders in the advertising space who have been calling for regulation as a result of various malaises – audience measurement; debt recovery; pitch fee; payment terms; and others – affecting them.
The standard of practice is being hailed in various quarters, especially by the Heads of Advertising Sectoral Groups (HASG) comprising of the Association of Advertising Agencies of Nigeria (AAAN), Experiential Marketers’ Association of Nigeria (EXMAN), Media Independent Practitioners Association of Nigeria (MIPAN), Outdoor Advertising Association of Nigeria (OAAN), and Broadcasting Organization of Nigeria (BON), as the best thing to happen to the advertising sector. Only the Advertisers Association of Nigeria (ADVAN), the only member of HASG in the demand side that pays for the advertisements has rejected certain elements of the rules.
APCON Registrar and Chief Executive Officer, Dr. Olalekan Fadolapo was quoted at a recent function to have said that the faithful application of the Advertising Industry Reform in the country will not only grow the business of advertising and marketing communications but will also create well over 100,000 jobs directly and indirectly in the next 12 months.
The benefits of AISOP as stated by APCON and others will lead to the development of the advertising space but on a closer look and upon examination by legal and business experts unless APCON urgently reviews the contentious elements inside the AISOP policies, retrogression and not development will be the result. The policies, they say, negates some aspects of the Nigerian constitution that allows businesses to freely enter into contractual agreements and it is ironic that a government regulatory agency that’s not a player will come up with rules for a wholly private sector-led endeavour.
A foremost business, and human rights lawyer, Jiti Ogunye in his examination of the 11 broad sections and other appendices that make up the AISOP document said the rules strive to put in place regimentation of the sector rather than regulation that it ought to be.
Ogunye said he has looked at the AISOP provisions and he is shocked that a sector that is not entirely a public sector, which, indeed, largely is private sector-led in terms of those who are on the demand side and the supply side in the advertising industry, is being dictated to on how to create a contract, on how to arrive at the contract; and not only that, on the terms that advertising contracts must contain.
That, he believes is an affront to the principle of freedom of contract and any basic text on the law of contract, business law or commercial transactions that one reads will make it known that contract, essentially is a concept, an arraignment by which two parties or more willingly and voluntarily come together to agree on a business relationship to create value, and there are certain inherent elements. ‘’There must be an offer, there must be an acceptance of that offer, there must be a consideration. A contract is not dictated but negotiated and parties are expected to voluntarily engage’’.
Giving an example of a section of the rules that needs a review, he cited section 3 that governs payment terms. Part of the specific subsections prescribe days within which payment must be made which must be within 30 days and no later than 45 days and if there’s a default, there must be Interest and that interest must be at the Central Bank’s interest rate.
He said the AISOP provisions offend the right to contract in freedom, and if its looked at in the larger context, it is tantamount to restriction of trade, restriction of business, and this will stifle advertising businesses when it comes into operation, whereas the intention may be to grow the industry, protect SMEs so that they are not exploited, and ensure that they continue to create business and generate income.
For Prof Martins Ike-Muonso, a business expert that consults for various governments, and heads ValueFronteria, the AISOP rules, if operational without editing to some of its antibusiness rules, will set the industry backward, kill competition and innovation that it seeks to create.
He said though some of the rules are great for the sector, but there are challenges some other rules will pose. The first challenge is the horizontal price-fixing, the second is undue bloating, bourgeoning, increasing advertising costs, and the third is the interference in the freedom of contract, and contract enforcement.
The horizontal price-fixing, he said, is not accepted in any progressive community in the world because it infringes on the capacity of the market to independently connect or clear the subjective choices of the demand and supply sides. What APCON has done at the price-fixing, he said, for instance, in the pitch fee, that it has to be between N1m and N2m, which is fixed and that’s horizontal fixed range. The implication is that If the advertiser, which is the supplier of advert jobs does not have the capacity because it is managing its cash flow to offer more than or to offer up to a N1m for pitch production, that means it would not go into the market at all because it would go off the regulator’s range.
He said bloating happens when it becomes obvious that a professional fee will be paid, and if it’s assumed to be N1m, ‘’it has already been paid for five ad agencies. These five ad agencies make their pitches but only one is going to be selected. So, the company selects one, the other four are going to be paid between N500,000 and N1.5m for rejection. This means from point one, it is obvious that no matter how useless anything is brought to the table, I know that I’m going to have enough to cover my costs plus a surplus, which perhaps I don’t even need to work for.
‘’Therefore, if there are errors in the selection of ad agencies pitching. You are going to be paying off much more than ordinarily, you would. The number one implication is that advert suppliers will reduce the number of agencies involved in pitching. That again drops the opportunities open to the market to learn and all of that. Number two, because I know that whatever the case, I’m going to get my pitch fee and I am also going to get my rejection fee, these two will always go beyond whatever I have budgeted for in preparing for the pitch. I am walking away with something for just being invited to pitch, so I have some profits anyway’’.
This kills innovation, according to him because one is not working for this profit and it makes people run out to improve on those skills and rather than improve on competition, rather than innovating to compete, what you see is advert agencies lobbying to get the jobs.
On contract enforcement, the professor of business said the life of every market is the freedom that individual actors have to interact with all the participants in the market to agree and to have these contracts enforced. ‘’One cannot, as a regulator, determine these terms as the moment you begin to determine these terms, you are already beginning to whittle down the capacity of the market to independently determine its progress’’, he added.
Noting that it is those on the supply side that appear to be attuned to the new proposed rules, some observers are of the view that APCON appears biased as the council doesn’t want to dialogue with the only party paying for the advertisements.
Appearing to collaborate the assumptions that APCON is biased in coming up with the rules, the Managing Partner of Gee Law firm, Nosakhare Uwadiae at the 9th Annual General Meeting (AGM) of Brand Journalists Association of Nigeria (BJAN), suggested that advertising stakeholders in Nigeria be allowed to take another look at the AISOP regulation and come up with recommendations that are balanced to resolve the contentious clauses contain therein, as though various recommendations were made on payments, however, no reference was made to ensuring that the agencies fulfill Service Level Agreements (SLAs) and quality service delivery to clients.
He said, “AISOP was gladly embraced by stakeholders in the marketing communication sector in Nigeria. However, the Advertisers Association of Nigeria (ADVAN) rejected the implementation as it makes an unconstitutional attempt to infringe on the rights of private entities to determine their contractual terms and does not serve the collective interest, but rather permits unfair authority of certain parties over others and creates an unfriendly business framework.”
To save the advertising industry, stakeholders have often called for self-regulation like it is done in some other countries, but it is obvious that the AISOP might not be the solution to grow the data-deficient sector if players are not allowed to dialogue and iron out the differences already causing friction before it becomes operational.
In an exclusive interview, the President of the Association of Advertising Agencies of Nigeria (AAAN), Mr. Steve Babaeko, discusses the inspiration behind the Unity Song, the state of the nation, and future projections for Nigeria
What inspired the Unity Song by AAAN?
The confluence of the 50th anniversary of the Association of Advertising Agencies of Nigeria and the 63rd independence of our beloved nation, Nigeria, within the same year, presented a unique opportunity. The committee entrusted with the task of orchestrating a year-long celebration for the association conceived a multitude of exceptional ideas. Among these, the notion of crafting a theme song to honour Nigeria emerged. Encouraged by the overwhelmingly positive response received from citizens across the country, we take immense pride in having fulfilled our commitment to steadfastly support our nation. In pursuit of this aspiration, we joined forces with the legendary singer and songwriter, Cobhams Asuquo, in this endeavour.
The moment I initiated contact with him to introduce the project, his passion and unwavering enthusiasm proved to be nothing less than inspirational.
What informed the choice of Cobhams as the producer of the track?
Cobhams has been a steadfast collaborator of mine for well over 15 years. Over the course of our extensive partnership, we have undertaken numerous music projects on behalf of various clients. Whenever the need for a truly exceptional touch arises, Cobhams is my unequivocal go-to specialist. His multifaceted talents as a producer, songwriter, and singer equip him with the comprehensive skills required to consistently deliver excellence, a feat he never fails to achieve.
The remarkable quality of the “Naija No Dey Carry Last” song stands as irrefutable evidence that our decision to collaborate with him was indeed the right one.
What does the association hope to achieve with this song?
In the wake of the recent general elections, it is undeniable that our nation has experienced an exacerbated polarization, marked by an unsettling erosion of trust among its diverse regions. The concept behind this song was to craft a unifying anthem, one that can serve as a clarion call, compelling us all to embrace our collective responsibility in nation-building. Furthermore, this song aspires to serve as a poignant reminder of the common virtues that bind us together as a people, redirecting our focus away from our points of divergence.
What are the financial implications of producing and promoting this song?
Let’s begin by discussing the production cost. Given that it’s a Cobhams Asuquo production, it naturally carries a premium. Quality work of this caliber unquestionably comes at a price. It’s worth noting, however, that Cobhams enthusiastically committed to this project and commenced work even before discussing financial figures. We both shared a common understanding that this was a national assignment, driven by a sense of duty rather than a profit motive.
Moving on to promotion, we recognized the need to support the song with a well-structured promotional strategy. This is essential to ensure the song reaches a wide audience and resonates effectively.
How would you describe the current situation of the country?
To be perfectly candid, the state of our nation is in a precarious condition. The economic disparities between the rich and the poor, coupled with the devaluation of the Naira against major global currencies, have compounded the challenges faced by everyday Nigerians. Nevertheless, it is precisely during such trying times that we should find the motivation to transcend these adversities, lift ourselves up, and in doing so, elevate our nation as a whole.
The federal government has called for collaboration and support of the association. How do you think AAAN can contribute more to Nigeria’s socio-economic development?
The Association of Advertising Agencies of Nigeria stands ever-willing to engage and collaborate with the Federal Government when called upon. In this specific case, we took the initiative to proactively develop this project, firmly believing it to be a timely and vital contribution to our beloved nation.
Beyond the scope of this project, our ongoing efforts involve the generation of employment opportunities, with a particular focus on positively impacting the youth population in an area where unemployment rates are most pronounced. Advertising serves as the crucial catalyst that sustains and propels our nation’s economy, and candidly, it merits greater recognition for the role it plays.
What have been the highlights of your AAAN Presidency?
Despite our inauguration occurring during the height of the COVID-19 pandemic, my working relationship with the Executive Board of AAAN has been an immensely rewarding experience. Collectively, we have undertaken a series of innovative projects that have significantly enhanced the Association’s reputation.
Additionally, we have placed a concerted emphasis on addressing gender disparities. In a historic milestone, we appointed a female Director to lead the team, marking the first time in the Association’s 50-year history.
Furthermore, we’ve witnessed the emergence of new, vibrant agencies, predominantly led by a younger generation. In sum, I believe the Association’s trajectory is distinctly upward and promising.
What are your projections for Nigeria in the next four/five years?
I am an unwavering optimist, and my confidence in the future of our nation remains unshaken. Counting Nigeria out is a notion that has proven futile time and again. It’s during the moments that appear most challenging that the indomitable Nigerian spirit rises to the occasion.
My earnest hope is that our President succeeds because the destiny of this great nation rests upon his shoulders. While we may continue to grapple with immediate economic challenges, I firmly believe that, in the medium to long term, our country will navigate through these difficulties. The one indispensable asset we must safeguard now is hope. May God bless the Federal Republic of Nigeria.
Advertising
AAAN @ 50: FG Rally Advertising Industry Support For Renewed Hope Agenda
…As Ugbe, Akinwunmi task practitioners to share African stories, embrace AI
The Honourable Minister, Federal Ministry of Information & National Orientation, Alhaji Mohammed Idris, has urged advertising practitioners to support the Renewed Hope agenda of the President Bola Tinubu administration in a bid to drive sustainable development for Nigeria.
Alhaji Idris made the call while delivering the keynote address at the 50th anniversary conference of the Association of Advertising Agencies of Nigeria (AAAN) through his representative, the Director, Public Communications and National Orientation in the ministry, Mr. Sunny Baba.
In his address, the minister acknowledged the significant contributions of the advertising industry to the growth of the Nigerian economy,
adding that advertising agencies play critical roles in disseminating information which promote national unity and drive positive social change.
“While positive changes could present some challenges, we are encouraged by the knowledge that the outcome will be of immense benefit to the teeming populace. In this direction, we are soliciting for the cooperation of the AAAN in keying into the Renewed Hope Agenda of this Administration and support Government commitment to the value reorientation of citizens.
“We are forthright in our determination to set this nation on a path of growth. Your 50th Anniversary Conference therefore presents an opportunity for all of us to reflect on the past, celebrate our achievements, and chart a course for a brighter future in the advertising industry, viz-a-viz, Nigeria. I look forward to engaging in meaningful discussions, sharing insights, and collaborating with the esteemed members of this association as occasions demand,” the minister said.
Alhaji Idris, who reiterated the President Tinubu led Federal Government’s resolve to collaborate with change agents in the private sector, commended AAAN for spearheading the adoption of ethical and standard advertising practices in the country.
He said, “Over the past five decades, this association has consistently demonstrated a commitment to excellence, professionalism, and ethical standards in the field of advertising. Your dedication has not only propelled the industry forward but has also inspired countless individuals and organizations to strive for greatness.”
Also speaking at the event, the Chairman, House of Representatives Committee on Information, Hon. Olusola Fatoba, on behalf of the House, applauded advertising practitioners for shaping the country’s fortune with their profession. He assured AAAN that he would continue to engage with the leadership of the Advertising Regulatory Council of Nigeria (ARCON) to see to the full implementation of the local content requirements in its new Act.
“I recall, several years back, most of the trending advertisements on television in Nigeria were foreign adverts, with faces that did not look like us and voices that sounded very foreign, marketing products that were both made at home and abroad. This means that if an advert was not produced abroad, then it will not trend and it will not be impactful.
“However, I am impressed with the fight back that came from AAAN and its members. They stepped up their creativity, ingenuity, innovation and investment. Today, the story is different. I travel to some other African countries and I see Nigerian made adverts on their television, side by side, with our movies and our music” Fatoba stated.
In his address as a guest speaker at the event, the Chief Executive Officer at Multichoice Nigeria, Mr. John Ugbe harped on the importance of telling creative and authentic African stories.
Ugbe highlighted how the MultiChoice brand has been able to make significant exploits in marketing the African continent by using Africa Magic channels to share African stories with the world.
“African should learn to tell their own stories. Africans should try to create an enabling environment for its creatives to strengthen its propensity to thrive. Naming your creativity as the best in the world has an impact on the creative and the product of creativity. Also, I must add that localization of creativity helps the growth of a brand within and outside the continent,”
Another speaker, Prof. Mustapha Akinkunmi, a Senior Researcher, CIPS, Fordharm University, who spoke on the place of technology in today’s advertising industry, admonished advertising practitioners to embrace the innovativeness of Artificial intelligence (AI) in a bid to take their creativity to the next level.
The university don submitted that AI is the next advertisement tool. “AI will help improve the already existing advertisement models, making it more appealing to the African people and the rest of the world,” he stated.
In his opening address, the AAAN President, Steve Babaeko, had explained that the theme for the remarkable milestone “50 Years Young, Ready for More,” was chosen to reflect the dynamic changes the association has witnessed, especially the influx of young professionals and agencies into its fold, adding that the body has lived up to the theme.
“Our industry has confronted the dual challenges of macroeconomic headwinds and technological disruption, which have impacted not only our clients’ bottom lines but our own as well. However, even in the midst of these turbulent times, I firmly believe that the future of our industry holds promise. By standing united as members of the same family, we can navigate these challenges and emerge stronger,” Babaeko said.
Advertising
LASAA launches 2023 mobile advert stickers for branded vehicles
…promises improved and efficient process
Lagos, Nigeria, December 4th, 2022: Lagos State Signage and Advertisement Agency (LASAA), the agency saddled with the mandate to regulate advertisement displays in Lagos State, has announced the release of its 2023 mobile advert stickers for branded vehicles in the state.
Managing Director of LASAA, Prince Adedamola Docemo, in a statement in Ikeja yesterday, stated that the new and improved mobile advert e-sticker will be in force effective from the 1st of January 2023, a development that will render the 2022 sticker invalid.
He reiterated that, just like last year, the agency has fully deviated from the yearly tradition of launching the stickers with pomp and would rather focus on improving the efficiency of the new process.
He explained that the new e-sticker, which was introduced last year, has attracted a lot of commendation from stakeholders. He said LASAA has continuously reviewed and improved the mobile advert e-sticker product throughout the year to assess the process and fix all barriers for better and efficient performance.
Prince Docemo disclosed that the 2023 e-sticker continues to experience constant upgrades with a Quick Response (QR) code scanner application, which is readable with a simple smartphone.
He said, “The e-sticker has been enhanced with internal control mechanism, which comes with specialised bar codes and embedded details, including vehicle particulars and serial numbers for authentication.”
He explained that the new e-sticker comes with new improved security features such as anti-counterfeit properties and authentication system against fraud.
Prince Docemo emphasised that the level of security implemented for ease of confirmation has improved the process of compliance for the agency’s clients. He stressed that all branded vehicles state-wide will be effectively captured on a mobile advert database, thereby making the agency’s ability to monitor compliance and enforcement to work efficiently.
He noted that the incidence of fraud has been hugely minimised, adding that non-compliant vehicles will be impounded and grounded. He assured clients that upon registration, the e-stickers will be available to them within 48 hours.
According to him, LASAA continues to monitor the activities of unscrupulous persons parading themselves as staff of the Agency as well as those working to frustrate it’s efforts by selling mobile advert stickers belonging to other States. This act LASAA believes is an attempt to cause confusion and conflict within Lagos territory. He added that LASAA has already taken bold steps to reverse this anomaly.
He, however, assured that LASAA is always a step ahead in ensuring that all vehicles branded with logos and adverts are properly registered in Lagos State. He warned that the agency would arrest those who fail to comply.
He also warned clients and customers who are in the habit of patronising touts to desist from such act because LASAA’s operation is fully automated and any forged registration will be easily detected.
He urged all registered clients to install the LASAA verifier app on their smart devices to verify the status of registration of their branded vehicles.
The LASAA e-sticker Verification App is a reliable platform that allows LASAA field officers or law enforcement agencies to verify the authenticity of brand publications on automobiles in the state.
With the verifier app, all information regarding the organisation or individual name, plate number (where applicable), brand type, vehicle type and branding type will be displayed seamlessly to verify the authenticity of the sticker.
The platform has been developed to ensure that branded automobiles have authorised stickers and to eradicate any occurrence of falsified brand information
Prince Docemo expressed appreciation to Governor Babajide Sanwo-Olu for his immense support towards the agency’s initiatives while also stressing that clients’ satisfaction is at the heart of the agency’s business.
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