AISOP: Will Media, Local

Agencies Have the Last Laugh?

In line with best practices, the Advertising Practitioners Council of Nigeria has ordered that payment for media and other advertisement services should be done within 45 days, but the directive has been rejected by the Advertisers Association of Nigeria. Raheem Akingbolu, reports

In what looked like the strongest move taken to sanitise and enforce standards in the nation’s advertising industry, the Advertising Practitioners Council of Nigeria (APCON), a few weeks ago, had an engagement with major stakeholders in the advertising industry and presented the outcome of a business regulatory framework which was mandated by the Minister of Information and Culture, Alhaji Lai Mohammed.

APCON Registrar, Dr. Lekan Fadolapo, who addressed the leadership of the various sectoral bodies, thus unveiled a new Advertising Industry Standard of Practice (AISOP), which he said would deepen the business relationship among advertising agencies, their clients, and the media. It was also stated that the industry-standard practice would unravel the lingering debate surrounding credit policy as well as payment of pitch fees in the industry.

According to the APCON Chief, the process started with the setting up of an all-inclusive committee made up of all sectoral groups in the industry to produce a suitable framework that defines a minimum standard, to have equal and fairly represented opinions that will form the guidelines of the entire advertising ecosystem. He added that the committee was set up in April 2021 and was chaired by a former President of the Association of Advertising Agencies of Nigeria, Funmi Onabolu, which after a thorough joint brainstorming, in collaboration with APCON, presented a minimum acceptable standard of practice framework that is suitable and is globally acceptable.

Highlights…

The first area of the advertising business, which the new reform addressed, is the media rates deregulation. It pointed out that no sector of the industry should cap or determine what media houses should charge as media advert rates, going forward. It however indicated that media houses should give 30 days’ notice before implementation of the new media rate. In conclusion, the AISOP stated that advertisers and agencies should accord Nigerian media houses the same mutual respect they accord foreign media, operating in Nigeria and align with best practices.

Another area touched is credit policy where it was stated that in line with best practices, payment for media and other advertisement services should be done within 45 days. It however put a caveat that payment after 45 days will attract interest at prevailing Central Bank of Nigeria interest rates. It was also stated that advertisers and agencies should honour advertising and marketing communications invoices politely and that all parties must be transparent in their dealings.

In his words, Fadolapo said AISOP is “A business framework that seeks to improve mutual respect, eradicate unfair advantage, unethical competition, and inequitable policies between relevant stakeholders in the advertising and marketing communications industry in Nigeria.”

He added that it specifically provides a regulatory framework of critical areas of concern to stakeholders, the areas include engagement policy, payment terms and method, media rates and commission, remuneration model, disengagement protocol, returns on advertising investment and measurements, dispute resolution, and other related business protocols.

According to the regulator, AISOP takes immediate effect from October 2021 and shall become enforceable by APCON in the bid to ensure standardised operations, in line with global best practices.

Fadolapo explained that the execution of the guideline will put the country on a global map as one of the best destinations where advertising and marketing communications practices are done professionally.

“It is expected that with the implementation of this guideline, Nigeria will be placed among the most progressive advertising and marketing communications industries across the globe.”

He, therefore, urged stakeholders to support the initiative and abide by the standard of practice in the interest of growing the industry, creating jobs, and growing the economy.

“Stakeholders and industry players are implored to support this guideline and to ensure the success of this effort. We trust that the faithful application of the Advertising Industry Reform in Nigeria 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.”

“We are not oblivious of the fact that the AISOP may generate different degrees of sentiments but we are confident that the guideline serves to protect the best interest of the Nigerian advertising and marketing communications industry in particular and that of the general public.

“APCON is committed to constantly improving the practice and business of advertising in Nigeria and shall always welcome productive ideas that will enable her to deliver the best business environment in Nigeria in line with her mandate.”

ADVAN Kicks…

While other sectoral bodies applauded the new development, the Advertisers Association of Nigeria had a varied position. To this end, ADVAN had recently issued a statement supporting the plan to create a Standard of Practice for the advertising industry and echoed its willingness to be a part of any initiative towards the development of industry best practice which will facilitate business and economic growth but was quick to point out that the Supreme Court had in many decisions, pronounced that the rationale for freedom of contract is founded on public policy: i.e., parties of full age and competent understanding are deemed to have the utmost liberty of contracting, and that their contracts, when entered freely and voluntarily, must be held sacred and be enforced by courts of law.

The sectoral body as principal benefactors of Advertising services stated that its role and input with regards to the Advertising Industry Standard Of Practice (AISOP) by the regulatory body has not been fully unbounded, thereby declaring that the current AISOP is void of critical elements that protect the rights and interest of the ADVAN community.

“It is the submission of ADVAN and all its members that the current AISOP does not serve the collective interest, but rather permits unfair authority of certain parties over others and creates an unfriendly business framework: the body stated.

APCON Maintains Position…

In a swift reaction to the rejection by ADVAN, APCON had recently placed advertorial in major national newspapers, reminding ADVAN that CBN, SEC, NCC, NAICOM, and other regulatory agencies moderate their respective sectors and set guidelines for operators in line with their establishment Act and the constitution of the Federal Republic of Nigeria as well as promote economic growth and development. The advertising regulatory body pointed out that what it had done was in line with the Act that established it as a regulator of the industry. APCON also reminded the leadership of ADVAN that other sectoral bodies and some respected multinational companies have endorsed the new order. It pointed out that the position of ADVAN in the unfolding development is being seen as a gang up by a few multinationals and conglomerates against the Federal Government of inclusive growth in the SME sector in particular and the Nigerian economy in general.

While concluding that ADVAN’s position implied that the current challenges plaguing the industry should continue unabated, APCON was quick to add that the rejection would lead to loss of jobs in the industry, promoting the unethical practice and unhealthy rivalry.

Speaking with THISDAY on the new twist to the development, Fadolapo expressed disappointment to what he tagged as ‘unpatriotic moves’ by ADVAN.

He said, “It is rather sad that ADVAN has chosen to be a stumbling block in the move to rebound the marketing communications industry and make it strong enough to contribute well to the economy. The position of the government is that terms of engagement must be of international standard. Over the years, the issue of media debt has remained a reoccurring development that the government is trying to solve once and for all. If followed to the latter, the new directive will make it impossible for multinationals to owe their agencies and media companies more than the agreed days of payment. It will also encourage payment of pitch fees to agencies and will make local agencies and SMEs viable. On a final note, to forestall unnecessary downsizing among the agencies, AISOP must get the buy-in of all stakeholders“.

Stakeholders’ Views…

Meanwhile, the Electronic Media Content Owners Association of Nigeria (EMCOAN), the Association of Advertising Agencies of Nigeria (AAAN), and the Outdoor Advertising Association of Nigeria (OAAN) have declared full support for the new code of conduct and urged APCON to go ahead with its implementation.

President of AAAN, Steve Babaeko, while welcoming the development, noted that he can now heave a sigh of relief, adding that it is long overdue. “It is a good one coming from APCON; I think it is long overdue. As the president of AAAN, these are some of the things that keep me awake, where members complain about some of these issues that the law has tackled. I am looking forward to the enforcement and execution of the laws,” Babaeko said.

As a major stakeholder in the Media Broadcasting Ecosystem, EMCOAN said its members have carefully considered and reviewed the AISOP Policy document and believed strongly that proper implementation and monitoring would go a long way in charting a new positive course and better opportunity for the Content Owners, other Industry stakeholders and the Media Advertising Industry in general.

The association assured APCON that EMCOAN and all her members would not only comply with this new guideline of AISOP, which is ensuring globally accepted best practices and standards in the industry but would also support with stakeholders orientation and publicity of the benefits of AISOP to the Media Advertising/Broadcast Industry as a whole.

EMCOAN said it would avail the Registrar and the APCON team the needed support to ensure proper implementation and compliance with the AISOP policy within the rank and file of the stakeholders in the Industry. The association pointed out that this is important because if there are no serious measures to check the violators of the new policy, things will go back to “business as usual”, hence, proper orientation, implementation, and continuous evaluation will be key to ensuring the success of the new AISOP guidelines.

However, a Marketing Communication scholar, Dr. Jide Johnson has called on APCON to deepen its stakeholders’ engagement before the implementation to get the support of all.

“It is a known fact that the businesses of top players in the marketing communications industry and other vendors working for multinationals are on the decline following rising debt profiles of media buying agencies and multinational companies and all stakeholders have consistently called for proper review of terms of engagement. This is why one is excited about this recent development. However, I think APCON should tread with caution and deepen its stakeholder’s engagement as some of the conditions can only apply for quoted companies and not just any dick, tom, and harry in the Nigerian marketing environment,” Johnson said.