By Princewill Ekwujuru

Expected Marketing Communications budget cut by advertisers in the face of difficult economic and political decisions occasioned by the slide in the international oil market is likely to trickle down to media agencies, forcing them to innovate to survive the economic hardship. However, the growing challenges in the Nigerian economy resulting from slump in oil prices, ever rising dollar, free failing Naira, greater competitive pressure and poor governance are all said to be responsible for the pressures on businesses in Nigeria.

A sampled opinion of industry bigwigs showed that cost cutting for businesses is become imperative, as innovative and creative work will carry the day. Dr. Phil Osagie, the Global Strategist for JSP Communications in a report said marketing operators believe that the cost cut by clients will not make clients lower quality. Osagie reiterated that “desire for the greatest value and highest quality of work at the lowest possible price, is not limited to companies in Nigeria alone. It is a universal business inclination.”

He stated further that though companies are desperate and they will to cut costs, they are also in perpetual search for quality work   and they will always be willing to pay for it.  The challenge for Public Relation communications business in Nigeria is to offer services to clients that are way beyond the conventional and enable clients achieve their strategic goals. This is the difference between a commodity and a brands,”  Osagie said.

Similarly, CEO/Managing Director of TBWA, Kelechi Nwosu told  Vanguard that already companies in various sectors are getting a firmer grasp of the challenging economic situation and are adjusting accordingly, but that 2016 promises to be an interesting year. Further he said that nobody knows the direction of the economy until the economy gets active, the manufacturing sector is facing a lot of challenges but with better fiscal policies and budget  we will get a clearer view of what will happen.

“Looking at what the economic direction will be, now it appears the economic direction of becoming clearer, so  I think a lot of them ( manufacturers) will come to start supporting their brand this year if the fiscal policy seems to be expansionary.”  He however pointed out that the first quarter of the year will be tough for industries including the marketing communications sector as clients will engage in tougher negotiations, trim marketing communication budgets and demand that agencies justify every fee charged.

According to him, “the tough time will require the operators in the Integrated Marketing Communications, IMC to innovate as the operators would not service clients the same way.”