2003 KEYNOTE ADDRESS AT AAAN AGM, IJEBU ODE

PREAMBLE

It is indeed a great privilege to be one of the keynote speakers during our great Association’s 30th anniversary. I am sure that today, the founders of this Association must be wondering where and how the 30 years went so quickly. And we do have cause to thank God in celebration, not only because of the achievements of the Association-and they are many, but against the background of the fact that facing formidable odds, we have survived as an entity, have surpassed the greatest expectations of the founders, and continue to contribute humbly to the development of this nation.

May I therefore use this opportunity to congratulate the President-in-Council, and all past Presidents, Council members and secretariat staff on this auspicious occasion.

I will be speaking on the topic “The Future Of Advertising”, within the theme, “AAPN, 30 Years After”. I am still more than a little curious why I have been saddled with this burden. In my thinking, more qualified, longer serving members would probably do a better job of this, not a member who has had a mere 21 years’ experience in the profession. I therefore hope you will understand and indulge me if there are obvious gaps and lapses in my presentation. THE PAST & THE PRESENT

AAPN was set up in 1973 as an organisation of advertising agencies, with a mandate to regulate the practice through the coming together of the agencies. Because of its rapid success in this objective, it has clearly achieved a lot more than the founding parents had in mind. Not only has it continued to be the credible voice for the profession, it became instrumental in giving birth to APCON, the official voice for Mass Communication in Nigeria. And either they like it or not, and either for good or bad, it spurred and challenged OOAN, ADVAN, and the others into existence.

In between, AAPN helped professionalise a loose association of practitioners. For the first time, our fore runners had a respectable union they could refer to with a great measure of pride.

We cannot but mention the role of this Association in the famous 1972 Indigenisation Decree. Even though the AAPN was not formally in place, in its embryonic form, it acted successfully enough as a pressure group in ensuring that the fate of the profession of Advertising was left for Nigerians to determine, with a long term effect on all of us. I will say more on this as I progress with the presentation.

With the clamour for affiliation, along with some of its advantages, dubious applications and question marks, the AAPN went a long way in making it indirectly attractive in the early days, by the obvious successes of the Lintas’, the OBMs and the Grants of this world. As the key and dominant agencies, they opened the way. And today, if world-class agency networks are here, and are aligned with mainly AAPN agencies, it is again a great credit to this noble Association; they have continued to focus their attention on our members, rather than the ragtag unassociated practitioners out there.

Our Association has also helped tremendously in the training and production of qualified men and women, who today are making a living and helping support thousands of other Nigerians. Reference must be made again of the indigenisation period, when it fell on our young shoulders to develop the curriculum and criteria for what has proudly produced the Nigerian communication form in business. Our higher institutions, art colleges etc have also been major beneficiaries. Advertising, marketing and art curricular in Nigerian higher institutions have profited and continue to enjoy the support and input of the AAPN. Graduates from the schools’ Mass Comm. and Art Departments are assured of employment through AAPN member agencies.

We could go on and on about the glorious past and present of the AAPN, but my discussion is on our future, and to this task I must return. THEFUTURE The future is not some period fifty, twenty, or even ten years to come. The future is today, and it is here. The future is the movement from advertising to marketing communication, its about brand and communication globalisation, its about the incredible application of technology, its about the redefinition of the customer and the brand, its about the introduction of new concepts and ideas like 360 Degrees Brand Stewardship, its about micro specialisation, where your giant agency is giving way to smaller, more efficient teams of specialists, its about hitherto accounting firms like Andersen making forays into brand consultancy. Our task is to see how well we have done within our operating environment, and what humble suggestions from this gathering can help us take advantage of this very competitive future. And in doing this we will be looking at Advertising as both a Profession and Business.

I must warn that portions of my presentation may not necessarily be popular, and may indeed be controversial, but I assure you all that in putting it all together, the sole objective is the well being of our noble profession.

Advertising as a Profession

As a profession, how are we doing? What do the large majority of our Clients and business partners think of a large majority of us? How do we ourselves honestly rate our performance in 30 years? Are we still as relevant today as we were in the last 30 years?

I would say “Yes” without any hesitation. Either in a loose or more detailed analysis, our Association has performed as a professional organisation, with minimum casualty. Without any doubt, we have surpassed the expectations of those who helped put the Association together; we have elevated the practice, serve the same purpose our colleagues in other great markets do, and play critical roles in the birthing and sustenance of key brands within and even outside of our market.

And before someone thinks I am engaged in some self-serving rhetoric, let us engage in some chest thumping: Where would the OMO and STAR and Guinness Stout brands be without the great works by Lintas? What would have happened to the Coca Cola brand without the contributions of Grant and STB McCann? Take away the support of OBM and lately Insight Communications, and where would GULDER be? I wonder if Close Up would be # 1 today without the efforts of LTC. Where would the Econet Business Partner brand be without the contributions of Prima Garnet? Consider what great branding work Rosabel does for First Bank. MTN would probably still be battling anonymity without the exciting works of Concept Unit. What would be the fate of Honda cars without the efforts of Comex, or the LG domestic electrical equipment without the contributions of CASERS?

Consider our support and contributions for these great brands: Bournvita, Milo, Binatone, Panadol, Close Up, Nido Milk, Home Cup, Mr. Biggs, Nacet blades, Maltina, Guinness Malta, Vicks, the paints, the banks, Fanta, Sprite, Wema Bank, the tobaccos etc. Almost without exception, Nigerian advertising efforts, created and supported largely by organisations and individuals represented here can rightly claim the credit.

And lest we forget, and before someone sniffs that perhaps we are just some local group, our campaigns have been used, and are being used in other nations. Nigerian Breweries, Unilever, Coca Cola and a couple of others are beneficiaries.

Lately our contribution as a market played a formidable role in the putting together of strategies and creatives for the Annapurna brand, Unilever’s foray into diet staples. And this effort involved formidable agencies from South Africa, India, the UK, Ghana and Cote d’Ivoire. I need not tell you that creatives from Nigeria were very well received.

And for example, the entire concept work, brand name, logo design, creatives et al developed for Econet’s Business Partner brand, from scratch to finish was done by Prima Garnet; these materials are being adopted in at least two other serious markets in Africa and New Zealand.

The Association and our members have also been very active as lecturers and instructors in various higher institutions and to professional bodies, advancing the frontiers of the profession, and preparing younger Nigerians for the task of marketing communications.

With these and much more, I think I can safely make the submission that the biggest challenges we face are not really in the professional approach in terms of creativity. Clearly, we can do with some improvement, but largely we have, and continue to prove ourselves with credit.

Advertising as a Business

How well are we doing as a business using all globally accepted criteria? Are our supposedly limited liability organisations truly limited liability organisations, or some self-serving sole ownership contrivance? How many agencies can truly say they produce independent audited accounts annually? Capital is the soul of a business: are we well capitalised? How is this affecting the practice, and unfortunately the Association? How well have we invested in this profession that has done so much for us all? Why is agency casualty rate higher in our environment?

Are we current with the modern tools of the business? If I ask here for example that how many agencies operate a 24 hour internet service, with full email and internet access by all staff from PCs and laptops on their tables, how many can honestly answer in the affirmative? How many of us are prepared to consider alternative survival strategies like mergers? What is our staff welfare policy, which makes it so easy for others to poach from our industry? Why have successive governments refused to incorporate our efforts into their information management strategies?

The President, esteemed guests, colleagues, members of the press, ladies and gentlemen, this is part of the future we need to consider. If we want to make any impact in this future, if we are committed to building great names like Ogilvy, Bates, McCann, Grey, Leo Burnett, Saatchi, FCB, JWT, Y&R etc, then we still have a lot of work to do. I have tried to put some of our more serious challenges together, and I see no reason why we cannot convert them to opportunities. 1. Corporate Image & Perception & Membership Attitude

We need as a group to burnish our image and attract attention at the highest official levels. It will be a proof that at least we are being taken seriously. I wonder what has happened to those days when state governors and ministers scrambled to attend our functions as special guests. I remember an AGM in this same hotel a few years back, two state governors attended the opening ceremony: the one we invited, and the other who “gate crashed”. We will be lucky today to have such representation. I look forward to the days when Presidents will attend our functions, as they do other associations’.

How can we impress it strongly on our elder statesmen that the older they become, the more the Association needs them? Observe the AGMs and other important gatherings of ICAN, NBA, NIA, IPM, NMA, NIB etc, and you will find all their past presidents and past council members in attendance and in full participation. I was very impressed to see the doyen of Nigerian accountancy profession, Mr. Akintola Williams at an Abuja ICAN AGM, rubbing shoulders with the current president. How many of our past presidents and executives for example attend our AGMs and other important association meetings?

I have never been a president of our Association, and may perhaps not understand their reluctance, (excepting two or three of them who are constantly active, and even make themselves available to serve at committee levels), to interact with other members. Incidentally, many of them lead successful outfits, and are in a position to formally and informally impart their wisdom and experience to us younger ones. I once had lunch with Tim Bester, a former Chairman of McCann, South Africa, and the then president of the Triple A, the South African counterpart of our AAPN. I raised the issue with him, and he thought it was very strange. According to him, past presidents and executives of their Association in South Africa are very active members. Why is our situation so different?

Shouldn’t we also spend some time and resources in genuinely looking at reasons why new agencies do not seriously see the reason to come into the AAPN fold, and lately are now pulling out under some questionable guises? What is the state of our so-called secretariat, attitude to membership dues and levies? How can we revive the esprit de corp, compete with one another, and still operate warmly with trust?

Let me at this point sound a note of warning, and I am not a prophet of doom. If our Association continues to show so much reticence, it makes it easy for some determined mischief-makers to sponsor a parallel association, using available political connections. I am sure that many of you know we have a precedence or two to point to. 2. Relationship with Competition & Co.

My definition of competition is not necessarily restricted to other local advertising agencies. I am concerned on one hand about the foray from outside the country, and on the other by the ADVANS, OOANS, DIRECT MARKETING ASSOCIATION etc, and lately the curious “brand image building” companies. If we inspired the ADVANS, OOANS and the others into existence, why have they suddenly become better organised than we are, and now openly rebel against us over representation at the APCON council, which we laboured to create? I was shocked at one of the APCON dinners a few months ago, when the president of ADVAN, under the liberty of being one of the guest speakers proceeded to lecture advertising practitioners on how to effectively do this work and on payments to contractors. You and I know what we have often suffered from some members of ADVAN, and other clients in the areas of professional briefing and timely payments.

We often cite the Kenyan example where the ten leading agencies are multinationals. Sadly, the same situation is staring us in the face. What do we have? Most of the current leading agencies are affiliates to the same multinationals, and older indigenous ones are dying off. What do they know how to do that we need to also do? And they are also foraging into outdoor, research, and production etc. What can we do? Why can we not for example cooperate with our colleagues in OOAN etc, and look at ways of making ourselves stronger and more competitive than the invaders?

3. Relationship With Regulatory Bodies

Lets talk a little about APCON. AAPN gave birth to it, and APCON has done some fine job. But right now, and without exception, why do we all feel that perhaps APCON is a little overbearing? How is APCON’s business affecting our business? Is it becoming a burden to our profession? What should we do about regulations that are clearly difficult to enforce, and which tend to stand as obstacles in the way we practice our business? Can our dear APCON fulfill some of these vetting roles effectively without overreaching itself? What is APCON’s motivation? Is it professionalism or simple commercialism? 4. Conduct Of The Business

A foreign colleague once confided in me that a very promising Nigerian agency lost a big business opportunity because it could not present simple proofs like verifiable audited accounts. I know of an agency where the head of the finance unit, a very senior staff, does not have any idea what the directors earn, because the directors operate a very confidential salary account, separate from the rest of the company. Before you ask me what my business is, and label me an “Amebo”, I am simply citing it because we are all quick to applaud companies like GTB, IBTC, Unilever and co. None of them operates in such a way. How many Agencies for example have properly constituted BODs, and hold regular board meetings?

Today, local and offshore clients and associates want to know agencies’ ranking in Nigeria; at best what we make available are guesstimates, since we can hardly have a true picture of agencies’ billings. Why? Because in this age and time, few agencies publish their accounts, and make it available. And yet we mention the great multinational agencies that freely announce their results, and curiously, we even quote those statistics. Where are our own figures and statistics? What do we expect research students in our higher institutions to use? Even within many of our offices, few staff have any idea of billings. Believe me, we need a big reorientation. 5. Survival Strategies

. In every market, business is sometimes unfavourable. And there are globally accepted measures and steps we can take to protect our businesses either for short or long-term gains. If for example an agency is too small, and is not growing as well as the owners desire, what stops them from considering a merger with a bigger agency, to now have an even bigger agency? If Ted Turner would merge the massive and hugely successful CNN with AOL, why will one of us managing less than an average billing of N30- N40 m annually in the last eight years not consider the same? Why would we rather allow the agency die, or remain undersized, when merging with a stronger agency could make all the difference? Do we need more education and assurance that merging does not necessarily mean losing total control?

· We also need to seriously look at our capitalisation. For many years, I was a member of the AAPN Membership Committee, and some of the things I had access to were pitiful. Up till today, we still have agencies with less than N2 million authorised and paid up equity! If we are seriously talking of the future, such agencies will never catch up. Capital remains the soul of every determined business, and ours is not an exception.

About eighteen months ago, I had an opportunity of joining a few friends in investing in a new agency. The authorised capital is N30 million, and its been fully paid up. Because of its strong capitalisation, the young agency started off comfortably, acquired all necessary hi tec, could guarantee competitive welfare package, good office location, pool and official vehicles etc. And the good news is, all these have attracted clients who see it as a serious agency, ensuring a steady growth.

Even if our agency proprietors do not have such sums, we can invite participation by selling shares to others without the fear of losing the company, if the arrangement is well structured. This way, we will have financially stronger agencies, which will thrive better. Our Association must, as a matter of urgency consider training programmes and seminars to enlighten and encourage our members about capitalisation of our agencies.

· Either we want to admit or not, income from mainstream advertising globally is dwindling. Core areas where we had monopoly years back are being successfully challenged and encroached by other arms of communication. In my days in Lintas, we produced calendars, gift items, BTL items, handled research, etc. Now clients patronise specialist outfits that handle these items. Its even worse now that Media is being sold differently. Soon Creatives will follow suit, and you will be left with a smaller agency.

We need not wait until the wind is taken from our sail. We can learn from those who accessed the future before us by also investing in these specialist services. A couple of local groups are doing this successfully. Ogilvy did, and branded it 360 Degrees Brand Stewardship Philosophy; if we desire to survive, we must think in a similar or better manner.

And may I use this opportunity to send a friendly advice to our associates and colleagues in other professions who make it difficult for serious entrepreneurs who want to invest in their areas by creating bottlenecks, and even going as far as investigating Forms CO2 and CO7 at the Corporate Commission in Abuja to determine if the owners of the companies are agency people. You are living in the past, and had better wake up to the future. Nothing can stop any of us here who desires to own an outdoor company, film production house, printing press, colour separation house, bank, hospitals, hotels or whatever catches our investment fancies as long as we can afford it. And the laws of this nation support such entrepreneurial ambitions.

I would advise that rather than spend your time and other resources in maintaining a hegemony, a cartel and a monopoly, you also should feel free to invest in agencies and whatever else is legally permitted. Nigeria like other forward-thinking nations is opening up, and only the fittest will survive. You cannot stop the move. 6. The Future & Leadership

This is a true saying: The type of leadership we have will always determine the quality of our Association and the progress we will make. I am glad that we all have another opportunity to elect new leaders for the Association. Over the years we have been fortunate to have visionary and effective leaders. But if truth were told, some of our leaders perhaps could have done more.

We owe it a duty to our conscience and the future to elect men and women of vision, who are passionate about the profession, and I make bold to say we can better identify them not only because their agencies are big and successful, but also because of other demonstrable leadership qualities. I have often cited myself as an example that because Prima Garnet is doing well should never be the main criterion for this speaker being invited to aspire to a leadership position within the Association. I also must prove to you all that in all other key areas I fit the bill, and will deliver the goods. Enough of this sponsorship and promotion of mediocrity.

To this extent, I strongly suggest and urge that we submit leadership aspirants to very serious vetting process. What types of organisations are they running or involved with? Are they professional? If not, how can we expect such people to be committed to professionalism? Do they have a sense of commitment, can they sacrifice, are they visionary, are they passionate about the profession and Association and are they selfless? What is their personality? What demonstrable level of commitment have they shown to the profession and the Association, or is it another feather to their caps, and an opportunity to use the position to win new businesses for their agencies, and leave the AAPN in a worse state than they met it.

One of the things we need to do as soon as the new administration comes in is a thorough and extensive study into our Association’s current state. As a brand let us find out how well AAPN has fared to date, where our major challenges are, why for example we have become the whipping boys for everyone: clients and associates. Lets approach experts on how we can improve on our financing, and run our affairs without always going back to the same sources with our begging bowls.

What do we need to do to increase and motivate membership: Why don’t those agencies want to come into the fold? What is responsible for the new fad of agencies pulling out of the Association under questionable guises? If we make this research as extensive as possible, findings from it can then form the action standard and framework for the new administration and consequent ones in terms of achievable and measurable objectives. We are aware such an exercise may not be cheap; on our part, Prima Garnet promises to financially contribute to the exercise if we are approached.

Our amiable President and Council members, the Chairman and Special Guests, members of the Press, distinguished delegates, ladies and gentlemen, we are at a cross road in the life cycle of our Association, and many practitioners see its gradual demise. I rather see a unique opportunity to take a hard look at ourselves and do a lot of work on the AAPN brand. I still see a good brand; I still see a very useful brand. But it needs to be re-invigorated. This is our responsibility and our expectation for the future. This is our future. We are the future. And now is the future.

Thank you all and I wish everyone a fruitful congress and AGM. God bless you all.

‘Lolu Akinwunmi MANAGING DIRECTOR/CEO Prima Garnet Ogilvy, Lagos, NIGERIA 2003