As various businesses struggle to survive in Nigeria, Lolu Akinwunmi, Group CEO, Prima Garnet Africa has advised owners of out-of-home (OOH) advertising businesses on strategies to survive and even thrive during times of recession and economic downturns.
He offered some survival strategies to members of Outdoor Advertising Association of Nigeria, OAANOH last weekend in Ibadan during their 39th annual meeting with the theme: Redefining OOH media in Nigeria: The Practice, the Businesses and Value Creation.
First strategy is diversification of clients’ base: He said relying on a diverse range of clients across different industries can help cushion the impact if certain sectors are hit harder than others. He told them to “Consider targeting essential services, government business, and sectors less affected by economic downturns”.
He told the OOH members to Operate Flexible Pricing Models such as discounts for long-term contracts, bundled deals, or pay-per-performance models. This, he said can attract budget-conscious clients while maintaining better cash flow.
Another clue was Maximisation of Efficiency: The marketing expert advised them to streamline operations to reduce costs without compromising service quality. This could involve renegotiating contracts with suppliers, optimizing maintenance schedules for billboards, and minimizing the number of staff and employing technology to automate certain processes.
Akinwunmi also advised the advertisers to Offer Value-Added Services by differentiating business by offering additional services such as campaign analytics, creative design, or integrated marketing solutions. “Providing these extras can make your OOH services more attractive to clients. Even if you don’t set up corollaries to do these, you can partner ad agencies that can do these for you and help increase your income stream”.
He also told them to Focus on Local and Community-Based Advertising. “Target smaller, local businesses that may be looking for cost-effective ways to reach their immediate audience. Everyone cannot have a telco or banking account, and yet there are smaller clients that require your kind of services. Community-focused advertising can also resonate better during economic hardships”.
Another strategy include Building Strong Relationships with Existing Clients. He said retaining existing clients is often more cost-effective than acquiring new ones. “During a recession, work on strengthening relationships with current clients by offering personalized service, understanding their challenges, and finding ways to help them succeed. Even when they are not issuing new briefs, keep a close contact with them and often discuss ways that you can be of support during a moment like this”.
He also advised them on Adopting Innovative Payment Solutions; Exploring New Revenue Streams by looking into new revenue opportunities, such as leasing space for alternative uses (e.g., events, pop-up stores), partnering with other businesses for joint promotions, or selling ad space on emerging platforms like mobile billboards.
Sola Akinsiku, President of OAAN discussed the issue of the Bill for a Charter for Out-of Home Media Asset Ownership and Practice in Nigeria and said that the bill will help the industry efforts to protect their businesses.
He said the bill is for the good of both OOH industry and the advertising sector “It will bring sanity into the Out of Home ecosystem in the country”, he said.
Welcoming the OAAN members to Ibadan, Oyo, Bayo Lawal, Acting Governor of Oyo State encouraged collaboration between OAAN members and Oyo State as he said outdoor advertising industry plays a critical role in shaping the visual landscape of our cities, and “it is essential that we work together to ensure that this landscape is not only vibrant and dynamic but also orderly and well-regulated”.
