How agencies can optimize opportunities in 2023 despite economic headwinds
By Godwin Anyebe
As the year winds down, organisations are taking a retrospective evaluation of performance in the outgoing year, benchmarked against certain critical growth indices to measure exactly what moved the needle either upward or downwards.
Despite the fact that the advertising industry experienced the worst phenomenon in centuries with the advent of the coronavirus pandemic in 2022, the economic headwinds that accompanied it did not deter agencies from recording an upsurge in advertising spend compared to the preceding year.
This is attributed to the resilience and doggedness of professionals within the Integrated Marketing Communications Industry (IMC) as well as their adaptive disposition to the new trends and realities created by technology.
While the coronavirus pandemic has made setting long-term goals somewhat unrealistic, it is imperative for agencies to prioritize certain growth enablers ahead of 2023.
Evaluating the nation’s economic situation and impact on the economy is expedient as the advertising industry exists within this ecosystem. According to economic analysis by the Fiscal Policy Partners & Africa Tax Leader, PwC, Taiwo Oyedele, Nigeria is facing significant economic headwinds amplified by structural changes although Nigeria remains the largest economy in Nigeria GDP is growing albeit slower than desired with growing population estimated at 95 million and multi-dimensional poverty at 133 million.
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He projected that while the global economy will see a slower growth in 2023 such that it will feel like a recession, factors that will shape the Nigerian economy next year are debt and taxes, polities/policies, Geopolitics, insecurities and subsidies.
With a projected rise by 18% in advertising spend estimated at $600 million expected to be driven by the beehive of electioneering activities which precedes the 2023 General elections, advertising agencies need to operate in a much safer zone to mitigate the myriad of challenges ahead.
