Navigating the Covid-19 Induced Economic Recession of 2020 in the Nigerian Advertising Industry: Lessons from Selected Advertising Agencies
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Abstract
The study examined how advertising agencies navigated the 2020 COVID-19 recession in Nigeria. A qualitative research method was adopted, and data were gathered from ten (10) key stakeholders in the advertising agency industry in Lagos State (male = 50%). The average years of work experience were 7 years and 7 months. Data were collected using a semi-structured interview guide. The gathered data were analysed using thematic analysis through Atlas.ti. Findings revealed that advertising agencies were affected mainly in three areas: reduced budgets, downsizing of staff strength, and contract termination. The most affected area was contract termination, which further had a ripple effect on other areas such as reduced budgets and downsizing of staff. It was also found that most
advertising agencies navigated the economic recession through public health campaigns, a shift to digital advertising, exploration of alternative strategies, and the formation of international collaborations. Based on the findings, it was recommended that advertising companies should prioritise digital transformation to maintain competitiveness in challenging circumstances. The research indicated that those agencies transitioning to digital media were more effective in retaining clients and adapting to evolving market demands. Agencies can extend their reach during lockdowns by investing in digital advertising technologies, social media marketing, and data analytics.
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