Only Experiential Marketing Guarantees Immediate ROI For Every Naira Spent, Brands Optimal Boss, Otis Ojeikhoa Says

Otis Ojeikhoa, the Managing Director and CEO of Brands Optimal Limited is one of the voices of the experiential marketing industry that command respect, holds weight.  His visionary leadership driving innovation in consumer engagement and trailblazing strides positions him as an experiential expert that has shaped the industry. It may interest many to note that he was the mastermind behind the conceptualization, fabrication, and deployment of the now-ubiquitous bus rigs used for mobile activations throughout Nigeria, revolutionizing how brands connect with consumers on the go.

In this no holds barred interview with Brand Communicator, Otis shares his expert perspective on the current state of Nigeria’s experiential marketing industry, the impact of AI, EXMAN’s vital role in the IMC industry, talent retention strategies in challenging economic times, and his predictions for the future of physical and virtual brand experiences. Excerpts:

Views on the state of the industry in 2024, particularly the experiential space

There is now a sort of stability in the system, though you cannot begin to plan profits as margins are tight. A lot has happened since January of last year, when businesses were primarily focused on using AI to make plan writing or proposal writing faster and to create designs.

In this very short order, we have gone beyond using AI merely for plans, proposals, and design. Now, we’re using AI for profiling target audiences, micro-targeting, identifying core interests, and designing solutions that address those interests. AI is even recommending tools for execution—this is where we are now.

Looking at the trends, AI has played a very important role in making our jobs more targeted and efficient, our processes faster, and our deliverables more measured and specific. We still need to apply our own local insights and creativity to ensure that whatever we create is tailor-made for each specific brief we receive. I think the biggest trend that will continue is the application of AI tools in helping our work become more efficient—targeting more specifically, profiling consumers, obtaining the freshest insights to create resonating ideas, and delivering results that benefit brands.

AI as a technology and buzzword remains the trend. The question now is how we apply it in more meaningful ways. I’ve been telling people that we need to be realistic because input isn’t our main challenge. As professionals, we’re very creative and know how to use available tools. The challenge lies in output—how we create and deploy. That’s where system limitations come in, as we still have somewhat underdeveloped systems. Production remains very expensive; you can create ideas using available tools, but deployment is where we face issues.

The gap between developed economies, where technology is more advanced, appears most prominently at the output stage. I’ve attended several experiential marketing conferences in the U.S., and the difference isn’t in ideation—it’s in production and execution. Their execution is driven by available technology, cost structures, and clients’ willingness to pay.

We continue to struggle with outputs, especially with production costs. Where we manage good production, there’s often nobody willing to pay for it. The enablers and clients are also trying to manage their costs due to margin erosion and pricing pressures. So we have difficulty financing the output end.

This brings us back to basic execution methods in this country—”wood and banner” approaches. There’s nothing wrong with these methods, but I’m trying to illustrate that we’re often forced to use what’s locally available to execute great ideas that have been carefully conceptualized and micro-targeted.

That’s still where the industry gap lies. But the good news is that margins are improving. The industry continues to grow as it always has. Tools to help do better work are becoming more available. In summary, the industry is focused on applying AI tools effectively while using what we have locally to execute the great ideas we develop.

Experiential marketing industry in the next five to ten years

It’s not even controversial—our industry is still going to be a physical experience-based industry almost forever. I’m convinced of this because experiential marketing, by definition, is marketing through human sensory perception—what you see, touch, taste, smell, and feel. If those elements aren’t present, then it’s not experiential marketing.

I have never attended any virtual event where I could physically taste what was being offered. If I cannot physically taste, touch, or smell something, then I haven’t experienced it fully. Virtual events don’t provide the opportunity to assess and perceive using all senses.

To answer your question directly, I see the future as increasingly hybrid—combining physical and virtual elements. But I don’t envision a point where experiential marketing becomes 100% virtual. That simply isn’t possible given the sensory nature of our work.

EXMAN and how it has fared in advancing the growth of the industry

The role of Experiential Marketers Association of Nigeria (EXMAN) is clear for everyone—advancing marketing communications and its application. But before I respond directly to your question, let’s consider EXMAN’s journey.

In the few years it has existed, EXMAN has moved from a position of obscurity, where only a few members knew there was a body called EXMAN, to now having a prominent contribution to the entire marketing communications regulatory landscape. EXMAN has come of age.

Beyond content and contributions, let’s look at manpower development. EXMAN, as a sectoral player, employs—in my opinion—more people than any other sectoral group in the industry. EXMAN engages more university students and temporary staff, helping them develop work skills and earn income while still in school, than any other sectoral body. From these experiences, people begin to shape their careers, deciding whether to pursue modeling, advertising, marketing communications, business, or communications generally.

Just last night, I was out with friends when a lady approached me. We discovered we attend the same gym. During our conversation, she mentioned she works in broadcasting. When I asked how she started, she revealed that she became interested in broadcasting through her exposure to activation work. She used to conduct activations in open markets and stores, which broadened her understanding of marketing communication, despite having studied banking and finance. This shows EXMAN’s critical role in manpower development through indirect recruitment into the industry.

EXMAN also has direct mechanisms for recruiting and training people in the industry. The EXMAN Promoters Training Programme exists at different levels—intermediate, media, and senior management. EXMAN creates opportunities for people to develop skills so they can fully participate in the marketing communications industry. In terms of human capacity development, EXMAN plays a crucial role.

Where EXMAN has struggled most is in recognition of its role in brand building. Many people, including some clients, used to view experiential marketing merely as a “song and dance platform,” not understanding that this platform can demonstrate immediate return on investment for every naira spent. I don’t believe there’s any other marketing offering that can tell you precisely what return you’ll get immediately from your investment. This is why they say experiential marketing strikes are niche-wide. You might not reach two million people in a day, but among those you do reach, you’re guaranteed to gain customers who will return to buy your brand. However, the good news is that more clients and stakeholders are beginning to recognize this value, which is why budget allocations increasingly favour experiential marketing compared to other sub-sectors.

These points are important when discussing experiential marketing’s contribution to the entire marketing communication space. From regulation to capacity building, recruitment, demonstrating ROI, and effectiveness, EXMAN has matured significantly.

It contributes to the marketing communications sectoral group as a member of that collective. Every organization plays its role—EXMAN’s role differs from AAAN’s, but they complement each other. They all depend on each other to perform well in their respective sub-sectors. EXMAN also has a representative in ARCON, on the advertising vetting panel. This means we’re not just a player; we also contribute to shaping the industry and the content that flows through it.

There are many initiatives that EXMAN has in committee. I can’t speak on all of them since I’m not in the EXCO and don’t attend their meetings. Some initiatives may have been redefined or changed. But I know EXMAN is working to improve client pricing. There was also a proposal by an EXMAN member to establish a common warehousing facility for members.

Such a facility would reduce the need to fabricate from scratch each time, driving usability, cost leadership, and savings in the industry. If implemented, everyone in the industry would benefit through faster execution and cost reduction, as we would eliminate redundant production of items.

Marketing hotspots for the year

First, this market doesn’t embrace sponsorship that extensively. The only true sponsorship season is the yuletide season—the December period, the “Ember” months or Detty December as we know it. Olympics, World Cup, Nations Cup events exist, but Nigeria is not a sponsorship-driven market. It’s not like Kenya or South Africa, where you have full-fledged sponsorship agencies. Our sponsorship market isn’t as developed.

What I still see is December, when billions of dollars will be spent, and that’s what our business is shaped around. We’re building capacity to perform better than last year. Last year, we produced about 11 concerts in December, primarily for Coke and other brands. Coke dominates the music space now.

The NBA is investing heavily in the Nigerian market. The National Basketball Association is expanding its investment in Africa, with their hub in Kenya. This month, in March, they’re officially launching partnerships with several brands in Nigeria. A few years ago, they collaborated with Hennessy, and they’ve been trying to enter this market, but their partnership with a major brand launches this month. For me, NBA represents an opportunity to watch. I was in Kenya and met with one of their key partner agencies because I see their drive into the African market, backed by financial commitment. I don’t know their core approach, but I see and hear that the NBA is interested in the African business, especially the Nigerian market, and they’re beginning to invest. That’s a space to monitor.

Most marketing activities here are ambush marketing, that’s the truth. Few organizations put significant funding behind sponsorships. The area where substantial spending occurs, which you can observe and estimate even without exact figures, and that is during December.

We operate by seasons. Nigeria is a seasonal market. Currently, we have Ramadan, so brands focus on Ramadan. Easter is approaching, so brands are preparing for Easter. After that comes Christmas. Those are our major seasons, trust me.

I don’t track our market position—I don’t care about rankings. But I know we’re one of the biggest stakeholders in this market. If we aren’t, then I don’t know who is. If in a year we don’t receive a single brief on sports marketing or sports sponsorship, that suggests such activities are almost non-existent.

On talent retention

For us at Brands Optimal, it’s intentional to recruit and fill our pipeline with young talent—people just leaving school with good grades. We don’t employ individuals who fall below a certain threshold or mark in terms of academic performance.

We have quite a number of these young professionals, and what I’ve observed about this generation is that they have restless minds. Their minds are always active and engaged. We haven’t experienced significant turnover from that segment of our team, contrary to what some might expect. I believe this is because they are fully engaged and don’t have that idle space where they’re uncertain about the next project. Today it’s a concert, tomorrow it’s something else, the next morning they’re in Abuja, and then onto another project.

They don’t experience that downtime where nothing happens. Everything moves very quickly, and they are also allowed to work freely. If you visited on a Friday, you’d probably hear music blaring from one of the offices. They create their own world. We simply allow them to work in their own environment and ensure that we fill their time with what they love to do.

That approach has helped us retain talent in that demographic. Where we face the greatest difficulty is with the “JAPA syndrome” (emigration trend). We lose more of our mid-level managers and senior-level managers to relocation opportunities abroad. If we look at everyone who has left our organization in the last five years, most would be people who have relocated overseas.