AISOP: APCON Replies ADVAN, Highlights Importance of Industry Regulation to Economic Growth

Following the rejection of the implementation of the new Advertising Industry Standard of Practice, (AISOP) by the Advertisers Association of Nigeria, (ADVAN) claiming it is an “unconstitutional attempt to infringe on the rights of private entities to determine their contractual terms”, the regulatory body for the Advertising industry, the Advertising Practitioners Council of Nigeria (APCON)  has replied, stating its stand, and highlighting the economic importance of setting guideline for the practice of Advertising in the country.

APCON in a press statement signed by its Registrar/CEO, Olalekan Fadolapo, acknowledged its awareness of the rejection of the Advertising Industry Standards of Practice (AISOP) by the Advertisers Association of Nigeria (ADVAN).

However the council stressed that as a government regulatory agency established by law to regulate the Advertising Industry, It will never shy away from its  mandates that include regulating and controlling practice of advertising in all its ramifications in Nigeria.

The AISOP, according to APCON’s statement is in line with the Federal Government’s reformative plans aimed at accelerating the pace of economic recovery post pandemic era, enhancing gainful employment, attracting talents and investment to the industry as well as overhauling the business regulatory framework of the Nigerian Advertising Industry.

 The statement also added that AISOP is only seeking to improve mutual respect, eradicate unfair advantage, unethical competition and inequitable engagement terms between stakeholders in the Advertising and Marketing Communication sector of the economy.

Giving details of the processes that led to AISOP, the statement from APCON revealed that the council wrote to all the sectoral groups and stakeholders requesting for memorandum on industry standards, terms of engagement and other business protocols.

Thereafter, a committee was set up with representatives of sectoral groups (ADVAN inclusive) to come up with an Industry Standard of Practice. The committee met and proposed the document. APCON had a working session with the committee and engaged in detailed discussion of the document.

Each sectoral group’s views and points were discussed and APCON moderated a win-win situation in line with best practices and Federal Government policies. It was also revealed that sectorial groups made concessions based on the maxim of equity, fair play and government efforts aimed at growing the economy

The statement from APCON also pointed out that the CBN, SEC, NCC, NAICOM and other regulatory agencies moderate their respective sectors and set guidelines for operators in line with their establishment Act and the Constitution of Federal Republic of Nigeria as well as promote economic growth and development. In this light, the statement claimed, APCON has done the same in the advertising industry.

The statement decried the public rejection of AISOP by ADVAN even when all other Heads of advertising sectoral groups and other stakeholders have publicly endorsed it. The position of ADVAN, according to the statement from APCON is “a gang up by few multinationals and conglomerates against the Federal Government policy of inclusive growth in the SME sector in particular and the Nigerian economy in general as their position simply implies that the current challenges plaguing the industry should continue unabated, which will lead to loss of jobs in the industry, promote unethical practices and unhealthy rivalry”.APCON commended the fact that some business-friendly multinationals and conglomerates are incredibly supportive of service providers in the advertising ecosystem with pro-enterprise engagement terms, rewarding remuneration system, and payment cycle, etc. “Their policies are better than what is being proposed by AISOP as Industry minimum operating standard. We will endeavour to give credit to them as we move forward on the issue” the statement added .
 According to APCON, the Advertising Industry reform has the capacity of creating over 100,000 jobs in the sector in the first 12 months of full implementation, improve salary payment to employees in  the industry, attract more talents and investment as well as reposition the advertising industry in Nigeria for growth.

 APCON also restated its commitment to constantly improving the practice and business of advertising in Nigeria. The body also called for productive ideas that will enable her deliver the best of conducive business environment in line with her establishment Act, Federal Government policies and public interest.

 Some provision in controversial AISOP that has drawn the ire of ADVAN are as follows

 1.      Media Rates Deregulation: No sector of the Industry should cap or determine what media houses should charge as media advert rates going forward. However, media houses should give 30 days’ notice before implementation of new media rate. Advertisers and agencies should accord Nigeria media houses the same mutual respect they accord foreign media operating in Nigeria and align with best practices.

2.      Credit Policy: In line with best practices, payment for media and other advertisement services should be done within 45 days. Payment after 45 days will attract interest at prevailing CBN interest rate. Advertisers and agencies should honour advertising and marketing communications invoice promptly. All parties must be transparent in their dealings.

3.      Agency Engagement Process: Pitch procedure should be professionalised. Parties in  pitch process must respect Nigeria’s copyright Law. Pitch fee should be paid to agencies that participated in a pitch process in line with best practices. Profile Presentation, Agency Visit, Meet and Greet are free, however, Strategy and/or Creative Presentation will attract pitch fees if the agency participates in a pitch.

4.      Agency Disengagement Policy: Where advertisers decide to disengage an agency, the incoming agency, outgoing agency and the advertiser must reconcile all financial obligations. The outgoing agency must hand over the assets and liabilities of the account to the new agency as this will enable stakeholders track financial obligations and responsibilities.

5.      Contract: Going forward, all contracts of advertisement, advertising and marketing communications should be in writing and duly signed by parties involved in the contract.

6.      Implementation Date: All existing contracts, MPO, LPO and other POs should serve out their engagement terms, however, new engagement with effects from October 6th, 2021 should align with AISOP.