A new industry survey has revealed that over N8bn in unpaid fees by advertisers, many of whom are multinational companies, are currently hampering smooth operations of some media outfits and advertising agencies.
According to the survey and economic intelligence research conducted by Marketing Edge, the huge media debt profile of the client companies has been creating some operational challenges for the media, especially those in the out-of-home advertising, electronic and print media.
The report noted that relevant stakeholders promised last year to address the challenge of media debt in brand management and management of brand business in Nigeria.
It stated that while the advertising agencies and media outfits had fulfilled their own part of the contractual agreements by executing the contracts, they were now faced with the challenge of getting the clients to honour their part of the bargain by paying the invoices that had overstayed the agreed working period of 45 days.
The report stated, “The delay in payment has been attributed to the sudden twist in the existing payment due dates of 45 days by multinational companies, which are demanding 180 days to process media invoices before payment is made.
“However, the Nigerian advertising practitioners and media owners have decried this request, stating that it negates what is fashionable and obtainable at global markets.”
A senior industry operator and brand consultant, Mr Sola Bamgbose, was quoted as saying, “The request by multinationals to extend 45 days of grace to 180 days before paying their media vendors is uncharitable, unfair and unjust.
“How will they justify this request when in actual fact they collect money instantly from the consumers of their goods and services? Do they ask consumers to come and pay for their goods after 180 days of purchase?”