CHAPTER ONE

            INTRODUCTION

1.0       BACKGROUND TO THE STUDY

The world today has become a rendezvous for many countries courtesy of globalization, which fosters continuous interaction and exchange of human, economic and technological knowledge. This has resulted in the movement of information from one country to another using a single medium known as the internet. Globalization has integrated most countries together in terms of economics, trade and commerce, free movement of information from a single source to the entire world (Yoshihisa, 2007).

The growth of the internet and mobile technologies has had significant implications for media and advertising industry (Helath & Bryant, 2000; Lewis 2010). Since the last decade, media technology has undergone significant development and enhancement, including increasing levels of internet access and usage, the global popularity of broadband, wireless networks, and the rise of computer and internet-enabled mobile devices such as smart-phones and tablets. Technological enhancement has led to diverse forms of media usage and online activities for people all over the world. These developments of media enabled higher levels of interactivity, customization and social interaction (Hill & Moran, 2011). These media developments generated diverse meanings for both marketers and advertisers. First, the interactive and inter-personal characteristics of digital communication have allowed them to have closer and more direct relationships with their consumers.

The interactive nature of communication has empowered consumer participation in brand activities by selecting the content, timing, and communication acts that appeal to them personally (L.i. Daugherty & Biocca, 2001). At the same time consumers have become more interested and involved in contributing ideas about brand building and promotional activities (Garfield 2005: Jaffe, 2005).

As the internet has evolved, its capacity for community-building and social interactions has come to the fore. Various platforms have been developing on the internet (e.g. Facebook, Twitter) that connected people, even strangers, to each other. The increased empowerment of consumers has also led to the formation of an online society, and this consumer-dominated scenario has also shaped a powerful ‘networking media’ (Mutinga et al., 2011).

‘Traditional media’ in advertising are understood as print, radio, television, billboard and ambient media; and ‘new media’ as the media content available digitally on the internet and mobile network (Burton, 2009). Today, consumers actively connected with each other with the use of advance media technologies and they have put together a powerful network on the digital platform, known as the ‘social media’. Social media provide people with opportunities to produce and share content with others, and to extract and process community knowledge through sharing (Lewis, 2010). According to Social Media Futures, the 2009 report from the UK-based Institute of Practitioners in Advertising (IPA), consumers are increasingly mediating messages between brands and other consumers in the social media arena, using platforms such as Facebook, Twitter and Youtube.

Since the advent of the internet and social media, the use of traditional advertising has markedly dropped in the industry due to the shift in usage by the general public from Newspaper, radio, television to the social media as internet has a wider coverage than traditional medium of advertising. It is for this reason that most advertising agencies also leverage of the use of the social media internet as a tool for advertising products and services which shall be discussed in the subsequent chapters (Holtz, 1998).

Internet today has affected revenue generation of most advertising agencies that are using the traditional advertising because of the existence of the internet which encompasses a network of networks that interconnects millions of computers/mobile phones and allows information to be transported across several networks regardless of national boundaries (Gates, 1995).

Even popular magazines have fallen prey to the internet age. Many of these magazines do not have the same circulation numbers they once had. They too have been forced to adapt to the constantly changing world of technology, and in doing so, advertising opportunities for business owners who had previously found success through placing ads in thee magazines have changed.

Advertising in Nigeria has grown from its earliest beginning of using the town criers to announce availability of goods and services to become a big industry in Nigeria. Advertising is now very important in the economy of the nation, considering the fact that it serves as a source of information about goods and services and also persuades consumers to patronize the advertised goods and services.

STATEMENT OF THE PROBLEM

Advertising has been constantly used by individuals and organizations to disseminate information about their products and services through paid media such as television, radio, newspaper, magazines, billboards etc. t he society at large depend on advertising in order to keep abreast with latest goods and services, improved products, new range of products, special offers, and promos on existing products.

Relatedly, advertising agencies, companies and organizations are dependent on the another for business progress where energy is put in promoting goods and services with the aid of advertising media through their innovative advertising messages which entices people to patronize their goods and services. The advent of technology and the new media heralded Social Media Advertising (SMA) resulting in tremendous paradigm shift in what the business of advertising used to be where people can now advertise their goods free of charge without consulting the advertising agency. The traditional conventional media of advertising such as newspaper, television, radio, etc are losing their stance in the world of advertising baby.

The major challenges here is most advertising agencies are having problems with choice of advertising media to use as the most trending medium of advertising social media, is gradually overlapping their other media choices.

All changes in both technologies and consumer behaviour have had significant implications for the advertising industry, giving rise to the need for marketers and advertising agencies to revisit advertising strategies and to develop new ways of engaging consumers during the communication process (Willott, 2011).

On the one hand, engaging consumers in marketing and advertising activities has opened up possibilities for creative possibilities; on the other hand, it has also brought challenges to advertising agencies and creative practitioners (Deuze, 2005; 2007).

Many advertisers believe that the digital media platform is due to become a dominant one in the next decade (Coghlan, 2007). Overall, it seems that both technological and behavioural changes in consumers have had significant impacts on the advertising industry, requiring marketers and agencies to develop new ways of engaging consumers in the communication process. Both large and small scale advertising agencies are paying increasing attention to social media for marketing and advertising activities, particularly on platforms such as Facebook  and Youtube, in order to be more competitive in this changing market environment (Li & Bernoff, 2008; Kakplan & Haenlein, 2010).

Social media are also attractive to advertisers because of the relatively low cost of reaching consumers, the potential for greater efficiency, and the ability to engage in more timely and direct contact communication than is offered by most traditional media tools (Cho, 2011: Muntinga et al, 2011).

In light of the above, the study investigate how advertising media are adapting to trends and gaps created by the advent of new media in the world of advertising.

1.2       OBJECTIVES OF THE RESEARCH

The objectives of this research are:

1.      To find out how advertising agencies are adapting with trends in advertising and its dynamics within the industry.

2.      To assess the challenges of advertising practice in Nigeria

3.      To proffer ways that Qlique media can overcome the challenges of adapting to advertising on the new media.

4.      To determine the type of social media platform used by Qlique media.

5.      To assess how Qlique media is adapting to advertising on the new media

1.3       SIGNIFICANCE OF THE STUDY

This research shall focus on trending issues affecting advertising agencies in Nigeria and how they are adapting to the challenges posed by the advent social media.  

The outcome and findings of this research will provide insights to researchers, academia, advertising professionals, government etc on the true picture of how advertising agencies are coping with trends on social media advertising as the case may be. Also, it is hopeful that the outcome of this research would serve as reference point for further research on the phenomenon or subject.

Government agencies, organizations, companies and advert agencies will benefit greatly from this study as it will provide better understanding on advertising industry in order to know areas where they would intervene in terms of policy formulation, funding of projects and general conduct that will give room for better advertising practice in Nigeria.

Furthermore, it will serve as reference material to students who intend to conduct further research on advertising and advertising agencies.

1.4       RESEARCH QUESTIONS

1.      What are the effects of social media on Advertising Agencies?

2.      What are the Challenges of Advertising practitioners in Nigeria in a digital age?

3.      What are the social media platforms used by Qlique media?

4.      In what ways can Qlique media overcome the challenges of adapting to advertising on the new media?

1.5       SCOPE OF THE STUDY

The growth of any new organization is solely reliant on advertising and advertising media to help them push their products and services to the general public for image boosting. This research intends to study how advertising industry in Nigeria adapt with trends in social media advertising like by focusing on Qlique Media Kaduna as case study.

1.6       OBJECTIVES OF ADVERTISING

Advertising in general sense has two broad objectives namely, behavioral or action objectives, and sales objectives. From the behavioral point of view, it influences the buyer’s behavior of consumers (Taylor, 2009; Truong et al, 2010). It is an accepted fact that all behavior starts with motivation. Advert motivates people by arousing their dormant needs that activates behavior. Advertising is primarily used as a tool to influence consumers by companies (Golan & Zaidner, 2008; Utz, 2009).

Another objective of advertising is to inform people about new products and services for the purpose of brand building and to remind customers about their brand at the right time and place. It reinforce customer confidence in purchase with aim of building corporate identity so as to help their sales force become more effective and to give their brand and company a “Personality” that makes it unique (Naths, 2010).

The aim of advertising goes beyond corporate organizations as government and autonomous bodies also use advertising to inform people about their policies, promote birth control, educate the masses on health care, prevent panic during natural disasters, dispel harmful rumors, and attract foreign investment (Burton, 2009).

1.7       RESEARCH LIMITATIONS

There will always be limitation in any research work and these limitations can be identified as possible changes that may occur in the process of carrying out the research which may hinder the end result.

It however depends on researcher’s ability in managing these limitations effectively as it will help to contribute to the validity and reliability of the research project.

Some of the likely limitations/challenges that may be encountered in the course of writing this project work are as follows:

·         Inability to gather adequate materials and information from academic write-ups on the area of study within the time limit for the project.

·         Inability to gather primary data from advertising agencies due to fear of breach of trust and confidentiality issues.

·         Limited time given to complete the project

·         Inability to get a peered reviewed articles and journal by academia

·         Challenges in getting appropriate responses from respondents during survey in the field work of the project.

·         Unavailability of interviewees during the project stage, which may cause delay due to rescheduling of appointment.

However, in order to manage these constraints; the researcher intends to maintain high ethical standard in managing data obtained from both primary and secondary sources. All rules and regulations guiding research works at Kaduna State University shall be adhered to in order to produce a credible and reliable project.

Proper time planning and time management would be put in place in order to circumvent these obstacles to the level that would not create negative influence on the research study.

Lastly, judgment shall be drawn from all relevant data collected (primary/secondary) in order to answer the research questions.

1.8       DEFINITION OF TERMS

Advertising: The act or practice of calling public attention to one’s product, service, need, etc. especially by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.

Advertising Agency: An Advertising Agency is an independent organization of creative people and business people who specialize in developing and preparing marketing and advertising plans, advertisement and articles on various subjects.

Social Media: Social media is the collective of online communications channels dedicated to community-based input, interaction, content-sharing and collaboration.

Print Media: Means of mass communication in the form of printed publications, such as newspapers and magazines.

Online Advertising: Online advertising is a marketing strategy that involves the use of the internet as a medium to obtain website traffic and target and deliver marketing messages to the night customers.

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