One of the leading Global System for Mobile communication service providers (GSM companies), and an indigenous telecom brand, GLO, has written to all its out-of-home contractors nationwide to cancel all the outdoor advertising contracts with the telecom company has with them.
The affected outdoor advertising agencies include Invent media, Executive Options Media, Fulham Nigeria, Capital Media, CBS Outdoor, Adgozo, Mkpoko Ikenga, Optimum Exposure and New Crystal Media, among others.
The revoked contracts are estimated to be worth about N78 million. The decision will affect hoardings across Nigeria, but mainly in the West, East, South-South, Abuja and North West.
Investigations also reveal that the international telecom company has reviewed television and press campaign budget downward, leaving the brand with digital advertising platform as its lead-advertising platform, for now.
The reason behind what industry watchers see as a drastic review of GLO’s marketing communication budget is yet to be ascertained. The Mike Adenuga-owned telecoms brand has not issued any official statement on the matter.
However, the decision cannot be too far from the present harsh economic climate which has tampered with corporate earnings negatively.
Decline in corporate earnings has forced many companies to tamper with expenditure areas that do not directly impinge on their core operations. Airtel has also been reported to have reviewed its Outdoor advertising budget down-wards some months back, due to same reason.
GLO is also to scale down the number of its brand ambassadors, for same reason it has taken the new decision on its outdoor advertising budget.
For more; www.economicconfidential.com