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Transcript of UNIVERSITY OF NIGERIA, NSUKKA ONOROM2_0.pdfmajor advertisers, which collectively account for a huge...
NNOROM, WILFRED IHEJIRIKA
GLOBALIZATION, ADVERTISING AGENCY
AFFILIATIONS
AND ADVERTISING PRACTICE
ARTS
MASS COMMUNICATION
COMMANDER, EMMANUEL
ONIGHOROBOH
Digitally Signed by: Content manager‟s Name
DN : CN = Webmaster‟s name
O= University of Nigeria, Nsukka
OU = Innovation Centre
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UNIVERSITY OF NIGERIA, NSUKKA
GLOBALIZATION, ADVERTISING AGENCY AFFILIATIONS
AND ADVERTISING PRACTICE
BY
NNOROM, WILFRED IHEJIRIKA
PG/MA/06/42062
BEING A RESEARCH PROJECT SUBMITTED TO
THE UNIVERSITY OF NIGERIA,
IN PARTIAL FULFILMENT
OF THE REQUIREMENTS
FOR THE AWARD OF A MASTER OF ARTS (M.A.) DEGREE IN
THE DEPARTMENT OF MASS COMMUNICATION,
UNIVERSITY OF NIGERIA, NSUKKA
PROJECT SUPERVISOR: NNANYELUGO OKORO, Ph.D
OCTOBER, 2012
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Table of Contents
Table of Contents ………………………………………………………………..... 2
Abstract …………………………………………………………………….. 7
CHAPTER ONE: INTRODUCTION…………………………………………. 8
1.1 Background of the Study…………………………………………………. 8
1.2 Statement of Problem ……………………………………………………… 12
1.3 Objectives of the Study ……………………………………………………..13
1.4 Significance of the Study ……………………………………………………14
1.5 Research Questions…………………………………………………………..14
1.6 Theoretical Frameworks ……………………………………………………. 14
1.7 Scope of the Study ………………………………………………………….. 17
1.8 Limitations of the Study ……………………………………………………..18
Reference……………………………………………………………………..19
CHAPTER TWO: LITERATURE REVIEW……………………………………22
2.1 Preamble……..……………………………………………………………….22
2.2 Advertising Practice………………………………………………………….23
2.3 Advert Agencies and Affiliations…………………………………………….28
2.4 Empirical Studies on Globalization and Advertising…………………………30
References……………………………………………………………………..37
CHAPTER THREE: METHODOLOGY………………………………………….39
3.1 Research Design ……………………………………………………………….39
3.2 Population of the Study ……………………………………………………….39
3.3 Sample Size ……………………………………………………………………40
3.4 Sampling Technique …………………………………………………………...40
3.5 Instrument for Data Collection …………………………………………….......41
3.6 Methods of Data Analysis ……………………………………………………. 41
Reference ……………………………………………………………..………..42
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CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
DISCUSSION OF FINDINGS………………………………………………………43
4.1 Introduction ………….…………………………………………………………43
4.2 Data Presentation and Analysis ……………………………………………….43
4.3 Discussion of Findings ………………………………………………………..56
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings…………………………………………………………..59
5.2 Conclusion……………………………………………………………………...60
5.3 Recommendations……………………………………………………………...60
BIBLIOGRAPHY .........................................................................................................62
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CERTIFICATION
This is to certify that this research work was carried out by NNOROM, WILFRED
IHEJIRIKA PG/MA/06/42062. It satisfies the requirements for presentation of research
report to the Department of Mass Communication, University of Nigeria, Nsukka.
……………………. …………………….
Nnanyelugo Okoro, Ph.D Nnanyelugo Okoro, Ph.D
Project Supervisor Head of Department
…………………….
External Supervisor
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DEDICATION
This work is dedicated to all Nigerian advertising practitioners.
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ACKNOWLEDGEMENT
I am grateful to GOD ALMIGHTY for His grace upon me. Special thanks to my
supervisor, Dr. Nnanyelugo Okoro for his relentless efforts in supervising this work to
completion and to all the resource persons and authors of the books I consulted during
this research.
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ABSRACT
The purpose of this study was to investigate the impact agency networks have on
their local affiliates in Nigeria and comparatively examine whether this feature of
globalization has impacted positively or negatively on the Nigerian Economy and its
Cultures.
The survey method of research was adopted in eliciting answers from respondents
drawn from both affiliated and non-affiliated agencies. The research questions included;
Does globalization impact positively on manpower development in the Nigerian
advertising industry? What is the correlation between agency affiliation and agency
revenue generation? And to what extent do the media output of affiliated agencies impact
on our local cultures? Answers to these questions indicated a high level of impact on the
advertising practice through affiliations particularly on manpower development, and
revenue generation. Through global creative work our various cultures were possibly
influenced. This work recommends further study to facilitate a comprehensive evaluation
of the impact of globalization on Nigerian advertising practice.
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Advertising is everywhere. We tend to ignore it, but as we tend to ignore
it, in the words of Baran (2004,p.377) advertisers find new ways to make it more
ubiquitous. As a result and as with television, no one is neutral about advertising.
We love it or we hate it. Many of us do both; consciously or unconsciously.
According to Eisenberg (2002,p.38) the typical person sees 3,000 advertising
messages a day and more than 2 million ads by the time he or she is 25years old.
Baran (2004,p.378) buttresses this view when he said that there are a lot of ads
and a lot of advertisers, so pitches are showing up in some unusual places.
Historically, those businessmen of ancient time who had products and
services to offer to the public used a form of advertising to achieve good turnover.
Sandage et al (1989,p.22) stated that advertising came to the colonies (Nigeria
inclusive) via England. British advertising was already leaning toward
exaggeration and hyperbole, but colonial advertising was more straightforward.
Advertising, however, was a small business before the Civil War. The United
States was primarily an agricultural country at that time, with 90% of the
population living in self-sufficiency on farm products. Advertising was then used
by local retailers primarily to encourage area residents to come to their
businesses. Today, we see adverts on door hangers, on urinals, deodorants, cakes,
in the mails, behind the batter, at a baseball game, on basketball backboards, in
city parks, on suspended video monitors, as we wait in line at the airports and
such other places. Even we hear ads when we are on hold on the telephone. It was
not always like this, but advertising itself has been with us for a long time.
LINTAS (1978) paints an accurate picture of the establishment of the first
advertising agency in Nigeria and consequently, modern advertising practice, in
the following words:
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A way up on the Gold Coast, as Ghana was known then, a trading
company by the name of The African & Eastern Trade Corporation, was
operating under the commercial umbrella of the United Africa
Company. And one of its assistants was a Welshman by the name of
Gwillym I. Lloyd. Lloyd is the progenitor of Lintas today and a key
figure in early advertising events on the West Africa coast and we get
some clue to his character from Philip Harris, one of Lloyd’s
contemporaries who was later to take the helm of the West African
agency. He says this about him: ‘Lloyd was a highly mercurial and
imaginative Welshman and his foresight and intuition convinced him
that one day, the African would respond to advertising in its modern
concept.’ What Harris might have added was that Lloyd was a man who
suffered a nagging irritation over the outmoded nature of trading and
selling on the African coast and that he saw himself heading a crusade
for changing its attitudes and methods. Flushed with worthy intentions,
Lloyd put his proposals to the board of The United Africa Company.
Although met with considerable skepticism, Lloyd’s persuasive
arguments finally gained reluctant acceptance and he was given a
chance to put his ideas to work.
For today’s Lintas, this was an historic moment because the meeting
marked the birth of the Agency.
The company which emerged from Lloyd’s energetic persuasions was
named West Africa Publicity Limited and its parent was the United
Africa Company in whose offices it was registered at Africa House in
Kingsway, London, on August 31st, 1928. Lloyd’s initial objective was
to rationalize the poster business in West Africa, which in those days of
widespread illiteracy, was the single medium of any real influence in the
broad African market.
From his London office, his lines went out to concerns like Raleigh
Industries of Nottingham and Wander’s of Ovaltine fame and his small
group of artists produced the visual material which was to find its way to
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the hoardings in towns and villages up and down the Country. During the
first years when WAP had been set up locally in Accra and Lagos, the
operation was controlled by a European manager who in turn bore
responsibility to UAC’s general manager in matters of ‘discipline’ and
‘local policy’. But as already mentioned the real client business was
drummed up by Lloyd in the U.K., and there is little doubt that his intimate
knowledge of local life and attitudes influenced many of the ideas that
came off the drawing boards in WAP’s London studio. And some were
even to become classics.
Advertising in Nigeria, therefore, had its roots in a global business environment.
However, with further nationalistic posturing, the Indigenization Decree of 1972,
reserved ownership of advertising agencies to only Nigerians. This meant that all foreign
agencies operating in the country had their ownership transferred to Nigerians. These
agencies included LINTAS: Lagos; Oglivy, Benson & Mather; Grant, among others. Not
only were agencies fully indigenized, all outdoor advertising business was indigenized as
well as ownership of the print medium.
Definition of Globalization
For Tomlinson (1997,p.170), globalization refers to the rapidly developing
process of complex interconnections between societies, cultures, in situations and
individuals world wide. It is a process which involves a compression of time and space
(Harvey,1989), shrinking distances through a dramatic reduction in the time taken –
either physically or representationally – to cross them, so making the world seem smaller
and in a certain way bringing human beings „closer‟ to one another.
Anyone interested in debates about globalization finds, no doubt, a wide range of
positions on several issues, and this is unsurprising given the complexity of this
phenomenon. In fact, some believe that the globalization process goes back to the 15th
century, when Europeans began to colonize the world; others think it belongs to the
second part of the twentieth century. Some view it as a „done deal‟, whereas for others it
is a „work in progress‟ (Block, 2004,p.75). What is more, it is sometimes thought of as a
positive process that leads to progress, and sometimes as a negative phenomenon that
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takes away authenticity and compromises cultural integrity. Some put it clearly that
globalization is merely an extension of American (or more generally Western)
imperialism, while others think of it in more egalitarian terms. In Nigeria, multinational
agency networks are represented through affiliation with local agencies. Through this
process, the network offers its resources including global clients to the local agency. The
local agency in turn, shares its revenue with the multinational network.
The Nigerian Situation
The indigenization situation prevailed until the liberalization regime beginning in
1985 and propelled by the globalization wave in international trade. The re-colonization
of agency practice in Nigeria surfaced through the practice of affiliation of Nigerian
Advertising Agencies to foreign global advertising agency networks. For example,
Rosabel established links with Leo Burnet, Insight Communications affiliated to Grey,
Casers entered into affiliation with DDB, Concept Unit emerged as a TBWA affiliate.
By 2005, almost all the global agency networks had found their way into Nigeria.
This development was not a localized Nigerian experience. As has been clearly noted by
Shannon (1998,p.182) it defined the shape of the advertising agencies in the coming
century.
In this regard, Shannon notes inter alia:
I believe tomorrow’s industry is being inexorably shaped by today’s
exigencies. First and foremost it is clear that the mainstream of our
business is becoming progressively more regional and global in its
vision, its structures and its methods of operation – driven by the
major advertisers, which collectively account for a huge proportion of
total advertising expenditure as their marketing ambitions and
activities are spreading beyond the mature markets of North America
and Western Europe and rapidly penetrating less developed markets of
Latin America, Asia and Africa.
It is these global corporations that have supported and spurred the
development of the multinational advertising networks around the
world. This in turn has led to networks achieving local representation
mainly through buying or affiliating with local agencies. Inevitably,
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this has led to a situation where in country after country one sees the
top 10 or 12 largest agencies bearing the names of the major global
networks; sharing the business of the world’s major multinationals
and ultimately accounting for a major share of total advertising
expenditure.
Globalization has become a reality. At the same time it presents two edges of
opportunity and threat. As Sorrel (1998,p.168) clearly pointed out, the final area of
opportunity is the globalization of our business. What is remarkable is that we have
started to work with our major clients, our top 10 multinational clients, on a coordinated
and integrated basis in 30 or 40 countries throughout the world. So what we‟ve seen,
partly because of the re-engineering that has gone on inside our clients, and the stripping
out of resources, but also for more positive reasons, because if the global execution or
coordination that they are demanding …… Needless to say, unless we deal with these
issues, in the ever more competitive industry which we operate, they will become threats.
While we look at the economic issues thrown up by the globalization of
advertising practice, we remain ever mindful of the social cultural issues. McQuail
(2005,p.256) points out the positive and negative aspects of globalization of culture.
According to him “global media flows given rise to a state of cultural homogenization or
synchronization, leading to a dominant form of culture that has no specific connection
with real experience for most people”. Globalization of culture can even look good
compared with the ethnocentrism, nationalism and even xenophobia that characterize
some national media systems.
Assessment of the impact of globalization on advertising agency practice in Nigeria
raises questions which had previously remained unanswered. These questions were
addressed by this study
1.2 STATEMENT OF THE PROBLEM
Globalization has become a reality, not only in the movement of goods and raw
materials, but in the production and transfer of professional services across international
borders. Baran (2004,p.406) states that as media and national economies have globalised,
advertising has adapted. As Shannon (1998,p.186) clearly points out, globalization will
become the norm for mega-brand accounts, in terms of their alignment internationally
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among the major networks and the way they are centrally directed and managed across a
region or the world in general.
In view of the prevailing attitude of Nigerian advertising practitioners towards
affiliation and globalization, there is the urgent need to address the issue scientifically.
As Lolu Akinwumi, President of the Association of Advertising Agencies of Nigeria, said
“you have to believe in affiliation. You know why, the whole world has become a world
market.” (quoted in Advertising News, 2008, p.45).
According to Lyons (2005) the driving force behind globalization is motivated by
economic interests. And that is the problem. According to Stiglitz (2006,4), the problem
is not with globalization itself but in the way globalization has been managed.
Economics has been driving globalization. But politics has shaped it. The rules of the
game have been largely set by the advanced industrial countries – and particularly by
special interests within those countries and not surprisingly, they have shaped
globalization to further their own interests. They have not sought to create a fair set of
rules, let alone a set of rules that would promote the well-being of those in the poorest
countries of the world.
From the foregoing viewpoints, it is clear that most of the „poor‟ or „developing‟
countries do not really benefit from the affiliated agencies. Therefore, it is perceived that
globalization does not impact positively on advertising practice in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The following objectives were set for this study:
a. To assess the economic impact of affiliation on agency business and growth.
b. To assess the impact of globalization on development of human resources in
advertising practice in Nigeria.
c. To evaluate the tendency of affiliated agencies to adhere to the code of ethics
of advertising practice in Nigeria.
d. To determine the effect of globalization on the development of the local
advertising creative production industry.
e. To evaluate the effect of globalization of advertising practice on Nigerian
culture.
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f. To identify means of adapting globalization for the benefit of Nigerian
advertising practice and the Nigerian society.
1.4 SIGNIFICANCE OF THE STUDY
The timely nature of this study makes it both theoretically and practically
significant in many ways. First, it will improve the researcher‟s knowledge on
globalization and advertising practice in Nigeria. Secondly, it will not only add to the
body of existing knowledge on contemporary advert practice, but also serve as a trail-
blazing material that will engender the much needed interest in this area of
globalization and advertising practice in developing countries.
By evaluating the level of impact globalization has on advertising profession, as
regards agency affiliations, the study should aid advertising practitioners and scholars
alike in articulating appropriate ways of actualizing the benefits of the modern trends
in the course of discharging their duties.
1.5 RESEARCH QUESTIONS
The following research questions were formulated to guide the study:
1. What is the correlation between agency affiliation and agency revenue generation?
2. Does globalization impact positively on manpower development in the Nigerian
advertising industry?
3. What is the effect of agency affiliation on the use and growth of the local creative
production industry comprising artistes, models, writers, musicians, photographers
and film producers?
4. To what extent does the media output of affiliated agencies impact on our local
cultures?
1.6 THEORETICAL FRAMEWORK
This study is rooted in the cultural imperialism theory
Cultural Imperialism and Critical Cultural Theory:
One of the oldest theories of mass media which is also critical of globalization is
cultural imperialism. Tomilson (2002,p.228) has addressed a number of issues related to
cultural imperialism discourse. He recognized that traditional Marxism divided the world
into a political-economic dialectic struggle between an elite ruling class and a larger
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working class. For the Marxist, capitalism is interpreted as a “homogenizing cultural
force.” The idea is that globalization propels a sort of “cultural convergence” which
people are unable to resist and that cultural imperialism implies a spreading culture of
worldwide consumerism.
Critical theory was founded in 1923. Critical theory and cultural imperialism theory
share common roots in Marxist ideology, which are both anti-capitalist in their approach
to the study of media globalization.
Critical theorists have coined various phrase in reference to notions of “cultural
imperialism.” An examination of the international communication literature will reveal
several different terms such as “media imperialism” (Boyd-Barrett,1977); “structural
imperialism” (Galtung,1979); “cultural dependency and domination” (Link,1984);
“cultural synchronization” (Hamelink,1983); “electronic colonialism” (McPhail,1987);
“communication imperialism” (Sui-Nam Lee,1988); “ideological imperialism”, and
“economic imperialism” (Mattleart,1994) - all relating to the same basic notion of
cultural imperialism. Different international scholars who have written on the subject
attribute its beginnings to different sources as well.
According to Salwen (1991), the issue of cultural imperialism emerged largely from
communication literature involving development and political economy. These
orientations ultimately constructed formulations concerning cultural heritage and
behavior based on an analysis of government, corporate policy and practice. Mattelart
(1994) argues that since the end of the 1960s, these terms, used by a Jacques Rigaud,
alarmed about the loss of French cultural influence in the era of information technologies,
and by a Zbigniew Brzezinski, who believed them outmoded, have run through studies on
the role of communications in the relations among nations.
Cultural imperialism gained prominence in the 1970s. The theory, according to
Roach (1997), was most prominent in Latin America producing “a host of adherents
including Antonio Pasquali (1963)‟ Luis Ramiro Beltran (1976), Fernandez Reyes Matta
(1977) and Mario Kaplun (1973)”. The theory provided one of the major conceptual
thrusts behind the movement for a New World Information and Communication Order.
At that time, scholars proposed grouping the various currents of critical research on
international communication under the heading “media imperialism.” Among them was
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British scholar J. Oliver Body-Barrett who defined media imperialism as “the process
whereby the ownership, structure, distribution, or content of the media in any county are
singly or together subject to substantial external pressures from the media interests of any
other country or countries, without proportionate reciprocation of influence by the
country so affected” (Boyd-Barrett,1977, p.117). However, many felt that Boyd-Barrett‟s
definition was much too narrow to account for the multiplicity of forms taken by power
relations among various cultures.
Although several authors have posited their own interpretations of cultural
imperialism, the main proposition of the theory can be identified in the work of one of the
main cultural imperialism theorists. Cultural imperialism proposes that a society is
brought into the modern world system when its dominating stratum is attracted,
pressured, forced, and sometimes bribed into shaping its social institutions to correspond
to, or even promote, the values and structures of the dominating center of the system
(Schiller, 1976).
Cultural imperialists can be considered actional realists (Potter, 1996) who believe
that there is a fixed reality that exists alongside an individual‟s or an organization‟s own.
Epistemologically, the proponents of cultural imperialism can be considered
constructivists (Potter, 1996) who assume that ways of interpreting information about
culture are created by transnational media organizations. These are the very basic
assumptions guiding cultural imperialist thinking.
In addition to these, one can identify other axioms of cultural imperialism that were
present when the theory was just gaining prominence. However, these have been tested
and can no longer be seen as assumptions of the theory. Sui-Nam Lee (1988), for
example, purported an active role on the part of the dominating country and a deleterious
effect on the dominated one. Ogan (1988) posited another axiom that Third World
consumers of [foreign] media products will be influenced by the values inherent in that
content, the values of an alien and predominantly capitalist system. Arguably, at the time
the theory was gaining currency in the 1970s, these were major assumptions behind the
thinking of some theoreticians who proposed the theory.
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Another assumption of cultural imperialism is that media play a central role in
creating culture. This axiom is linked to the interchangeable use of various terms to refer
to cultural imperialism. Writers who talk about “cultural imperialism” as “media
imperialism,” treating the two terms as synonyms, bring into question the centrality of the
media in claims of cultural imperialism. This practice implies that the media have such
an overwhelming role in the process referred to as “cultural imperialism” that the word
“cultural” can be interchanged with “media” from time to time. Of course, one must be
careful in attributing this massive central significance to the media. To understand claims
about media imperialism, one would need to examine the relationship of the media to
other aspects of culture without assuming its centrality from the outset (Tomlinson,
1991).
Another assumption of the theory is that it presumes a centralized approach to the
development and distribution of media products. The thinking here is that all media
products originate from only center nations that have devious ulterior motives of
deliberately wanting to dominate that media of periphery nations. This belief is based
partly on the view that no periphery country will ever be able to produce media products
of its own.
As has been detailed by Baran (2004,p.436) modern critical cultural theory
encompasses a number of different conceptions of relationship between media and
culture.
1.7 SCOPE OF THE STUDY
As had been pointed out, there is little or no research into the area of globalization
and advertising practice in Nigeria. As a forerunner of some sort, this study is limited to
the prevalent phenomenon of the affiliation of local advertising agencies to global agency
networks.
The study further limits its scope to examining how this phenomenon impacts on
agency financial well-being, manpower development and advertising content production.
Geographically this study is limited to Lagos where more than ninety-percent of
Nigerian advertising agencies are located. The related industries which are affected
locally by the operations of these agencies are predominantly based in Lagos as well as
the regulatory agency, APCON.
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1.8 LIMITATIONS OF THE STUDY
Geographically, a study of this nature should cut across the 36 states of the
federation but due to financial and time constraints, one cannot survey respondents from
all the six-geo-political zones of Nigeria.
Thus, this study concentrates on the western-geo-political zone. This choice is
based on the premise that virtually all Nigerian advertising agencies affiliated to
international networks have their national headquarters in Lagos where key or top staff
members work with their team members.
The major thrust of this limitation to this study lies in the fact that the amount of
information that would have been generated, if the entire six-geo-political zones were to
be covered will not be realized.
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CHAPTER TWO
LITERATURE REVIEW
2.1 PREAMBLE
It is clear and a universal statement of fact that there are numerous
literatures written on the profession of advertising practice. One cannot equally
deny the truth that all the written literatures cannot be reviewed at once. Thus, for
the purpose of this study; the researcher would only review related empirical
studies done on the topic under study. This literature review, therefore, will take
the following core aspects into consideration: Advertising Practice: A General
Overview; Advert Agencies and The Concept of Affiliations; Globalization and
Social Issues and Effects, taking into consideration the Media Convergence
Concept and its benefits to Advert Agencies in Nigeria.
The Performance of Multinational Affiliates versus Domestic Firms
While some authors argue that multinational companies have several firm
and location specific advantages over domestic firms, others point to the liability
of foreignness as a handicap.
Much of the available literature is built upon the idea that multinational firms
draw on their location advantages to expand to other countries and outperform
domestic firms. These country-based differences are also likely to last, as they are
embedded in institutions that have evolved differently over times (North, 1990),
and are very slow to change (Williamson, 2000). More recent work has reminded
us that unfamiliarity with a country is still likely to put a multinational company
at a disadvantage (Zaheer, 1995). Starting with the work of the Dunning, we are
made aware of location-specific advantage that may accrue to a firm.
Dunning argues that those firms draw on country-specific advantages that
are present in the home country and build upon them as they internationalize. As
firms employ the resources conferred by their home nations they are able to
develop a competitive advantage in foreign markets which grants them a
favourable position compared to local firms which are unable to exploit the same
assets (Nachum, 2003). Bartlett and Ghoshal (1989) also highlight the influence
of national characteristics in the global strategy employed.
24
In addition to the location specific advantages of home nations, they are
also likely to have firm specific advantages. Only companies with strategic assets
or a competitive advantage are likely to first succeed in their countries. As they
consider internationalization, these firms already have an arsenal of resources that
they can use to defend against competitors, be it local or global. In addition, these
companies are larger and are able to reap economies of scale (Caves, 1996).
While these would have us conclude that multinationals should always
outperform domestic firms, we can see below that such conclusion could not be
easily reached.
The Liability of Foreignness
Hymer (1960) pointed to the dangers that the unfamiliarity with a
particular foreign country may pose to an internationalizing firm and to the
additional cost that it has to incur when investing abroad which he referred as the
„cost of doing business abroad‟. Hymer famously stressed the distinct
disadvantages faced by foreign firms vis-à-vis national firms which possess „the
general advantage of better information about the country, its economy, its
language and its politics.‟ Zaheer (1995) fleshed out these ideas arguing that
foreign firms face a „liability‟ that is derived from the firms‟ lack of experience
and knowledge about the foreign environments in which they operate. She coined
the highly popular „liability of foreignness‟ term.
2.2 Advertising Practice
Large Promise is the soul of the advertising practice. The promise is
geared towards persuading the prospective end-users of goods, services and ideas
to buy such advertised products, goods or services. In any form advertising is
done or finally packaged, the central focus is on PROMISE. Advertising is
everywhere. As it becomes more ubiquitous, we tend to ignore it. But as we tend
to ignore it, according to Baran (2004,p.377) advertisers find new ways to make it
more ubiquitous. As a result no one is neutral about advertising.
We love it or we hate it. Many of us do both. Taking a cursory look at few
definitions of advertising, we understand why there is the frequent placement of
advertisements on daily bases. In the words of Dunn & Barban (1978,p.8)
25
advertising is paid, non-personal communication through various media by
business firms, non profit organizations identified in the advertising message and
who hope to inform or persuade members of a particular audience.
Advertising is the communications arm of the marketing process. Like
any communications technique, advertising can tell a number of stories, each with
its own goals and objectives. Advertising is a method of delivering a message
from a sponsor, through an impersonal medium to many people. Russell and
Lane (1990,p.21) posit that the word advertising comes from the Latin ad vertere,
meaning “to turn the mind toward”. From their point of view, it means that the
roles of advertising are many: it can be designed to dispose people to buy a
product, to support a cause, or even to do less consuming (demarketing). In
corroborating the definition given by Barban & Dunn, Russell and Lane
(1990:p22) state that advertising is a message paid for by an identified sponsor
and delivered through some medium of mass communication.
In a bid to discharge its function, advertising must be persuasive in nature
of its communication. These various persuasive communications are called
advertising. Pope John Paul VI as quoted in Dunn & Barban (1978,p.6) says it
intervenes in nearly all aspects of economic and cultural life. He went on to state
that advertising highlights and stimulates a certain vitality in production and trade,
and therefore also in invention. Practitioners are not without merit in their efforts
to try to reconcile what is often difficult: how to make the available products
better known and more widely known to stimulate progress while respecting the
value of goods and the truth in the elements submitted to the judgment of
consumers.
Sir Winston Churchill as cited in Dunn and Barban (1978,p.4) says
advertising nourishes the consuming power of men. It creates wants for a better
standard of living by setting up before a man the goal of a better home, better
clothing, better food for himself and his family. Advertising spurs individual
exertion and greater production. It brings together in fertile union those things
which otherwise would never have met. Upholding the above assertion,
Stevenson (1998,p.78) asserts that the American Standard of living is due to no
26
small measure to the imaginative genius of advertising; which not only creates
and sharpens demand, but also, by its impact upon the competitive process,
stimulates the never ceasing quest of improvement in the quality of the products,
goods and services.
Cutlip et al (2006,p.197) succinctly state that communication is a
reciprocal process of exchanging signals to inform, persuade, or instruct based on
shared meanings and conditioned by the communicators‟ relationship and the
social context. On the other hand, Cutlip et al (2006,p.198) while citing Schramm
1971 posit that advertising as a communication activity follows the process of
informing which involves four steps: (1) attracting attention to the
communication (2)adverting acceptance of the message (3) having it interpreted
as intended, and (4) getting the message stored for later use. The more
demanding process of instruction adds a fifth step. (5) Stimulating active learning
and practice. They went on to pinpoint the fact that the process of persuasion
(which is the core issue in advertising practice) goes beyond active learning to a
sixth step (6) Accepting change: yielding to the wishes or point of view of the
sender.
For Willamson (1978) as cited in Mc Quail (2005,p.343), the ideological
work of advertising is accomplished (with the active co-operation of the “reader”
of the advertisement) by transferring significant meanings and ideas (smoothes
myths) from experience (such as beauty, success, happiness, nature and science)
to commercial products and by that route to ourselves. The commercial product
becomes a way to achieve the social or cultural state and to be the kind of person
we would like to be. People are reconstituted by advertising but end up with an
imaginary sense of their real selves and of their relation to the real conditions of
their lives.
One may begin to ponder at what point of human existence did advertising
practice begin? Answering this question, Russell and Lane (1990,p.3) are of the
view that the urge to advertise seems to be a part of human nature, evidenced
since ancient times. Of the 5,000-year recorded history of advertising to our
present TV Satellite digital age, the part that is most significant begins when the
27
United States emerged as a great manufacturing nation about 100 years ago. The
early history of advertising, however, is far too fascinating to pass by without a
glance. Russell and Lane said that it is not surprising that the people who gave
the world the Tower of Babel also left the earliest known evidence of advertising.
A Babylonian clay tablet of about 3000 B.C. bears inscriptions for an ointment
dealer, a scribe and a shoemaker. Papyri exhumed from the ruins of Thebes
shows that the ancient Egyptians had a better medium on which to write their
message (Alas, the announcements preserved in Papyrus offer rewards for the
return of runaway slaves). The Greeks were among those who relied on the town
criers to chant the arrival of ships with cargoes of wives, spices and metals.
Baran (2004,p.379) upholds the same view by stating that Babylonian
merchants were hiring bakers to shout out goods and prices as passersby in 3000
B.C. The Romans wrote announcements on city walls. By the 15th century, ads
as we know them now were abundant in Europe. Berkman and Gilson
(1987,p.32) gave this sample of one of ancient ads: “The Troop of Gladiators of
the Aedil will fight on the 31st of May. There will be fights with wild animals.
And an Awning to keep off the sun.”
On the same line, Sandage et al (1989,p.21) gave this advert as one of
those seen in Pennsylvania, “A plantation containing 300 acres of good land, 30
cleared, 10 or 12 Meadow and in good English Grass, a house and barn & Creek
lying in Nantmel Township, upon French-Creek, about 30 miles from
Philadelphia. Inquire of Simon Meredith now living on the said place.”
The Greeks were among those who relied on town criers to chant the
arrival of ships with cargoes of wives, spices and metals; often a crier was
accompanied by a musician who kept him in the right key. Town criers later
became the earliest medium for public announcements in many European
countries and some in their colonies like Nigeria. Outdoor advertising has proven
to be one of the most enduring forms of advertising. It survived the decline of the
Roman Empire, according to Russell and Lane (1990,p.4) to become the
decorative art of European inns in the seventeenth and Eighteenth centuries.
28
That was still an age of widespread illiteracy, so inns vied with one
another in creating attractive signs that all could recognize. This accounts for the
charming names of old inns, especially in England- such as The Three Squirrels,
The Man in the Moon, the Hole in the Wall. Russell & Lane went on to highlight
the fact that in 1614, England passed a law, probably the earliest on advertising,
that prohibited signs from extending more than 8 feet out from a building.
(Longer sings pulled down too many house fronts). Another law required signs to
be high enough to give clearance to an armoured man on horseback. Precisely,
they stated that in 1740, the first printed outdoor poster (referred to as a
“hoarding”) appeared in London. Hoarding is the forerunner of modern outdoor
advertising.
The next most enduring advertising medium, the newspaper, was the
offspring of Johann Gutenberg‟s invention of printing from movable type (about
1438), which of course, changed communication methods for the whole world.
The first printed outdoor ad in English was done by William Caxton of London –
a handbill of the rules for the guidance of the clergy at Easter. The first ad in any
language to be printed in a disseminated sheet appeared in a German news
pamphlet in about 1525. (Russell & Lane 1990,p.6).
Baran (2004,p.409) concluded the historical angle of advertising practice
by pointing out that advertising has been practiced for thousands of years and
came to the colonies via England. Industrialization and the Civil War led to more
leisure, more discretional income, and greater urbanization and industrialization,
all of which fuelled the growth of advertising.
The proliferation of the different types of sales pitches is the product of an
avalanche of advertising. Advertisers are exploring new ways to be seen and
heard, to stand out to be remembered and to be effective. Baran (2004,p.397) said
according to the purpose of the advertising and the target market, some types of
advertising we know include: institutional or corporate advertising, trade or
professional advertising, retail advertising, promotional advertising, industrial
advertising, national consumer advertising, direct market advertising and public
service advertising.
29
For these various forms or types of advertising, one would notice that each
of them creates jobs, thereby, enhancing our gross national product. They equally
foster our traditional values as we use our local (National) heroes to package such
adverts. Creating a good aesthetic value and such issues are silently handled by
advertising practitioners.
2.3 Advert Agencies and Affiliations
We have been looking at the various types of advertising. According to Russell
and Lane (1990,p.12) the media got much of that advertising through the
advertising agency, which started out as men selling advertising space on a
percentage basis for out-of-town newspapers. Later they also planned, prepared
and placed the ads and rendered further services. The story of the advertising
agencies is deeply rooted in the growth of American industry and advertising.
The world of the advertising agency is one of dramatic change. In the words of
Russell and Lane (1990,p.103) Agencies once known for their personalities and
definite ad philosophers have either disappeared or merged at the international,
national, regional, or local level. There are a lot of opinions about the changes;
pro and con. Many of the new agencies haven‟t existed long enough in their
merged state to develop a personality or a clear image of themselves.
Dunn and Barban (1978,p.144) gave the account that until about 1869, the
advert agency business in the United States was quite unstable. Fly-by-night
operations, price cutting, and private deals were common. Gradually, services
provided by agencies began to expand steadily. The perfection of halftone
engravings, the development of four-colour printing, market, media and copy
research and radio/television added greatly to the amount of service needed to
handle accounts. Categorically, they stated that there are good reasons why most
general advertisers prefer to use an agency for at least part of their advertising.
First, an agency retains high-priced and highly skilled specialists whom a single
client could not afford. Some ad agencies specialize in a single type of business.
Most offer a broad array of specialized services that can be tailored to the client‟s
needs.
30
Second, a company has difficulty in analyzing its own problems
objectively. It is valuable for it to have available an objective viewpoint. Third,
the advertiser would pay media the same amount of money for time and space
even if an agency was not used. Thus, an agency‟s services are in fact, “free”.
In the years between the Civil War and World War I, according to Baran
(2004,p.382) advertising had rapidly become more complex, more creative and
more expensive and it was conducted on a larger scale. Advertising agencies had
to expand their operations to keep up with demand. For example, Baran said
where Palmer offered merely to broker the sale of newspaper space; F. Wayland
Ayer (whose firm is now the oldest ad agency in the United States) began his “full
service” advertising agency in 1869. During this period, three factors combined
to move the advertising industry to establish professional standards and to
regulate itself – first, was the reaction of the public and the medical profession to
the abuses of patent medicine advertisers. These charlatans used fake claims and
medical data in their ads to sell tonics that at best were useless, and at worst,
deadly. The second was the critical examination of most of the country‟s
important institutions, led by the muckrakers. The third factor was the
establishment in 1914 of the Federal Trade Commission (FTC) which had among
its duties monitoring and regulating advertising.
According to Baran (2004,p.396), there are approximately 6,000 ad
agencies operating in the United States employing roughly half a million people.
Fewer than 500 agencies annually earn more than $1m. Many agencies also
produce the ads they develop and virtually all buy time and space in various
media for their clients.
Each of these developments, as Dunn & Barban (1978,p.144) earlier
noted, also added to the agency‟s cost of doing business. In the average agency
today, about two-thirds of total income is paid out for payroll. The remaining
third covers rent, traveling expenses, taxes, profit and so on. Kogure (1998,p.162)
asserts that the next decade will undoubtedly be one of great transition for the
advertising industry. No advertising company will be able to respond entirely on
its own to the changes in media and marketing methods brought on by the rapid
31
advances in digital technology. He went on to say that to cope with the speed of
change, most companies are looking very closely at alliances or partnerships
(affiliations) with companies in other fields. Companies everywhere in the world
(both in advertising and other professions) are facing a similar situation, so the
search is on for alliances in which the partners can share strengths and cover
weaknesses. This is truly right about Nigerian advert agencies. It is equally in
line with the prophetic declaration of Bloom (1988,p.32) that agencies will
function with fewer levels in every department. The streamlined agency of the
future will have a layer of “thinners” and a layer of “doers”.
2.4 Empirical Studies on Globalization and Advertising.
Globalization: Social Issues, Impact and Convergence of cultures
The pace of internationalization has accelerated because of advances in
distribution technology and new economic imperatives. Mc Quail (2005,p.247)
opines that the mass media (where advertising belongs) are affected like
everything else, by the general phenomenon of globalization. They are in a
special position themselves as both an object and an agent of the globalization
process.
The recent phase of the “communications revolution, Chalaby
(2003,p.457) asserts has been marked by a new phenomenon of media
concentration, both transnational and multimedia, leading to the world media
industry being increasingly dominated by a small number of very large media
firms. Hills (2002,p.294) says an important component of international mass
communication is advertising; linked to the globalization of many product
markets and reflecting the international character of many advertising agencies
and the dominance of the market by a small number of firms. The same
advertising messages appear in different countries, and there is also an indirect
internationalizing impact on the media that carry the advertising. One of the
forces promoting globalization has been the vast expansion and the privatization
of telecommunications infrastructure and business.
According to Mc Quail (2005,p.249) the rise of the global news agencies
of the twentieth century was made possible by technology (telegraph and radio
32
telephony) and stimulated by war, trade, imperialism and industrial expansion.
For these reasons, the main press agencies in the era after the Second World War
were North American (UPI and Associated Press), British (Reuters), French
(AFP) and Russian (TASS). Then in the words of Tunstall (1992,p.97) despite
the general American media dominance, Europe had become the largest producer
and consumer of foreign news.
Paterson (1998,p.30) asserts that the three television news agencies that
originate much of the International News used by the World‟s broadcasters are
Reuters, World Television News (NTN) and Associated Press Television News
(APTV).
Tunsall and Machin (1999,p.77) refer to a virtual “world news duopoly”
controlled by the US Associated Press and the British Reuters. The Trench AFP,
German DPA and Spanish EFE are also big players. It is clear that predominance
is shaped by the domestic strength of the media organizations concerned, in terms
of market size degree of concentration and economic resources.
Meanwhile, Baran (2004,p.28) upholds the view that closely related to the
concentration of media ownership is globalization. It is primarily large,
multinational conglomerates that are doing the lion‟s share of media acquisitions.
Baran states that the potential impact of globalization on the mass communication
process speaks to the issue of diversity of expressions with distant, anonymous,
foreign corporations, each with vast holdings in a variety of non media business,
use their power to shape news and entertainment content to suit their own ends.
Opinion is divided. Yet defenders of increased globalization point to the need to
reach a fragmented and widespread audience – the same factor that fuels
concentration – as encouraging this trend. They also cite the growing economic
clout of emerging democracies (and the need to reach the people who live in them
e.g. Nigeria) and the increasing interwining of the world‟s economies as
additional reasons why globalization is necessary for the economic survival of
media businesses.
The foremost example of internationalization of media ownership,
production and distribution is that of the popular music industry (a development
33
of the last fifty years), in views of Burnet (1996,p.84) and Negus (1992,p.78) with
a high proportion of several major markets being in the hands of “big five”
companies. Burnet and Negus declares that following the merger of Bertelsmann
and Sony in 2004, there are four dominant companies: Sony, Warner; Universal;
and EMI. Hence, advertising provides another example of very high
concentration and internationalization.
Mc Quail (2005,p.251) opines that it is clear that there is no sharp dividing
line between media content that is “global: and that which is “national” or local.
Mass communication, he says, is almost by definition “global” in character and
only a few isolated societies can claim to have a purely domestic media supply.
The United States produces much and imports little, but even in this case the
content of American media culture is international by virtue of the fact that it is
shared with the rest of the world and many foreign cultural influences enter the
country through trade and immigration. Mc Quails states that it is also indirectly
globalized by the orientation of much of its own production towards world
markets.
Chalaby (2003,p.454) despite the many manifestations of media
globalization, there are few media outlets (channels publications, etc) that actually
address a significantly large foreign audience directly (even if the potentials in
terms of households reached is large). At most, certain successful products (eg a
hit film or TV show, a music recording a sporting event) will receive a worldwide
audience in the end. This implies that “exporting” countries still have a
considerable capacity to influence the “national” media experience of “receiving”
countries. According to Bilereyst (1992) as cited in Mc Quail (2005,p.252) we
have to consider how far the “foreign” content has been subject to “gatekeeping”
controls at the point of import (for instance edited, screened and selected, dubbed
or translated, given a familiar context). It is worthy of note that the main
mechanism of “control” is not usually policy or law, or even economics (which
usually encourages imports), but the audience demand for their “own” media
content in their own language.
34
There are natural barriers of language and culture that resist globalization.
The problems of global financial systems are systematic and have much to do
with the global reserve system. In the words of Stiglitz (2006,p.268) the world is
already moving out of the dollar system but that does not mean that it is moving
toward a better system and sadly, little thought has been given to where it is going
or how it should evolve. Stiglitz says this single initiative could do more to make
globalization work than any other. It would not eliminate the problems faced by
developing countries, but it would make things better.
The report of a study conducted by Branston and Stafford (2007,p.319)
shows that a major area of interest in globalization and advertising practice lies in
the usage of stars and celebrities in broadly cultural-ideological influence arising
from their double presences, both on and off screen. Not only does this relate to
narrative roles and what gets endorsed and marginalized in their values, but also
to the multinational advert agency affiliations and their tie-ins of global stars and
celebrities, and the ways these cement cultures of hyper-consumption. Global
stars/celebrities have always functioned as a key part of building trans-national
relationships to broader capitalist structures especially in terms of advertising and
marketing. Advertisement practice at a globalized level suggests and upholds free
market and or free trade which grants everyone equal opportunity to enter into
buying and selling, importing and exporting etc despite your religion, race or such
things. Crucially, the theoretical models that underpin these concepts assume an
equal access to knowledge about prices, costs, rates of interest, etc.
But, according to the report of Watt (2005,p.14) some groups always have
more knowledge of buying power than the rest of the market. He found out that
both trade and markets are often „fixed‟ or at least „controlled‟ by the most
powerful players; the US government, for instance, supports „free trade‟ in
principle usually only when its own interests are thereby advanced. Watt gave the
empirical account of what happened after a certain advert appeared; the Guardian
published a report from Ghana which explained why poor Ghanaian farmers were
unable to sell the rice they had grown locally under difficult conditions. The
markets in Ghana were full of high-quality, „branded‟ American rice. Although
35
more expensive, the American rice was perceived as „better value‟, being clean
and white (and heavily advertised). How could American producers afford to
produce rice at such low cost(i.e. by American standard) that they could afford to
„dump‟ it in African markets (i.e. paying for the transport costs on top the
fertilizers, pesticides and other technologies at home)? Simply put, these more
powerful countries engage less-developed-nations‟ advert agencies to run the
adverts of such products like rice, beverages, electrical appliances etc in the
developing nations.
Global trade and advertising practice are often distorted by major players
such as large multinational food companies, supported by governments or trading
blocs. Poorer countries have economies based on producing primary goods (eg
food, minerals, and natural resources) which are then exported to richer countries
in exchange for „high-technology goods‟. But because of the distortions outlined
above, producers in Africa and Central America are being forced to suffer
worsening labour conditions, over-use of dangerous chemical fertilizers, etc just
to stay in business. The developed nations aim to support local farmers in Africa
and Central America, in particular by guaranteeing prices and as well helping to
process the crops locally (i.e. turning coffee beans into ground coffee), so that as
much profit as possible stays in the country. They then promote the products to
supermarkets in Europe as high-quality, „fairly traded/advertised‟ goods which
can command a premium price from „ethically minded‟ consumers. At the
globalization level, the scheme works efficiently on advertisement practice in
Nigeria, for instance, fair-trade coffee brands such as Café direct advertised by
agencies affiliated to multinational advert agencies are growing faster than
traditional brands such as Nescafe and Maxwell House (from Nestle and General
Foods).
It is easy to understand why multinational corporations have played such a
central role in globalization, in the words of Stiglitz (2006,p.197) it takes
organizations of enormous scope to span the globe, to bring together the markets,
technology and capital of the developed countries with the production capacities
of the developing ones. Globalization can never be a simple process of
36
homogenization, or rendering the world all the same. Schiller(2000) as cited by
Stafford and Branston (2006,p.489) globalization is not simply the West
expanding into the rest of the world, but also other countries and their media
forms having exchanges with, and even flowing into and out of the West. Though
globalization is often characterized as a homogenizing process, it is clear, for
example, as Herman and McChesney (1997,p.209) said that much production in
Sub-Saharan Africa is not capitalist, let alone corporate-homogenized. Their
research findings showed that about 4.5 billion people worldwide do not even
have access to telecommunications: so much for the image of „us all‟ on the
internet.
Meanwhile, those who have access to internet and or other global
technologies now face the challenge of cultural imperialism. This was equally
brought to bare by the findings of Herman and McChesney(1997). The report
pointed that before the arrival of US media (advert agencies inclusive), „Third
World‟ countries (like Nigeria) were enjoying a cosy golden age of indigenous,
authentic traditions and cultural heritage, untainted by values imposed from
outside. In almost romantic fashion, this attitude risks patronizing what are seen
as weaker nations and romanticizing their pre-colonial cultures since indigenous
cultures have sophisticated traditions and ancient heritages, shaped by long and
brutal processes of cultural conflict and indeed exchange.
The Indian Experience
There has been a long tradition of advertising in India since the first
newspapers published in India in the 19th
Century carried advertising. The first
advertising agency was established in 1905, B. Datram and Company, followed
by The India-Advertising Company in 1907, the Calcutta Advertising agency in
1909, S.H.Bensen in1928, J. Walter Thompson Associates through its Indian
associate, Hindustan Thompson Associates in 1929, Lintas (Lever International
Advertising Services) in 1939 and McCann Erikson in 1956 (Pashpati and
Sengupta, 1996).
37
Advertising agencies
The profile of advertising agencies in India changed dramatically in the
1990s. prior to that advertising was dominated by Indian agencies, but foreign
agencies have increasingly come to dominate Indian advertising. In 1992-1993
11 of the top 20 Indian agencies were affiliated with multinational agencies and
those agencies were allowed to own stock in the local companies since the early
1990s (Pashupati and Sengupta, 1996,p.167).
In 1999 there were about 400 advertising agencies in India employing
about 18,000 people. 15 of the top 20 advertising agencies have affiliations or
joint ventures with foreign agencies who are among the top international agencies
and most of them are American in origin, 12 out of 15. In terms of market share
foreign joint venture advertising agencies hold more than 75% of the market, with
wholly owned Indian agencies holding the balance. The largest 25 agencies
account for 75% of the total billings. In 1999 76% was the maximum foreign
ownership in advertising agencies (Srinivas,1999). Over the decade there was
also a growing concentration of agencies. The WPP group from London acquired
a fifth local agency in 1997.
38
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Burnet, R. (1996) The Global Jukebox. London: Routledge.
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CHAPTER THREE
METHODOLOGY
3.1 RESEARCH DESIGN
The survey method is adopted for this study. In the words of Okoro (2001,p.37)
survey method of research is useful in the measurement of public opinion, attitudes
and orientation which are dominant among a large population at a particular period.
Asika (2006,p.13) says survey research focuses on population or the universe and
data are collected from the population for the intensive study and analysis. From the
foregoing definitions, survey method of research becomes highly useful in the field of
social-behavioural sciences and indeed fits well into this study that deals on
contemporary globalization and advertising practice in Nigeria: the impact of agency
affiliation to multinational agency networks.
3.2 POPULATION OF STUDY
The nature of the topic under study entails that Nigerian advert agencies,
their management and staff; their clients‟ managements and staff, those who supply
creative service to these agencies (photographers, models, film makers etc) and the
advertising regulator (APCON) should constitute the population of the study.
The aforementioned sets of people are in the best position to give this study the
vital information needed to actualize the desired objectives of this research. Ideally,
the researcher chooses ten Nigeria advertising agencies, five of which are affiliated
with multinational agencies, namely, DDB.Casers; Bates:Cosse; Prima Garnet
Oglivy, TBWA/Concept, and SO&U Saatchi while the other five (Eminent, Comex,
Brand Builders, Hunters and Bluebird) are non-affiliated with multinational agencies.
41
3.3 SAMPLE SIZE
The population of advertising agencies in Nigeria, their clients and staff;
their creative services suppliers is a very large population to sample. As Wimmer
and Dominick (2003,p.96) rightly say, determining an adequate sample size is one
of the most controversial aspects of sampling.
In order to get the right sample size for this study, it is, therefore,
important to adhere to the research-based view of Nwana (1981,p.81) “if the
population is a few hundreds, a 40% or more samples will do; if many hundreds, a
20% sample will do; if a few thousand a 10% sample will do; and if several
thousands, a 5% or fewer samples will do”.
Having seen the relevance of Nwana‟s assertion, the researcher sees the
population of the Nigerian advertising agencies, their management and staff, their
creative services suppliers and the regulatory body – APCON as many hundreds
and as such have chosen to sample three hundred (300) respondents which is a
20% of the population of the ten selected advert agencies, their creative services
suppliers and APCON.
3.4 SAMPLING PROCEDURE
The purposive or judgmental sampling method is adopted in this study. In the
words of Wimmer and Dominick (2003,p.88) purposive sampling includes only
objects or elements selected for specific characteristics or qualities and eliminates
those who fail to meet these criteria.
Adopting the purposive sampling method enabled the researcher to pick those
five Nigerian advertising agencies that are affiliated with multinational agency
networks and five other agencies that are not affiliated with any multinational
agency network. The affiliation and non-affiliation is the paradigm upon which
the researcher chooses only the management and staff, clients, creative services
suppliers and regulatory bodies of the agencies to be studied.
42
3.5 DATA COLLECTION METHOD
The data for this study was generated from both secondary (books, magazines,
seminar paper, internet materials etc) and primary sources (by the use of
structured questionnaires and interviews).
3.6 DATA ANALYSIS/DISCUSSION
The generated data of this study was analyzed using frequency distribution
tables, simple percentages and such other statistical tool.
43
REFERENCES
Asika, N. (2006). Research methodology in the behavioural sciences. Lagos: Longman
Nwana, O. (1981) Introduction to educational research, Ibadan: Heinemann Educational
Book Ltd.
Okoro, N. (2001) Mass communication research: Issues and methodologies. Nsukka:
AP Express Publishers.
Wimmer, R. D. and Dominick, J. R. (2003). Mass media research: An introduction
(7th ed) Belmont, CA: Wadsworth Publishing Company.
44
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4:1 INTRODUCTION
The main thrust of this study is on Globalization and Advertising Practice in
Nigeria : a study of the impact of agency affiliations.
The survey method of research was adopted in order to generate data for the
study.
4:2 DATA PRESENTATION AND ANALYSIS
A population of 300 purposively selected respondents from ten Nigerian
advertising agencies, (five of which are affiliated with multinational agencies and five of
which are non-affiliated with multinational agencies); was administered questionnaire to
elicit their views on globalization and advertising practice in Nigeria. Out of the 300
respondents of the sampled population, 280 (93.33%) returned their copies of the
questionnaire and 20 (6.66%) did not return theirs.
4:2.1 RESPONDENTS’ SEX
One hundred and fifty (53.6%) were male while one hundred and twenty-four
(44.3%) were female.
Six (2.1%) did not indicate their sex.
Table 4.2.1 Respondents’ Sex
Sex Frequency Percentage
Male 150 53.6%
Female 124 44.3%
No Indication 6 2.1%
Total 280 100%
45
4:2.2 Respondents’ Age Distribution
One hundred and thirty-eight (49.3%) of the respondents were between the age of
20 and 29 years old. Sixty-eight (24.3%) were between 30 and 39 years old. Fifty-three
(18.9%) were between 40 and 49 years old while Eighteen (6.4%) were between 50 and
59 years old and three (1.1%) were between 60 years and above.
Table 4.2.2 illustrates this data better.
Table 4:2.2 Respondents’ Age Distribution
Age Brackets Frequency Percentage
20 – 29 138 49.3%
30 – 39 68 24.3%
40 – 49 53 18.9%
50 – 59 18 6.4%
60 – above 2 1.1%
Total 280 100%
Research Question 1: What is the correlation between agency affiliation and agency
revenue generation?
To elicit answers to this research question, five selected questions as reflected in
tables 3, 4, 5 and 6 below were put to test.
- How long have you been working with an advert agency?
- Have you worked with an advert agency that is not affiliated with a
multinational agency?
- Have you worked with an advert agency that is affiliated with a multi-national
agency?
- What is your assessment of the affiliated one, in terms of revenue generation?
46
Table 4:2.3: Respondents’ Views on their length of service in advert agency.
Responses Frequency Percentage
2 – 5 years 138 49.3%
6- 10 years 68 24.3%
11 – 15 years 53 18.9%
No Indication 21 7.5%
Total 280 100%
Table 3 above indicates that 138 (49.3%) respondents said they have worked with an
advert agency for 2 to 5 years, 68 (24.3%) said they have spent between 6 to 10 years, 53
(18.9%) said they have worked about 11 to15 years in an advert agency while 21 (7.5%)
did not indicate any response.
Table 4:2.4: Respondents’ Views on the specific kind of agency they have worked in.
Responses Frequency Percentage
Yes 273 97.5%
No 4 1.4%
No Indication 3 1.1%
Total 280 100%
Table 4 above shows that 273 (97.5%) said yes they have worked with an advert agency
that is affiliated with a multi-national advert agency, 4 (1.4%) said No they have not
worked with such agency while 3 (1.1%) gave no answer.
Table 4:2.5: Respondents’ Views on their assessment of the affiliated advert
agency in terms of revenue generation.
Responses Frequency Percentage
Affiliated advert agencies generate higher revenue than non-
affiliated ones due to the foreign currency support from the
multi-national firms out there.
165 58.9%
Most times one can not really say because a lot of issues are
involved.
96 34.3%
No responses 19 6.8%
Total 280 100%
47
Table 5 above brings out the fact that 165 (58.9%) of the respondents said affiliated
advert agencies generate higher revenue than non-affiliated ones due to the foreign
currency support from the multi-national firms out there; 96 (34.3%) of them said most
times, one cannot really say because a lot of issues are involved while 19 (6.8%) did not
respond.
Research Question 2: Does globalization impact positively on manpower development
in the Nigerian advertising industry?
To elicit responses to this question, the following probing questions where put to
the respondents:
- Do you think the advert agency‟s affiliation with a multi-national agency has
any impact on the agency‟s creative performance?
- Do you think the advert agency‟s non-affiliation with the multi-national
agency has any impact on the agency‟s creative performance?
- Do you think affiliation or non-affiliation with multi-national advert agency
contributes to your agency‟s adherence to ethics in advert practice in Nigeria?
- Do you think the affiliation or non-affiliation contributes to Nigerian
economic growth?
- Are you in support of the view that non-affiliation encourages the growth of
the nation‟s creative production industry?
- If yes, state how ……
- If No, state why ……
Table 4:2.6: Respondents’ Views on the impact of affiliation on the agency’s
creative performance.
Responses Frequency Percentage
Yes 174 62.1%
No 59 21.1%
No Responses 47 16.8%
Total 280 100%
Table 6 shows that 174 (62.1%) said yes the agency‟s affiliation with multi-national
agency impacts on the agency‟s creative performance. 59 (21.1%) said No, it does not
while 47 (16.8%) did not respond.
48
Table 4:2.7: Respondents’ Views on impact of non-affiliation on the agency’s
creative performance.
Responses Frequency Percentage
Yes 168 60%
No 100 35.7%
No Responses 12 4.3%
Total 280 100%
Table 7 above indicates that 168 (60%) of the respondents equally said yes, that non
affiliation with multi-national agency impacts on the agency‟s creative performance. 100
(35.7%) said No, it does not while 12 (4.3%) gave no response
Table 4:2.8: Respondents’ views on agency’s adherence to ethics in the practice.
Responses Frequency Percentage
Most agencies with multi-national affiliation do not always
adhere to the ethics of advert practice in Nigeria, because
the bulk of their advert copies come fully prepared by their
affiliates outside Nigeria. For instance, their images,
slogans/pay offs go against the Nigerian advert ethics.
170 60.7%
Non-affiliated agencies tend to obey and abide by the rules
of the game here in Nigeria except in rare cases, where they
deviate a little once in a while.
68 24.3%
No responses 42 15%
Total 280 100%
Table 8 above shows that 170 (60.7%) were of the view that agencies with multi-national
affiliation do not quite adhere to advert ethics in Nigeria. 68 (24.3%) said Non-affiliated
agencies are ethically sound while 42 (15%) did not respond.
49
Table 4:2.9: Respondents’ views on the impact of affiliation or non-affiliation on
Nigerian Economic growth.
Responses Frequency Percentage
There is no gainsaying the fact that the affiliation brings a
large foreign currencies from the multi-national firms. As
such it books our economic growth.
164 58.6%
We are not affiliated with any multi-national agency but we
do pay our taxes thereby making a substantial input to the
Nigerian economic growth.
112 40%
No responses 4 1.4%
Total 280 100%
Table 9 above indicates that 164 (58.6%) of the respondents said with their affiliation
with multi-national agency they contribute to the Nigerian economic growth. 112 (40%)
stated categorically that despite the fact that they are not affiliated with any multi-
national advert agency, they still immensely contribute to Nigerian economic growth
while 4 (1.4%) did not respond.
Table 4:2.10: Respondents’ Views on non-affiliation impact on the nation’s creative
production industry.
Responses Frequency Percentage
Yes 182 65%
No 86 30.7%
No Responses 12 4.3%
Total 280 100%
Table 10 above shows that 182 (65%) of the respondents said yes, that non-affiliation
encourages the growth of the nation‟s creative production industry 86 (30.7%) said No, it
does not while 12 (4.3%) gave no response.
50
Table 4:2.11: Respondents’ Views on their reason behind their answers to question
14 (Table 10).
Responses Frequency Percentage
As we are not affiliated we
encourage our musicians,
photographers, movie stars
etc by using in the adverts
copies we produce here.
196 70%
No Responses 84 30%
Total 280 100%
Table 11 above brings out the fact that 196 (70%) of the respondents said as they were
not affiliated they encourage our creative production industry by using our musicians,
photographers, movie stars etc in the advert copies they produce in Nigeria. While 84
(30%) gave no response.
Table 4:2.12: Respondents’ Views on their reason behind their answers to question
14 (table 10).
Responses Frequency Percentage
Whether we use them or not
does not really matter as
long as we get our copies
out. They can also make
their way to the top without
necessarily being used by
advert agencies in Nigeria.
158 56.4%
No Responses 122 43.6%
Total 280 100%
Table 12 above indicates that 158 (56.4%) of the respondents were of the view that
whether they used our creative production industry or not did not really matter much as
long as they get their copies from their affiliated multi-national. While 122 (43.6%) did
not respond.
51
Research Question 3: What is the effect of agency affiliation on the use and growth of
the local creative production industry comprising artistes, models, writers, musicians,
photographers and film producers?
In order to elicit answers to the above research question, the following questions guide
were asked:
- Do you think the advert agency‟s affiliation with the multi-national agency
has any impact on the agency‟s creative performance?
- Do you think the advert agency‟s non-affiliation with the multi-national
agency has any impact on the agency‟s creative performance?
- Are you in support of the view that non-affiliation encourages the growth of
the nation‟s creative productive industry?
- If yes, state how
- If No, state why
- Do you uphold the view that the affiliation discourages our creative
production industry?
- If yes, what are you reasons?
- If No, why?
Table 4:2.13: Respondents’ Views on impact of affiliation on the agency’s creative
performance.
Responses Frequency Percentage
Yes 174 62.1%
No 59 21.1%
No Responses 47 16.8%
Total 280 100%
Table 13 above shows that 174 (62.1%) said yes the agency‟s affiliation with multi-
national agency impacts on the agency‟s creative performance. 59 (21.1%) said No, it
does not while 47 (16.8%) did not respond.
52
Table 4:2.14: Respondents’ Views on impact of non-affiliation on the agency’s
creative performance.
Responses Frequency Percentage
Yes 168 60%
No 100 35.7%
No Responses 12 4.3%
Total 280 100%
Table 14 above indicates that 168 (60%) of the respondents equally said yes, that non
affiliation with multi-national agency impacts on the agency‟s creative performance. 100
(35.7%) said No, it does not while 12 (4.3%) gave no response.
Table 4:2.15: Respondents’ Views on non-affiliation impact on the nation’s creative
production industry.
Responses Frequency Percentage
Yes 182 65%
No 86 30.7%
No Responses 12 4.3%
Total 280 100%
Table 15 above shows that 182 (65%) of the respondents said yes, that non-affiliation
encourages the growth of the nation‟s creative production industry. 86 (30.7%) said No,
it does not while 12 (4.3%) gave no response.
Table 4:2.16: Respondents’ Views on their reason behind their answers to question
14 (Table 15).
Responses Frequency Percentage
As we are not affiliated, we
encourage our musicians,
photographers, movie stars
etc by using in the adverts
copies we produce here.
196 70%
No Responses 84 30%
Total 280 100%
53
Table 16 above shows that 196 (70%) of the respondents said as they were not affiliated,
they encourage our creative production industry by using our musicians, photographers,
movie stars etc in the advert copies they produce in Nigeria. While 84 (30%) gave no
response
Table 4:2.17: Respondents’ Views on their reason behind their answers to question
14 (table 15).
Responses Frequency Percentage
Whether we use them or not
does not really matter as
long as we get our copies
out. They can also make
their ways to the top
without necessarily being
used by advert agencies in
Nigeria.
158 56.4%
No Responses 122 43.6%
Total 280 100%
Table 17 above indicates that 158 (56.4%) of the respondents were of the view that
whether they used our creative production industry or not did not really matter much as
long as they get their copies from their affiliated multi-nationals, while 122 (43.6%) did
not respond.
Table 4:2.18: Respondents’ Views on affiliations discouraging our creative
production industry.
Responses Frequency Percentage
Yes 182 65%
No 84 30%
No Responses 14 5%
Total 280 100%
Table 18 above shows that 182 (65%) of the respondents said yes, that affiliation with
multi-national advert agency discourages our creative production industry. 84 (30%) did
not uphold that view while 14 (5%) gave no response.
54
Table 4:2.19: Respondents’ Views on their reason behind their answers to question
17 (Table 18).
Responses Frequency Percentage
We do not quite use our photographers, musicians etc,
because virtually everything has been packaged by our
multi-national affiliates
176 62.9%
No Responses 104 37.1%
Total 280 100%
Table 19 above states that 176 (62.9%) of the respondents clearly said they do not quite
use our photographers, musicians etc because virtually everything has been packaged by
their multi-national affiliates, while 104 (37.1%) did not respond.
Table 4:2.20: Respondents’ Views on their reason behind their answers to question
17 (table 18).
Responses Frequency Percentage
We do not discourage our creative production
industry because as we bring in concepts they take a
clue and do the right things as done outside Nigeria.
168 60%
No Responses 112 40%
Total 280 100%
Table 20 above shows that 168 (60%) of the respondents said they do not discourage our
creative production industry because as they bring in concepts, they (musicians,
photographers etc) take a clue and do the right things as done outside Nigeria while 112
(40%) gave no answers.
Research Question 4: To what extent does the media output of affiliated agencies
impact on our local cultures?
To obtain answers to the above research question, the following questions were put to the
respondents:
- Do you think affiliation or non-affiliation with multi-national avert agency
contributes to your agency‟s adherence to ethics in advert practice in Nigeria?
- Do you think the affiliation alters our national culture?
55
- It yes, state how
- Any comments on Globalization and Advertising Practice in Nigeria as
regards the role of agency affiliations or non-affiliations with multi-national
agencies.
Table 4:2.21: Respondents’ views on agency’s adherence to ethics in the practice.
Responses Frequency Percentage
Most agencies with multi-national affiliation do not
always adhere to the ethics of advert practice in Nigeria
because the bulk of their advert copies come fully
prepared by their affiliates outside Nigeria. For
instance, their images, slogans/pay offs 80 against the
Nigerian adverts ethics.
170 60.7%
Non-affiliated agencies tend to obey and abide by the
rules of the game here in Nigeria except in rare cases,
where they deviate a little once in a while.
68 24.3%
No Response 42 15%
Total 280 100%
Table 21 above indicates that 170 (60.7%) were of the view that agencies with multi-
national affiliation do not quite adhere to advert ethics in Nigeria. 68 (24.3%) said non-
affiliated agencies are ethically sound while 42 (15%) did not respond.
Table 4:2.22: Respondents’ views affiliation and national culture.
Responses Frequency Percentage
Yes 206 73.6%
No 74 26.4%
Total 280 100%
Table 22 above shows that 206 (73.6%) of the respondents said yes, the affiliation with
multi-national advert agencies alters our national culture while 74 (26.4%) said No, it
does not.
56
Table 4:2.23: Respondents’ views on their reason behind their answers to question
12 (table 22).
Responses Frequency Percentage
It is negatively adulterating our traditional values. Our
people now adopt the dressing codes/styles of the
models they see on the advert copies sent into Nigeria
by the multi-nationals advert agencies. Go out in the
streets and see things for yourself.
198 70.8%
No, it does mot alter our national culture because in the
first place Nigeria as a multi ethic nation has no single
culture so the affiliation with multi-national agencies
even helps us in getting a certain culture that fits with
the inter-national standard.
69 24.6%
No Response 13 4.6%
Total 280 100%
Table 23 above indicates that 198 (70.8%) of the respondents said the affiliation with
multi-national agencies adulterates our national culture while 69 (24.6%) were of view
that it does not because Nigeria does not even have a national culture based on its multi
ethics nature 13 (4.6%) did not respond.
Table 4:2.24: Respondents’ views on their comments on Globalization and
Advertising Practice in Nigeria as regards the impact of agency affiliations or non-
affiliations.
Responses Frequency Percentage
As every profession all over the world has virtually
globalized, advert practice in Nigeria should equally follow
the trend by affiliating with multi-national agencies but they
should endeavour to carry our creative production industry
along in other to encourage them to meet international
standard.
132 47.1%
I believe globalization is a window/door through which every
nation can show case their skills – talents, creativity, culture
94 33.6%
57
and so on. Hence Nigeria Advert sector should package their
copies here very well and portray our culture etc. There‟s no
need for affiliation.
No comments 54 19.3%
Total 280 100%
Table 24 above shoes that 132 (47.1%) of the respondents gave comments in supports of
affiliation with multi-national advert agencies while 94 (33.6%) advised that we should
avoid the affiliations and develop our advert industry and 54 (19.3%) did not comment.
4.3 DISCUSSION OF FINDINGS
This section of the study reviews the results presented in section 4.2 on Data
Presentation and Analysis. Relating this study‟s findings to other researchers‟ findings is
difficult as there is no known study at hand on the concept of Globalization and
Advertising Practice in Nigeria a study of the impact of agency affiliations.
This research, therefore, is a trail blazer in the direction of a study of this nature.
The discussion of findings is guided by the five research questions raised in Chapter one
section 1.5.
Research Question 1: What is the correlation between agency affiliation and agency
revenue generation?
In this question, the researcher found out that there is really a correlation between
agency affiliation and agency revenue generation. From the analysis reflected in section
4.2 tables 3, 4 and 5, it is quite clear that 49.3% of the respondents said they have worked
with an advert agency for 2 to 5 years; 97.5% of the respondents said they have worked
with an advert agency that is affiliated with a multi-national agency; and 58.9% of the
respondents said affiliated agencies generate higher revenue than non-affiliated ones.
Consequent upon the foregoing facts, it can rightly be deduced that there is
actually a correlation between agency affiliation and agency revenue generation.
Research Question 2: Does globalization impact positively on manpower development
in the Nigerian advertising industry?
58
On the aspect of this question, the researcher tried to find out if globalization
positively impacts on manpower development in the Nigerian advertising industry.
Based on the analysis of data elicited from tables 6, 7, 8, 9, 10, 11 and 12, it is evident
that globalization impacts positively on manpower development in the Nigerian
advertising industry. Being from the 62.1% of the respondents who said agency
affiliation with multi-national agencies positively impacts on Nigerian agencies creative
performance, 60% of the respondents equally said that non-affiliation with multi-national
agency impacts on their agencies creative performance. 58.6% of the respondents said
their affiliation with multi-national agency they contribute immensely to the Nigerian
economic growth. 65% of the respondents said that their non-affiliation encourages the
growth of the nation‟s creative production industry. 70% of the respondents stated that as
they were not affiliated they encourage our musicians, photographers, movie stars etc in
the advert copies.
Based on the above facts, the researcher found out that globalization impact
positively on manpower development in the Nigerian advertising industry.
Research Question 3: What is the effect of agency affiliation on the use and growth of
the local creative production industry comprising artistes, models, writers, musicians,
photographers and film producers?
On this question, the researcher found out the affiliation with multi-national
advert agencies is really affecting the use and growth of the local creative production
industry negatively. From the analysis stated in tables 10, 11, 13, 14, 15, 16, 17, 18 and
19 above, 65% of the respondents said that non-affiliation encourages the growth of the
nation‟s creative production industry. 70% also upheld this view by their use of our
musician, photographers; movie stars etc. while 56.4% categorically stated that whether
they used the local productive industry or not did not really matter as long as they get
their advert copies out from their affiliated multi-nationals.
From the foregoing analysis, the researcher found out that the affiliation with
multi-national advert agencies is really affecting the use and growth of the local creative
production industry negatively.
59
Research Question 4: To what extent does the media output of affiliated agencies
impact on our local cultures?
On this question, the researcher found out that the affiliation with multi-national
agencies impacts negatively on our local cultures. Following the analysis reflected in
section 4.2; tables 22, 23 and 24 it is evident that 73.6% of the respondents said that the
affiliation with multi-national advert agencies truly alters our national culture, 70.8% of
the respondents equally gave their reasons behind their stating that the affiliation with
multi-national advert agencies really alters national culture while 47.1% of the
respondents were of the view that Nigerian advert agencies should join the Globalization
trend by affiliating with other multi-nationals and 33.6% of the respondents said if
Nigerian advert agencies should affiliate they should use the opportunity to show care our
culture creativity and so on.
From the aforementioned facts the researcher found out that the affiliation with
multi-national agencies negatively affects our national culture
60
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
The globalization concept has, in recent years, attracted growing research. Joseph
Stiglitz (2002,p.24) draws attention to the devastating effects globalization can have on
developing countries and especially the poor within. He came to the conclusion that
globalization can be a force for good but that the way it has been managed and imposed
on developing countries need to be radically rethought.
However, while many studies that address Mass Communication effects of
globalization have been carried out, there has been very little research interest on the
impact of globalization on the practice of advertising in a developing economy like
Nigeria. Based on this basic fact, it becomes necessarily important to ascertain the level
of impact of agency affiliations in Nigeria advert industry in terms of globalization and
advertising practice.
5.1 SUMMARY OF FINDINGS
The following is a summary of the findings:
1. There is actually a correlation between agency affiliation and agency revenue
generation. This is deduced from the fact that 97.5% of the respondents who
have worked with an advert agency affiliated with multi-national agency said
affiliated agencies generate higher revenue than non-affiliated ones.
2. Globalization impacts positively on manpower development in Nigerian
advertising industry. This is clear as 62.1% of the respondents said agency
affiliation with multi-national agencies positively impacts on Nigerian advert
agencies creative performance. 58.6% of them said that through affiliation
with multi-national agency, they contribute immensely to Nigerian economic
growth.
3. The affiliation with multi-national advert agencies is really affecting the use
and growth of the local creative production industry negatively. This finding
was elicited from the fact that 65% of the respondents said that non-affiliation
61
encourages the growth of the nation‟s creative production industry. 70% also
upheld this view by stating that they use our local musician, photographers,
movie stars etc. but 56.4% categorically stated that whether they use our local
creative productive industry or not did not really matter as long as they get
their copies out from their multi-national affiliated advert agencies.
4. The affiliation with multi-national advert agencies truly alters our national
culture. This is based on the fact that 73.6% of the respondents said it alters
our national culture as our people now adopt the dressing codes/styles of the
models they see on the advert copies sent into Nigeria by the multi-national
agencies.
5.2 CONCLUSION
This research work was undertaken so as to ascertain the level
globalization and advertising practice in Nigeria have gone in terms of the impact
of agency affiliations. The researcher‟s findings, so far, revealed that the concept
of globalization and advertising practice in Nigeria has actually a correlation
between agency affiliation and agency revenue generation; Globalization impacts
positively on manpower development in Nigerian advertising industry; the
affiliation with multi-national advert agencies is really affecting the use and
growth of the local creative production industry negatively and the affiliation with
multi-nationals truly alters our national culture.
5.3 RECOMMENDATIONS
Generated data and analysis of findings in this study have clearly shown
that there is actually a correlation between agency affiliation and agency revenue
generation which invariably indicates that globalization impacts positively on
manpower development in Nigerian advertising industry.
The research findings also confirmed that affiliation with multi-national
advert agencies is really affecting the use and growth of our local creative
production industry negatively and our national culture has been altered
drastically.
62
It is therefore, recommended that further inquiries into globalization and
advertising practice in Nigeria (a study of impact of agency affiliations) be done
regularly in order to update the records.
There is also the need for a pan-Nigerian study of the effects of foreign produced
commercials (in terms of concepts and models) on the evolution of local culture.
63
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