The fate of the local agencies incumbent on MTN Nigeria’s integrated marketing communications businesses appears to hang on the balance as the group recently announced Omnicom Group, a South Africa based company, as its integrated global agency.
Currently on MTN Nigeria business are MediaReach OMD – media, DDB Lagos- creative, Brooks and Blake and DDK on public relations.
According to a recent statement signed by MTN Group Corporate Affairs, Samantha Moodley, in Lagos, “MTN has appointed Omnicom Group as its integrated global agency. This follows a rigorous evaluation process, which began in March 2016, when six major global agency networks were invited to tender”.
According to her three agencies proceeded to the second round late last year, with Omnicom selected based on having met the functional and commercial requirements. These requirements were scope of work and specialisation, industry and geographic track record, proposed resources (footprint, team and transformation agenda), and specified risk and financial parameters.”
The appointment of Omnicom Group spans the areas of brand, media, digital, public relations, internal communication and sponsorships, across MTN’s functional areas of Marketing, Consumer, Enterprise Business, Digital Services, Corporate Affairs, Human Resources and Investor Relations at a Group level, as well as the company’s operations in 22 markets.
The development has sent some shock down the spins of the incumbent local agencies particularly those without Omnicom identity. It was gathered that the local agencies were informed 2 hours before the announcement was made to the press.
DDB Lagos and MediaReach OMD seem to have remained calm as a result of the partnership with Omnicom in Nigeria while other agencies may need to exit the business.
Another area of concern is that MTN which has consistently held its IMC pitches in Nigeria since inception may have finally moved the process to its headquarters in Johannesburg in South Africa.