Impact of 2020 Economic Recession on Advertising Agencies in Nigeria
Main Article Content
Abstract
Existing literature tends to focus on broader marketing trends or global advertising shifts, leaving a gap in understanding how Nigerian agencies navigated the 2020 downturn and its implications for their future practices. This study seeks to address this gap by investigating the challenges faced by advertising agencies in Nigeria during the economic crisis. Qualitative research method was adopted, and data was gathered from ten (10) participants across five different advertising agencies in Nigeria. Additional findings revealed that the 2020 economic downturn had dual consequences for lead generation among advertising firms, depending on their ability to adapt to economic shifts and structural variations. While some formed international relationships and secured health awareness campaign gigs, others leveraged referrals to expand their business. Also, it was found that the 2020 economic recession exerted divergent effects on client-agency relationships within the advertising sector, contingent upon the agencies' responsiveness to the circumstances and their pre-existing operational frameworks. While some experienced cordial relationships through virtual collaborations, some relationships went sour. Based on the findings, it was recommended that advertising firms undertake digital transformation, incorporating remote collaboration tools and data-driven marketing techniques. Agencies can promptly capitalise on new opportunities, such as public health campaigns, by equipping their personnel with training in virtual client management and agile service delivery.
Downloads
Download data is not yet available.
Article Details
How to Cite
Alabi, S., & Moshood-Abiola Arogundade. (2025). Impact of 2020 Economic Recession on Advertising Agencies in Nigeria. Economit Journal: Scientific Journal of Accountancy, Management and Finance, 5(3), 125-138. https://doi.org/10.33258/economit.v5i3.1346
Section
Articles
References
Abeykoon, P. (2021). Partnerships in health development. Journal of Health Management, 23(1), 143-154.
Ahmad, T., Boit, J., & Aakula, A. (2023). The role of cross-functional collaboration in digital transformation. Journal of Computational Intelligence and Robotics, 3(1), 205-42.
Ahmed, M. O., & Aondover, E.M. (2022). Assessment of the spread of fake news of Covid-19 amongst social media users in Kano State, Nigeria. Computers in Human Behavior Reports, 6, 100189.
Anderson, L. B., & Jones-Bodie, A. (2023). Facing adversity together: Toward a genre of organization-stakeholder resilience discourse. Management Communication Quarterly, 37(1), 144-170.
Aondover, E. M., Maradun, L. U., & Yar’Adua, S. M. (2022). Mediatization of the net and internetization of the print media in Northern Nigeria. Unisia, 40(2), 335-356.
Aondover, E. M., Yar’Adua, S. M., & Aondover, P. O. (2025). Influence of Digital Images on the Propagation of Fake News on Twitter in Russia and Ukraine Crisis. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 8(1), 59-74.
Aondover, P. O., Aondover, E. M., & Babele, A. M. (2022). Two nations, same technology, different outcomes: Analysis of technology application in Africa and America. Journal of Educational Research and Review, 1(1), 001-008.
Benjamin, G. C. (2020). Ensuring health equity during the COVID-19 pandemic: the role of public health infrastructure. Revista Panamericana de Salud Pública, 44, e70.
Bourdieu, P. (2011). The forms of capital.(1986). Cultural theory: An anthology, 1(81-93), 949.
Bradley, C., & Oates, H. E. (2021). The multi-level marketing pandemic. Tenn. L. Rev., 89, 321.
Dagdeviren, H., & Donoghue, M. (2019). Resilience, agency and coping with hardship: Evidence from Europe during the great recession. Journal of social policy, 48(3), 547-567.
DiResta, E. A., Williford, K. T., Cohen, A. D., & Genn, A. B. (2020). The impact of COVID-19 on your advertising and marketing campaigns. Holland & Knight Alert.
Ibn-Mohammed, T., Mustapha, K. B., Godsell, J., Adamu, Z., Babatunde, K. A., Akintade, D. D., ... & Koh, S. C. L. (2021). A critical analysis of the impacts of COVID-19 on the global economy and ecosystems and opportunities for circular economy strategies. Resources, Conservation and Recycling, 164, 105169.
Jobs, C. G., Gilfoil, D. M., & Aukers, S. M. (2016). How marketing organizations can benefit from big data advertising analytics. Academy of Marketing Studies Journal, 20(1), 18.
Jomo, K. S., & Chowdhury, A. (2020). COVID-19 pandemic recession and recovery. Development (Society for International Development), 63(2-4), 226.
Levin, E., Thaichon, P., & Quach, T. N. (2016). The impact of creative competence and project management on longevity of the client-advertising agency relationship. Journal of Business & Industrial Marketing, 31(2), 274-286.
Maikaba, B., & Msughter, A. E. (2019). Digital Media and Cultural Globalisation: The Fate of African Value System. Humanities and Social Sciences, 12(1), 214-220.
Market Research Society of Nigeria (MRSN). (2021). Survey on Agency-Client Relationships During Economic Downturns. https://marketresearchsocietyng.com/publications/
McCarthy, J. D., & Zald, M. N. (1977). Resource mobilization and social movements: A partial theory. American journal of sociology, 82(6), 1212-1241.
Merton, R. K. (1968). The Matthew effect in science: The reward and communication systems of science are considered. Science, 159(3810), 56-63.
Muralidhar, A., & Lakkanna, Y. (2024). From Clicks to Conversions: Analysis of Traffic Sources in E-Commerce. arXiv preprint arXiv:2403.16115.
Navarro, J.G. (2023).Nigeria ad spend 2018-2020, by medium. https://www.statista.com/statistics/614932/nigeria-advertising-spending-medium/
Nilsson, M., & Mattes, J. (2015). The spatiality of trust: Factors influencing the creation of trust and the role of face-to-face contacts. European Management Journal, 33(4), 230-244.
Oko-Epelle, L., Omowale, A. & Adeagbo, S. (2022). Regulating Online Advertising in the Internet age: A Study of Advertising Practitioners Council of Nigeria (APCON). Global Scientific Journals, 10, 848-862.
Oreoluwa, P. A., Vitalis, P. O., Nneka, A. Q., Collins-Dike, J., & Ridwan, M. (2024). Online Harassment of Female Journalist in Lagos State. Polit Journal Scientific Journal of Politics, 4(3), 162-174.
Pantielieieva, N., Zaporozhets, S., Nagaichuk, N., & Bartosh, O. (2019). Transformation of financial intermediation in the context of spread of digital trends. «Вестник НАН РК», (3), 144-152.
Romeiro, A. A., & Wood Jr, T. (2015). Bounded creativity: understanding the restrictions on creative work in advertising agencies. BAR-Brazilian Administration Review, 12(1), 1-21.
Rubin, M. M., & Willoughby, K. (2021). State budget balancing strategies: COVID‐19 and the Great Recession. Public Budgeting & Finance, 41(3), 22-41.
Saint, E. J., Aondover, E. M., Ebele, U. C., & Onyejelem, T. E. (2024). Influence of social media on newspaper patronage among lecturers in University of Nigeria, Nsukka. LingLit Journal Scientific Journal for Linguistics and Literature, 5(3), 142-157.
Sultana, S., Akter, S., & Kyriazis, E. (2024). Theorising data-driven innovation capabilities to survive and thrive in the digital economy. Journal of Strategic Marketing, 32(7), 864-890.
Suparta, R. S., & Wijaya, L. I. (2023). Advertisement Business Financial Strategy During The COVID-19 Pandemic: A Case Study of Satria Advertisement Company. Syntax Literate: Jurnal Ilmiah Indonesia, 8(8), 5661-5675.
Toussaint, E. C. (2018). The new gospel of wealth: on social impact bonds and the privatization of public good. Hous. L. Rev., 56, 153.
Vitalis, P. O., Aondover, E. M., Ogunbola, O., Onyejelem, T. E., & Ridwan, M. (2025). Accessing Digital Divide and Implications in Nigeria: The Media Dimension. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 8(1), 1-12.
Vitalis, P. O., Onyejelem, T. E., & Okuneye, A. P. (2023). Understanding advertising in the era of social media. Information System and Smart City, 3(1), 502-502.
Yeung, J. F., Chan, A. P., & Chan, D. W. (2012). Defining relational contracting from the Wittgenstein family-resemblance philosophy. International journal of project management, 30(2), 225-239.
Yu, Z., Razzaq, A., Rehman, A., Shah, A., Jameel, K., & Mor, R. S. (2021). Disruption in global supply chain and socio-economic shocks: a lesson from COVID-19 for sustainable production and consumption. Operations Management Research, 1-16.
Ahmad, T., Boit, J., & Aakula, A. (2023). The role of cross-functional collaboration in digital transformation. Journal of Computational Intelligence and Robotics, 3(1), 205-42.
Ahmed, M. O., & Aondover, E.M. (2022). Assessment of the spread of fake news of Covid-19 amongst social media users in Kano State, Nigeria. Computers in Human Behavior Reports, 6, 100189.
Anderson, L. B., & Jones-Bodie, A. (2023). Facing adversity together: Toward a genre of organization-stakeholder resilience discourse. Management Communication Quarterly, 37(1), 144-170.
Aondover, E. M., Maradun, L. U., & Yar’Adua, S. M. (2022). Mediatization of the net and internetization of the print media in Northern Nigeria. Unisia, 40(2), 335-356.
Aondover, E. M., Yar’Adua, S. M., & Aondover, P. O. (2025). Influence of Digital Images on the Propagation of Fake News on Twitter in Russia and Ukraine Crisis. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 8(1), 59-74.
Aondover, P. O., Aondover, E. M., & Babele, A. M. (2022). Two nations, same technology, different outcomes: Analysis of technology application in Africa and America. Journal of Educational Research and Review, 1(1), 001-008.
Benjamin, G. C. (2020). Ensuring health equity during the COVID-19 pandemic: the role of public health infrastructure. Revista Panamericana de Salud Pública, 44, e70.
Bourdieu, P. (2011). The forms of capital.(1986). Cultural theory: An anthology, 1(81-93), 949.
Bradley, C., & Oates, H. E. (2021). The multi-level marketing pandemic. Tenn. L. Rev., 89, 321.
Dagdeviren, H., & Donoghue, M. (2019). Resilience, agency and coping with hardship: Evidence from Europe during the great recession. Journal of social policy, 48(3), 547-567.
DiResta, E. A., Williford, K. T., Cohen, A. D., & Genn, A. B. (2020). The impact of COVID-19 on your advertising and marketing campaigns. Holland & Knight Alert.
Ibn-Mohammed, T., Mustapha, K. B., Godsell, J., Adamu, Z., Babatunde, K. A., Akintade, D. D., ... & Koh, S. C. L. (2021). A critical analysis of the impacts of COVID-19 on the global economy and ecosystems and opportunities for circular economy strategies. Resources, Conservation and Recycling, 164, 105169.
Jobs, C. G., Gilfoil, D. M., & Aukers, S. M. (2016). How marketing organizations can benefit from big data advertising analytics. Academy of Marketing Studies Journal, 20(1), 18.
Jomo, K. S., & Chowdhury, A. (2020). COVID-19 pandemic recession and recovery. Development (Society for International Development), 63(2-4), 226.
Levin, E., Thaichon, P., & Quach, T. N. (2016). The impact of creative competence and project management on longevity of the client-advertising agency relationship. Journal of Business & Industrial Marketing, 31(2), 274-286.
Maikaba, B., & Msughter, A. E. (2019). Digital Media and Cultural Globalisation: The Fate of African Value System. Humanities and Social Sciences, 12(1), 214-220.
Market Research Society of Nigeria (MRSN). (2021). Survey on Agency-Client Relationships During Economic Downturns. https://marketresearchsocietyng.com/publications/
McCarthy, J. D., & Zald, M. N. (1977). Resource mobilization and social movements: A partial theory. American journal of sociology, 82(6), 1212-1241.
Merton, R. K. (1968). The Matthew effect in science: The reward and communication systems of science are considered. Science, 159(3810), 56-63.
Muralidhar, A., & Lakkanna, Y. (2024). From Clicks to Conversions: Analysis of Traffic Sources in E-Commerce. arXiv preprint arXiv:2403.16115.
Navarro, J.G. (2023).Nigeria ad spend 2018-2020, by medium. https://www.statista.com/statistics/614932/nigeria-advertising-spending-medium/
Nilsson, M., & Mattes, J. (2015). The spatiality of trust: Factors influencing the creation of trust and the role of face-to-face contacts. European Management Journal, 33(4), 230-244.
Oko-Epelle, L., Omowale, A. & Adeagbo, S. (2022). Regulating Online Advertising in the Internet age: A Study of Advertising Practitioners Council of Nigeria (APCON). Global Scientific Journals, 10, 848-862.
Oreoluwa, P. A., Vitalis, P. O., Nneka, A. Q., Collins-Dike, J., & Ridwan, M. (2024). Online Harassment of Female Journalist in Lagos State. Polit Journal Scientific Journal of Politics, 4(3), 162-174.
Pantielieieva, N., Zaporozhets, S., Nagaichuk, N., & Bartosh, O. (2019). Transformation of financial intermediation in the context of spread of digital trends. «Вестник НАН РК», (3), 144-152.
Romeiro, A. A., & Wood Jr, T. (2015). Bounded creativity: understanding the restrictions on creative work in advertising agencies. BAR-Brazilian Administration Review, 12(1), 1-21.
Rubin, M. M., & Willoughby, K. (2021). State budget balancing strategies: COVID‐19 and the Great Recession. Public Budgeting & Finance, 41(3), 22-41.
Saint, E. J., Aondover, E. M., Ebele, U. C., & Onyejelem, T. E. (2024). Influence of social media on newspaper patronage among lecturers in University of Nigeria, Nsukka. LingLit Journal Scientific Journal for Linguistics and Literature, 5(3), 142-157.
Sultana, S., Akter, S., & Kyriazis, E. (2024). Theorising data-driven innovation capabilities to survive and thrive in the digital economy. Journal of Strategic Marketing, 32(7), 864-890.
Suparta, R. S., & Wijaya, L. I. (2023). Advertisement Business Financial Strategy During The COVID-19 Pandemic: A Case Study of Satria Advertisement Company. Syntax Literate: Jurnal Ilmiah Indonesia, 8(8), 5661-5675.
Toussaint, E. C. (2018). The new gospel of wealth: on social impact bonds and the privatization of public good. Hous. L. Rev., 56, 153.
Vitalis, P. O., Aondover, E. M., Ogunbola, O., Onyejelem, T. E., & Ridwan, M. (2025). Accessing Digital Divide and Implications in Nigeria: The Media Dimension. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 8(1), 1-12.
Vitalis, P. O., Onyejelem, T. E., & Okuneye, A. P. (2023). Understanding advertising in the era of social media. Information System and Smart City, 3(1), 502-502.
Yeung, J. F., Chan, A. P., & Chan, D. W. (2012). Defining relational contracting from the Wittgenstein family-resemblance philosophy. International journal of project management, 30(2), 225-239.
Yu, Z., Razzaq, A., Rehman, A., Shah, A., Jameel, K., & Mor, R. S. (2021). Disruption in global supply chain and socio-economic shocks: a lesson from COVID-19 for sustainable production and consumption. Operations Management Research, 1-16.