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The Challenge Before Ad Agencies

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Today, I used this plot below to explain to CEO of a top advertising powerhouse in Africa on the challenges before his industry. Before the dawn of ICT utilities like Facebook and Google, ad agencies and publishers were the gatekeepers of news. People need news for different reasons. And to reach people (the consumers), brands went to the publishers and ad agencies. The ad agencies have always worked as feeders to the publishers.

But with the arrival of the ICT utilities, a massive dislocation is happening: brands are now reaching customers without going through ad agencies and publishers. Power has shifted, and the most powerful entities are not the creators of the news, but those that organize and make sense of them, in a world with largely unlimited distribution channels, anchored by the web. If news breaks in Nigeria, everyone goes to Google and not the individual websites like Guardian and Punch. Even though Google ends up taking us to the most useful site, it does so (largely) without regard to legacies. Yes, my blog and Guardian will compete for attention before Google!

Simply, publishers and ad agencies are challenged as the monies brands used to pay move to Google and Facebook. This disintermediation is just beginning. Yes, as Google tests algorithmic contents where outdoor billboards will show contents based on what Android phones indicate are preferences of the majority of people seeing the ads, massive shifts await in the business.

Yes, a group of 30 football fans are returning from a game in a bus. There are other passengers in other cars. The algorithm has real data on coordinates of the phones as well as the location of the billboard. It can estimate how many people are seeing the contents displayed on the billboards. Once it can make a call that out of say 45 people watching, 25 are football fans, it will show ads that target football fans. Doing that will be the unification of meatspace and cyberspace advertisement; it will deliver unprecedented dislocation to ad agencies that do not evolve.

 

These are some fundamental videos you can watch to have deeper insights on this digital redesign.

 

 

LinkedIn Comment on this Feed

The dislocation or disintermediation isn’t just happening to ad agencies and publishers alone, individuals can now build their own brands the way they like; without any gatekeeper ‘diluting’ them on their behalf. Trump has maximised it, with his constant ‘battle’ with the mainstream media, most of his messages would have remained in the newsrooms, but with Twitter, you cannot ‘cage’ him.

Again, the presence of ICT utilities haven’t really led to loss of jobs on the side of publishers and ad agencies, rather the jobs SHIFTED. Currently, we have more people performing one digital ad function or the other, including analytics and algorithm development. It means that technology doesn’t actually lead to loss of jobs, rather it brings about changes in the nature of jobs. Only those who fail to understand trends and upgrade accordingly are left to rue their losses.

Humans have an unmatched level of dynamism, and therefore never expected to be obsolete like technologies. When you become redundant, it means that you are now being viewed as outdated technology. You must never allow yourself to get to that pitiable state.

Learn How to Fish Early – Diamond Bank Prepared Me For All Moments

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I have received many emails since I shared a post on UN in LinkedIn. Many have asked me to share guidance on career planning. Largely, it is very hard to write about yourself in this way. Nonetheless, to help young graduates who asked, I am sharing some decisions I made earlier.

Getting ready to leave FUTO (Federal University of Technology, Owerri, Nigeria), my undergraduate university, I committed to focus on accumulating capabilities over just making money early. My thesis was that by building capability, I could transition to the top level in the world. For me, it was irrelevant where I was beginning: the most important thing was really what lies ahead.


Ndubuisi Ekekwe receives award from Richard Branson

I defended my undergrad thesis on Friday. On the following Monday I started work. I went straight from hostel to the new job without reaching home. There was no need; I had only a bag to school as I was a squatter. Though usually getting official accommodations on academic awards, the usual temptation to sell, and then squat with willing friends won many times.

My Department Chair (Prof SOE Ogbogu) had accepted a job for me nine months earlier. For this job, I did not interview the employer; it also did not interview me. The week the firm came to FUTO, I was out of school to get advertisers in Aba and Onitsha for my campus newsmagazine – FUTO Bubbles.

Ndubuisi Ekekwe with Bill Gates

I began work in that firm – a pioneer CDMA company. They gave me a flat, a car with driver, and good salary. Then on second day, I asked to meet the Founder, and the CEO. I spoke with them, and they failed my “interview”: they presented a roadmap on how to make money but none to develop the person making that money. I saw a total dislocation on how life could be about money that early with no strategy on acquiring skills (my desire to start master’s program immediately was not permissible). On 3rd day, I resigned. It was easy to do that; I had options – I could return to FUTO as a graduate assistant teacher which the department had already offered. Also, there were other jobs on pipelines.

The first day I met Mr. Tony Elumelu. He became a mentor; I remain thankful for his supports.

One of those jobs was to work in a local IT company doing structured office wiring in Shell. I joined that firm for no specific formal wage even though the owner was always giving me money. But I did enjoy the job – I was learning common sense skills which could be easily monetized. Also, I knew that it was temporary since NYSC was coming; the CDMA job was structured that I would serve there. (My suggestion remains to choose where you could make more money in Nigeria provided it can give you space to use that money to develop yourself in a case where the firm has no clear strategy on staff development. But if getting that more money is all you get, if you have other options, re-consider.)

Then NYSC came, and opportunities opened. NYSC Plateau State secretariat needed a contractor to do structured office wiring in the state secretariat. I had registered a company a day out of camp. I applied and won the contract. I bought my first car from that NYSC contract. It was the first time Federal Government of Nigeria was to pay me.

Ndubuisi Ekekwe with former UN Sec Gen

Post NYSC

I did all possible to stay in Jos after NYSC but without a university offering engineering master’s degree (then), it was not possible. Attempt to visit ATBU Bauchi did not work out as I went on a Friday without any deep knowledge that schools largely close on Fridays for prayers. So, I had to leave Jos. And I left.

Immediately, the plan was to find a Nigerian firm that could support my plan – provide a good job and allow me to study! I was lucky – I found Diamond Bank. My secondary school classmate who was working as an office assistant had made a case that the bank was great on supporting human development. Yes, even though Diamond Bank paid well, the greatest value was the absolute commitment to develop people. As I had written here, there was no training or certification invoice the bank did not pay.

I enjoyed Diamond Bank; it was a bank with limitless opportunities. They paid every training invoice I sent to them and the bank was awesome. There was no boss; we were all comrades serving Nigerians. In short, I never saw my supervisors as bosses; they were colleagues and they made spending 48 hours at work normal.

When I joined Diamond Bank, a multinational oil company through FUTO wanted me. I explained to my Department Chair that I was not interested. By then, I was already in training school in Apapa branch of the bank. But somehow to avoid burning the bridges with FUTO, I was asked to honor the invitation. The oil company flew me to Trans Amadi (my first time of entering a plane); I went and politely declined the job. The job was to pay more than what Diamond Bank was paying. By then, I had figured out that knowing about finance would be helping in my path in future (I had wanted to own my firm). Also, the banking job was more tradable in future than working in a big oil firm where trading the skills acquired could see more barriers. Besides, the problem was not money as the NYSC contract money was still intact. I later took 6,000 pounds sterling to pay for correspondence doctoral program in UK.

All Together

I am still working on this career. But I have known one thing: while making money is nice, do all necessary to work in a place you can learn. Giving you a fish is great, but teaching you how to fish is PRICELESS.

Finally, always assume that only 10% of Nigerian professionals will stay in their fields after 15 years. Our economy is very small when compared to those jockeying for opportunities at the top. So, as companies begin to weed, triggering career paralyses, it is what you know that will see you through. So, developing skills early will help you instead of packing money only to see that you are out with no tradable skills. A job that gives you skills which can be monetized in a Nigerian economy should always be preferable as you can “sell” those skills later. And then, always pray for favor, because no matter what, grace is all you need.

Zenvus >> Farmers Wanted

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A customer has a special need: longer Zenvus to deal with the specific conditions in the terrain. Doing that would involve few re-calibrations requiring updated models in the Zenvus engine. Few hours ago, we sent a note “Chairman, everything required has been achieved and more”.

Zenvus is a pioneering precision farming technology company that uses computational algorithm and electronics to transform farms. Zenvus collects soil fertility and crop vegetative health data to deliver precision agriculture at scale. It then uses the aggregated and anonymized data to deliver financial services to farmers.

In our lab, we are moving into customization of technologies by co-creating with our major clients. Our APIs are engineered to meet you at that specific point of friction, delivering solutions beyond needs, expectations but perceptions with catalytic impacts where farmers become businesspeople.

Zenvus >> Farmers Wanted

How To Assess What Your IT Team Members Do

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This report presents how to measure and evaluate your IT team members. The key is using the elements noted to make them more productive in your business. It is about IT Employee Assessment in a data driven way. Download the report here (PDF). Here are the core nexus in this report: Communicate & Justify IT’s […]

This post is only available to members.

International Company Settles Gold Mine Licence Dispute

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London-based Red Rock Resources Plc, a natural resources development company, is set to resume the production of gold in Migori as soon as possible. The update comes following the recent settlement of a court case with the Kenyan Ministry of Mining, who had previously terminated their mining licence in May 2015. The gold production project carries an estimated worth of over Ksh 100 billion. Red Rock Resources have a 15% stake in Mid Migori Mining Company Ltd, who in turn controls a 1.2Moz JORC gold resource in Kenya with the use of Special Prospecting Licenses 122 and 202.

Settlement details

The two parties have agreed to settle the case, leaving Red Rock Resources free to make a new license application. Why the Ministry of Mining initially cancelled the company’s license remains a mystery to the public. In a recent statement, the multinational company explained they’ve signed a consent along with the Attorney General which is currently being filed with the court. Red Rock Resources have agreed to drop the case without compensation — an outcome similar to the recent business legal case concerning American CEO Erik Gordon.

New licenses to mine

As part of the settlement, Red Rock Resources will be able to apply for new licences under Section 225(6) of the Mining Act 2016. Previous decisions made will not hinder or prejudice their new application. These licenses allow the international company access to mining in South West Kenya near the Tanzanian border, which isn’t far from the North Mara mine operated by Acacia Mining plc.

Plans for the future

Red Rock Resources are eager to resume their exploration and production of gold in the Migori belt —  which spans a whopping 243 square kilometres. It’s an important area with a long history of both colonial and artisanal mining. “This settlement we hope will open the way to renewed progress towards our aim, which is to have a producing gold mine. Our desire, and that of the authorities and local communities, is to see work towards this recommence without delay,” Andrew Bell, the chairman of Red Rock Resources plc announced.

Additionally, Red Rock Resources are expected to raise their stake in Mid Migori Mining Company Ltd from 15% to 75%. It’s currently majority owned by Kansai Mining Corporation. “We shall make further announcements as the applications progress,” Bell added. Watch this space.