Connect with us

Banking

Experts Back ‘Say No to AVEs’ Campaign by AMEC

Published

on

Experts Back ‘Say No to AVEs’ Campaign by AMEC

Experts Back ‘Say No to AVEs’ Campaign by AMEC

By Modupe Gbadeyanka

A worldwide campaign recently launched by the International Association for Measurement and Evaluation of Communication (AMEC) tagged ‘Say No to AVEs’ has received the backing of leading international communication and public relations academics.

The movement is calling for an end to the use of Advertising Value Equivalents (AVEs) as a purported measure of editorial media publicity.

AMEC issued a statement detailing 22 reasons that AVEs are a flawed method of evaluation for PR, which further explains why AVEs are invalid and misleading.

Also, the Barcelona Principles supported by professional PR and communication industry bodies worldwide stated that AVEs were not the value of PR or communication.

Communication and PR academics recommend that industry professionals use valid social science research methods for evaluation.

The press release, distributed in the Nigeria by P+ Measurement Services, a leading and fastest growing Independent Communications and PR measurement agency in Nigeria, is a member of AMEC.

According to the Academic Advisory Group to AMEC, which comprises Professor Anne Gregory, University of Huddersfield, UK; Professor Jim Macnamara, University of Technology Sydney (Chair); Dr Tina McCorkindale, President and CEO of the Institute for Public Relations (IPR); Professor Brad Rawlins, Arkansas State University; Professor Don Stacks, University of Miami; Emeritus Professor Tom Watson, Bournemouth University, UK; and Professor Ansgar Zerfass, University of Leipzig, “Industry research studies indicate that so-called ‘advertising value equivalents’ (AVEs), also referred to ‘equivalent advertising value’, are still used by up to a third of PR and corporate communication practitioners worldwide despite irrefutable evidence that the calculation is invalid and misleading.

“AVEs, which equate the value of editorial media coverage with the cost of an equivalent amount of advertising, have been discredited as an evaluation method by a number of research studies on the grounds that:

  • They confuse value with cost, using an estimate of the cost of paid media advertising as the alleged value of editorial media publicity. The value of advertising is not measured by how much it costs. So such comparisons are conceptually and practically flawed;
  • Furthermore, the estimated ‘cost’ figures are hypothetical (what paid media advertising would have cost if purchased in the same media). Advertising is selectively placed and, in many instances, would not be placed in the media in which editorial publicity appears;
  • Advertising and PR are not equivalent. While advertising is controlled in terms of placement and content, editorial media coverage is uncontrolled and variable in terms of placement, content, and tone and needs to be analysed qualitatively as well as quantitatively;
  • PR involves a much wider range of communication activities than editorial media coverage (e.g., Web sites, events, community relations) for which AVEs are irrelevant;
  • AVEs make no contribution to demonstrating outcomes or impact of communication, which should be the focus of evaluation.”

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Click to comment

Leave a Reply

Banking

Akinwuntan Seeks More Stable Environment for Improved Production

Published

on

Ecobank Akinwuntan More Stable Environment

By Aduragbemi Omiyale

The Managing Director/Regional Executive of Ecobank Nigeria, Mr Patrick Akinwuntan, has called for a more stable environment so as to quicken Nigeria’s economic recovery through improved production.

He said Nigeria has the capacity to become a major player in global trade because of its huge resources, which could be harnessed for greatness.

Speaking on the sideline of the Chartered Institute of Bankers of Nigeria (CIBN) 56th Annual Bankers Dinner in Lagos last weekend, Mr Akinwuntan said Ecobank is well-positioned to support the various productive sectors of the economy to make a greater impact in the country.

He disclosed that the bank will continue to support Small and Medium Enterprises (SMEs) and take banking to every Nigerian through its agency banking network.

According to him, the financial institution’s digital services will also support industries that focus on exports such as agriculture and manufacturing in 2022.

“We are a huge player in AfCFTA to assist in making Nigerian entrepreneurs become Pan African multinationals. As Nigerians, we must tell our story; Nigeria is the largest economy in Africa and as of today, Africa provides the best investment opportunities globally, we should turn our concerns into opportunities.

“As the country increases its exports, it will improve foreign exchange earnings, widen employment base, further support industries and a more stable Gross Domestic Product (GDP),” he advised.

Mr Akinwuntan noted that insecurity in the country must also be addressed for a more stable environment, stating that steady growth of employable youths was critical for Nigeria’s economy to improve its production level.

According to him, there are over 40 million SMEs in the country, assuring that the banks will continue to support the productive sector and entrepreneurial young people and small businesses to make a greater impact on the nation’s economy.

Continue Reading

Banking

We Have Done Well to Stabilise Nigerian Banking Sector—NDIC

Published

on

Nigerian Banking Sector

By Aduragbemi Omiyale

The Nigeria Deposit Insurance Corporation (NDIC) says it has performed the duties of keeping the Nigerian banking sector stable since its inception about 32 years ago.

Chairman of the NDIC, Mrs Ronke Sokefun, disclosed that the agency has ensured that members of the public have a strong belief in the financial system in the country.

According to her, the NDIC, when necessary, provides financial assistance, technical assistance to Deposit Money Banks (DMBs), Microfinance Banks (MfBs) and Primary Mortgage Banks (PMBs).

She further said in addition, the insurer assists financial institutions with mergers and acquisition, purchase and assumptions, as well as the application of the bridge bank mechanisms.

“Besides deposit protection, prompt resolution of bank failure in Nigeria by the NDIC in its over 32 years of its existence has succeeded in steering the banking sector off systemic failure and collapse of public confidence, thus safeguarding the role of financial safety net,” Mrs Sokefun said on Thursday at the 2021 NDIC retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.

The NDIC boss noted that, “It is only when all these options could not rescue a bank that it is allowed to go into liquidation.”

She said so far, a total of 467 DMBs, MfBs and PMBs have been completely liquidated or undergoing the process of complete liquidation.

“As of date, 49 DMBs, 367 MFBs and 51 PMBs are either completely liquidated or undergoing the process of complete liquidation by the NDIC, following the revocation of their operating licenses by the Central Bank of Nigeria,” Mrs Sokefun informed the lawmakers.

Continue Reading

Banking

Otedola, Odukale First Bank Leadership Tussle Excites CBN

Published

on

First Bank Leadership Tussle

By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has expressed satisfaction with the power tussle between Mr Femi Otedola and Mr Taiwo Hassan Odukale, over who owns the single largest shareholding in First Bank of Nigeria, also known as FGN Holdings Plc.

The duo recently became a news item over the issue after it was announced that Mr Otedola was now the single largest shareholder in the financial institution. The company later released a statement, stating that Mr Odukale was the largest shareholder.

On Tuesday, after the last Monetary Policy Committee (MPC) meeting for 2021, the Governor of the CBN, Mr Godwin Emefiele, while addressing reporters, said the development was a testament to the positive decisions taken by the apex bank to keep First Bank alive.

A few months ago, the CBN sacked the board of FBN Holdings and First Bank of Nigeria Limited, its flagship bank, over a leadership tussle.

It was after the news that Nigerians knew that the central bank had been providing funds to the company as an intervention in order not to make it collapse because of huge non-performing loans (NPLs) bedevilling the organisation.

Justifying its decision to provide funding support to the lender on Tuesday, Mr Emefiele said First Bank, as the oldest bank in Nigeria, was too big to fail.

According to him, “If anything happens to First Bank, it means something has happened to the Nigerian banking system. That is why we are taking advice on how to get the bank afoot seriously.”

He then declared that First Bank was too big to be owned by an individual, adding that the tussle was good because “six years ago, as I said, because of an aggressive build-up of NPLs, the share price of First Bank was about N2. We took it up. Then, everybody was running away from the shares of First Bank.

“We have cleaned the balance sheet now, people are seeing that the money-making machine, First Bank, is back on its feet. They are in the race for profitability. They are now competing for the shares of First Bank. As of the last time I checked over the weekend, the share price was more N11.

“Why should I quarrel about that? “I am happy to see that they are competing for the shares. Of course, we all know that First Bank is so large that no single person can own it. In running the banks, they should see themselves as representing others.”

The leadership tussle between the two billionaires seems to have been put to rest after the clarification made by the National Pension Commission (PenCom).

First Bank had earlier said Mr Hassan-Odukale controlled a 5.36 per cent cumulative equity stake in the company through direct and indirect shareholding, stating that it was more than the 5.07 per cent holding of Mr Otedola.

Mr Hassan-Odukale’s stake rose to 5.36 per cent because of the addition of the stake of Leadway Pensure Limited, which he also has an interest in.

But PenCom explained that the shares of FBN Holdings purchased by Leadway Pensure belonged to Retirement Savings Account (RSA) holders and not Mr Hassan-Odukale because the funds actually belonged to a pool of investors, who are mainly Nigerian workers.

Continue Reading

Like Our Facebook Page

Latest News on Business Post

Trending

%d bloggers like this: