Pakistan Consumer Boom Driving Media Advertising Revenue

[RiazHaq]

Rising buying power of rapidly expanding middle class in Pakistan drove the nation's media advertising revenue up 14% to a record Rs. 76.2 billion ($727 million) in FY 2015-16. Half of this ad spending (Rs. 38 billion or $362 million) went to television channels while the rest was divided among print, outdoor, radio and digital media.

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[TD="class: tr-caption, align: center"]Media Ad Revenue by platform. Source: Aurora[/TD]
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Digital media spending rose 27% in 2015-16 over prior year, the fastest of all the media platforms. It was followed by 20% increase in radio, 13% in television, 12% in print and 6% in outdoor advertising, according to data published by Aurora media market research

HUM TV channel had the highest revenue at Rs. 3.84 billion, followed by ARY Digital's Rs. 3.802 billion, PTV Sports Rs. 3 billion, Geo Entertainment Rs. 2.93 billion, Geo News Rs. 2.6 billion, Urdu1 2.5 billion, PTV Home Rs. 2.5 billion, Samaa Rs. 1.9 billion, and Dunya News, ARY News and Express News Rs. 1.8 billion each.

The television channels with the highest revenue increases in 2015-16 were: Samaa (88%), Geo News (82%), Geo Entertainment (81%) and ARY News (76%).

The current media boom in Pakistan started in early 2000s when Pakistan had just one television channel, according to the UK's Prospect Magazine. Today it has over 100. Together they have begun to open up a country long shrouded by political, moral and religious censorship—taking on the government, breaking social taboos and, most recently, pushing a new national consensus against the Taliban. The birth of privately owned commercial media has been enabled by the Musharraf-era deregulation, and funded by the tremendous growth in revenue from advertising targeted at the burgeoning urban middle class consumers.

Pakistan has managed to significantly reduce poverty and rapidly grow its middle class since 2001 in spite of major political, security and economic challenges. The foundation for the rise of the middle class and the electronic media boom was laid on President Musharraf's watch by his government's decisions to invest in education and infrastructure projects and deregulate the media that led to the expansion of both human and financial capital. My hope is that the continued improvement in security situation and implementation of China-Pakistan Economic Corridor (CPEC) related projects will bring in higher long-term investments and accelerate Pakistan's progress toward prosperity for all of its citizens.

http://www.riazhaq.com/2017/05/pakistan-consumer-boom-driving-media.html

 

[Okara]

This mean government is the biggest commodity in Pakistan as PMLN lead government is spending minimum of 60% of total money spent on advertisement in Pakistan.

 

[arafay]

This mean government is the biggest commodity in Pakistan as PMLN lead government is spending minimum of 60% of total money spent on advertisement in Pakistan.

This riaz haq guy us always over-optimistic is his analysis almost to the point of mis-informing. Fact of the matter is whenever PMLN comes into government media spending increase drastically! Given that 60% of all advertising is from government sector means that private sector (real businesses) is only Rs 30 billion which reveals that media industry is struggling. Just ask GEO employees who have not been paid their salaries for 3 months!

Similar trend can be seen in large scale manufacturing. Punjab govt orders 50,000 suzuki vehicles for the apna rozgar scheme and. Off course sales improved drastically. But arm chair economists should realize that this growth is subsidized by tax payer money and NOT from increased consumer spending.

Cement and steel industry is also enjoying great boom because govt is subsiding transport projects with taxpayer money. Also construction and real estate is the only viable industry now in the face of electricity and gas load shedding so even large industrialists like Yunus brothers (lucky cement, yunus textiles and ICI chemicals) are now opening shopping malls eg. Lucky One.

however, the most dangerous aspect about pakistan's present economic situation, is the foreign loans and USD exchange rate. Munshi dar has pegged PKR to 100-105 against the USD by borrowing from everyone and anyone. However, USD has strengthened greatly over the last 4 years and the true value of 1 USD is around RS 125-135 at least. By keeping the rupee overvalued, Munshi has single handedly made pakistan's exports uncompetitive and thus exports are now touching $20 billion despite GSP status and better security situation. PMLN has a record of playing with the foreign exchange reserves and they messed up badly in 1999. I think they deliberately keep rupee over valued to subsidize imports and help shop keepers and wholesalers. This makes sense given that 80% of PMLN vote bank is your average GT road retailer/trader/shopkeeper.

 

[RiazHaq]

Facebook and Google will eat up 70% of advertising revenue by 2020


https://www.techjuice.pk/facebook-google-eat-70-advertising-revenue-2020/




Press Gazette, a UK-based trade website for newspapers and magazines, is launching a campaign to stop Facebook and Google from destroying the journalism industry.


According to Press Gazette, Facebook and Google have created a strong monopoly in the advertising industry of UK. Owing to this monopoly, the journalism industry is badly affected as a major chunk of advertising revenue is going to this duo.


The advertising industry of UK was 20 billion pounds in 2015. In the past decade, the revenue sharing to the newspapers has gone from half to one-tenth. This is an alarming situation for publishers.


Press Gazette said, “The Government would not allow such a duopoly to stand. Campaigners would call for them to be broken up in the name of media plurality.”


Due to dip in revenues, a major chunk of news publishers are slashing the salaries of employees and the number of journalists being employed has been thinning down as well.


In the past one decade, the newspaper has increased their reach and readership but this scale hasn’t positively affected their revenue graphs.

 

[RiazHaq]

This mean government is the biggest commodity in Pakistan as PMLN lead government is spending minimum of 60% of total money spent on advertisement in Pakistan.

[FONT=&quot]Given that in the FY 2015-16, the Government of Pakistan was the fourth largest advertiser in the print media in terms of product categories (source: Aurora Fact File November-December 2016), the importance of the Government as a client for newspapers cannot be overestimated.[/FONT]
[FONT=&quot]Traditionally, governments have always advertised heavily in the print media, particularly during the 80s and 90s. A major reason is that tender advertising, as per the Public Procurement Regulatory Authority (PPRA) rules must be published in print, and tenders constitute a considerable chunk of the total government advertising. However, since the late 90s, the share of government advertising in print has reduced considerably. According to Umer Mujib Shami, Secretary General, APNS, “the television-print break-up at one point used to be about 50-50; however, in recent years it has changed, with print’s share going down to 25 to 30%.”[/FONT]
[FONT=&quot]There have been ongoing negotiations between the APNS and the Government to rectify this situation. Dr Tanvir A. Tahir, Executive Director, APNS, believes that the importance of newspapers as a medium cannot be ignored. This is particularly true when it comes to information dissemination and influencing opinions of key decision-makers in diplomatic and bureaucratic circles. It is on this basis that the APNS has asked that the Government increase the share of the pie by fixing its advertising spend at two percent of the cumulative development budget. Furthermore, the APNS has asked that the budget allocation between media should follow a 50-40-10 proportion, for electronic, print and digital respectively, as is done in other countries such as India. The APNS stance is that this will ensure that these policy changes will continue to allow the print media to play its role in informing, educating and influencing public opinion.

http://aurora.dawn.com/news/1141941[/FONT]

 

[RiazHaq]

Ogilvy #India, #Pakistan co-create #Ramzan ad for spice #brand #Shan Foods. #advertising #Ramadan

http://www.livemint.com/Consumer/8j3UNzkKpZzW72dolTE6CL/Ogilvy-India-Pakistan-cocreate-Ramzan-ad-for-spice-brand-S.html

Shan Foods, Ogilvy India and Pakistan will also set up ‘neighbourhood tables’ in two cities of Pakistan where people will be invited to share a meal

Food opens the door to people’s hearts, breaking barriers of language, culture and nationality. Ogilvy India and Ogilvy Pakistan highlight this in a heart-winning campaign for Shan Foods, one of Pakistan’s biggest brands of spices and recipe mixes. Set up in 1981 by Sikander Sultan, Shan now has a presence in over 65 countries, including India.

The campaign, rolled out weeks before Ramzan, aims to bring new neighbours together using the power of food. Shot in Lahore, Pakistan, the film opens with a Chinese couple who has recently moved into the neighbourhood. The wife, still adjusting to the new place, complains she cannot make new friends locally considering they don’t even eat the same food. Minutes later she asks the husband to drop her off at the supermarket where she buys biryani masala and prepares the flavoured rice dish to break the ice with her neighbours. Surprised at her skill (aided by Shan, of course), the women in her neighbourhood open their homes and hearts to her with great warmth.

“The neighbourhood comes alive by sharing food. It was a nice concept to bring back in today’s busy world that we live in. There are many Chinese expats living in Lahore hence we decided to tell the story from their perspective. The product is weaved in the story beautifully and highlights how Shan Foods brings out the ease of cooking. We collaborate on lot of projects with Ogilvy Pakistan and the credit also goes to the client (Shan Foods) to believe and own the work we do,” said Sukesh Nayak, executive creative director, Ogilvy Mumbai.

Apart from television and digital, the campaign will look at on-ground activation. The brand along with its agency will set up “neighbourhood tables” in two different cities of Pakistan where people will be invited to share a meal.

Noting that the space of food eliminating cultural differences has been explored, Deepak Singh, chief creative officer, The Social Street, said, “The insight of neighbours connecting over food is quite true and relevant to us Indians as well. I also quite like the plot, the cast and particularly the music.” Singh also noted that since food is an integral part of any festival, and Ramzan being the holy month followed by Eid which is one of the biggest festivals in Pakistan, the on-ground activity to set up “neighbourhood tables” will connect the brand with consumers.