Media Spend Trends
The power of mighty media is seldom underestimated. Pakistan is a country where communication reaching the masses through the media affects buying behaviours. The changing trends of media reshape different brands ad expenditures and, in turn, their positioning in the consumer’s mind. Despite the global communication trend that is shifting to digital media, television and print are still the big players in Pakistan. Ever since the advent of television in the country, it has enjoyed maximum national reach. It communicates with the audience irrespective of the literacy rate. Print, or digital and outdoor media for that matter, depend on the literacy rate to a great extent when taking reach into consideration. Print is right after television in terms of reach, especially in the urban areas, followed by radio which enjoys greater penetration in the rural areas. Outdoor is an important medium as well and has regained considerable penetration over recent years as a result of high quality vinyl printing. The digital medium is still in its infancy in Pakistan and does not attract ad spend in competitive volumes.
During the fiscal year 2012-13, media ad spend in television stood at Rs. 21.73 billion, representing 61% share of the total ad spend during the year. The share of television had an increase of 11% that rose from Rs. 19.62 billion during 2011-12 to Rs. 21.73 billion in 2012-13. The media expenditure of ads on television increased from Rs. 32.82 billion in 2011-12 to Rs. 35.85 billion in 2012-13. The overall share of television in media ad expenditure rose 1% during the fiscal year in consideration and stood at 61% at the end of the year. Satellite television channels comprise 83% and Rs. 18.079 billion of the total ad spend of television and have seen an increase of 16% when compared to the last fiscal year. Terrestrial channels on the other hand comprise 17% and represent Rs. 3.651 billion, indicating an increase of 9% from the last fiscal year.
Among TV channels, Geo News represents a 20% increase in revenue, whereas PTV Home has fallen from the first to the third place this year. Geo News makes up 12% of the total percentage share of TV and PTCL stands at 10%. Hum TV has seen a monumental increase of 48% revenue during the fiscal year 2012-13 and stands in the third place, previously fifth during 2011-12, in terms of total ad spend share of television. The top five TV channels account for 47% of the total media ad spend and include Geo Entertainment and ATV as well.
In terms of product categories advertised on television, mobile phones and telecommunication stay ahead of all others by a good 23% share of spend. Carbonated and soft drinks make up 6% of the ad-spend, whereas detergents comprise 5%. Detergents also remain the top advertised category on cooking channels. The companies most advertised on TV are Unilever Pakistan with 13% share, PTCL with 6% and Procter and Gamble Pakistan with 5% share. The most advertised brands include Coca Cola, Surf Excel, Ariel, Mountain Dew, Head & Shoulders, Telenor TalkShawk, Ufone, Dettol Soap and Safeguard.
Print and its reach invariably depends on literacy. Print ad spend revenue has increased by 5%, from Rs. 7.427 billion in 2011-12 to Rs. 7.77 billion in 2012-13. The overall media ad spend share of print decreased in the referred fiscal years by 1% and stood at 22% during 2012-13. Among newspapers, Jang maintains a 36% share; Dawn stands at 19% followed by Daily Express, The News and Nawa-i-Waqt. Newspapers comprise a wholesome 98% of print ad spend whereas magazines comprise 2%. The ad spend share of newspapers has increased by 4% when compared to the fiscal year 2011-12. The ad spend share of magazines on the other hand has increased by 17%. Two magazines, Akhbar-e-Jahan and Mag, occupy 48% and 18%, respectively.
The top advertised product categories in print are 16 % classified advertising. Legal and other notices comprise 13% whereas educational institutions represent 10% share of print ad spend. Among the companies, Geo TV Network collectively comprises 6% whereas PTCL, Express Group and PPP-P comprise 2% share each. The most advertised brands in print are Geo TV Network with 6% share. The brands that follow include Bahria Town, Express Group, Channel 5, Park View, Aaj News, Waqt and corporate advertising of Ufone, HBL and NBP comprising 1% share each during the fiscal year 2012-13.
Outdoor, radio and internet ad spend shares comprise 6%, 4% and 1% shares of the total ad media spend, respectively. They represent comparatively less reach than television and print which occupy a monumental share of media spend in any particular fiscal year. The trend will shift to digital media very gradually as the literacy rate improves in order for it to keep pace with the global change in media and communication.