An Interview with Sarmad Ali Secretary General (APNS) President (IAA) Pakistan Chapter Business Recorder: How successful has APNS been in keeping the Advertising and Media industries on the same page?
Sarmad Ali: Founded 60 years ago, the All Pakistan Newspaper Society (APNS) is the premier regulatory body for the Advertising industry in Pakistan.Since the last 60 years, the society has functioned as a bridge between the newspapers and advertising agencies.
APNS has a permanent joint committee with both the Advertising Association of Pakistan and the Pakistan Advertisers Society that meets at regular intervals to evolve consensus on industry issues.The society has a clear code of conduct for Advertising agencies that it implements in letter and spirit.
BR: What problems is the Pakistani advertising industry currently facing?
Sarmad Ali: The Advertising industry is currently going through a flat period.The Advertising and media industry is not growing and have been static for some time.The boom that the Ad industry saw during the last decade has disappeared and both media and Ad agencies are suffering due to the tough economic times that the country is facing. Survival is now the name of the game.
BR: How has the recession affected business and how has the situation of the industry changed over the past three years?
Sarmad Ali: Up till 2008, the Advertising industry was growing by approximately 20-25% a year.However, since the recession has resulted in an economic meltdown, growth has disappeared and revenues of all media platforms, particularly newspapers, have just eroded.Currently though, even a flat year with minimal growth is almost considered a lucky for the TV channels and newspapers.Since advertising acts as a barometer ofcountry's economic growth - Ad spend has almost completely halted behind a low GDP growth.Although, the industry is very resilient and has the potential to bounce back, we need economic and political stability and consistency in economic policies to give it a boost.
BR:Is there a common forum for media and advertisers to come together in Pakistan?
Sarmad Ali:There is currently no single forum that unites the three stakeholders on one platform.Each stakeholder has a separate forum:Advertisers have the Pakistan Advertisers Society, Advertising agencies have the Advertising Association of Pakistan and media has the All Pakistan Newspapers Society and the Pakistan BRoadcasters Association.
Although an attempt to create a joint industry committee on advertising was made about five years ago but it didn't take off, I strongly believe that there is a need for a platform where all stakeholders can come out of their respective silos and sit together.We should perhaps consider reviving the joint committee or creating a body like the Advertising Standards and Practices.This is a vital need of the hour and I urge all the stakeholders to consider developing a joint initiative to tackle industry's issues.
BR:What is your view of digital media? Has the advent of social media made any significant changes in the way advertising is being done? Will Facebook, Twitter and the likes be the new face of advertising?
Sarmad Ali:Internet is the only medium on which advertising is growing exponentially.Perhaps because the base is small and the potential is huge.
Pakistan is one of the fastest growing markets in terms of internet penetration. At present Pakistan has 21 million internet users which translate into 11% of the population.
The rapid changes taking place in technology have revolutionized the way internet is consumed.Wifi and broad band have changed the Digital mediascape.
Internet consumption has now gone beyond desktops or laptops.It is now being consumed through tablets, smart phones and IPTV.Incidentally Pakistan also has one of highest penetration rates for mobile telephony at almost 60%.
Social media has changed our, particularly the younger generation's, media consumption habits. The number of registered Facebook users in Pakistan has now crossed more than 6.5 million and by the time this report is published it would have crossed 7 million. Similarly, the other social media platforms like, Twitter and Linkedin are also growing.Advertisers need to understand the plurality of social media and learn to effectively use it.
BR:What is the future of print media advertising? What threats does it face?
Sarmad Ali:When radio was introduced in the '20s people used to say newspapers will disappear.They perceived the same threat when the TV came and the digital revolution has once again given rise to similar fears.I think all media will survive; each medium has potential to evolve and a role to play.
Newspaper readership is actually growing in a lot of markets.India is a case in point.Similarly, although Pakistani newspapers readership is flat, the largest media in terms of advertising revenues is still a newspaper ie Jang and not a TV channel.This shows the strength and resilience of the print media attracting younger readership.
It is true that TV spending has over taken spend on print during the last three years, but the growth has been caused by the tremendous increase in the number of TV channels.On the other hand, the number of newspapers' titles has not increased significantly and the publishers have not done an innovation are
Newspaper publishers will have to adapt to the changes that take place and the new challenges around them - challenges like ad revenue being diverted to TV channels, emergence of digital media and challenge. If they do not adapt and respond to these challenges, there are problems for the newspapers.
Advertisers and media owners need to understand that media consumption is not platform or medium centric.In the course of 24 hours consumers are exposed to all kinds of media.They read newspapers, listen to the radio, browse the internet and watch television.We are no longer living in a single media environment.And single media companies are a thing of the past.In order to survive a media companies will have to become multi media.No single media can reach everyone - never covered and never will. Advertisers need to recognise this fact and exploit all of these media to their advantage.The media owners have regard their business as consumer touch points had.
It has become fashionable to say that newspapers have no future. But I disagree with the prophecies done.
BR:Tell us a little about IAA and how it facilitates the advertising industry?
Sarmad Ali:IAA is perhaps the only platform that brings advertisers, agencies and media together because its membership is open to all the three stakeholders.IAA in Pakistan is not a big chapter but is growing and I see it as a platform that has a potential to bring the stakeholders together.
BR:Let us know your views about Ad Asia and how will it help the Pakistan's advertising industry?
Sarmad Ali:Ad Asia has always been one of the events one waits for.There is of-course a lot of knowledge sharing and networking.And of-course fun! Delhi is a great place to hold Ad Asia, and I am sure it will surpass most previous congresses.
Sarmad Ali, Managing Director Marketing & Advertising Sales of Jang Media Group, is the Secretary General of All Pakistan Newspapers Society and President of the International Advertising Association's Pakistan Chapter.Sarmad is also a member of the FPCCI's Standing Committee on Advertising.
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