An Interview with Aly Mustansir Chairman, Pakistan Advertisers Society and Head Marketing & Brand Management HBL Business Recorder: Please give us a brief synopsis of the historical significance of Pakistan Advertisers Society (PAS).
Aly Mustansir: Pakistan Advertisers Society (PAS) was established almost 20 years ago, by a few fast-moving goods manufacturers (FMCGs). This society was established with two basic objectives in mind: creating a voice for the advertisers; and creating a platform for self-regulation and self-discipline for different aspects of the advertising industry. From relatively modest beginnings, PAS has mushroomed over the years into a powerful platform for bringing together advertisers. As more professionals have joined our ranks, we have been able to expand our focus to tackle more of the issues that are relevant to the industry.
But it is not just to raise a voice for advertisers. Rather we are striving to find concrete solutions with the consultation of all stakeholders including media, citizens, advertisers, creative agencies, etc. We are working with advertisers whether they are working with print or broadcast media.
So, 20 years ago, we didn't have this cable and satellite network that we have today. And as things have changed, challenges and issues have increased and I am sure five years from now, the online media part will become a major challenge as well. Like I said, the bigger part was self-regulation and self-discipline. We have developed a code of conduct for advertisers and also hold those in violation of this code accountable through pre-determined internal mechanisms.
BR: Tell us about some of the major achievements of PAS.
ALY MUSTANSIR: There are many, but the biggest one in recent times is the introduction of people meters as a target audience measurement system. For years, the industry has been relying on diaries maintained by viewers, which is not an accurate method. Meters are used in most of the countries in the world and they are obviously much more reliable and accurate in terms of determining ratings.
Other than that, we also joined hands with some research agencies to create Pakistan's consumer multi -media index, which provides a thorough consumer reading than other researches that are generally available. The core of advertising practice has been reviewed twice and refreshed accordingly. And this time the section on advertising to children has also been incorporated, which was something that was certainly missing and with so many youth and kids brands, there was a need to check the kind of information that was being given out.
PAS has also taken a staunch and definitive stance against piracy on television. We, as a society do not support any illegal use of software on any channels. This has helped curb this practice among local channels operated by cable operators because until we started pulling advertisements from such channels, they had pirated content with impunity.
More recently, we launched the first PS awards for good communication, which is very heavily attended and subscribed to and the idea of these awards is to support and enhance the quality of advertising in the country.
BR: What are the biggest challenges that PAS confronts at present?
ALY MUSTANSIR: Advertisers in the country are confronted with a precarious set of circumstances. While they fund all marketing and media activities, they typically deal with issues emanating not just from their own work, but also by the activities of other stakeholders. So you are drawn between how to face the challenges that come with advertising and how to support the stakeholders in the challenges they have. Sometimes broadcasters have problems and they come to PAS. Then on the other hand you would have unexplained price increases in media rates and stuff that starts affecting people. Then there is the issue of clutter or of ensuring ethical practices in advertising.
BR: Briefly inform us about the structure of PAS.
ALY MUSTANSIR: There are about 36 members from the local industry however they are among the most influential players in the industry because they generate 75-80 percent of the total media spend in the country. These members include multinational companies such as Unilever and Reckitt; as well as national companies such as the big banks. In addition to that, the telecom companies have also joined our ranks in recent years, so we have a healthy mix of companies from various sectors which together constitute a majority of the spending on media in the country.
BR: How much does the local industry spend on advertising on television?
ALY MUSTANSIR: Spending on television advertising and related campaigns tallies to about Rs 32 billion, this year. Typically media spending on television is higher than other avenues. Last year, this number had totalled about Rs 28 billion, but this year we saw spending jump during the cricket world cup.
Spending on advertisements in print media holds a smaller share in the total expenditure on media. Moreover, this number has been on the decline in recent times. When we combine the spending by advertisers on various forms of media, it's about a billion-dollar industry, when you include the expenditure that is entailed in producing this content as well as airing it.
BR: At present, which industry in the country spends most on advertising?
ALY MUSTANSIR: I think the balance has tilted back towards the FMCGs. The telcos had taken over because they were going through a very good phase but is not so anymore. Even the banks do not spend as much as the FMCGs.
BR: How can advertisers help build Pakistan's image internationally?
ALY MUSTANSIR: Bigger banks, including Habib Bank Limited can play a leading role on this front given their presence in other countries. Building the image of the country is dependent on the kinds of communications that companies use in their advertisements and other marketing efforts. So far we, as an industry have not done a lot on this front. By contrast, India has done a lot of work in this context, even though there is the argument that the issues faced in Pakistan at present are quite complex and, still we can take some positive messages from them.
There is a new international body that has recently made inroads in Pakistan called, 'Chief Marketing Officer's Council' (CMO). We have got its affiliation and deal with the MENA region for the council. The first project that we have undertaken on this platform is concerned with building the image of Pakistan.
We need the support of all stakeholders; the involvement of the media and ad agencies; so that we can make concerted efforts in this regard. We have a lot of dialogue with broadcasters on what we think they need to do or what they need to curtail in the interest of the image of the country; while ensuring that we do not curb the freedom of press in any way.
But I think it is a delicate balance and it will have to be done with a strong understanding of the people involved and arriving at a decision which is in the interest of the country; not just in the interest of one stakeholder.
BR: Please give us a brief explanation of the consumer multimedia index (CMI).
ALY MUSTANSIR: The Consumer Multimedia Index has incorporated the use of psychometrics to the tools available for advertisers in determining the effective reach and frequency that can be achieved through advertising on media. It plots not just where a person is located, but also gives you a sense of what he does every day at any time of the day and helps to gain a better understanding of how his mind works.
We are at an early stage but what I would like to see the CMI move into thought patterns where we can take the trends in activities and use them to figure out the way consumers think. There is another interesting way where you can actually correlate habits or practices into different industries. For example you can gain insight into whether a mobile user is also a consumer of pancakes; or is a buyer of a 1300cc car also a potential customer of personal care products.
CMI helps confirm or reject notions conceived on the basis of other techniques of observation or evaluation. It is helping to debunk long-standing myths about consumer behaviour. Interest in CMI is picking up among local advertisers as they discover uses for the insights generated from it.
BR: Competition Commission of Pakistan has reprimanded certain FMCGs as well as other advertisers for conveying inaccurate information in their advertisements. What is the state of compliance to a code of conduct within the local advertisers?
ALY MUSTANSIR: Typically when a claim is made against any communication; PAS organises a committee and co-ordinates hearings between the parties, over the issue of contention in order to reach a resolution.
Now what happens is that these companies generally bring in their scientific studies and share the relevant results. Even though PAS cannot legally enforce a decision on its members, there is a general level of acceptance of its directives.
BR: To what extent to we enforce regulations on advertisers, compared to the trends witnessed in advanced economies?
ALY MUSTANSIR: That depends on the specific regulation being considered. There are many different regulators in the local context. For example for banks and other financial institutions there is the State Bank of Pakistan; for the telecom companies there is the Pakistan Telecommunications Authority. Then there is the Competition Commission of Pakistan, Securities and Exchange Commission of Pakistan, etc. And of course, there are regulations that have voluntarily been adopted by advertisers on the platform of PAS.
Some things are common sense, for example a cup of coffee should be assumed to be hot. I am glad that we still maintain some sensibility, some common sense in this market. But like I said, the formulation of a code of conduct is an ongoing battle. We need to develop consensus for a comprehensive code and we have already made some remarkable achievements on this front. Aly Mustansir is Chairman, Pakistan Advertisers Society and Head Marketing & Brand Management HBL
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