Pakistan Digital Media Advertising Growth Among World's Fastest

[Riaz Haq]

Rapid growth of broadband access in Pakistan is changing the country's media landscape. Digital advertising revenue is forecast to grow by 32% in 2019 to Rs. 10.8 billion ($103 million), 12% of total national advertising revenue (NAR), according to Magna Advertising. Digital marketing expert Lars Anthonisen believes Pakistan is quickly becoming a "digital first country". Anthonisen sees "new opportunities for brands to reach and engage with consumers who may have previously been overlooked". Overall ad spend in Pakistan is expected to rise by 15% in 2019 to Rs. 88.3 billion ($840 million) following a steep decline (-11%) in 2018, according to a Branding in Asia report. Growing availability of smartphones, tablets and mobile broadband is extending the reach of advertisers to digital media where it is possible to precisely target prospective customers.

Return to Media Growth in 2019: 

Magna expects to see a return to growth in Pakistani media revenue in 2019, with television, which makes up two-thirds of total NAR, benefitting from the 2019 Cricket World Cup (+15%), according to a Branding in Asia report.

In 2018, Pakistan media industry went through a major shakeout after a long period of rapid double-digit growth since the turn of the century. Hundreds of journalists and other staff lost their jobs last year.  It was a horrible year for Pakistani media industry which saw steep 11% decline in revenue during the year.

2019 Advertising Growth Forecast. Source: Magna

Digital Advertising Growth: 

Digital advertising is forecast to grow by 32% to Rs. 10.8 billion ($103 million), 12% of total national advertising revenue (NAR), according to Magna Advertising. Digital marketing expert Lars Anthonisen believes Pakistan is quickly becoming a "digital first country". Anthonisen sees "new opportunities for brands to reach and engage with consumers who may have previously been overlooked".

Growing availability of smartphones, tablets and mobile broadband is extending the reach of advertisers to digital media where it is possible to precisely target prospective customers. As of May 2019, there are over 70 million broadband subscriptions in Pakistan and more than a million new subscribers are are being added every month, according to data from Pakistan Telecommunication Authority  (PTA).

Pakistan Telecom Indicators. Source: PTA

Overall Media Market: 

Print and radio are likely to grow as well, now that the initial shock of the government’s strict reforms has worn off and a preliminary IMF bailout agreement has been reached. Digital formats, particularly social (+39%) and video (+31%), will continue to see the strongest growth, +32% to Rs. 10.8 billion ($103 million), 12% of total NAR.

The ad spend in Pakistan is expected to grow by 15% in 2019 to Rs. 88.3 billion ($840 million) following a steep decline (-11%) in 2018.   In 2018, Pakistan media industry went through a major shakeout after a long period of rapid double-digit growth since the turn of the century. Hundreds of journalists and other staff lost their jobs. At least one TV channel, Waqt News, was closed while several others downsized. While such consolidation was long overdue after nearly two-decade long period of explosive growth, the PTI government's decision to reduce advertising budget, which constitutes nearly a quarter of all ad spending in the country, appears to have been the main trigger. Those affected by consolidation are accused the government of exercising press censorship by cutting its ad spending.

Pakistan Broadband Growth:

As of May 2019, there are over 70 million broadband subscriptions in Pakistan and more than a million new subscribers are are being added every month, according to data from Pakistan Telecommunication Authority  (PTA).

China is aggressively pursuing its plans to build a global digital superhighway that runs through Pakistan. This "Digital Silk Road" involves laying fiber optic cables in Pakistan which connect with China to the north and link with Africa and the Arab World via undersea cable to be laid from Gwadar Deep Sea Port built as part of China-Pakistan Economic Corridor (CPEC).

A 820-kilometer long China-Pakistan fiber optic cable has already been laid between the city of Rawalpindi, Pakistan in the south and the Khunjerab Pass, China in the north  and operational since July, 2018.

By 2020, the 6,299 kilometers of underwater cables will extend to Djibouti from Gwadar and form the Digital Silk Route between Asia and Africa. At the same time, a space-based Silk Road will provide satellite navigation support to all BRI (Belt Road Initiative) countries. The first Beidou base station of the Space Silk Road is already operational in Pakistan since 2017.  BeiDou is making rapid progress with 30 BRI countries already linked up.

When completed, the ambitious global initiative would use an exclusive satellite navigation system, BeiDou, fiber networks and 5G on land and submarine cables to create a multi-dimensional digital mega-project across land, sea and space.

Summary:

Rapid growth of broadband access in Pakistan is changing the country's media landscape. Digital advertising is forecast to grow by 32% to Rs. 10.8 billion ($103 million), 12% of total national advertising revenue (NAR), according to Magna Advertising.  Digital marketing expert Lars Anthonisen believes Pakistan is quickly becoming a "digital first country". Anthonisen sees "new opportunities for brands to reach and engage with consumers who may have previously been overlooked". Magna expects to see a return to media market growth in 2019, with television, which makes up two-thirds of total NAR, benefitting from the 2019 Cricket World Cup (+15%), according to a Branding in Asia report. Growing availability of smartphones, tablets and mobile broadband is extending the reach of advertisers to digital media where it is possible to precisely target prospective customers.

Related Links:

Haq's Musings

South Asia Investor Review

Pakistan Media Industry Shakeout

Digital BRI: China and Pakistan Building CPEC Info Expressway

FMCG Growth in Pakistan

Is Media Free?

Pakistan Retail Sales Growth

Advertising Revenue in Pakistan

Pakistan FMCG Market

The Other 99% of Pakistan Story

PSL Cricket League Revenue

E-Commerce in Pakistan

Fintech Revolution in Pakistan

Mobile Broadband Speed in Pakistan

[Riaz Haq]

Ad revenue in Pakistan


https://aurora.dawn.com/news/1144596#:~:text=OOH%20ad%20revenue%20i...(5%25).


Total Ad Revenue Rs. 88.73 billion in 2021-22

Total ad spend (revenue) has increased by Rs 13.09 (17%); in FY 2020-21, it increased by 17.04 (29%).


---------


In FY 2020-21, the combined revenues of Facebook, Google and YouTube accounted for 85% of the total ad spend on digital; this year, they account for 87%.

----------

TV ad revenue increased by Rs 4.64 billion (14%).
Digital ad revenue increased by Rs 3.15 billion (19%).
Print ad revenue increased by Rs 0.21 billion (2%).
OOH ad revenue increased by Rs 3.7 billion (44%).
Brand Activation/POP ad revenue increased by Rs 1.26 billion (50%).
Radio ad revenue increased by Rs 0.07 billion (5%).
Cinema ad revenue increased by Rs 0.06 billion (60%).

TV percentage share decreased by 1.4.
Digital percentage share increased by 0.27.
Print percentage share decreased by 2.19.
OOH percentage share increased by 2.51.
Brand Activation/POP percentage share increased by 0.93.
Radio percentage share decreased by 0.17.
Cinema percentage share increased by 0.05.

------

TV percentage share decreased by 1.4.
Digital percentage share increased by 0.27.
Print percentage share decreased by 2.19.
OOH percentage share increased by 2.51.
Brand Activation/POP percentage share increased by 0.93.
Radio percentage share decreased by 0.17.
Cinema percentage share increased by 0.05.

-----------------

Compared to FY 2020-21, the rankings of the Top Three newspapers remain the same.
Most newspapers have registered slight increases in their revenues.

-------

Compared to FY 2020-21, the Top Five channels have retained their positions.
In FY 2020-21, Radio Awaz Network was #7; this year it is #9.
In FY 2020-21, FM 105 was #9; this year it is #7.

-----------

Compared to FY 2020-21, the rankings of the Top Seven channels remain unchanged.
In FY 2020-21, PTV Home was #8 and Samaa was #9. This year, their positions are inverted.
In FY 2020-21, PTV Sports was #14. This year, it is #10.


-------

In FY 2020-21, the combined revenues of Facebook, Google and YouTube accounted for 85% of the total ad spend on digital; this year, they account for 87%.

-------------

Compared to FY 2020-21, the rankings of Lahore (#1), Karachi (#2) and Hyderabad (#8) remain the same.
In FY 2020-21, Rawalpindi, Faisalabad, Gujranwala, Islamabad and Multan were #3, #4, #5, #6 and #7, respectively. This year, they are #4, #5, #7, #3 and #6.

---------

Product categories that were introduced this year are Real Estate (#1) and Retail/Online (#5).
In FY 2020-21, Beverages, FMCGs and Telecoms were #1, #2 and #3, respectively. This year they are #2, #3 and #4.
In FY 2020-21, Fashion and Electronic Appliances were #4 and #5 respectively. This year, they are #6 and #7.

----------

Compared to FY 2020-21, the rankings of all the elements remain the same.

[Riaz Haq]

Pakistan’s digital dynamo: Arslan Sadiq’s journey of creating a web of social impact

Read more: https://www.digitaljournal.com/business/pakistans-digital-dynamo-ar...

ByJon Stojan PublishedJune 29, 2023

Opinions expressed by Digital Journal contributors are their own.

In today’s digital age, the internet emerged as a disruptive force, irreversibly transforming how societies interact, transact, and evolve. It has become a global town square, a market, a classroom, and a platform for innovation and change. While many have leveraged the power of the digital world for personal or commercial success, others have ventured to harness this force for broader societal change. This is the tale of Arslan Sadiq, a Pakistani entrepreneur who uses the internet as a catalyst, not just to propel his own entrepreneurial journey but to drive profound social impact across Pakistan.

Arslan, an early tech adopter, saw the internet’s potential from the get-go. Beginning his journey in the digital marketing space, Arslan demonstrated exceptional acumen for the field and quickly rose through the ranks. His determination and innovative thinking led him to establish the Global Hosting Service, a leading provider of domain registration and dedicated servers, along with services in VPS, hosting resellers, shared hosting, and SEO hosting. The brand also ventured into web and software development, SMS/email, and social media marketing services, proving itself as a comprehensive solution in the digital arena. Today, the company stands tall as a Gold Channel Partner of the .PK registry and is globally recognized as the top seller of .pk domains.

As he ascended the ranks of digital influence, Arslan quickly evolved from an entrepreneur into an influencer. That’s when he discovered the immense potential of the digital world as a platform for advocacy. His transformative vision propelled him into leadership roles within more than 150 youth organizations across Pakistan, culminating in the creation of Pakistan Youth Activism. In addition to his role as CEO, Arslan serves as the Editor-in-chief of The Post Pakistan, using journalism to shed light on vital issues. His prowess in the digital sphere also led him to become a Digital Media Consultant for top-tier businesses such as Green Entertainment TV, Imarat Group, and Agency 21 International.

Beyond the corporate realm, Arslan extends his sphere of influence into other areas of social transformation. He is also the founder of Pakistan’s largest IT Group and bloggers group, assembling diverse communities into a potent force for change. His digital footprint continues to grow as he manages a vast network of pages, groups, and forums, fostering a sense of unity and shared purpose among millions of followers.

Arslan’s work has always been underpinned by a profound commitment to social advocacy. This commitment finds expression in his various roles, including Patron in Chief of the Global Youth Association and Chairman of the Advisory Council of Volunteer Force Pakistan. He’s also stepped into the medical field as the Social Media Head of the Young Doctors Association, representing the voice of the healthcare sector.

With over 10 million followers on various social media platforms, Arslan’s digital influence is unquestionable. However, it’s the ability to use this influence to drive change that truly sets him apart. His efforts have demonstrated that the digital world can be more than a market or a forum—it can be a powerful tool for driving social transformation and creating lasting impact. In short, Arslan Sadiq is not just an entrepreneur or a digital influencer; he is a digital dynamo, tirelessly spinning a web of social impact across Pakistan.