Anniversary special: Advertising in the changing mediascape
Just like other growing sectors, the Nepali advertisement industry has been evolving and growing in its own unique way. This sector has undergone big changes, which comes with increasing challenges.The contemporary advertising sector of Nepal faces multiple challenges. It lacks adequate manpower, effective plans and policies, as well as competent agencies. But the absence of an advertisement board and an advertising regulatory body are our major concerns at the moment. These two organizations are supposed to control the unnecessary flow of advertising, categorize advertising agencies according to their capacities, and look after other issues that affect advertising. But we don’t yet have any such body.
We have talked to the Ministry of Communication and Information Technology several times in this regard. According to officials, these bodies will be formed soon. When that happens and the bodies come into operation, Nepal’s advertising sector will gain new height. In that case I foresee much progress in this sector.
Another big issue is the steadily increasing number of media outlets. Many media houses have vested interests rather than the motive of informing people responsibly. Such media also form their own advertising agencies to make easy money. It is difficult to say whether they are real media to inform people or fraudulent businesses to make money. This practice harms genuine ad agencies.
Also, there is unhealthy competition between media houses over advertising. Some media outlets run advertisements for the sake of visibility, without signing any contract. So although they seem to be running many ads, they don’t make money and can’t pay their employees.
To resolve the issue, media houses and concerned people should be able to discern proper ways to advertise. They need to distinguish between experienced advertising agencies and novices. Placing all agencies in the same basket will be unfair to us. We must sit together, have proper coordination, and work together to find a way out.
On the other hand, the print media are running weak content these days. They have lost readership for this reason. For instance, different newspapers give different data for the same news. If there is a bus accident, one newspaper will report the death toll as five, another reports 10 deaths and, a third, 15 deaths. Confused readers will then lose trust in the papers. Because of this paper readership is shrinking, affecting the advertising sector. Besides, the emergence of digital media and smartphones has significantly lowered the scope of newspapers.
In the past one and half years, digital media has robbed at least 25 percent of the print media’s market. The flow of advertisements to the print media has dropped by 40 percent, which has been captured by the digital media. Smartphones and reality shows have a big role in this. The only possible way to overcome this situation is for the print media to focus on winning public trust through reliable and worthy content.
As the chairman of the Advertising Agency of Nepal (AAN), I have been trying for the past one year to boost this sector’s growth. Finally, the government has decided to introduce clean feed—a provision by which the content of foreign TV channels will have no advertisement. As per the clean feed policy, only advertisements created for Nepal with local content, characters, and language can be aired. I am hopeful that clean feed, which will be implemented from October 23, will be a boon for Nepal’s advertising sector.
We also lack an advertisement act and a code of ethics, another essential area that we need to consider if we are to lift the advertisement sector. The government should look into this at the earliest.
The ad sector is directly related to the country’s economic growth, as the ad industry plays a big role in promoting economic activities, and vice versa O
The author is Chairman, Advertising Agency of Nepal (AAN)
(As told to Prasun Sangroula)