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Why the Reports of TV’s Death Have Been Greatly Exaggerated

Marketers should not make the mistake of assuming that TV is dying. The facts speak otherwise, comments Urooj Hussain.
Published 04 Sep, 2024 11:57am

No one watches TV anymore“ is a common statement made by various marketers in our industry. Followed by: “I certainly don’t watch it; even my mom, who is over 60 watches all her dramas on online streaming platforms.”

This, sadly, is what you can call a ‘sample of a bias,’ when one generalises about a larger population – in this case, over 213 million – based solely on one’s own limited experience.

For context: linear TV (often synonymous with traditional or broadcast TV) is a method of delivering content in a scheduled way. Unlike on-demand services that provide viewers with the flexibility to choose what and when to watch, linear TV follows a predetermined timetable. In simpler terms, everyone tuning in watches the same content at the same time, creating a shared viewing experience. It used to be called just ‘TV’ before the advent of streaming services.

Coming back to the original point, Pakistan’s landscape is both immense and diverse. Even when one considers impressive digital stats such as 133 million 4G connections (with a stretched assumption that all are unique) and 70 million social media subscribers, this also means that there are still, at a minimum, 80 million people without internet and more than 100 million who may not be on any social media platform.

The latter part of this equation is frequently ignored and less frequently highlighted in marketing seminars and, significantly, has dwindling interest among the Gen Z workforce, where being a digital planner is more commonly preferred than being a TV or traditional media planner. It has even become rare to see hybrid media planners these days – individuals who specialise in both digital and non-digital media to create comprehensive solutions for reaching out to consumers. This, however, does not change the reality that linear TV still commands the majority (approximately 60%) of the Rs 80 billion TV ad spend in Pakistan.

Thirty percent of this immense TV spending comes from the five biggest FMCGs alone. These companies have been consistently growing over the years, placing a major chunk of their media budgets into the medium. If TV was dying, there would be no good reason for these advertisers to continue to invest in it; it would not make sense from an ROI perspective.

These FMCG giants make informed, data-backed decisions often overseen by a global mandate, so unless one wants to claim that they do not make rational investment decisions, giving blanket statements such as ‘TV is dying’ is a bit ill-informed, to say the least.

Although trends are changing, TV viewing is still a communal activity for many Pakistanis, fostering a sense of connection and shared cultural experience. As Izhar Khan, Media and Digital Manager, Unilever, puts it, “While most marketers and advertisers believe TV is dying or is dead, it still is entertainment for a majority of Pakistanis. As a developing economy with high inflationary pressures, people seek free entertainment. Hence, TV as a medium continues to grow. Unilever Pakistan has seen mass brands having a positive correlation with TV viewership for their brand health scores.”

1 Penetration Is Not Inversely Proportional to TV Viewing: Second screen, or cross-screen viewing, is something that the marketing and media world is familiar with and was the premise upon which YouTube based its accelerated growth in Pakistan. However, consuming more media overall does not always mean one medium is directly exchanged for the other.

A five-year study conducted by Global Web Index (GWI) showed that globally, even as digital usage increased from five hours 37 minutes a day to six hours 26 minutes a day on average, linear TV consumption remained fairly stable, going from four hours 36 minutes a day to four hours 29 minutes a day in the same five-year period.

In the opinion of Farhan Khan, CEO, Brainchild Communications Pakistan: “The way multi-screening has evolved is akin to consuming 26 hours of media in a 24-hour day. We are consuming more media in different ways, but that doesn’t necessarily mean that TV is diminishing. In a market like Pakistan, it’s still extremely relevant. We are on our devices while we watch TV. We post updates and stories about live TV content on social media as we view it. Fifty-four to 56% of digital penetration notwithstanding, TV penetration is still above 90%; we just need to find the right balance in our mix and make the most of every rupee we invest.”

2 Globally Still Relevant – And Not Just for Sports: TV is still growing in the US as well; the Super Bowl this year brought in the largest audience ever for a single US network with four million viewers, according to CBS, marking a seven percent increase from the previous high of 115.1 million who tuned in to the 2023 NFL championship game. A similar phenomenon happens during local cricket events. PSL and Cricket World Cup tournaments not only show audience migration from news and entertainment genres but have additional people tuning in to TV during the tournament.

However, it is not just sports that offers a lifeline to linear TV in Pakistan and beyond, and news is another segment where linear TV maintains its relevance. In an election year, news ratings typically see a significant boost. In Pakistan, where the environment is likely to continue to stay politically charged, news will continue to stay relevant for the foreseeable future.

3 Linear TV Endures for High Impact: We need to understand TV from the psychology of the everyday Pakistani as well as mass brands.

In Pakistan, where a traditional family structure largely still holds firm and often the decision-makers are older Millennials and Baby Boomers, many viewers prefer the programming available on cable TV. Streaming services often require a higher level of technological proficiency, including the use of smart TVs, streaming devices and understanding various subscription models. This can be a barrier for older adults. There is also a possible convenience factor, as cable TV is still offered as a bundle with internet and phone services, making it a beneficial option for many households. While digital is lauded as a one-on-one experience with consumers, ads can seem more disruptive to audiences, as consumers are now accustomed to expecting control over their viewing/entertainment experience. Linear TV provides more of a ‘lean back’ viewing environment where audiences might actually be more receptive to advertising. Consumers are preconditioned to expect ads; it can feel less disruptive because that’s how it has always been.

4…And Brand Building: linear TV continues to hold significant value in its unmatched ability to quickly build reach. The broad audience base enables advertisers to deliver their messages to millions of viewers simultaneously.

Additionally, the highly regulated nature of linear TV contributes to a brand-safe environment. Advertisers benefit from a controlled space for their messaging, as they get almost full autonomy over when and where their communication is seen. If you know your audience well enough, the stability and predictability of programming schedules can ensure you reach your intended audience based on what they are watching.

The above, plus the fact that linear TV has remained stable and basically with little change for decades, makes it an undeniable brand-building tool. Brands that advertise on TV appear to be reliable and stable to the consumer as well. This is the reason why when internet brands start to ‘go big’ in Pakistan, they add TV to their media mix. This can be observed with brands such as Daraz, Foodpanda and Easypaisa, and the proof is there, not only in terms of brand building but in actual transactions/ROI.

5 CTV: The Future of Linear: As CTV gains traction in Pakistan with consumers and advertisers, it is causing many brands to rethink their approach to video advertising. However, keeping in mind the vast market that is Pakistan, linear TV still has a lot of fight in the game.

To paraphrase Mark Twain: “The reports of TV’s death have been greatly exaggerated.”

Urooj Hussain is Strategy Director, Brainchild Communications Pakistan. https://www.linkedin.com/in/uroojhussain1