In FY 2023-24, Pakistan’s journey started with a boycott of international brands, ignited by the Israel-Palestine conflict, which significantly dented their sales in the early months. However, as the boycott started to subside, sales began to bounce back to pre-boycott levels. Nevertheless, the volatile political atmosphere cast a shadow over investor and consumer confidence. Yet, despite these obstacles, the media industry managed to maintain an optimistic outlook. In fact, ad expenditures skyrocketed, surpassing last year’s figures and cementing the industry’s resilience. In FY 2022-23, total spending hit Rs 88.4 billion, while FY 2023-24 surged to an impressive Rs 98.1 billion. Although digital spending faced a slight dip, all other media thrived.

With a robust 18% increase in spending, TV has emerged as a major catalyst for this year’s advertising growth. A significant driver was the convergence of high-profile sporting events like the ICC World Cup 2023, PSL 2024, T20 World Cup 2024 and the Asia Cup 2023. Additionally, new content like Shark Tank Pakistan and The Ultimate Muqabla, among others, reignited audiences’ interest in TV. Top-spending categories included beverages, personal products, detergents and soaps, all of which ramped up their ad budgets. As a result, TV advertising experienced a remarkable upswing, propelling it to more than twice the size of the next largest category: digital.

While maintaining its position as the second-largest medium in Pakistan, digital faced its own set of challenges. Its strength lies in its ability to micro-target consumers; however, it struggled under tough economic conditions, leading to payment restrictions across various platforms. Major players like YouTube witnessed a dip in subscriptions, plummeting from 72 million to 55.9 million, primarily due to the removal of inactive accounts and bots. Nevertheless, with Google commanding around 70% of the market spend and platforms like Meta and TikTok filling the remaining gap, digital advertising is poised for a dominant future.

OOH, which had remained somewhat stagnant in recent years, enjoyed a significant revival this fiscal year. While it has not fully returned to its pre-Covid heights, the steady recovery hints are promising. A major driver of this resurgence is digital out-of-home (DOOH) advertising, which has injected momentum into the sector. Furthermore, OOH offers a unique advantage by synergising with other media for cohesive, multi-channel campaigns.

There has been a modest recovery after navigating a challenging fiscal year. Print has managed to reclaim a small portion of its previous prominence due to increased spending caused by the elections and promotional content of different political parties. Although this improvement is not enough for a full recovery, it represents a positive shift in the right direction. The drastic reduction in advertisers last year took a toll on spending, and the medium is still striving to overcome those challenges.

It has held steady over the past few years, with a handful of advertisers consistently maintaining their spending. However, there is optimism for sustenance in this sector, as overall spending continues to show signs of growth. This gradual increase suggests that despite its small stature, radio exists in remote markets, tapping into opportunities and audiences.

While still not as mainstream as other media, podcast advertising has gained momentum in recent years. With a steadily growing listener base, this sector is poised for expansion across Pakistan, offering new opportunities for brands to connect with audiences in a more personal and engaging manner.

These platforms have surged in popularity, with established players like Tapmad, ARY Zap and Tamasha solidifying their presence. This year also witnessed a rise in the popularity of Myco, along with newcomers like Begin, which have experienced remarkable growth in their user bases. This increasing interest in OTT platforms signal a dynamic and evolving landscape for digital content consumption in Pakistan.

• Development of Local OTT Platforms

The emergence of apps like Myco, Begin.watch and Urduflix heralds an exciting trend, suggesting that more local OTT platforms are likely to follow suit. The potential for growth here is immense, paving the way for innovative content tailored to local audiences.

• Growth in E-Commerce

• With a three percent increase in the existing e-commerce sector’s market size in Q3 FY 2023-24 and the entry of Temu in the market, this segment is on the brink of remarkable developments. The prospects are bright, indicating a robust trajectory for online shopping in the region.

• Changing Demographics

Gen Z and Gen Alpha are stepping into the limelight, closely followed by Millennials. Brands must adapt to the unique preferences of these younger segments and undertake significant shifts in their marketing strategies to resonate with their tastes.

• AI

OpenAI has inspired players like Google, Meta and X to dive into the AI pool. This surge of competition hints at a future where AI will play an integral role in the industry, compelling companies to strategically navigate their influence.

• Data and Analytics

Data and analytics are set to become the bedrock of decision-making processes within the industry. As new tools leveraging AI develop, the importance of data will soar, guiding strategic choices. As we look ahead, it is clear that Pakistan’s media landscape is buzzing with potential and is ripe for transformation. Although challenges remain, the resilience of the industry promises an exciting journey ahead. With emerging technologies, shifting demographics and a vibrant blend of traditional and digital platforms, the stage is set for a thrilling evolution.

Abid Hussain is Manager, Data & Analytics, Starcom Pakistan. abid.hussain@starcompakistan.com