The best laid plans – How relevant are Pakistan's media planners?
The way people consume media is changing significantly. As Amin Rammal writes in How digital is affecting ad spend, “We are almost channel-agnostic in the way we consume media” reading news online, watching video on mobile phones, etc. Along with changes in consumption or perhaps as a result of them, media is undergoing a transformation as producers and editors focus on quality content to get their share of eyeballs, while media marketing teams try to come up with innovations to attract advertising. And yet, each medium comes with its own set of issues in Pakistan.
Television, which enjoys the lion’s share of advertiser budgets and is the best researched in terms of effectiveness, is saturated and cluttered. Digital and mobile are the most talked about mediums, but there is still a great deal of uncertainty about reach and effectiveness. OOH and brand activation are growing at a rapid pace but there is no way to measure efficiency. Radio and print suffer due to lack of research. Lastly, cinema is finally being revived with a significant influx of good local and international content but the marketing ROI derived from this medium remains a question mark.
Of the many conclusions that can be drawn from the above scenario, two are most obvious. Firstly, that in a new and changing media environment, clients are concerned about how to get the most out of limited budgets while reaching the maximum number of consumers; secondly, this process is complicated because with the exception of TV (and to some extent, digital), no other media has the statistics to support efficiency of media spend. As a result, as Umair Saeed, GM and Head of Strategy and Integration, Blitz, puts it, in 2015 Pakistan’s media planning and buying industry is a “perception based one.”
While perception and intuition are important ingredients in media planning and perhaps the only alternatives in the absence of hard core research, soaring media costs and increasing clutter means that “the major clients are very KPI driven and it is becoming tough to deliver as everyone wants premium positioning” (Raza Syed, Business Director, Corporate Business, GroupM);
"Clients no longer want a traditional media buying house to simply air a spot; they want agencies that can give innovative ideas but backed with lots of data and analytics.”
— Sohayb Anwar, Head of Planning, ZenithOptimedia.
According to one industry insider “client spending patterns are changing so that it is impossible to predict what will happen next year.”
As a result, as advertisers and their media agencies come under pressure to stretch limited budgets on increasingly expensive media, extract more efficiency from every advertising rupee and provide greater transparency in how effectively their money is being spent, there is a need to rethink media planning roles and processes. There is some evidence to suggest this is already happening.
The media is evolving
The media environment that planners operate in has changed a great deal and it is important to examine developments here before looking at the media planning process. TV remains the medium of choice for many advertisers but everything from channels to content to ratings has evolved. However, the large influx of advertisers (both established advertisers as well as local companies which are beginning to see the value of advertising) has created demand and supply gaps, resulting in exorbitant spot rates and high CPRP (cost per rating point).
Not only has advertising on TV become more expensive, there are only about 10 to 15 channels that have the audience numbers to support the reach that advertisers are trying to achieve. Therefore, these top ‘delivery channels’ in addition to being expensive are also cluttered with advertising. Change, however, is in the air; the improvements in the people meters system as a result of Medialogic’s partnership with Kantar are shaking up the market so that as Syed says, “A lot of channels that didn’t perform in 2014 are now giving numbers [ratings] and the monopoly of the top 10 to 12 channels is being broken.”
Digital has also evolved and Saeed adds, “We have seen client demands go from ‘we want likes and fans’ to ‘we want engagement’ and we have gone from CPC or CPM to CPDA (cost per desired action) which can be anything from viewing a video to commenting on a post.”
Furthermore, as thinking about digital evolves and more agencies and advertisers begin to see it as a medium where people share experiences from the physical world, they have started to create brand activation experiences with the express purpose of being shared on social media. Thus brand activation and digital now have strong links with one another and advertisers are in a sense using activation to create content for digital mediums.
Anwar strongly believes that one of the reasons why digital is growing is because it gives advertisers “the power to control content.”
OOH is growing despite having no ratings system (the Pakistan Advertisers Society initiated work on a ratings system for OOH in 2014 but it has yet to be launched) with plenty of innovation such as ambient media, digital signage, moving billboards, etc. However, most planners attribute the growth of OOH to the fact that it has good visibility and is a cheaper alternative to TV. While outdoor tracking companies provide more transparency, there is still no measure of effectiveness for OOH.
Print, struggling to remain relevant with a younger target audience, is also unable to provide advertisers with objective readership figures and many media planners believe that changing reading habits coupled with lack of research will eventually spell its doom. However, Saeed believes that print “still has a better ROI than OOH because at least I know how many people I am reaching.”
Although radio is not tracked and offers no measure of effectiveness, it does reasonably well because tariffs are cheap and radio stations are generally very accommodating of advertisers, whether it involves doing free voiceovers, road shows, etc. Nevertheless, radio needs a major overhaul in terms of content in order to become more relevant to its audience.
After decades of stagnation, cinema is emerging as a vibrant medium with a good mix of local and foreign content, and advertisers are particularly interested in sponsoring local films.
However brands are approaching cinema with care as most cineplexes still cater to the top SECs and there is, once again, no measure of effectiveness for cinema advertising.
The planning process is slowly changing
As media undergoes evolutionary shifts, media planning is also changing, albeit slowly. On a positive note, media clutter is forcing planners to do things differently.
According to Saeed, “The planning process used to be about efficiencies, now this is just one part of it. What will differentiate you is innovation and creativity. For about 10 years, creativity and brand strategy took a back seat while numbers drove the media plan. However, today, it is not only about numbers but about the relevance of the programming you invest in.”
Anwar confirms this view; in his opinion major advertisers do not want to be seen on every medium, rather they are more interested in content and context in their media planning.
This is not to say that numbers are not important. In fact, media planners say that they appreciate the new Kantar ratings system because it gives more solid data and easier access to that data, thereby enabling them to make better decisions for TV. Yet, while reach and GRP are important, what clients are really interested in is creativity and media innovation (whether in the form of branded content or content integration) to stand out and get more mileage. Although this is not necessarily the case across the board; for example, one industry source says, “The first priority is to get the reach and GRPs I need month on month; innovation is a secondary factor when you have achieved your bases.”