I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag.
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How do you view the Nepali advertising industry in the present context?
The Nepali advertising industry is finally established as a full-fledged industry with big investments and big opportunities. A few years back, the industry was looked down upon by many as a fringe business that required little finance and human resource. Today, one needs to enter this business with complete planning, a sound investment and loads of creativity. The operational cost for even a small scale advertising agency would be more than a million rupees per month. Any company that wants to establish itself as an advertising agency must have the creativity, capacity and the infrastructure to sell that creativity.
The Nepali advertising industry is finally established as a full-fledged industry with big investments and big opportunities. A few years back, the industry was looked down upon by many as a fringe business that required little finance and human resource. Today, one needs to enter this business with complete planning, a sound investment and loads of creativity. The operational cost for even a small scale advertising agency would be more than a million rupees per month. Any company that wants to establish itself as an advertising agency must have the creativity, capacity and the infrastructure to sell that creativity.
How do you look at the current size of Nepal’s advertising industry which is said to be around Rs 3.5 billion?
I think the market value of the industry is more than Rs 3.5 billion. There are a lot of unseen expenses that are not taken into account. I estimate the value of the industry to be around Rs 5 billion. While the growth of the market and its corresponding value pleases us no end, an Rs 5 billion market cannot accommodate so many new entrants into the industry. There are around 150 or more ad agencies registered with AAN. If this trend continues, the market will not be in a position to sustain them all.
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I think the market value of the industry is more than Rs 3.5 billion. There are a lot of unseen expenses that are not taken into account. I estimate the value of the industry to be around Rs 5 billion. While the growth of the market and its corresponding value pleases us no end, an Rs 5 billion market cannot accommodate so many new entrants into the industry. There are around 150 or more ad agencies registered with AAN. If this trend continues, the market will not be in a position to sustain them all.
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What has prompted the growth in the industry’s market value?
This growth is simply because of the increased number of advertisers. For example, a couple of decades ago, you could count the number of banks on your fingertips. Today, we have 27 commercial banks operating in the country. The number of service providers such as the insurance companies, financial institutions etc. have grown too. The manufacturing companies have also seen a tremendous growth in numbers. As the market has grown more competitive over the years, the corporate sector has begun to understand the importance of advertising like never before. They now believe in the mileage and benefits that advertising brings to their products and services. It has become imperative to resort to brand building measures and stand out in the crowd as products and services are being launched on almost a daily basis. Besides this, the media sector has grown too which provides advertisers added platforms for advertising.
This growth is simply because of the increased number of advertisers. For example, a couple of decades ago, you could count the number of banks on your fingertips. Today, we have 27 commercial banks operating in the country. The number of service providers such as the insurance companies, financial institutions etc. have grown too. The manufacturing companies have also seen a tremendous growth in numbers. As the market has grown more competitive over the years, the corporate sector has begun to understand the importance of advertising like never before. They now believe in the mileage and benefits that advertising brings to their products and services. It has become imperative to resort to brand building measures and stand out in the crowd as products and services are being launched on almost a daily basis. Besides this, the media sector has grown too which provides advertisers added platforms for advertising.
What rate is the Nepali advertising industry growing at, on an annual basis?
Frankly speaking, I don’t have the exact data for that. But we have seen that the media sector owes its survival to their respective advertising revenues. However, I can tell from my 20 years of experience and observation that we are growing at around 40 per cent as an industry.
What is the advertising spending of MNCs here vis-Ã -vis the domestic companies?
The MNCs clearly have more budget for advertising than the domestic companies. The domestic companies are neither big in size nor do they have a great range of products to advertise. Financially speaking, they allocate limited budget for advertising.
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Frankly speaking, I don’t have the exact data for that. But we have seen that the media sector owes its survival to their respective advertising revenues. However, I can tell from my 20 years of experience and observation that we are growing at around 40 per cent as an industry.
What is the advertising spending of MNCs here vis-Ã -vis the domestic companies?
The MNCs clearly have more budget for advertising than the domestic companies. The domestic companies are neither big in size nor do they have a great range of products to advertise. Financially speaking, they allocate limited budget for advertising.
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Could you take us through your journey of 20 years with the advertising industry?
In the last 20 years or so, the market has grown by leaps and bounds. The number of advertisers and the advertising agencies has grown immensely resulting in where the industry stands today. And the growth is not only quantitative but qualitative as well. The positivity of it all is that the industry is headed in the right direction. Over the last decade or so, the focus of advertising has shifted from merely advertising product manufacturers, to creating lasting brand names.
In the last 20 years or so, the market has grown by leaps and bounds. The number of advertisers and the advertising agencies has grown immensely resulting in where the industry stands today. And the growth is not only quantitative but qualitative as well. The positivity of it all is that the industry is headed in the right direction. Over the last decade or so, the focus of advertising has shifted from merely advertising product manufacturers, to creating lasting brand names.
What are the problems and challenges that the industry faces today?
We don’t have any technical problems or issues related to the resources. The major problem of this industry is the shortage of educated and creative manpower. It is definitely something that plagues the industry the most. There is definitely a requirement for specifically trained human resource. Perhaps, we could start with courses and trainings related to the advertising industry included in various academic curriculums.
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We don’t have any technical problems or issues related to the resources. The major problem of this industry is the shortage of educated and creative manpower. It is definitely something that plagues the industry the most. There is definitely a requirement for specifically trained human resource. Perhaps, we could start with courses and trainings related to the advertising industry included in various academic curriculums.
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Even though Nepali advertisements have come a long way, we are still not in the same league when compared to global advertisements. Why so?
I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag. The advertisers need to realise that a single slogan can work wonders for them. I believe that if the advertisers do value creativity and compensate it monetarily, the situation will definitely get better.
I am certain that the Nepali advertisements have become better and creative than even before. But there cannot be a comparison with the global advertisements as we are virtually producing creative work for free. In other countries, the creative and innovative ideas are well paid for. This encourages the creative people to generate better ideas. Here, the market is yet to accept the fact that creativity comes with a price tag. The advertisers need to realise that a single slogan can work wonders for them. I believe that if the advertisers do value creativity and compensate it monetarily, the situation will definitely get better.
Does the industry follow a particular line on ethical issues?
Do they ever refrain from working for a particular product? I can’t speak for the industry but I follow certain ethics in advertising. For example, I won’t produce any advertisements for the casinos. As the casinos are forbidden by the law, I don’t think it is the right thing to advertise about them. Also, I won’t put up a hoarding board for alcohol and tobacco related products in the vicinity of schools and colleges. I am aware of the social responsibility that we carry, as part of the industry.
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Do they ever refrain from working for a particular product? I can’t speak for the industry but I follow certain ethics in advertising. For example, I won’t produce any advertisements for the casinos. As the casinos are forbidden by the law, I don’t think it is the right thing to advertise about them. Also, I won’t put up a hoarding board for alcohol and tobacco related products in the vicinity of schools and colleges. I am aware of the social responsibility that we carry, as part of the industry.
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What are the accounts you are currently working with?
We have a mix bag of domestic clients as well as MNCs. To name a few, we have accounts like Salt Trading Corporation, Bank of Asia, NIC Bank, Janata Bank, Rahul Dairy Products, NLIC, Vishal Group, Panchakanya Group, P&G and UTL etc.
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We have a mix bag of domestic clients as well as MNCs. To name a few, we have accounts like Salt Trading Corporation, Bank of Asia, NIC Bank, Janata Bank, Rahul Dairy Products, NLIC, Vishal Group, Panchakanya Group, P&G and UTL etc.
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Which advertisement campaign are you particularly proud of, during your entire career?
It has to be the one that we made for Tokla tea that we made around eight years ago. It was the re-launching of Tokla tea and it became a huge success. At that time, 80 per cent of the market share was with a different brand of tea. Today, Tokla tea commands 70 per cent of the market. I would like to mention here that advertisements made by other advertising agencies such as those of Unilever, IME etc. are definitely of high quality.
It has to be the one that we made for Tokla tea that we made around eight years ago. It was the re-launching of Tokla tea and it became a huge success. At that time, 80 per cent of the market share was with a different brand of tea. Today, Tokla tea commands 70 per cent of the market. I would like to mention here that advertisements made by other advertising agencies such as those of Unilever, IME etc. are definitely of high quality.
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