Good Time Ahead for Advertising Industry

After a severe decline, at last recovery signs are sensed in the advertising world. We have seen, right sizing, dismissals in advertising and blacklisting of the companies and clients during the last few months. Public sector was not clearing their liabilities while advertising agencies were in deep trouble with deepest cash crisis.

The public sector is dying with budget drought and only those clients are surviving which have some support of the international donors. One of them is the Population Welfare which is mostly relying on BTL and electronic media. In spite of foreign funds, this ministry is suspended by APNS; thus only relying on electronic media and BTL (Below the line).

The good news is that the APNS has pressurized the Government to release the funds which are over one billion in different government departments and divisions, this huge amount is the main cause of the “Thund Programm” in media.

Midas communications and Ad Group will be the key beneficiary of this expected recovery as both have big amounts to recover. AD Group has over 33 Crore of Khushal Pakistan Programme and Midas has over 25 Crore of total share in this 95 Crore which will be released by the Government. Mind Communications has over 15 Crore while Orient has 19 Crore to receive from the public sector organisations. Kanad has to recover more then 7 Crore from the public sectors.

Now come to the big clients which have the big amounts. Health is one of them and it has to pay over 8 crore to media. ENERCON has to pay 9 crore, Environment, which is suspended for the last 3 years, has to pay over 5 Crore. Establishment is also one of the client which has constantly become a headache for every one. This client has the payments pending since 1996 and now it has to pay a disputed amount of 4 crore (which I think will never be paid to any advertising agency).

Now it looks that after promise of the Friends of Pakistan to give 5 Billion aid, the Gilanni Government has some relief and wants to work with some financial liberty.

Government will take a month or two to release payments to media agencies then funds will be paid to the newspapers. That will be the time, when the situation may become little better.

Big news is the Census Organization campaign, which is just going to start in few weeks in the country. The census campaign has over 60 crore budget sponsored by donor agencies of the United Nations. This will have two components; first will be house listing which will start in early May 2009. This will be a huge campaign. The second phase is scheduled to start in October/November this year. This will be another quake in the slow and silent media world. This campaign will have an allocation of 32 crore of advertising. Be happy to have a good time soon.

The other, big news is the Five year Plan (2010-2015), the first programme according to the wishes of the people. This is actually Build Pakistan programme. This campaign will have over 13 crore advertising budget. So every advertising agency is making every possible effort to take more and more share in this media.

Third campaign is the media war on terrorism which has big budget.

So good time ahead for advertising industry – chill programme ; – )