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Salman Butt, Chairman – Green Peak International, talks about conceptualizing and developing the Pakistan Super League

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As originally published in Synergyzer Issue 2 – 2016

Salman Butt, Chairman – Green Peak International

What were the mechanics involved in getting PSL from concept to reality?

PSL is a Franchise Model, modeled on European football leagues. In the cricket world, the franchise model has two variants; one – which Sri Lanka and Bangladesh have followed, i.e., where they have sold all commercial rights to “one buyer” where the cricket board receives a guaranteed minimum amount every year from the buyer. The other is what India has followed, which is the European Premier Football League Model (EPL): the BCCI owns all commercial rights to IPL and sells broadcasting, central sponsorship, and the franchises etc., by themselves on a one-to-one basis.

We chose the EPL Model; this allows PCB to have complete control over the league which we felt was best given that this is the highest value cricket product that they would own with a variety of commercial and cricket related impact now and going forward. PCB controls the league operationally, commercially, and makes all policies and critical decisions.

REPUCOM, an international sports marketing & valuation company, helped us refine the model we had developed in 2012.

The model includes 5 Franchise Teams. PCB sells the local and international broadcasting rights and title sponsorship rights for three years, gold and silver sponsorships have been sold for one year and rights to ownership of the five franchise teams for ten years. The franchise owners can sell 100% ownership rights of the team after three years, and within that time, they can liquidate part of their share upto 49% to another entity or person willing to co-own the team.

The broadcasting rights have been sold in excess of USD 13.5 million and the title sponsorship has been bought by HBL for USD 5.1 million for three years while the gold and silver sponsorships were sold for about USD 1.5 million for one year and will be resold after next year.

The total value of these franchises over ten years is approximately USD 93 million, which means PCB generates revenues of USD 9.3 million every year from franchise fees. Karachi was sold for USD 27 million, Lahore for USD 25.1 million, Peshawar for USD 16 million, Islamabad for USD 15 million and Quetta for USD 11 million.

The price discrepancies have nothing to do with the quality of players or strength of the teams; it’s all dependent on the size of the market being bought which is a function of the potential fan following offered by that market. Since Karachi has a huge population and fan following and Lahore also offers a very large market, that’s why they cost more than say a Peshawar, Islamabad or Quetta.

The production of the tournament was done by Sunset & Vine, another world class company specializing sports events production. The tournament was broadcast live on PTV Sports, GEO Super, Ten Sports, Hum FM 106.2 and the PSL’s official YouTube channel.

How was the response when bidding opened to generate sponsors, especially the gold and silver ones?

It was in sync with what we were expecting, commensurate with international standards. The gold or silver sponsorship categories will be open for bidding again for the next season and we will put the bids out a few months in advance, maybe towards the third quarter this year.

How does the franchise generate revenue?

The franchisees have the right to sell their own sponsorships e.g., logo space on the team uniforms, and then they also get a share of the central pool of revenue, which comprises of broadcasting, central sponsorship/s & gate money revenues primarily. A large percentage of the central pool revenue is distributed amongst the franchisees.

A third and probably the largest revenue stream that the Franchisees develop, comes from the business of Franchising.  The Franchisees already have a fan following since they own a cricket team representing their city, comprising of present and upcoming local and foreign cricket stars! Their marketing activities should now be focused towards further building and engaging with their fans following throughout the year till the next PSL Event. The fan following is critical for the Franchising Business. The Franchising Business comprises of creating products and services for the fans that come from various socioeconomic strata’s (A to E): products comprising of merchandizing such as caps to clothing, beverages from tea to carbonated drinks, to financial products and services, they can place their brand name on different relevant products for their fan to be pulled towards them. Tea and beverages for e.g., are consumed by rich and poor alike while a debit card maybe more suitable for higher income segments. The possibilities are endless: the Franchisees don’t have to produce these products themselves they have to choose the right partners to license their brand to. Manchester Utd, for example, has 250 products or service offerings for their fans.

The quicker the franchises start leveraging these opportunities, the better it will be for them. In Year 1, 80-90% of the revenue franchises get comes from the central pool & their logos. Till Year 3 we expect the franchising revenue to increase to 30-40% of total revenue – this isn’t rocket science, it is a simple retail model of business development, it will take time to build solid retail partnerships, and they will need to work hard.

T-shirts were printed and sold this season of PSL also. Some sources say that the official merchandising price was kept at PKR 950 for a t-shirt, which wasn’t an ideal price point for the average Pakistani, and since the matches were held in UAE, the sales were not what they would have been on home ground.

I don’t think price points are set as yet. Each franchise will create its own merchandising and will retail, so there’s no standard price point as of now. But merchandising is more than just clothing: first the shirts and some other clothing and smaller merchandising will come and as the league matures, the products will be further developed.

What about marketing and advertising and media support?

We had our own marketing and PR strategy in place. We launched our logo in August/Sept 2015, then we focused on getting the player pool on board. We built the foreign and the local players pool. The Players Draft in December 2016 when teams selected their players from a pool of 300 in my view a key marketing vehicle for the PSL: the PSL went Global on TV and Social Media during the days of the Player Draft! This is when people saw team owners, coaches and selectors pick their players, that created a buzz because players and coaches came from all over the world!

Once the franchises and their players came on board we encouraged the franchises to have their own media partners and this worked out very well. The media got content and the Franchises got the much required hype and visibility. We supported the franchises to have their own exclusive deals with their chosen channels and the channels in-turn backed and pushed their own teams. That’s why each of the five teams is supported by its own television channel partner. PTV supports Quetta Gladiators, ARY owns and of course supports Karachi Kings, GEO supports Lahore Qalandars, Express supports Peshawar Zalmi, and Duniya supports Islamabad United.

When the channels began promoting their own teams, they began connecting with people and also aired the activations taking place on the ground. There were a number of activities that ran parallel and it was a natural process that built relevance and fan following.

Speaking of the draft, a ten-year franchise will obviously see a change in players. Will there be further auctions?

The players have been contracted for one year and these contracts may be renewed mutually between the players and the Franchises for another two years. Players can also be released after a year and the Franchises come into next years draft to select players for slots that have been released. The Players Draft is scheduled annually.

Why wasn’t there a bigger push towards print media support?

We were focused more towards Local TV, including Press Conferences, Events and Talk Shows as well as Social Media initially, and when we moved closer to the event we added on-ground activation, press conferences and outdoor in the UAE to drive ticket sales. Print media wrote about the PSL and I hope next time around they will cover it more extensively as they should have even in the first edition.

Timing the matches at night also means newspapers were not able to get coverage in on time.

That is a point to consider next time around. PSL really took everyone by surprise; even up to a few days before there were non-believers and naysayers, but when it happened everyone started to own it. As mentioned earlier, I believe the print media will realize the importance of PSL when the tournament happens again.

Were you happy with Dubai as the venue since there aren’t too many Pakistanis there?

It is correct that there are more Indians than Pakistanis in Dubai, and they have strict work routines which means they can’t just walk into a stadium and spend the day watching a match, yet the turnout was great. In the years to come, as more people get to know about PSL, and our marketing plans improve, the turnout will increase in shaa Allah. The Dubai stadium is the best in the world; the management knows their job. The infrastructure and facilities are exceptional and these have enabled us to make full use of complex technology, such as the Spidercam: this camera is able to move horizontally and vertically anywhere in the space above the stadium, which allows them to capture action from unique angles, and makes for an exciting real-time viewing experience.

The opening ceremony, with its Jamaican performers, was also geared more towards the Dubai crowd than the league’s Pakistani origins.

Since we were in Dubai and the league had been generating attention from people across the world, we wanted to make it an international and inclusive event and through that we wanted to project the soft and wholesome image of Pakistan. The fan following that developed in Pakistan before and during the tournament went beyond my expectations: people developed a deep emotive link with the PSL and their respective teams in the very first year! All this augurs very well for the tournament and the Franchises.

Word has it that the roster included several players who were at the end of their careers and many who have never played internationally.

We got in touch with various top player agents who provided us with available players and those players consented to be part of the PSL Draft. PSL is now the second biggest franchise league, where the quality of cricket played was is very good: given this, we feel more quality players will now be proactively approaching us for the upcoming season.  I would however say that we have started with some top foreign players such as Kevin Peterson, Gayle, Watson, Darren Sammy, Haddin, Grant Elliot, Shaun Tait, Ravi Bopara, Sangakkara and Shakib ul Hassan to mention a few. Some players couldn’t come because they had national duty and we hope to get them in next year in shaa Allah. But let me tell you that the desire of more top foreign players to play in the PSL for all the cricket and commercial value it offers, is growing.

Why didn’t we see any Indian players?

We would have very much liked to have them play in the PSL, but the Indian board doesn’t allow their players to participate in any other T20 League in the world. I guess they  want to protect their product. Having Indian players in the mix would be commercially very good for us as this would drive more interest from the large Indian audience.

How did Green Peak International contribute towards making PSL happen?

GPI was not contracted for the first PSL, however a few senior partners and associates were contracted individually with internal permission from GPI. As we move forward if we are to renew our contract with the PCB we would be doing it through the company platform.  GPI plans to work on all major sports. It is our desire and vision to develop and deliver one marquee event for all relevant and commercially viable sports, and to work with the relevant sports federation to do this.

Football in Pakistan?

If you ask school and university kids what sport they play, seven out of ten will say “football”! If you go to Lyari you’ll find very talented football players, similarly club matches in Chaman can attract 20-25,000 spectators! Such is the popularity ad groundswell of the sport in Pakistan.

Then there is women’s football; we have Pakistani players playing in international women’s leagues. Our youth population is gravitating towards European football and Latin American soccer. We can’t compete at that level yet, but we’re watching the game with a lot of interest. As we increase the visibility of domestic football in Pakistan, this will further trigger the interest & motivation of players, which will help raise national standards and the following of domestic and then national football. We just need to create the right cycle: develop, package and commercialize the sport, generate benefit for viewers, advertisers, broadcasters, and give players the incentive to dedicate their lives to the game.

Where will the playing pool for Squash come from?

All over! The Squash Federation has noted that if we can create visibility, following, and commercial interest for the sport, it won’t be too long before we produce players in top global rankings. PSL secured the future of cricket; cricketers and support staff saw it as a viable livelihood, the game itself became more glamorous and people watched with positive emotions and developed an emotive link. The teams created their own heroes that resonated with local fans. We can give Squash a similar lift in shaa Allah. For 20 years we have ruled the game and we have plenty of new talent that needs the motivation & opportunity to break out.

How long will it take for this sports revival to happen?

We’ve worked a bit on Squash and will probably look at proposing a league for Hockey. I would look at about three years each of these sports leagues/tournaments to reach an initial platform of stability. We have infact developed the critical specs of the Football & Hockey Leagues on paper and these can be worked on further and launched in a 6-8 month time period.

The facilities will also need serious overhauling.

Yes, because our stadiums are not at par with international arenas, but we are encouraging the franchisees to adopt local stadiums as their team homes – e.g. the Karachi National Stadium by Karachi Kings, and Qaddafi Stadium by Lahore Qalandars etc., and work to upgrade and improve the facilities.

Looking at PSL From a Brand Advertising Perspective

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Looking at PSL From a Brand Advertising Perspective

By Ovais Ilyas

As originally published in Synergyzer Issue 2 – 2016

Pakistan Super League was a dream come true for Pakistan Cricket and its fans alike; both foreign and Pakistani players competing in the PSL T20 Tournament was, indeed, a delight for cricket fans to witness. As a fan myself, I feel that the PSL will become more of a game changer for Pakistan and the country’s cricketing landscape as it progresses and, by flourishing, will enable us to accomplish a lot more, including the projection of a softer image of Pakistan. Being a media buyer, I believe that PSL will change much more than that and following is my analysis of the trend changing tournament; what it did and will do for our marketing and media landscape.

1. BRAND REACTIONS IN PSL SEASON 1

Given that the PSL debuted in 2016, the event was a complete experiment for Pakistan and the brands in our market. Nobody had expected the overwhelming response the tournament received and, despite a lack of innovation in marketing strategy, the lead sponsors were able to effectively capitalize on the outcome. Although brands like HBL, Mobilink, ZIC Oils & Lubricants and Giggly Boom Boom Bubblegum created customized communication, more opportunities could have been explored like merchandising, commentator endorsements etc.

PSL has reinvigorated the marketing landscape and trend watchers should definitely be ready for the complete IMC (Integrated Marketing and Communications) plans next year!

2. A SUCCESSFUL COMMUNICATION MIX?

Amongst all the sponsors that became a part of PSL, HBL’s attaching itself to PSL (the tournament is known as HBL PSL) served as a successful value proposition since “HBL” will be spoken whenever PSL is mentioned or discussed formally, especially on the media and by announcers and commentators during the tournament. Moreover, given that HBL has historically used cricket in its communication, capitalizing on singular brand association with PSL was a perfect way of further strengthening the association and, thus, capitalizing on improved Top of Mind numbers. Crucially, they also altered product offerings and communication to better align with the overall cricketing theme, for instance, HBL Loans and HBL credit cards had offers for its customers to ‘be a part of HBL PSL by availing given offers’ etc. The bank also incorporated the official PSL Fantasy League, an online game, into their communication mix surrounding PSL.

Other than HBL, most of the lead sponsors didn’t leverage this event the way such popular sports franchise leagues can be leveraged, rather they benefited from the outstanding viewership of the tournament. It is important to remind oneself that this was the league’s first appearance and future expectations from the marketing fraternity are definitely high.

3. QUANTIFYING HBL’S INVESTMENT

Around PKR 300 million were projected by HBL on the entire first season, which eventually paid off by raising the brand’s awareness scores. Since 2016 was the initial year the complete corrective strategy will be deployed in next year where the brand will be able to reap more benefits in the next two years. We can expect to see more amplification starting two to three months before the actual event.

4. WHY DID A NUMBER OF FMCG’S SAT OUT IN PSL SEASON 1?

Most international FMCG companies are extremely conservative and highly concerned about their brand ROI’s. Driven by KPI’s, such clients are generally risk-averse and have a tendency to avoid risky innovations, which in turn leads to them suffering from a lack of creativity. Usually, small investments are not sufficient for cricketing events and since PSL was also an expensive proposition with no calculated returns for brands to put large investments at risk, most felt the opportunity was not justified (they found out later that they had badly underestimated the scale of the league).

Some local FMCG’s were bold enough to experiment though because they are not compliant with regional KPI’s or calculated returns. One has to acknowledge the proactive approach of Tapal and other local clients in choosing to support PSL by advertising and developing campaigns around it. My read is that next time every advertiser would want to avail this event, leading to a higher demand and an even more expensive price tag than the first season. All the KPI driven advertisers are expected to buy these expensive ROI’s based on the positive returns of those who experimented this year.

5. IF NOT PSL, WHERE WILL THESE FMCG’S ALLOCATE THEIR BUDGETS?

The FMCG sector primarily focuses on entertainment channels such as HUM, ARY Digital and GEO Entertainment, along with news channels. Bigger players will have to be innovation-centric and focus on partnerships keeping their KPI aside every now and then to develop emotional connect with consumers. As far as TV is concerned, smart advertisers will be likely to buy airtime in international franchise shows expected to go on air this year such as Pakistan Idol, Master Chef Pakistan and Bigg Boss Pakistan. Having said that, the high reliance on TV is expected to change and more money will be deployed on digital media, integration with local movies and tie-ups with B-cinema movies; which are low budget commercial movies made for mass audiences, which are not arthouse films and are typically not focused on serious topics, emerging as the “next big thing”.

6. EFFECTIVE BRAND EXECUTIONS IN PSL

Cricket as a sport has a uniquely unifying quality in Pakistan, where the nation is held in thrall when the Pakistan team is in action. Unlike other international events, there is greater room for flexibility in terms of creative executions for events such as PSL. In my opinion, such executions were not pre-aligned by most advertisers. Rather I believe, they saw upward curving results initially and capitalized accordingly. Some were successful in utilizing the correct creative sense and broke through the clutter whereas others merely leveraged the hype without any innovative solutions. In this regard, Oye Hoye sponsored boundary announcements by commentators was one particular instance that stood out along with Boom Boom Bubblegum’s endorsement based commercial featuring Darren Sammy. This kind of communication will have particularly high consumer recall which, I believe, is the key to any brands’ victory and there will be more amplification opportunities for bigger brands in the future.

7. BIGGER. BETTER. BOLDER!

No one anticipated the success PSL has garnered, locally as well as internationally. Who would have thought that Indian batsmen, Yuvraj Singh would have shown support for Peshawar Zalmi and Virat Kohli for Karachi Kings?

Coming back to the subject, in the first year, there was quite a bit of experimentation by organizers as well as advertisers in the tournament. It is expected that next year we will see a different (read very high) price tag for similar mileage and I believe that a big chunk will be allocated next year to non-TV mediums, creating complete marketing and communication packages. Industry experts are predicting that the project will be worth USD 1 billion next year.

8. WHAT NEXT?

  • While this year was purely experimental for all those involved, PSL is expected to go a long way to revive international cricket in Pakistan. Even though the venue may be kept at UAE, this will still reduce negativity among investors who will view this as a major step forward in bringing Cricket to life. Also, for the tournament’s duration Asian expatriates in Dubai and Sharjah will be able to enjoy the games live watching famous players in action and revel in the exhilaration only T20 cricket can bring.
  • The number of teams is also forecasted to increase in comings seasons, along with the number of foreign players involved. This will also promote our native talent in the international media, resulting in more local players being discovered and trained.
  • An important fact: The sponsorship and other marketing mix budgets employed for PSL season 1 greatly outshone those of IPL’s Season 1.
  • I believe advertisers will hold their budget from Q4 to save for the biggest local event. More creativity, in fact, more campaign-ability is expected in the coming years.
  • Advertisers are expected to explore and employ more creative options such as branded announcement by commentators, ground branding, fantasy leagues on a larger scale etc.
  • In the coming years, it is anticipated that 50% of PSL matches will be played in Pakistan. This will be a game-changer and will give a spike in ratings hence brands will be leveraging and designing their ATL and BTL plans with complete cross-media engagement and cross-media promotions.
  • Digital media and radio will be instrumental in advertisers’ plans and I foresee the celebrity fraternity becoming more involved in this event.
  • Besides partnering with the PSL franchises, TV channel networks are expected to take a more holistic approach resulting in even more publicity of the event and talk of the town.

How PSL Season 1 Proved Content Is King

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How PSL Season 1 Proved Content Is King

As originally published in Synergyzer Issue 2 – 2016

Just five months ago, Domestic Cricket or Club Cricket was considered Tier 2 Sports Entertainment content in the Pakistan market. There was a predominant opinion prior to PSL Season 1 that there is an astonishing and insurmountable gap in viewership and business potential of International Cricket featuring Pakistan in comparison to Club Cricket or League Cricket regardless of the participation of Pakistani Cricket stars in the latter. There was also a widely held perception that there is a viewership ceiling and subsequently, a business ceiling beyond which any domestic or club league event may not deliver from a broadcaster’s perspective. So how did many of the media gurus and analysts go wrong while making inaccurate forecasts and forming preconceived conclusions about the broadcast potential of PSL?

In my opinion, many of us showed that while we use the term ‘Content is King’ multiple times in our business communication, the inherent faith towards this phrase is still limited in the Pakistan market. When we used to assume that International Cricket content will always be rated higher than Club or League content, were we of the understanding that the audience watches Cricket due to the “International” tag? It was rather naive of us to think like that because it did become clear in February 2016 that our audience chooses to watch Cricket or other content solely due to its ‘strength’.

It became clear with PSL that our audience chooses to watch Cricket or other content solely due to its ‘strength’.

Content is King: PSL as an example

PSL was a prime example of how important the composition, marketing, packaging, production quality and value proposition of live content is to make it larger than life. The overall star value of the tournament, the persona of individuals and legends involved, the excitement and proximity of the matches played, the creativity in production and execution and its relevance to its many audiences were all factors that turned PSL into Tier 1 content.

PSL was broadcasted on more than 5 media vehicles, including digital channels, and almost all the broadcast mediums got prolific ratings or impressions in terms of their respective potential & existing benchmarks. Many argue that it was the ‘P’ in ‘PSL’ or the nationalistic positioning which generated the success for the event. While this may be partially true in terms of the MarCom strategy and the event’s pre-hype, this cannot logically be the only factor behind the content’s super success. I mean, how do we explain the nominal viewership figures of the PCB Domestic T-20 Event versus the phenomenal 36% viewership from India on Pakistan Super League’s official YouTube channel? These anomalies clearly explain that the power of quality content supersedes any preconceived notions, correlations or variables.

PSL by the Numbers

In Pakistan, PTV Sports, Geo Super and Ten Sports broadcasted the PSL tournament on Television. PTV Sports recorded the highest ratings on the Total Audience filter as well as the Cable & Satellite Audiences.

Cumulative Ratings of PSL Matches (Match Hours February 4 to 23, 2015)

Final – Islamabad United v Quetta Gladiators (23rd Feb 2016)

Source: Medialogic Pakistan, Rapid Meters, KANTAR
Target Group: C&S Individual (Pakistan Urban)

There were 45 active advertisers on the three TV Channels with Mobilink, Pepsi, Hamdard, Volka Foods, HBL, JS Bank and Soneri Bank having the highest Share of Voice during the live broadcast.

The most successful franchise, Peshawar Zalmi, was also the most watched PSL team with a consequential viewership increase evident in all Zalmi matches, another statistic which substantiates the theory of content being king.

The PSL final picked up the highest average ratings – 5.6 average game ratings on PTV Sports, Cable & Satellite, Pakistan Urban – followed by the 3rd playoff between Islamabad United & Peshawar Zalmi – 4.3 average game rating on PTV Sports, Cable & Satellite, Pakistan Urban. The peak rating moment for PSL came in the final match between Quetta Gladiators and Islamabad United whereby the rating almost touched double figures for certain audiences towards the end of the first innings of the PSL final i.e. 8.1 rating on PTV Sports, Cable & Satellite, Pakistan Urban. The international broadcast partners of the league also got substantial results with audiences from regions like the UAE particularly showing a noteworthy interest towards the premiere edition of the Pakistan Super League.

In terms of digital channels, the official Youtube Channel for PSL gained huge popularity with over 70,000 subscribers and proved to be a viable in-stream advertising medium for several advertisers. Similar success stories of quality GRP’s and impressive ROI were reported by international broadcast partners, both conventional and alternate ones.

Given the success of the first season, there is every reason to believe that PSL will become much stronger content in its second year including the expected influx of bigger names, the possible addition of a franchise and the inevitable increase in the number of matches. If all goes per plan, the advertising revenue potential i.e. the cumulative revenue on all broadcast mediums could cross the magical Rs.1 Billion mark in PSL Season 2. The set of beneficiaries will include the ones who were optimistic and accurate in their projection about the content power of PSL before it all began. At the end of the day, PSL 2016 can be defined as an amalgamation of several success stories which came together to form the astonishing PSL success story. Amongst those that were prominent, the creation and distribution of quality content is one of the forerunners!

 

By Umair Masoom

National Manager Sales & Marketing Strategy, PTV Network

A seasoned marketing and media professional, Umair is a key team member of PTV Sports with extensive experience in sports broadcasting, commercial operations and business management particularly in managing mega cricketing events. He is deeply passionate about Cricket & Football having played both sports during his youth years.

Umair has served as a contributing editor for various print and digital publications and as a visiting lecturer of Marketing & Media Management at various universities in Karachi.

Q&A: Editor Pakistan Observer on Running A Successful Print Publication in Pakistan

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Q&A: Editor Pakistan Observer on Running A Successful Print Publication in Pakistan

As originally published in Synergyzer Issue 2 – 2016: ‘Breaking the Mold’

Faisal Zahid Malik is presently the Editor of Pakistan Observer, an English language newspaper published from Islamabad, Karachi and Lahore. Faisal studied at Punjab University, Lahore, graduating with a Master’s degree in Journalism. He started his professional career with the Weekly Hurmat, after which he joined Pakistan Observer as an Executive Editor. He is a member of various societies including the All Pakistan Newspapers Society, Council of Newspapers Editors and the Islamabad Chamber of Commerce and Industries.

What is Pakistan Observer’s business model? Can you provide the readers with a brief history of the evolving print business models?

For now, Pakistan Observer, like any other leading print daily, emphasizes on advertising revenue by catering to a large English speaking audience having interest in brands and retailership. Pakistan Observer generates about 80% of its annual turnover through this model from ad spend. We expect the revenue slab to expand upward as Pakistan Observer maintains market competitiveness.

This business model is the most successful industry-wise. It was developed in the last half of the nineteenth century as the market dynamics began to change due to the industrial revolution; high wages, more jobs, and growing literacy created massive social changes. Naturally, newspapers began changing their patterns to serve this larger mass audience; more departments and sections were established to meet the demands of a growing population and changing interests.

During this shift, papers were sold at a very low price, as businesses came forth to promote their new, mass-produced finished goods amongst readers. This altered the business model putting more emphasis on advertising revenue. During their first 100 to 150 years of publication, newspapers served only about 15 to 25 percent of the population depending upon location, literacy ratio, ranges of economic development, and other factors.

The readers represented the politically, socially, and economically active members of the community. During this time, papers were highly dependent upon circulation sales for their income and the price of papers and subscriptions were very high. Moving forward, we are seeing another shift in the business model, as more and more publications are going digital in a bid to cater to the audiences online.

 

“In Pakistan, India and even in Brazil, the print industry is still healthy.”

 

In a country like Pakistan where English is the second language, how does an English newspaper makes inroads and whom does it target?

A fact which fuels the English newspaper industry is that almost 49% Pakistanis speak English; some 10,000,000 people. What does it mean for us? Well, most of these English speakers hail from the affluent class, meaning they have the potential to purchase not only basic life necessities but luxuries as well.

To cater to this class, the content needs to be tailored accordingly. So, if you do a comparative analysis between English and Urdu newspapers, you will find a lot of distinctions in the ways news is portrayed.

English newspapers are generally perceived to be more ethical in contrast to their counterparts of other languages, are considered less melodramatic, not wasting extra space on defamation, gossips, and crimes –three elements more commonly observed in Urdu tabloids. English newspapers operate in a dynamic environment with needs and preferences of readers changing continuously. In such an environment, publishers/editorial teams continuously look to innovating, engaging and interacting with their readers on a real-time basis, through their personal social media accounts.

Print is mainly dying out in developed nations. Why do you think English newspapers are still doing well in Pakistan? How is the industry in Pakistan different?

Yes, print certainly consolidating its network in the US and major European countries, but in Pakistan, India and even in Brazil, the print industry is still healthy. I think the reason for English newspapers thriving in Pakistan is the fact that the English language press commands a certain premium since brands and advertisers automatically value anyone who can read an English Newspaper.

In the past few years, the gap in the advertising rates between English and non-English publications has been narrowing, because of the rise in purchasing power across the country. Irrespective of the growing advertising rates, we witness a strong print industry probably because of low internet penetration rate, which has reached 16% almost but is still on the lower side. So we do have the new generation, which prefers to go online for the news, but a strong digital presence for leading newspapers ensures that the readership remains loyal to them.

Secondly, newspapers in local languages still have a large readership, especially amongst the labor community across the country. They may not make much contribution in terms of advertising revenues, but niche targeting through limited distribution ensures these papers to survive by making decent profits.  Then, unlike other countries, in Pakistan you find that newspapers are delivered to readers homes. This ease of access enables the industry to reach consumers across major regions.  All these factors make this industry more dynamic, which is quite a different proposition from that in the west.

 

“Either settle for a bland, boring copy and watch readership fall off, or get together with your design team to create vibrant material that engages larger audiences.”

 

What is the biggest threat to the industry? How do you think print will survive in Pakistan?

The biggest threat to the print industry is from online media. But there is still a very long way to go for the internet to penetrate to various socio-economic classes across the country.  Then there is the issue of internet speeds, and computer literacy to take care of.  For now, the challenge from the digital side is weak, but we definitely expect it to grow, especially since there is rising usage of smartphones and mobile internet amongst the younger generations.  It is a sort of innocence to think that print will survive forever, but there are ways in which we can prolong its functional existence.

One major area of concentration, which we have noticed in recent years, is cutting down of certain expenses to ensure that publication churns out enduring profits. Print Publications typically incur expenses for higher circulations under the following heads: Production/Printing, Public Costs, marketing, and distribution. For e.g. to keep costs down, publications can outsource their printing, and it is possible the entire printing industry could be rolled up and separated from newspaper companies in the next few years. We can prolong the print industry by capitalizing on other revenue streams. Since our greatest threat is the digital age, it is only normal to accept it and jump on the bandwagon by taking print publications toward the growing online readership. Most local newspapers and magazines have been ramping up their internet and mobile presence to generate revenues using their original content. For now, digital wings of print publications are not significant contributors to revenue, but in time we will see a shift, just like we do in the West. Such initiatives will ensure the industry’s survival in the coming years.

What, in your opinion, needs to be done to make people realize the power that print still holds in terms of content versus other mediums?

Even during these changing times, newspaper readers seek out original, agenda-setting news with global insight and analysis through competent journalism. And basically, that is what newspapers and magazines offer over other mediums. Also, I believe what’s missing in some mediums is the inter-connectivity; the thread between media and the reader. Every community has news and values, but it’s the local newspaper which digs into the community, learns what’s important, and produces relevant copy that informs and engages its readers. The best way to make people realize that print still holds greater relevancy in terms of content is by producing content in ways it jumps off the page. Either settle for a bland, boring copy and watch readership fall off, or get together with your design team to create vibrant material that engages larger audiences.

Content seeding is something used by government and international organizations to propagate their agenda and have their influence on the populace. What policies does Pakistan Observer have to filter this?

You need to realize that across the world, media is influenced by a few external factors i.e. Government, Advertisers, Interest Groups, Other media and Community concerns. Just as an example, sometimes advertisers are not afraid of using their financial muscle to protest what they perceive as unfair treatment by the news segment of the mass media. They try to influence content by stopping negative stories about their brand which have no concrete evidence, and at times they do succeed.

Content seeding is altogether another matter, and at Pakistan Observer it is left entirely to the discretion of the Editorial team. We have a very open policy in place. If your content is credible, backed by facts and other evidences, then we publish it, either with disclaimers or with the writer’s name. This practice is for every type of organization, be it government, businesses, NGOs etc. At the end of the day, our job is to get the truth out to the masses. How they perceive it, is left at their end. We are not in the business of shaping opinions, although that is exactly what we, as an industry, have actually become.

 

“Our job is to get the truth out to the masses. How they perceive it, is left at their end.”

 

What was the effect of PSL on overall ad spending on print medium? If you feel it was ignored, why was this the case in your opinion?

Around PKR 1 billion were spent on organizing the inaugural PSL tournament, but in my opinion, marketing budgets, of all the teams and the governing body, were primarily focused on TV viewership.
This is due to a few factors, first which is a fact that since it was a globally televised event, the best way, in the minds of the marketers, to reach target audience was through the same medium. Then, in the past couple of years, we have seen a trend where marketers usually neglect the power of print in favor of electronic and digital mediums.

I think there needs to be a shift in the mindsets of these marketers. The print word is still perceived as more credible to many people than anything on the web. It goes to the old adage, “If someone invested enough to print and mail it, it must be important.”

Tracking Cable TV March April 2016

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Tracking Cable TV March April 2016

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KUNDANZ MEDIA GROUP: Revolutionizing Cable in Pakistan

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KUNDANZ MEDIA GROUP: Revolutionizing Cable in Pakistan

As originally published in Synergyzer Issue 2 – 2016

Kundanz Media Group was established in the Year 2004 and is one of the pioneers in Cable Industry. The entrepreneurs started with one small organization called Kundanz Advertising and now have expanded into a group of five companies.

SPECIALTIES & SERVICES

Kundanz’s specializes in planning, buying and exaction campaigns on Cable TV nationwide, including Azad Kashmir and Gilgit-Baltistan, but services are also provided for satellite channels and radio. Under their umbrella is a production house as well and BTL services are also extended to clients.

With the major strength being providing value-added services to clients whether small or large scale, the media group studies all products and services in depth and then proposes a plan through defined parameters that are in accordance with their needs. Moreover, investments are made on buying, as a result of which value additions are made possible for all clients, not to mention the highly experienced team of professionals that makes the job quite immaculate.

The cable industry is also one of the mediums where the rating of in-house channels is very prominent and cannot be ignored. Being a part of the cable industry, Kundanz thoroughly analyzes the services and products of all clients so as to offer the best option according to their requirements, which are cost-effective and efficient.

TARGET MARKET

Kundanz’s target market varies from the corporate sector to retailers and from giant advertising agencies to SME organizations. Cable TV caters to all players of the market and is an intrinsic need of all clients because of its viewership versus economical costs compared to the electronic medium and cable network advertisements can be made at the micro level and the city and area can be selected accordingly.

TECHNOLOGY

Cable operators have also evolved these past few years and have adopted new technology and equipment for their in-house channels and have also started digital TV with analog, meanwhile also providing HD content to provide an even more entertaining experience to their viewers.

ADVERTISING ON CABLE TV

Today we are in the position to check ratings of the in-house channels through rating companies as cable advertising budgets are increasing every year and special advertising budgets are being allocated to cable advertising. Eventually, cable network companies, advertisers and media buyers in the industry are gradually accepting the idea of advertising on cable. Media buying agencies like Kundanz Media do suggest their clients advertise through cable also considering that it is growing exceptionally well.

It can be easily said that the increase in the mediums of advertising has generally seen a rise in advertising budgets and despite the prominence of the digital medium playing a pivotal role, the share of advertising on cable TV remains unaffected. Therefore, cable TV has a long way to go which will transform into Digital TV with HD content. Moreover, ratings of In-House Channels should be available with much better sample rates after transformation into Digital TV, and Digital TV Revolution in Cable Network is not far away now.

 

BY ZARBAKHT IMRAN

CEO, KUNDANZ MEDIA GROUP

A software engineer by education, Zarbakht started his professional journey with DIN Media Group, where he reached the position of GM Sales & Marketing in a couple of years. His knack for experimentation has allowed him to enjoy the challenge presented by a diverse career choice allowing him to succeed in his profession.

FOSTERING CREATIVE RADIO

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FOSTERING CREATIVE RADIO

Tony Hertz, international Creative Director for 14 years at McCann-Erikson and internationally acclaimed radio writer, director and teacher who has done award winning stints in at least 3 continents is known around the globe for creating the most visually imaginative radio commercials. He has a number of silver and gold awards to his credit, and is the only person in the world with both Yellow and Black D&AD – Design and Art Direction – Radio Pencils, which are awarded by the British educational nonprofit to those who have achieved excellence in design and advertising.

On December 10, 2015, Tony Hertz conducted his world famous workshop, “The 7 Secrets of Creative Radio Advertising” at the Movenpick Hotel Karachi. Organized by PAS – Pakistan Advertisers Society, the event was held in association with PBA – Pakistan Broadcasters Association – and leading FM radio stations namely City FM 89, Apna Karachi FM 107, Hum FM 106.2, Radio 1 FM 91, Hot FM 105, Samaa FM 107.4 and Radio Awaz Network.

Coaching advertising and marketing specialists at the event, Hertz started off with describing human relationship with sound and how different sounds affect us below the conscious level. Yet, radio advertising is hardly tackled creatively and marketing communication is largely visual with advertisers shouting out to potential customers using details and information that does the opposite of engaging them. Rather what needs to be kept in mind is that radio has the unique capacity to engage emotions and power to evoke personal visual images. With this, he narrated the 7 secrets of creating commercials for radio that will make them likeable and impactful. According to the creative radio specialist, it is important to look for the particular feeling that can be communicated by the brand in the commercial.

Also, when starting to write a radio ad, it helps to do it with the assistance of a picture or video describing its details or adding details to it that presents the scenario in a personal conversation oriented manner between the person writing the ad copy, the brand and ONE listener. Keeping one listener out of thousands in mind helps to keep the conversation focused and engaging. Hertz also stressed upon the importance of presenting the radio commercial in a way to the client that they can visualize it with the different characters present in it using human relationships to define them. Last but not the least, he stressed the need to ‘produce with passion’ if one wants to make memorable radio ads. Following is a bulleted list

HABIB UNIVERSITY: DEMYSTIFYING LIBERAL ARTS

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HABIB UNIVERSITY: DEMYSTIFYING LIBERAL ARTS

A talk with Wasif Rizvi, Founding President of Habib University.

Synergyzer: Give us some details about your professional self.

Wasif Rizvi: I am the Founding President of Habib University, a project of the Habib conglomerate, one of the oldest businesses in the country. I studied Public Policy and International Education from Harvard University. My interest has always been in creating institutions and learning spaces. Before joining Habib University, I served as GM – Aga Khan Education Services Pakistan where I was in charge of conceptualizing, designing and implementing educational development programs in schools. The first institute that I helped set up was in India called Shikshantar, which is an institute focused on rethinking the foundations of education and development in South Asia. I also helped found the Institute for Development Studies and Practices in Quetta.

Synergyzer: What are Liberal Arts?

Wasif: Liberal arts education generally refers to psychology, history, philosophy, literature and linguistic studies, art and music history, as well as science and mathematics.

The core of liberal arts comes from ancient Greece and is built on ‘trivium’ which is logic, rhetoric and grammar whose purpose was to allow an individual to come to terms with reality and learn to identify things, understand the mechanics of thought to decipher factual knowledge, and gain the ability to express the acquired knowledge. Trivium was later enhanced by including ‘quadrivium’ – arithmetic, geometry, music & astronomy; which allowed learning of pure numbers, numbers in space, numbers in time and numbers in space cum time, respectively.

In ancient societies, the objective behind teaching liberal arts was to cultivate free thinking. They were essential studies to develop citizens who could be productive, while taking active part in civic life, i.e. participate in public discourses, defend themselves in public courts as well as serve in juries and military.

In modern times, the objective of liberal arts education is to provide students with a broad exposure to various disciplines to refine an individual’s thought process. A liberal arts curriculum includes subjects on history, science, philosophy etc.; even music. You may be required to do creative work even if you don’t intend on a career in creative arts. The objective is to better equip you as an individual and as a member of society.

Synergyzer: Why the need to teach liberal arts in Pakistan specifically?

Wasif: There is a dire need in Pakistan for people to know about and understand our history and historical culture, and own up to it for the right reasons. This helps foster a sense of belonging, without which people are essentially rootless. It is also important to conduct a little bit of philosophical reflection, otherwise there are religious and cultural identity conflicts which deter people from reflecting on things critically or perform as productive citizens in any walk of life.

Synergyzer: Pakistan ranks a very low 127 out of 144 for higher education and related training. Looking from the perspective of a liberal arts institute and the difference it can make, what are some of the reasons in your opinion?

 Wasif: We need to look at our country’s past for this analysis. In the 1960’s, a martial law decree was passed that changed the nature of Pakistan’s universities. The decree stated that all education will be categorized under Sciences, which included Engineering and Medicine; and the rest will all be categorized as General Education. This resulted in splitting the population into three categories; doctors, engineers and the primary work force. The more competent individuals ended up studying science, and the rest went into arts. This resulted in a population that was limited in their approach and outlook towards life.

It bred the mentality that obtaining a Bachelor’s degree is a specialization in itself, whereas around the world, Bachelor’s is only a foundation that paves your path to higher education. Due to this, the qualitative outcome in Pakistan is that every other individual out of college wants to hold a position of responsibility, in other words wants to ‘become something’ right after obtaining a Bachelor’s degree, where in actuality they still have a long way to go to be held accountable for strategic matters.

On the other hand, the quantitative outcome is that there is hardly any research being done; no collaborative or effective discourses on history or historical analysis being carried out, hardly any focus on producing art that is inspiring, uplifting, or that sets aesthetic standards of beauty and intricacy. Most of what we are producing does not go beyond a clichéd representation of yesteryear art in the subcontinent. Similar is the case with music and literature; with hardly any comprehensive efforts being carried out at developing our language or literature.

All these factors contribute to Pakistan’s poor rankings in higher education and deciding to counter these led to the conceptualization of Habib University and the creation of the Habib Core Curriculum for its Liberal Arts program.

Synergyzer: What is the Habib Core Curriculum? What philosophy is it based around and how does it impact students?

Wasif: The Habib Core Curriculum is a series of eleven interdisciplinary courses that are based on seven ‘Forms of Thought’ that derive their source from the Greek trivium and quadrivium philosophies. These include

  1. Historical and Social Thought, which helps the students understand and contextualize cultures and society.
  2. Philosophical Thought, that allows students to think impartially, systematically, comprehensively with an aim to understand complex problems with profundity.
  3. Language and Expression, which allows for the development of eloquence and fluency in the communication of ideas.
  4. Creative Practice, which fosters a creative way of thinking.
  5. Formal Reasoning that teaches students to think and act logically.
  6. Quantitative Reasoning that helps develop the capability to handle and operationalize large amounts of data.
  7. Natural Scientific Method and Analysis that teaches students how to evaluate information and recognize limitations in claims.

Students who will apply themselves thoroughly to the Habib Core will develop uniquely attuned faculties of reasoning, logic, deduction, critical analysis and through their actions, emulate the philosophy of the Habib Core which is built around five major paradigms: Striving for excellence; appreciating aesthetics; nurturing passion; respecting others; and serving the community.

Synergyzer: How have you bifurcated the university’s academics?

Wasif: Habib University is divided into two main schools, the School of Arts Humanities and Social science (AHSS) and the School of Science and Engineering (SSE).

AHSS offers BSc (Hon.) in Social Development & Policy and BA (Hon.) in Communication Studies & Design, while SSE offers BS in Electrical Engineering and BS in Computer Science.

Synergyzer: What are the academic backgrounds of the students presently enrolled in the programs?

Wasif: Since ours is a Bachelor’s degree program, we take students from all academic disciplines being practiced presently in Pakistan. To give you an idea – 50% of our students are from the Cambridge system, 25% from the intermediate board, 14% from the Aga Khan Board of Education and the rest comprise of students from IB (International Baccalaureate) Education System, American High School and from the Board of Technical Education. Habib University is an equal opportunity institution and anyone who can clear our admission requirements can enroll in their program of choice.

Supportive of the fact that Habib University is a non profit institution, we have a very generous financial aid and scholarship program. This is a entirely need based – the only criteria we have put in place is the student’s ability to pass our admission procedures. At present approximately 92% of the enrolled students are on some form of financial aid.

We encourage students who have a philosophical approach, and are able to display traits of brilliance, curiosity, and the ability to think out of the box. We look for students who feel the need to self-actualize and are psychologically prepared to do the hard work for this during their degree program. The university will thus create a trajectory for such individuals to be extraordinary successful in life. It is one of our goals to create leaders of their age.

Synergyzer: How do you identify potential students?

Wasif: We have a variety of channels through which we conduct our recruitment. We meet with prospective students in their schools, invite them to our campus, interact with them through social media, they write to us etc.

Recently, we have developed a special program called TOPIS (Talent Optimization, Identification and Support), since we realized certain candidates were having problems in applying with us. The program specifically helps with creating equal opportunity for all applicants like helping fill out forms etc.

Synergyzer: Do you intend to develop any Postgraduate programs within the university?

Wasif: We will continue being an undergraduate university; developing and equipping our program and giving our students the right foundation. Integration of Masters and PHD programs presents a whole different kind of challenge, one that we are not at this point willing to take up. We are satisfied with what we have aimed to accomplish.

Synergyzer: What challenges is Habib University facing?

Wasif: Developing a critical mass of intellectuals required to set up an institute of higher learning is our foremost challenge. The intellectual resources required for achieving something like Habib University are not easy to come by in Pakistan as most of them left the country for higher academic pursuits and are now settled abroad. We have been lucky enough to be one of those to be able to start a movement to bring them back to Pakistan; the thinkers, the historians, the philosophers. The second challenge we face is making the high schoolers realize the value of the education they will be receiving at this institution, and what liberal arts is all about. This involves a lot of unlearning and re-learning on the part of the students to re-educate themselves about some of the core concepts that I have mentioned earlier.

Synergyzer: What future do you see for the Habib University graduates?

Wasif: The kind of knowledge and education we impart transforms our students into future leaders; effective communicators, creative problem solvers, people who would take ownership of their mistakes and go on to find solutions; whether they wish to continue their education or wish for placement in the job market.

Having said this, we have a special division in our career placement department that looks after graduate school placement. We expect that more than half of our graduating students will be positioned in graduate schools with scholarships and grants. Also, we are confident that most of our students will get into the world’s best graduate programs.

Synergy: How do you intend on bridging the gap from campus to corporate?

Wasif: We will be forming an Industrial Board soon in which each of our four programs will have top people from relevant industries acting as advisors. Also, we will make sure that we keep our syllabus robust that takes direct input from the market to ensure our graduates are effective and relevant when they graduate and enter their professional lives.

UBL: Mukammal Current Account TVC

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UBL: Mukammal Current Account TVC

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Abdul Aleem Sheikh
Business Director, Oktopus360 Media

With a TV commercial that takes a lighter note insight based approach to the concept of wants left unfulfilled and how they occupy a significant part of our focus and struggle, the agency and brand took the challenge to move away from the conventional advertising approach used by banking institutions. Rather it is filled with audience-appropriate humor, relatable characters and situations, simple and upbeat story-line, and eventually building a strong emotional connect.

The features and product story which usually play lead in banking-related ads were kept in the background with a catchy jingle showing a developing storyline. Strong technical aspects like smooth frame transitions and camera movement and speed that captured emotions smartly support the ad. The linking of the product story and the features part is done very well.

However, it seems that the length of the ad has been trimmed. Maybe due to the heavy budget being utilized on media?

Younus Usmani
Manager – Brand & Advertising, KENWOOD

Who says banking can be boring?

Based on the basic concept of unsatisfied wishes of every person, UBL’s new TV commercial is a mixture of lighthearted fun and excitement with a slice of everyday life feel.

STRATEGY

What do you require from a bank? Solutions to financing challenges and this TVC does just that. Viewers can clearly create a special niche in their minds about UBL and the variety of services the bank is offering. The fact that this very bank was not very popular due to the quality of its services gets pretty much erased in the process.

Kudos to the advertising agency and brand team, great strategy!

BIG IDEA

Brilliant idea revolving around never ending human desires! It instantly leaves a mark.

The novelty surrounding this idea is the spectrum of audiences it caters to without making them feel distant. I feel this was necessary as the target market for UBL branch banking is quite wide and all had to be attracted in one go.

CREATIVE EXECUTION

This could have been done better.

The sequence breaks when switching from group of boys having food to young couple sitting in restaurant. Frere Hall is a much used location that can be recognized easily plus which restaurant has such long stair cases? The entrance, dining hall and restroom all differ so much that the whole feel of the restaurant gets distorted. Yet, the millionaire’s dressing when getting out of his luxury car justifies the wealth the TVC is trying to project. The music score could have been slower. It’s not too catchy and the lyrics are not impressive. Although the product story shots carry forward the mood of the story, which is very different from the usual banking ads.

Overall the TVC is quite good and refreshing, but it could have been done better had the director worked on the execution details.

Kaleem Kazmi
Creative Director, The Brand Partnership

 I find the TVC something like a well cooked dish after putting together different ingredients, i.e. the jingle from the Indian movie PK, shots and concept from another Indian commercial and the brand from Pakistan.

I admit though that the frames have been shot really well and Frere Hall assumes the look of a restaurant quite nicely. The credit, I believe, goes to the director as the concept writer has only taken forward an Indian advert, which confuses me as to what it should be called, a copy or inspiration? For instance, the particular sequence in which the bald man looks yearningly at another man’s long tresses was put together in the Indian ad as a bald man not wanting to get out from his car as he watches a young boy with long hair walking down the street.

Regardless of all this, the TVC has everything that makes it a worth watch with a well delivered message.

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