digital advertising in pakistan 2013 - free version

B Solutionswww.bsolutions.pk

Digital Advertising in Pakistan2013

2B Solutions 2013

What is the purpose of this report?

Who are we?B Solutions is a digital agency based in Lahore, Pakistan. We have beenproviding search & social media marketing/management services to a select group of clients since 2010. We’ve partnered & grown with our cli-ents, helping make sense of the digital landscape and its integration with brands & businesses worldwide.

Agenda

Understanding Pakistan

Digital Advertising’s Rapid Growth

Popular Social Media Networks

The Future For Pakistan

What Does All Of This Mean For YOU?

Understanding Pakistan

B Solutions 2013Source:Pakistan Telecommunication Authority, Internet World Stats, Business Recorder, World Bank,

Govt. of Pakistan Census, ProPakistani, Country Meters 6

183MPopulation

Y/Y Populationgrowth

Aged < 25 years

1.5%55%

Y/Y Mobile usersgrowth

Smartphone Users 6M10%125M

Mobile connections

2.2M Y/Y Broadbandusers growth

Broadband users41%

30MInternet users

16%Y/Y Internet usersgrowth

Pakistan: What you need to know

This page is not available in the free version of this report

To access the complete paid report, head to:Bsolutions.pk

Digital Advertising’s Rapid Growth

Advertising is the life bloodof the digital economy

– Nick Stringer, Head of Regulatory Affairs, IAB UK

B Solutions 2013Source:eMarketer, Aurora Fact File

15

Google takes home the lion’s share of digital ad revenues,with Facebook taking only 1/6th of that amount

Global Digital Ad Spend

2010 2011 2012 2013

$117B$103B

$87B$72B

18%

15%

21% 20%

18%

22%

15%18%

% change % share of total ad spend

Global Digital Ad Revenuesby company (2013)

33%5%3%

59%

Facebook

Google

Yahoo

Others

$117B

B Solutions 2013 18

advertiser whodecides to marketits latest deals onthe internet

designs the adcampaign

facilitates thelink betweenadvertiser andpublishers

are the hostwebsites todisplay the ad

a web surfer towhom ads aretargeted

Tracks user activity in order to maximise effectiveness of ads

Web Analytics

Brand Ad Agency Ad Network Publisher Consumer

Others Others

One of the many ways in which digital advertising works

Popular Social Media Networks

Advertise next to or above relevant Google search results. With search ads,you can reach customers on all the devices they use to search for information.

Computer Tablet Mobile Phone

Create all types of ads - text, image, interactive and video ads.Place those ads on websites that are relevant to what you’re selling.Show those ads to the people that are likely to be most interested.Manage and track your budget, campaigns and results as you go.

Display advertising lets you

Text Ads onWebsite

Image Ads onWebsite

Video onWebsite

Ads on MobileWebsite

PagesMission Control for your business on FacebookPages are the essential place on Facebook for businesses to build connections with people. It’s where youconnect with fans by announcing new products, sharing news, and gathering feedback. Your page is alsowhere you create unique brand content that can become ads and sponsored stories. It’s the core place forBusinesses to manage their posting and advertising content

Mobile platform for social interactions and communication

Take control of your business with PringYour brand page is your connection to your consumers. Here, you can begin conversations with them,introduce awesome offers, share news & watch your followers take your brands forward. Throughcutting edge viral features, you can spread the word about your brand, converting your followersinto brand ambassador, sharing anything interesting that you have to offer. Pring pages are

your one stop shop for all your social media requirements.

LinkedIn is a social network for the business community. It allows registeredmembers to strengthen and extend their existing network of trusted contacts.

Twitter enables its users to send and read text-based messages of up to 140characters, known as "tweets". It lets you connect and follow the latest stories,

ideas, opinions and news.

Google+ aims to make sharing on the web more like sharing in real life. Circles,Events and Hangouts are just a few of the features offered by Google+

We took the top 10 Pakistani brands as measured byNielson in 2011 & tried to determine which digital channelsthey were utilizing to reach their audience.

How do Pakistani Brands Rank?

How effective is each brand's presence? Its a questionwe would love to work on answering, but we considerto be beyond the scope of the current effort.

The Future For Pakistan

Rise in Mobile Banking

“...35% of the adult population (in Pakistan)could be Mobile Financial Service users by 2020.”

- The Boston Consulting Group 2011

B Solutions 2013Source:State Bank of Pakistan

Major Players

Powered by high penetration of mobile, m-banking is aneasy choice for the country’s unbanked majority

2011 2012 2013 (est.)

42

$2B

$5B

$11B

# of transactions

Value ofTransactions Insights from 2012

121MTotal number of transactions

$5B Worth of transactions

$43Avg. size of transaction

53M121M

189M

Mobile will be King!

B Solutions 2013Source:StatCounter

India

3G Launch

Feb 20111

Oct 2012

Apr 20131

Not Launched

2008

2009 2013

1Limited Regions only 2Expected

59%

54%

33%

30%

30%

Jul 2012

Jun 2013

Mid 20142

Late 20142

Early 20152

Mobile Traffic Crossover

Bangladesh

Afghanistan

Pakistan

Sri Lanka

Mobile Traffic overtaking desktop traffic in the region

45

Digital Advertising will Explode!

(Poor choice of words but we mean it in a good way)

Ecommerce in PakistanEcommerce in Pakistan is estimated to be a $500M industryby 2017. A number of new entrants hope to drastically increasethe size of the pie in the coming years. Some prominent

ecommerce service providers in Pakistan are on the next slide

B Solutions 2013Source:Trango.co, Propakistani.pk, Tech in Asia, Interviews with industry experts & business owners

52

daraz.pk tohfay.comtcsconnect.com shopistan.pk shophive.com symbios.pkhomeshopping.pk

Retailers

Classifieds

300-500 80% $500MDeliveries per day made bysome of the larger retailers

of online shoppers optingto pay via Cash on Delivery

will be the size of the industryin 2017 according tosome experts.

tradekey.compakwheels.comolx.com.pkkaymu.pk

What Does All Of This Mean For YOU?

B Solutionswww.bsolutions.pk

[email protected] +92 42 35709916

We would like to thank the following individuals for their help, encouragement & guidance: Ali Shahid,Asfandyar Farrukh, Asfia Fazal, Asif Qayyum, Dr.Ehsan-ul-Haque, Dr.Zahoor Hassan, Faisal Zahid, Khalid Farid, Murtaza Ali,

Naveed Siraj, Noman Ali, Sami Kizilbash, Sheba Najmi, Tania Aidrus, Tauqir Tariq

http://www.pta.gov.pk/index.php?option=com_content&task=view&id =269&Itemid=658 http://www.internetworldstats.com/asia.htm http://www.census.gov.pk/ http://countrymeters.info/en/Pakistan/ Country MetersSlide 7: Slide 7: World Bank's World Development Indicators (WDI) databaseSlide 8: http://www.pide.org.pk/pdf/PDR/2011/Volume1/1-28.pdf https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html http://www.adb.org/publications/middle-class-size-past-present-and -future-description-trends-asiaSlide 9: World Bank's World Development Indicators (WDI) database (cars) http://www.tradingeconomics.com/pakistan/internet-users-wb-data.html (2010 figure according to (2010 figure according to World Bank Data as published in 2012) http://www.pbs.gov.pk/content/pakistan-statistical-year-book-2012 (2011 -12 statistics) As cited in (OCT 2010) http://www.radio.gov.pk/aboutus.htm http://www.radio.gov.pk/new/site/images/pbc_st.jpg. Trivia book Top 10 of Everything 2011 by Russell Ash (taken from surveys of UNESCO) surveys of UNESCO) Adapted from the data by Pakistan Bureau of Statistics & State Bank of Pakistan (SBP)FY12, does not include Chinese and smuggled phones as cited in (http://beta.dawn.com/news/647338/pakistan-ranks-5th-in-asia -in-mobile-phone-users) Interviews with Industry expertsSlide 10: Pakistan Telecommunicaiton Authority Mobile Users calculated from % share of internet tra Mobile Users calculated from % share of internet traffic by mobile users as reported by StatCounter World Bank's World Development Indicators (WDI) databaseSlide 14, 15: http://www.emarketer.com/Article/Digital-Account-One-Five-Ad-Dollars/1009592 http://www.emarketer.com/Article/Google-Takes-Home-Half-of-Worldwide -Mobile-Internet-Ad-Revenues/1009966 AuroraSlide 16, 17: Slide 16, 17: Aurora Fact File - http://auroramag.wordpress.com/aurora-fact-file/Slide 18 Based on Interviews with Industry ExpertsSlide 19: http://www.emarketer.com/Article/Total-Media-Ad-Spending-Rising-Steadily -Indonesia/1009246 http://www.emarketer.com/Article/Emerging-Markets-Asia-Pacific-Propel-Digital -Ad-Spend-Growth-Region/1009598 http://www.srl.lk/factfile/advertising-expenditure-adex-2000-2010/ http://archive.thedailysta http://archive.thedailystar.net/newDesign/news-details.php?nid=248704Slide 22-23: Google Adwords - http://www.google.com/adwords/Slide 24-25: Google Ads – Display Network - http://www.google.com.pk/ads/displaynetwork/ Digital Agencies and the Google Display Network (by:Clark Kent Koga, 16 May 2013) Build Brands with Google PK Display

Slide 26-27: Facebook Pages - https://www.facebook.com/about/pages Facebook ad planner - https://www.facebook.com/business/connectSlide 28-29: SmsAll - http://smsall.pk/Slide 30-31: Pring - http://www.pringit.com/Slide 32-33: Linkedin ad planner - https://www.linkedin.com/ads/Slide 34-35: Twitter – http://twitter.com Interviews with industry experts Interviews with industry expertsSlide 36-37: Google+ for Business - http://www.google.com/+/business/Slide 38-39: As cited in Campaign Asia (http://www.campaignasia.com/Article/ 256186,pakistan-focus-top-10-brands-by-nielsen.aspx)Slide 40 Pakistan & its image problem – Eric Schmidt https://plus.google.com/+EricSchmidt/posts/4UcNomnhipXSlide 41-42: Shaping our financial future, Socio-economic impact of mobile financial services financial services http://www.telenor.com/wp-content/uploads/2012/03/Shaping-our -financial-future-final.pdf The Socio-Economic Impact of Mobile Financial Services Analysis of Pakistan, Bangladesh, India, Serbia and Malaysia http://www.telenor.com/wp-content/uploads/2012/03/The-Socio -Economic-Impact-of-Mobile-Financial-Services-BCG-Telenor -Group-20 -Group-2011.pdf SBP (http://www.sbp.org.pk/publications/acd/branchless.htm)Slide 45: www.statcounter.comSlide 46: Faisal Shaikh – GfK http://trango.co/a-marketers-guide-to-brand-wars-smart-vs-mobile -phones/Slide 49: Aurora Fact file - http://auroramag.wordpress.com/aurora-fact-file/ World Bank's World Development Indicators (WDI) database (cars) http://www.tradingeconomics.com/pakistan/internet-users-wb-data.html (2010 figure according to World Bank Data as published in 2012) http://www.pbs.gov.pk/content/pakistan-statistical-year-book-2012 (2011-12 statistics) As cited in (OCT 2010) http://www.radio.gov.pk/aboutus.htm http://ww http://www.radio.gov.pk/new/site/images/pbc_st.jpg. Trivia book Top 10 of Everything 2011 by Russell Ash (taken from surveys of UNESCO) Adapted from the data by Pakistan Bureau of Statistics & State Bank of Pakistan (SBP)FY12, does not include Chinese and smuggled phones as cited in (http://beta.dawn.com/news/647338/pakistan-ranks-5th-in-asia-in -mobile-phone-users)Slide 51-52: Slide 51-52: The Ambition of Shopistan.pk - http://trango.co/the-ambition-of-shopistan-pk/ Despite Tough Conditions, Ecommerce Businesses in Pakistan is on the Rise – Interview with Arslan Nazir (Shophive.com) - http://propakistani.pk/2013/04/22/despite -tough-conditions-ecommerce-businesses-in-pakistan-is-on-the-rise/ Pakistani E-Commerce Ventures Look Global - http://www.techinasia.com/pakistan -ecommerce-goes-global/ Interviews with industry experts & business owners

References

B Solutions 2013

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