Conventional media and the advertising industry which sustained Nepal’s free press are being disrupted by competition from the Internet, and the economic slump, and it is now a case of the survival of the nimblest.
Newspapers, radio stations, and television networks are navigating uncharted territory as the digital revolution reshapes how Nepalis consume information and entertainment. Even digital portals that started in the past decade are now in trouble because most follow the same business model as legacy media.&nbsp;
The morning newspaper which used to be the primary source of information to find out what happened yesterday was gradually replaced by evening tv news, FM radio bulletins, and now social media platforms.
Many tech-savvy Nepalis have never even touched a printed newspaper or magazine, and most from the younger generation cannot remember the last time they did so. Traditional print media's readership and advertising income have therefore continued to plummet, thereby undermining its check-and-balance role in Nepal’s democracy.
Read also: <a href="https://www.nepalitimes.com/news/journalism-is-all-about-storytelling-and-money">Journalism is all about storytelling (and money)</a>, Nepali Times
With the ability to simultaneously consume and contribute to news, Facebook, Twitter, Instagram and lately TikTok have emerged as significant disruptors. Social media's real-time functionality has broken down boundaries, democratised information sharing, and amplified the voices of specific groups and individuals. The rise of citizen journalism has also challenged traditional media's authority and gatekeeping function.
Thanks to the growth of streaming services, the television and film industries are no longer constrained by strict timetables. Content on demand is made possible by services like Netflix, Amazon Prime Video, and Hulu, and the ease and low cost of streaming services have transformed customer behaviour.&nbsp;
One of the most significant consequences of the decline of traditional media is faced by the advertising industry dealing with shrinking budgets from brand promoters, and that shrank further after the Supreme Court ban on alcohol advertising in the print media last year.
The prohibition of liquor advertisements has exacerbated the crisis, and left a void in revenue not just for the agencies but also for the media where the ads were placed.
Agencies have shifted a sizable percentage of their advertising budget to digital platforms, and have been compelled by this transition to reconsider conventional strategies to service portfolios to include influencer marketing, social media campaigns, digital marketing, and content development.
Read also: <a href="https://www.nepalitimes.com/news/investigation-introspection-and-investment-in-media">Investigation, introspection, and investment in media</a>, Nepali Times
One advertising agency that has adapted well to the digital ecosystem is Prismark. Its executive director Pankaj Pradhan says, “Data-driven strategies have transformed the way we service clients. The day when advertising was only based on the audience's understanding or intuition and presumption is long gone.”&nbsp;
Agencies are adapting by expanding their services, experimenting with new channels, and looking for customers in non-alcohol areas, including FMCG, healthcare, and technology, to compensate for the income loss.&nbsp;
“We have managed to adapt by focusing not just on selling advertising space but on effectively reaching various audience profiles and segments,” explains Ujaya Shakya of Outreach Nepal. “Our Nepal has a predominantly youthful population, with over 70% of the audience below 35. These young individuals often possess ambitions surpassing our country's opportunities. Many aspire to study or work abroad, and thanks to the internet and media, they now have access to global information and exposure.”
Nepali youth also share a common longing to understand their cultural heritage, identity and a sense of belonging. Therefore, creating campaign ideas that integrate consumer insights with local culture becomes crucial, cutting through the noise to provide meaningful solutions to marketing challenges that hold value for the end consumer, says Shakya, who strives for what he calls “Nepalisation”.
Read also: <a href="https://www.nepalitimes.com/here-now/paradigm-shift-in-nepali-media">Paradigm shift in Nepali media</a>, Shristi Karki
This approach allows Outreach Nepal greater audience engagement and that resonates with their combined desire for global exposure and a connection to their roots. Shakya has managed to thrive by aligning marketing strategy with the aspirations and cultural values of Nepalis.&nbsp;
Since liquor companies were a significant contributor to advertising revenue, the ban also affected creativity, prompting organisations to develop new strategies to address the needs of other sectors of the economy.&nbsp;
But to reach new consumers, the agencies had to change their methods, which necessitated substantial study and adaptation. Nepal does not presently have a policy on surrogate ads in the news format, which makes things complicated for the advertising industry as they look for other options for product placement at events.&nbsp;
If alcohol advertising was banned by the Supreme Court on health grounds, some have said promoting carbonated soft drinks with high sugar content, or even diet drinks that contain cancer-causing aspartame, and junk processed foods should also be restricted.
Read aslo: <a href="http://archive.nepalitimes.com/news.php?id=6267">"Media competition will ensure quality advertising"</a>, Nepali Times
“The blanket ban on alcohol advertising lacks clarity on what constitutes adverse effects and who can determine which products fall under this category,” says Ahimsa Yonjan from TBWA/Benchmark Nepal. “Fizzy drinks have high sugar content and can contribute to obesity, type 2 diabetes, metabolic syndrome, and inflammatory diseases. Is that not a health hazard?”
What would have been better would be specific rules for marketing and product promotion rather than an overall ban. Such laws would strike a compromise, allowing customers the freedom of choice while protecting them from inaccurate or misleading information.
Advertisements exist so businesses can promote their brands, and the revenue from them sustains the media. It is a transparent transaction, since readers, viewers and listeners are all aware of who is promoting what.&nbsp;
Like advertising agencies, advertisers have also changed their brand promotion strategy. For example, Hyundai in Nepal now prioritises online platforms. Says Hyundai’s Sandeep Sharma: “We now focus on digital media to provide comprehensive coverage rather than instant, short-lived updates since our target audience are those with decision-making power within families.”
By synchronising its advertising with feature stories, Hyundai wants to reach a wider audience and ensure its messaging remains relevant over time. Sharma admits that even the older generation is now increasingly relying on Facebook and not newspapers and magazines.&nbsp;
Read also: <a href="https://www.nepalitimes.com/editorial/internet-in-everything">Internet in everything</a>
Hyundai's budget for tv commercials has also gone down in Nepal because its target demographic is no longer watching television. Government tax adjustments in the budget may also harm Hyundai's marketing efforts in the electric vehicle segment.&nbsp;
Ghorahi Cement, on the other hand, has thrived because it has kept up its below-the-line (BTL) advertising intact, demonstrating the resilience of its marketing methods even during difficult economic times. “Our success rests in identifying the distinctive traits of our target market,” says Ghorahi’s Pratik Adhikari. “The people of Nepal continue to build houses when they are ready to do so, contradicting traditional market predictions.”
This realisation led the business to use a marketing approach that heavily relies on sides of buses, cabs, houses and non-traditional media. By posting inscriptions on solar panel lights in Butwal, for example, Ghorahi has supported attempts to preserve wildlife. The company's brand image is further improved by this strategy, which increases awareness and appeals to the ecologically sensitive public.
Despite the growing popularity of digital advertising platforms, therefore, Ghorahi Cement adheres to specific market dynamics and employs tactics that appeal to its target market. This has helped the company establish a market niche.&nbsp;
At a time when internet advertising is king, this is proof of the potency of cutting-edge marketing that transcends business as usual. Hyundai, Ghorahi and others are examples of companies that investigate alternative advertising strategies and customise them to the unique requirements of their target audiences by continuing to prosper in difficult economic times.
Read also: <a href="https://www.nepalitimes.com/news/the-new-news-age">The new news age</a>, Sonia Awale
Jharana Khanal is a student at Kathmandu University School of Law researching the entertainment industry and media in Nepal.

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Drift to digital disrupts media business model

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110111120/636cd0ed9c7e80680e08f883jpeg.jpg" alt="" width="1000" height="1500"/><figcaption>Photo: MONIKA DEUPALA</figcaption></figure>The Year of Covid hit economies hard, and none more so than the <a href="http://v" target="_blank" rel="noopener noreferrer">media business which depends mainly on advertising</a>. With sales down and many businesses going belly-up, the media’s main source of revenue dried up as well.When the lockdown went into effect on 24 March, most legacy media in Nepal stopped their print editions. Nepali Times and Himal Khabarpatrika were one of the first to stop printing in early March, and went fully digital. National broadsheets like Nagarik, Kantipur, Kathmandu Post and The Himalayan Times also halted hardcopies, and terminated their other magazines.Among the broadsheets, only Naya Patrika and Annapurna Post continued to print much slimmer versions of their papers, mainly surviving on government notices.However, within ten days Nepal’s largest-circulation newspaper Kantipur resumed printing after it found out that it was losing market share. “We panicked prematurely, and pausing print production was a near-fatal decision,” admits Mahesh Swar, Assistant General Manager at Kantipur Media Group. “We did lose some confidence of our readers, but we have won most of it back. Resuming print was the best decision we made.”Although it was a question of visibility in the market and a presence in the corridors of power in Singha Darbar, <a href="https://www.nepalitimes.com/editorial/media-muzzle/" target="_blank" rel="noopener noreferrer">media</a> as a business has struggled to survive in the past ten months as Nepal’s economy flatlined during the March-July lockdown. The prognosis for 2021 is looking only slightly better.A handful of digital-only portals with lower overheads rode out the crisis, but even they had to cut costs as new sites diluted online readership. Print media found it difficult to get existing companies to switch advertising to their online editions. While page views of their digital editions hit the roof, revenue crashed.Back in April, Shiva Gaunle of the Centre for Investigative Journalism (CIJ) told this paper that <a href="https://www.nepalitimes.com/latest/in-locked-down-nepal-print-is-still-king/" target="_blank" rel="noopener noreferrer">the resumption of hardcopy</a> was prompted by competition, and the fear of losing a paper’s footprint.“It is true digital media has even more reach during the lockdown, but the publishers seem to have decided that not having a printed newspaper has reduced their clout,” Gaunle says. “In that respect, print is still king.”A <a href="https://www.nepalitimes.com/banner/mobile-nepal-is-hooked-on-youtube/" target="_blank" rel="noopener noreferrer">survey earlier this year</a> by Sharecast Initiative showed that only 7% of a nationwide sample regularly read print media, while the proportion of people who got their information from online media had grown, but only to 16% by October.“It has been a challenging year for publishers, but they should keep in mind that the readership has not decreased. It's just that the news sources have shifted to the digital platform,” says Madhu Acharya of Sharecast. He adds that the real reason there are not more readers of print is because publishers have not invested in efficient nationwide distribution. “Most respondents in our survey said they would read newspapers if they could buy them easily.”<a style="font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/opinion/journalism-is-not-a-crime/" target="_blank" rel="noopener noreferrer">Journalist Namrata Sharma</a> believes that older people prefer a physical newspaper because they are in the habit of reading them with their morning cup of tea. “Newspapers are just much easier to read, the letters and pictures are bigger and they do not have to squint into phones,” she says.https://www.youtube.com/watch?fbclid=IwAR0YfYL0plBNnqDQvITBvW-S4pcOYeQcS2cHoedcDtVArHADUyro3G8y4Tk&amp;v=r6UdpJ-UC_Y&amp;feature=youtu.beThe Sharecast survey shows that the readership of news portals is not much higher, and most people with smartphones use the internet <a href="https://www.nepalitimes.com/review/nepals-new-digital-landscape/" target="_blank" rel="noopener noreferrer">for entertainment, to connect to family and friends and to watch or share video content</a>. Some 80% of respondents in the survey are on Facebook, with the total number of Nepalis with the app at nearly 9 million. YouTube and TikTok are spreading rapidly as well. Three years ago, only 1% used YouTube, that has grown to 57% in 2019.Acharya says print readership can grow if newspapers and magazines are more readily available to subscribers and in news-stands because of greater literacy levels. Print’s advantage is its shelf-life, and the size of images, which has an edge over a mobile phone screen.“Print newspapers are not going to die because it is something physical that stays with you, there are things you can do with design and use of space on the page that is much more powerful than looking at a small screen,” says Amar Gurung, CEO at Himalmedia, which is resuming the print edition of Nepali Times every Friday from 1 January.Even ad agencies feel that print is a more credible source of information for the public, but they say that <a href="https://www.nepalitimes.com/editorial/lockdown-crackdown/" target="_blank" rel="noopener noreferrer">legacy media</a> has to re-invent itself to be more appealing to advertisers and readers."Print publications have a more loyal readership, and they perceive them as more credible than online," says Ujaya Shakya of Outreach Nepal, and author of Brandsutra.He adds that print readers do not usually multitask when they read a magazine or newspaper, making them more receptive to ads in those publications.However, Shakya says the <a href="https://www.nepalitimes.com/here-now/nepalis-are-drifting-to-digital-media/" target="_blank" rel="noopener noreferrer">penetration of digital media is growing</a> faster, and it will gain momentum when it is integrated with print, tv or radio."The biggest challenge for marketers now is the attention span of the digital audience," Shakya adds. "How many times will they click on the banner ad while browsing social media or a site? That is the key question."The print media as it existed 10 years ago is dead. But the content and role of newspapers have changed. Ironically, what appears to have saved print is the proliferation of digital portals, where both news and advertisement tend to be drowned out by the cacophony. To stand out from the crowd, advertisers now prefer a printed paper page.“Print media still helps to create certain level of credibility in communications. With excess noise in digital, and its unregulated content, many people are not sure how much they can trust it. Print provides trust,” says Punam Singh of the Golchha Group which is the distributor of Bajaj motorcycles.It may be a question of time before print is trending again, just as people get tired of digital sound and vinyl record shops are becoming fashionable. Physical newspapers are tactile, their influence is less ephemeral than digital, much like e-books never really took off as people preferred to turn physical pages. The sale of printed books worldwide doubled last year.“A newspaper in your hand is much more real than digital words on a monitor. There is more trust and credibility in a physical paper in this age of fake news,” says Amar Gurung. “Readers of print also tend to read longer articles and are less distracted, whereas online readers prefer shorter items or videos.”This may be the reason why despite the <a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium/" target="_blank" rel="noopener noreferrer">growth of digital readers</a>, many advertisers in Nepal still prefer ads in print. Indeed, across the world there is a return to print advertising by companies who are turned off by the over-saturation of online, and people disabling ads because they feel pursued by algorithms.“Traditional media's major source of revenue has been ads. But now, we have to think out of the box to generate revenues from other sources as well,” says Gurung.To be sure, there are caveats to print. The content and production values have to be of extremely high quality, there has to be visibility and efficient distribution that makes the media brand stand out. In the end it will be the advertisers who have the last word.Says Prasun Timilsina of Karyala Advertising Inc., “For advertisers, it mostly depends on the audience. While products for youth are usually on digital media, it still makes sense to advertise in newspapers because they are tactile and there is greater retention of content that people see in print. A newspaper is also shared by the entire family, as opposed to digital media which is individual.”

media-business

Drift to digital disrupts media business model

The death of print is exaggerated