Awaiting reforms, advertisement business mired in aberrations

Kathmandu, Oct. 7

An advertising agency held the payment made by a client company to the media that published the advertisement for more than six months. Later, the media came to know that the agency had paid about two thirds of the money it received from the advertiser.

A reputed advertisement professional said that a significant number of advertisers have resorted to content placement in the media instead of publishing advertisement due to unnecessary pressure, and sometimes threatening, from online news media and newly established television channels.

Hoarding boards are loosely managed by the local governments but they are losing a significant amount in revenue as they contract out the management and the money they receive is peanuts. Meanwhile, the contractor and a few concerned staff churn out 'good money', said an advertisement professional.

These cases tell that the advertising industry in Nepal lacks transparency and needs policy as well as technological interventions to make it transparent and vibrant.

Until the Advertisement Board (AB) was established in December 2020, advertising industry was largely an unregulated sector and the actual statistics about the size of the market and its contribution to media and government revenue were not available.

In the past three years since its formation, the AB has taken some major steps to regulate and monitor the advertising industry in Nepal. It issued standards for the public welfare advertisement in print and electronic media, advertisement agency listing and monitoring, and advertisement broadcast testing.

 

Transparent market

Recently, the Board has issued a notice asking the government offices and agencies to make payments on the basis of an invoice issued by the media even though they publish the advertisement through an advertising agency. If they published the advertisement directly contacting the media, payment should be made as per the media invoice and if it is published through an agency, the latter should issue its invoice adding its commission to the media invoice.

The invoice issued by the media should be attached with the invoice issued by the agency.

Last year, the AB issued code of conduct for the industry to make its conducts more ethical, transparent and business-friendly. The Ministry of Communications and Information Technology (MoCIT) had been trying to formulate and implement the Advertising Code of Conduct since more than a decade ago. A draft had been prepared and the Ministry had also held multiple rounds of discussions on it but due to the lack of support from the advertising agencies, it couldn't be implemented then.

"The code of conduct will ensure fair-play environment. As some of the issues in it have been included in the advertising regulations, it has been more effective," said Chairperson of the AB, Laxman Humagain. The regulations have provisions to punish with a fine of up to Rs. 500,000 in case of the violation of the code of conduct.

The listing of advertising agency has kept the regulator updated about the industry and made the monitoring of the market and evaluation easy. The Board has barred the media to work with the advertising agencies not listed with it.

 

Regulating outdoor advertising

Of late, the AB has shifted its focus to the management of outdoor advertisement which is one of the major components of advertising in Nepal along with mass media, digital and social media, and theatre and events.

There is no rule or standard to regulate or operate outdoor advertising.

Local Self-Governance Act has a clause to raise tax from the outdoor advertising but there is confusion about who should raise that tax. The Advertisement (Regulation) Act, 2019 has assigned the Advertisement Board with the regulation and necessary arrangement to regulate and manage the outdoor advertising.

However, although the board can set standards for the whole country the implementation of the standards and raising tax should be done by the local governments, said Humagain. The collected tax would be divided at 60:40 ratio between the local and provincial governments.

Godawari Municipality in Lalitpur has recently issued a notice asking the stakeholders to remove the hoarding boards displayed without permission. According to the AB, about 56 per cent outdoor advertising is being done without obtaining permission from the federal or local bodies.

"The Board is setting standards for the hoarding boards. Distance and design of board at the national highways, inside roads and junctions would be set. All the boards displayed without permission would be removed or brought under regulation," according to the AB. The board will also decide the appropriateness of the advertisement space as well.

The Board is in the stage of finalising the standards for the hoarding boards. It would be okayed after the discussion with the local governments. The Ministry of Federal Affairs and General Administration has also been roped in in the process.

"We are also developing a model law for the local bodies to manage the outdoor advertising to facilitate them without which the new instrument will be ineffective," said Humagain.

President of Signage Association Nepal, Kiran Panta, said that the new standards would help the businesses to grow in a competitive way. According to him, there was a problem in tax system and individuals instead of companies have been managing the markets.

No one should be allowed to advertise or manage outdoor advertising without getting approval from the regulator, said Panta.

 

Digital and social media

The AB is also set to create regulatory environment for the digital and social media. A draft of guidelines is being framed in collaboration with the MoCIT. Hopefully, the guidelines will be passed by the Cabinet soon, said Humagain.

The Board is also conducting research to know the size and expansion of digital and social media advertising. It aims to conclude the entire regulatory framework by next year.

Likewise, cinema halls and event spaces will also soon have guidelines to publish advertising.

 

Size of advertising market

"Across the country, only Rs. 2.5 billion revenue is collected from the outdoor advertisement (technically known as the Below-the-Line or BTL advertising) while its total market size is estimated at about Rs. 18 billion," Humagain stated. Likewise, size of traditional media advertising is estimated at about Rs. 14 billion which is quite contrary to the size estimated by the market.

The Advertising Association of Nepal (AAN) estimates the advertisement market of mass media at about Rs. 7 billion which was forecast to grow by approximately Rs. 2 billion to make the total size Rs. 9 billion.

But the recent economic slowdown has badly hit the advertising and media market. "The economic recession, market contraction and court decision to ban liquor companies to advertise their products in mass media have a detrimental impact on the advertising industry," said Rabindra Rijal Shashi, Immediate Past President of AAN.

However, the implementation of the clean feed policy in 2020 has forced the multinational companies to create their advertisement locally in Nepal. Since the advertisements produced in other countries and 'dubbed' in Nepali have also been banned from broadcast, Nepali advertising agencies have got additional business, said Shashi.

 

Ban on liquor ad impacts seriously

Advertising professionals said that the ban on liquor ad had serious repercussions on the advertising market. "Although the economic slowdown is the major cause behind the current distress in business, ban on liquor advertising has inculcated further damage," said Sashi.

He said that the issue of allowing any product to advertise should be with the government, not with the court.

G.P. Timalsena, Managing Director of Promoters Nepal, an advertising agency, demanded a review of the court decision on imposing ban on liquor ad. "Complete ban is not a solution. The government can charge additional fees or the like on liquor ad but it should be allowed in the mass media," he said.

Meanwhile, lack of standards to provide advertisement for media has also troubled the advertisers and agencies equally.

Agencies said that there was a massive pressure from media, especially online ones, to provide them advertisement although most of them have poor or no audience and have zero impact in terms of marketing or promotion.

Advertisement is an investment, not a charity, said one ad professional. He also said that the reduced advertisement supply has forced the media to seek source of income other than advertising revenue which is not good for the business as well as the country.

Shashi also said that advertising in media without good presence in the market is a misuse of resources. 

Published in The Rising Nepal on 8 October 2023. 

Nepal condemns terrorist attack in Israel

Kathmandu, Oct. 7

Nepal strongly condemned the terrorist attack in Israel on Saturday that caused loss of human lives and injured many. The Ministry of Foreign Affairs (MoFA) said in a statement that it has been informed that a farm, where 14 Nepalis were working, was also under attack.

Nine of the Nepalis have been reportedly injured while two of them are in serious condition.

"At this critical hour, we convey our solidarity with the Government of Israel," the MoFA said in a statement.

The statement read that the Government of Nepal extends heartfelt condolences and deepest sympathies to the people and Government of Israel as well as the victims of this cruel attack and their families. The government has also wished for speedy recovery of the injured.

According to the MoFA, the Embassy of Nepal in Israel is in close communication with the Nepalis living in the areas under attack. The Embassy is also in contact and coordination with the Israeli authorities for the safety, security and rescue of the Nepalis as well as medical treatment of the injured.

The Ministry has urged Nepali nationals in Israel to remain cautious and follow the safety measures advised by the authorities. Nepalis in Israel can contact embassy at +972(0)35168085, Ambassador Kanta Rizal t +972545864423, and First Secretary Arjun Ghimire at +972528289300 or email at nepal.embassy@012.net.il. 

Published in The Rising Nepal on 8 October 2023. 

CNI, JTUCC sign understanding to boos industrial relations

Kathmandu, Oct. 6

The Confederation of Nepalese Industries (CNI) and the Joint Trade Union Coordination Centre  (JTUCC) signed a Memorandum of Understanding (MoU) on Friday to enhance  industrial relations.

It is probably the first of its kind in South and South East Asia, where the agreement between employers and workers has progressed, the CNI said in a statement.

The MoU is signed by President of CNI, Rajesh Kumar Agrawal, and President of JTUCC, Binod Shrestha. Officials and representatives of all trade unions affiliated with the JTUCC were present on the occasion.

According to the parties of the MoU, the main objective of the understanding is to contribute to the overall economic development of the country by developing good labour relations between employers and workers, creating an investment environment,  generating more employment opportunities within the country, improving living standards, and increasing productivity.

Speaking on the occasion, Agrawal said that this is probably the first exercise in the history of the world labour market where workers and employers have officially cooperated on issues and cases. He expressed his belief that this kind of cooperation and understanding will play an important role in addressing production, skills, employment problems and challenges.

While saying that the CNI believed that it is possible to contribute to economic prosperity through amicable relations between workers and employers, Agrawal said that he is embracing the issue that these two are the companions of economic prosperity, not workers and employers.

According to him, this agreement will give  a good message to  foreign investors as well.

Likewise, Shrestha recalled that in the past, the relationship between employers and workers was like that of ‘tiger and goat’ which now has been converted into ‘water and fish’.

By embracing this relationship, a harmonious environment has been created between the employers and the workers and it has reached a stage where we can move forward by reaching an understanding with the employers.

Bhim Ghimire, Vice-president of the CNI, expressed his belief that this agreement will be the main tool to support in  country's economic development, industrial growth  and foreign investment environment.

President of Nepal Trade Union Congress Yogendra Kumar Kunwar, General Secretary Ajay Kumar Rai, General Secretary of Nepal Trade Union Federation Laxman Sharma, Female Leader Sita Lama, Vice President of All Nepal Trade Union Federation Dhan Bahadur V.K. welcomed the  agreement. They urged to prepare an action plan and follow the bilateral mechanism from a new dimension.

Published in The Rising Nepal on 7 October 2023. 

Romania assures of equal rights to Nepali workers

Kathmandu, Oct. 6

Romania has assured that Nepali workers working legally in Romania are entitled to equal rights as that of Romanian citizens.

Simona Bucura-Oprescu, Minister for Labour and Social Solidarity of Romania, informed Sharat Singh Bhandari, Nepal’s Minister for Labour, Employment and Social Security, about the rights and security that Nepali workers are entitled to in her country, informed the Embassy of Nepal in Berlin.

During a delegation-level meeting between the two countries led by Burura-Oprescu and Bhandari, the Romanian side informed the Nepali delegation regarding the need for a Romanian labour market, especially in the fields of construction, services, hospitality and agriculture, the Embassy of Nepal in Berlin which is also accredited to Romania, informed in a statement on Friday.

As of now, 15,590 Nepali workers are employed in Romania which is the second largest among the foreign citizens from non-EU countries in Romania.

The two countries signed a Memorandum of Understanding (MoU) on the Cooperation in the Fields of Labour and Social Protection on Friday, October 6. Ministers-duo Bhandari and Bucura-Oprescu signed the MoU on behalf of their respective governments.

On the occasion, the two Ministers shared views, primarily, on the agenda of Nepal-Romania bilateral relations, labour migration, Nepal's commitment to legal migration, workers' welfare, dignity, security, and vocational training.

“The two ministers expressed happiness over the growing relations between the two countries in recent years and stated that the signing of the MoU would be the first step in the roadmap towards fair, ethical, and legal migration of Nepali workers to Romania,” read the statement.

Minister Bhandari also expressed his willingness to collaborate with the Government of Romania in all sectors of mutual benefit. He further stated that Nepal is aware of the gender-friendly recruitment approach and is ready to cooperate on this matter.

Earlier on October 5, the delegation led by the Minister held discussions with the private sector apex bodies of Romania on the issues being faced by Nepali workers and recruitment agencies and companies in Romania. Executives and representatives of 25 companies were present at the program organised by the Nepali delegation.

The Nepali delegation led by Minister Bhandari includes Kewal Prasad Bhandari, Secretary of the Ministry of Labour; Employment and Social Security, Ram Kaji Khadka, Non-resident Ambassador of Nepal to Romania, and other officials from the MoLESS and the Ministry of Foreign Affairs.

The Romanian delegation was led by Minister Bucura-Oprescu and included high-level officials and heads of relevant departments from the Ministry of Labour and Social Solidarity.

The Nepali delegation is scheduled to leave for Germany on October 8, Sunday.

Published in The Rising Nepal on 7 October 2023. 

KTM City festive offer begins

Kathmandu, Oct. 6

Nepali clothing and sportswear brand, KTM City has extended its festive offer ‘Dashain Dhamaka’ sale till mid-November.

The offer was made public targeting the great festive season of Dashain and Tihar.

The Dashain Dhamaka sale, which offers free flights, travel and rides, has been extended till mid-November as per public demand, the company said in a statement on Friday.

The company said that the customers will get various discounts on all winter clothing.

“Customers can get special discounts on Dashain offers, including bus and plane tickets. Customers will get a buff or cap for shopping up to Rs. 2,000 and a towel for shopping up to Rs. 3,000,” read the statement.

It said that the customers can get a special promo coat of Pathao for buying goods up to Rs. 4000 in KTM City and a free ticket to Grassland Festival while buying goods up to Rs. 5000.

Similarly, the first 10 customers who buy goods worth Rs. 8,000 will get bus tickets to Jhapa, Butwal or Pokhara, while the first eight people buying goods worth Rs. 30,000 will get flight tickets to Jhapa, Butwal or Pokhara.

According to KTM City, wholesale customers who buy goods above Rs. 50,000 will get 15 per cent discount on their purchase.

The Dashain offer can be availed at nearby stores and online, the company said. 

Published in The Rising Nepal on 7 October 2023. 

FM Dr. Mahat stresses on technical skills

Kathmandu, Oct. 6

Finance Minister Dr. Prakash Sharan Mahat has said that the human resources should be trained in and equipped with the latest technological skills and the government, non-government and private sector should collaborate in this.

Speaking at an interaction programme on the possibilities and plans of vocational training organised by the Federation of Nepal Training and Employment Professionals, Minister Dr. Mahat suggested creating employment in the country and training people in a way that they fit in the prospective job opportunities.

"A large number of young people have gone abroad without acquiring the required skills. It has adverse impact on their income there, they are not earning the amount which they would have earned if they were properly trained on a certain professional skill," he said.

According to him, education has been expanded throughout the country while the institutions like the Council of Technical Education and Vocational Training, and private sector companies trained many youth on various skills. But their effectiveness has not at par expectation.

"There are trainings related to foreign employment while non-governmental organisations and International NGOs have been organising various training on their own without considering duplication and the demand of the people. Many of such training don't yield any result," said FM Dr. Mahat.

He suggested that it would be better if training programme is organised by developing pragmatic curriculum in the areas that are in demand in the market. 

Published in The Rising Nepal on 7 October 2023. 

Beijing's E-mobility

 It's all about e-scooters and bicycles! In Beijing, the capital of China, you'll see a lovely sight on the streets. Hundreds and thousands of people use e-scooters and bicycles on special lanes to get to their destinations. These lanes keep them safe from big vehicles like cars. For poets, this can symbolise personal freedom in a communist society.

In recent years, the automobile industry has been focusing on electric vehicles. They come in various forms, from e-bicycles and passenger cars to buses and trucks. Governments and consumers around the world are embracing this innovation. 

Even the environmentally conscious folks are happy with it. Our northern neighbour is leading the way in electric vehicle market, as well as in innovation and development. Beijing can serve as a role model for other cities when it comes to using and managing e-scooters and e-bikes, and creating a sustainable urban transportation system.

People in China love electric two-wheelers because they are easy to use and perfect for navigating crowded city streets and narrow lanes. Commuters find them handy for short trips to work or the local market, avoiding the hassle of parking cars or regular bikes. 

They are also cheaper to operate than traditional gasoline vehicles. This makes them a great choice for Beijing residents looking to save money on transportation. Plus, they're good for the environment and help fight air pollution and environmental damage. 

They produce no emissions, which helps the city meet its goals of cleaner air and a smaller carbon footprint. Lately, Beijing has seen a drop in emissions from personal vehicles.

E-scooters have also made a big difference in easing traffic in Beijing. They take up less road space and can zip through traffic quickly. 

This has made them an important part of the city's transportation system, connecting people to public transit stations for those last few miles of their journey. Commuters use them to bridge the gap between their homes and subway or bus stops. 

This has been a game-changer for managing traffic and getting around the city. You can find e-bikes and scooters near the metro or train stations and bus stops. All of these electric vehicles are registered digitally, so people can unlock and pay for them online, mostly through WeChat.

Beijing's government understands the importance of regulating electric two-wheelers to ensure they are used safely and responsibly. They've set a speed limit of about 25 kilometers per hour. Many major roads in Beijing now have special lanes or paths just for e-scooters and e-bikes, keeping them separate from pedestrians and regular bicycles. 

These two-wheelers are even allowed on sidewalks and pedestrian crossings. Traffic rules are strictly enforced, so unlike in Nepal, these lanes are not invaded by other vehicles.

However, there's one concern: helmets are not mandatory for riders, so even minor accidents can be very dangerous. Improper parking of e-scooters and e-bikes on sidewalks is also a common problem, blocking pedestrian walkways. 

Nepal can take some valuable lessons from Beijing's electric two-wheeler system. There's a big business opportunity for private or public companies to offer rental services to people, helping them get from their homes to the nearest bus stop. All big cities, including Kathmandu, should have wider sidewalks and dedicated lanes for e-bikes.

Published in The Rising Nepal on 5 October 2023.