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Home / Analysis / TV Advertising Market in Uzbekistan Heads to Growt...

TV Advertising Market in Uzbekistan Heads to Growth

Television advertising is the simplest and at the same time the most complex means of attracting attention to the product. It can combine absolutely all techniques and methods with the application of a great diversity of images, variety of video and sound special effects, texts of unusual design. However, all this requires scores of investments, which not every company can afford. In addition, unprofessionally designed and shallow TV marketing can become anti-advertising.

That is what our conversation will be about with our guest today, director general of International Media Service Uzbekistan, Jasur Tadjiev.

- Within a short period of time that your company works in the market, it has displayed itself as a competent and professional media operator. Please tell our readers more about it.

- You are right, we opened in the autumn of last year in Uzbekistan, and this country became fourth where the company has its business. And we have already taken our niche in the television and advertising market of Uzbekistan. The company International Media Service (IMS) operates in the republic as a media operator, and in neighboring countries this activity is regulated as a seller’s.

- What does it mean?

- Retailer companies are partners of television channels and protect their commercial interests in working with advertisers and advertising agencies. Sellers form the main revenue for commercial channels, because, as you know, advertising revenue is the main, if not the only income for commercial television.

Our managers built similar projects in Armenia, Ukraine, Kazakhstan and Moldova. Now we in Uzbekistan help the largest television channels to reorganize commercial sales of advertising so that they become the most effective and profitable. The revenues of TV channels allow them to be competitive, interesting and keep the attention of the audience. And this is very important, especially now, when new media emerge.

- Today, there is a lot talk on changes in the television market. It is both the creation of the National Media Council of NMS and the expected appearance of measurements. What is it all about?

- The best world practices, which we considered together with our colleagues, prompt the need to set up a public organization that would consolidate the interests of all participants in the television industry. These are TV channels, cable and digital telecom operators, advertising agencies, and the seller – all who consider this business to be the main one in their activity. Of course, it is very important in the formation of such an organ and the role of state television, and it is necessary to pay tribute to the NTRC for playing an important role in the development of the National Media Council.

The tasks of the NMS are the launching and maintenance of a measurement system, initiatives to develop the legislative base in the field of television and advertising, and the development and support of national television. It is the most popular media in the world today, but it also faces competition. One of the strategic goals of the NMS is to maintain the leadership of television both in viewers’ preferences and in the budgets of advertisers. To do this, there is a set of measures that are consistently implemented.

- Tell us more about the telemetry system in Uzbekistan.

- In 2017, the National Media Council held a tender to conduct measurements in the country. As a result, the winner was KANTAR TNS, which is part of the international holding company WPP. She is a leading research company specializing in media research and advertising. It is an independent research outlet successfully implementing projects in 80 countries of Europe, America and South-East Asia. A five-year contract was signed with the company, within which the research company will conduct measurements of the audience in cities with a population of more than 200 thousand, and then in smaller towns.
Television measurements are the most important part of the TV market, which allows all its participants to have information about the popularity of TV channels and programs, the preferences of the audience, the composition of the audience of each event. TV channels will be able to form their broadcasting grid based on the needs of viewers, so that the audience would be interested in watching them.

In how this works, it's easy to understand if you recall serials and films about TV, in which the main characters permanently live in anticipation of the reaction of viewers to certain programs, and they are helped in this by research companies. A similar tool will soon work in Uzbekistan.

Television research is a convenient and modern tool for business and advertisers. Knowledge of the popularity of programs allows them to place their ads in those that are watched by their potential buyers.

- How would you evaluate the TV advertising market in Uzbekistan? How does it differ from the markets of neighboring countries?

- According to IMS, the country’s telemarket in 2017 amounted to about 130 billion soums. Taking into account the current economic indicators, we expect its growth this year at 55%, which, according to our expectations, will be at 200 billion soums.
In our opinion, there is a huge unrealized potential in this market. Judge for yourself: TV advertising costs per capita in Uzbekistan are five times less than in Kazakhstan, 25 times less than in Russia. Obviously, the steps we are taking in the interests of the TV channels are aimed precisely at reducing this gap.

- What is the potential for market growth in the coming years?

- First of all, it is attracting new international advertisers to the advertising market of the country. Now, among the top 20 advertisers, only six are habitual international clients and no world-famous names such as Procter & Gamble, L’Oreal, Unilever, Danone, Reckitt Benckiser and many others. But they are generators in the largest international markets, and their advertising budgets are estimated at billions of dollars.

Second, change is needed in advertising legislation and simplification of requirements for the appearance of advertising on television. Barriers to entry to TV should be simplified and given the opportunity to try this most effective advertising tool for all who produce and sell their products in Uzbekistan. And, of course, the position of the regulatory bodies is important here.
Third, small business today is not sufficiently represented on TV. But this is an opportunity not only to increase sales, but also to increase the recognition of your brand, increase market share. Within the framework of our company, we set ourselves one of the key tasks - to attract small businesses to the republic. New products and features are already available to these advertisers.

- Professional staff is needed to implement such tasks. Are there any in this country?

- I rate the level of training of Uzbek specialists as very high. At the same time, our industry has its own peculiarities, where special branch skills and knowledge are required. For these purposes, we are launching a permanently operating IMS media school in April to train professional cadres for the industry.

For training, we will involve the best national experts in the field of television and marketing, colleagues from other countries and, of course, media-speakers known in the CIS countries.

In conclusion, I would like to say that already now we see the pace at which the industrialization of the television market is proceeding. Representatives of international advertising networks are opening; large international advertisers are negotiating the launch of advertising campaigns. Significantly increase the budgets of advertisers. All this strengthens the belief in us that, thanks to the joint efforts of all participants in the television industry, their results will not be long in coming.

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