State plans to cut print ad costs by 50pc
DAILY NATION By Lilian Ochieng'
Wednesday March 4,2014
The government has formed a committee to formulate ways of reducing print advertising expenditure as it plans to shift to digital platform.
Information Communication and Technology Cabinet secretary, Mr Fred Matiang’i, had late last year hinted at the move meant to reduce the cost of print advertising by 50 per cent.
The steering team, to be chaired by Information Secretary Ezekiel Mutua, is required to come up with the way forward.
“We have already commenced strategy meetings towards this goal and we should present our findings to the Cabinet in the second week of March,” said Mr Mutua.
Confirming the move, Mr Matiang’i said the government must go digital even in advertising.
“As the whole world adopts digital trends, we will gain more than lose if we place most advertisements online,” said Mr Matiang’i.
However, the explanation that the shift will help cut expenditure by 50 per cent is in doubt after government said it would be launching a state newspaper meant to “enhance communication of government policies and programmes.”
Government statistics released by the ICT ministry show that total advertising expenditure for Kenyan institutions, state agencies and parastatals between June 2012 and April last year was Sh2.8 billion, an amount that Mr Mutua says has gone up due to increased advertising by the devolved structures.
NEW GOVERNMENT PAPER
The committee comprises representatives from the ICT ministry, Kenya Broadcasting Corporation (KBC), Brand Kenya, Kenya Editorial Year Book and the Media Council of Kenya.
“We will harmonise various government communication agencies such as KBC, Kenya News Agency, departments of information and public communication,” said Mr Mutua.
The harmonised centres will act as the main distribution hubs for the new government newspaper that will carry state advertisements.
Mr Mutua said the committee has borrowed ideas from Uganda’s New Vision, Tanzania’s Daily News and other state-owned newspapers in Africa and across the world.
“The papers have succeeded in helping governments of the respective countries enhance communication with minimal costs. However, our major focus in Kenya will be online communication,” said Mr Mutua.
Mainstream newspapers like the Daily Nation and Standard have long benefited from a government directive to advertise public tenders in at least two national publications.
Nonetheless, advertising experts have raised doubts on the possible success of the proposed state paper, saying the government might incur huge capital and circulation costs, leading to the collapse of the paper.
“There is a possibility that without great expertise on the managerial board of the newspaper, it might face challenges just like Kenya Today and Kenya Times, did” said Mr Michael Ngugi, Nation Media Group advertising director.
“There are also huge expenses related to newsprint, circulation costs — which include vehicles to distribute papers — and investment in manpower.”
He said the costs could likely see the government newspaper cease publication.
As the committee works on ways of maximising digital communication and cutting advertising costs, experts maintain that the government had better be carefully on the matter.
Mr Matiang’i also says that the national public communication policy paper that has long been debated by the ministry and thoroughly vetted will also act as their guide besides the committee.
The paper aims to clarify issues in the government’s communication, including print advertising.
“The policy governs advertising protocols and emphasises the need to cut advertising expenditure because a huge portion of the money goes to political congratulatory messages and obituaries,” said Mr Matiang’i.