'Expand advertising market to raise revenue volume'

By A Staff Reporter,Kathmandu, July 18: Communication and Information Technology Minister Prithvi Subba Gurung highlighted the need to expand the advertising market to boost revenue volume. 

Addressing the activities of the Advertising Board on Wednesday, Minister Gurung directed efforts towards curbing market irregularities.

He emphasised collaborative efforts among federal, provincial, and local levels to address inefficiencies in the advertising sector, highlighting that despite a Rs. 30 billion market, only Rs. 13 billion in transactions occur, with a mere Rs. 2 billion collected in revenue from local-level outdoor advertising out of a prospective Rs. 20 billion. Minister Gurung instructed the board to draft an action plan for fostering growth and development within the advertising industry.

Chairman of the Advertising Board, Laxman Humagain, announced measures to tighten controls over advertising market leaks through amendments to the Advertising (Regulating) Regulations. He noted that under the revised regulations, media agencies must provide evidence of advertisement payments to ensure transparency in service fees.

Humagain also disclosed ongoing efforts to enact legislation for local-level revenue collection from outdoor advertisements, collaborating closely with the Ministry of Federal Affairs and General Administration. Regarding future regulatory initiatives, Humagai mentioned the drafting of laws to govern advertisements on social networks and at local venues such as movie houses, theaters, and fairs. 

Established in 2021, the Advertising Board operates to regulate advertising across federal, provincial and local levels. Since 2022, a Code of Conduct has been implemented to govern the production, distribution, publication, and broadcast of advertisements, ensuring that local media also disseminate public interest information.