Iran has been the one true constant in this region since antiquity, says Ali Azarmi. Here he discusses the cultural and economic promise of the country and the challenges that await those wishing to embrace it.
Being a British Iranian working in the international advertising industry since 1987 – and in television commercial and digital media production since 2008 – I have been observing Iran’s market potential for the past 11 years.
My experience and knowledge of the region and of our industry have converged to this interesting and exciting junction, where progress looks very promising in a new market that requires development and expertise.
Iran has been the one true constant in this region since antiquity. From the world’s first empire under Cyrus the Great grew an identity and understanding of a universal order. The world’s first declaration of human rights and the world’s first united nations emerged from Iran.
Being located strategically between east and west also attracted many visitors, including the armies of Alexander from the west, the Muslim Arabs from the south, and the hordes of Genghis Khan from the east. All etched their indelible marks and yet Iranians rose from the ashes to great heights time and again throughout their long history. Such is the country’s strength of character and national identity – embracing adversity and absorbing it into its own DNA to transform it.
Today, Iran’s diverse population is a reflection of this state of mind. Kurds, Turks, Baluchis, Arabs, Persians, Armenians, the Qashqai, the Caspian people and many other groups with their own dialects, languages and customs make up what is known as Iran and being Iranian. The Iranians’ love of nature and culture, the arts, philosophy, poetry and their legendary hospitality has tamed many storms.
And so it is that the Iranians have evolved their recent history and shaped events. It always starts from within and through the collective will of its people.
Since 1979 Iran has been segregated from the rest of the world and this does not sit well with its proud people, who wish to share their love of life and welcome the world. Yet the country of 80 million has grown in many fields despite the fact that its $400 billion economy is operating well below potential. Many of its industries and manufacturing have grown into the world’s top 15. It is, for example, the 12th largest car manufacturing county in the world. It has the third largest crude oil reserves, the second largest natural gas reserves and as many mineral resources as Australia. Iranian artists are in high-demand by Western galleries. Iranian cinema has flourished with its humanist focus, and at the last Olympics, the country was ranked 17th in the world. It also has the highest number of bloggers per capita in the world. Iran is well-positioned among global leaders in nanotechnology and stem cell research. It is the certified scientific power in Southwest Asia; the 17th largest producer of scientific papers in the world – ahead of Turkey and Israel. There are currently four million university students, the majority of whom are female.
It is the world’s biggest and last untapped market and it is slowly and surely opening its doors to the world after decades of heavy sanctions designed to cripple its economy. Ultimately, that is the greatest testament to its enduring stability. No other market has been so severely tested and come out stronger – A very reassuring factor for investors. Collectively, all of the above points towards a well-rounded and multifaceted society and economy.
Almost all visitors who have been to Iran speak greatly about its amazing historic and cultural sites, the beautiful and magnificently diverse landscape, but most of all visitors are blown away by the Iranian people and their welcoming spirit. Tourism will be the fastest and the biggest beneficiary when Iran joins the rest of the world and with it the hospitality and travel industries. The construction of hotels has already begun. Iran is aiming to have 20 million visitors a year by 2025.
It may be surprising but many retail brands have already opened shops in Iran and many more are poised to enter. The local brands and industries that grew because of sanctions, to meet local demand, will soon find new opportunities but also heavy competition. Previously they only had to compete with cheaper competitors from China and India, but they will soon be competing with quality goods and services from Europe and later on, from America.
The advertising industry has never had greater prospects – a multitude of local and international brands in a hungry and eager market wanting to be heard. Foreign advertisers must take heed, but should not apply the pan- Arab formula to Iran. This formula lumps a culturallydiverse region into a generalised and sterilised mass, void of any real identity. The only common thread in Pan Arabia, which includes Egypt, Lebanon, Saudi Arabia and the United Arab Emirates amongst others, is the Arabic language, and that thread does not does not extend to Persian-speaking Iran.
Advertising in the Islamic Republic of Iran will have both cultural and religious restrictions, but with a healthy film and theatre industry and a wealth of talent, the audience is educated and open to appreciate the intellect of creative advertising. There are many advertising agencies in Iran and their role differs from their counterparts elsewhere in that many are all-in-onecombo media houses. The ad agency is also the media buying and planning agency and the production company. Their biggest challenge on working with multinational agencies, which may be looking them up as potential partners, is understanding the different work culture.
The other challenge, for local agencies, is to transform from information distributors into engaging storytellers. Here, the Iranian consumer is already wellahead and ready. Both of these are great opportunities for multinational agencies with their own tools and systems. There are, of course, limited collaborations between Iranian and foreign agencies already, but thesehave seen limited success. The main deficiencies are to do with the business language and understanding of advertising principles as defined and developed in the west. In other words, the definition of creativity in advertising and why it makes business sense. Of course, local advertisers have a lot to do with this process. With the presence of multinationals in Iran, it is imperative that they establish themselves early on as experts and consultants in their field in order to deliver what their clients need, rather than become suppliers who deliver what their clients want.
There is huge potential for Iranian advertising across all platforms to raise its standards. TV advertising is the most dominant and has great penetration. Online and digital are the fastest-growing and, given Iran’s population and internet savvyness, are the greatest prospects. Ambient advertising and activation and new media innovation are all at a stage to be adopted as mainstream. There is also great potential for research companies as the quality of data about to the media industry is inadequate.
Graphic design has always been strong in Iran, but art directors and copywriters are in short supply; the talent is there, but is dispersed to other fields. This applies to many roles within advertising and media agencies. The opportunity is therefore to source potential talent and train and refocus them for advertising. Human resources companies will be in great demand.
Film production is another fantastic opportunity to be developed in Iran. It has fabulous unseen locations, from the salt lakes and deserts, to sub-tropical jungles, breathtaking mountain scenery to urban landscapes; four seasons and magical skies. Talented craftsmen and set designers are qualified and highly-experienced crews are currently working on features and TV series. There are also great local actors and performers and a full orchestra of music composers and recording studios. Production costs can be considerably lower than in Lebanon. Again, the talent for commercial films would have to be resourced from the mainstream feature film sector. Producers will need to adapt to the pace and ways of foreign productions and organise accordingly and much more methodically.Post-production requires huge investment, but there are many freelance-based professionals working on gaming projects.
Overall, the talent needed for advertising and related skills is fragmented and diluted into other fields. The great writers, designers, artists, musicians, performers, craftsmen and others have to be brought into advertising. They have to be convinced that the integrity of their art will be well-represented and compensated.
Navigating the maze of logistics, permits and legal procedures for business setups and foreign partnerships will be a daunting prospect for any entity entering a system that has evolved independently from the rest of the world over several decades. But Iran is a ‘can do’ attitude country where anything is possible with resolve. It is part of their national identity that ‘no’ and ‘I don’t know’ do not exist. Ask a question or share a problem on any topic and everyone will have a solution for it.
Naturally my partners and I are very excited and optimistic about the prospects the Iranian market has to offer and about the difference we can bring to it. We are in the process of establishing our presence in Iran as Joy Media, working in partnership with local and foreign ad agencies as consultants and in creative development. Of course, we will facilitate foreign productions in Iran, working to our well-established international standards, as well as catering to overseas productions and services for clients based in Iran.
Ali Azarmi is managing partner at Joy Films