GCC ad spend up 28% in first three quarters |
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The first three quarters of 2008 have seen an increase of 28 per cent in advertising spend in GCC, compared to the same period of 2007, while the UAE alone witnessed a 44 per cent growth, according to the third quarter report released by Pan Arab Research Center (Parc).
From January to September 2008, prior to the outbreak of the global financial crisis, the total ad spend in the GCC countries reached $6.139 billion (Dh22.55bn) from $4.822bn in the first three quarters of 2007.
In the UAE alone, the total ad spend has soared to $1.489bn over the period from January to September 2008 from $1.036bn up to September 2007. In the third quarter alone, UAE ad spend amounted to $530 million.
Commenting on the report, Elie Al Jichi, Production Manager at Parc said: "The growth was geared by the Ramadan season. Television and print have seen huge bookings during Ramadan. Throughout the month of September, the amount of advertising in addition to the increased Ramadan rate card have driven a significant portion of the growth during the third quarter."
Advertising rates during Ramadan increased by a margin of 15 to 20 per cent compared to other period of the year.
Beside Pan Arab media, the UAE is number one market in ad spend, continuing to beat Saudi Arabia, the largest consumer market in the GCC constantly since 2005.
Al Jichi expected the fourth quarter to see a growth of two to three points. "I expect advertising spend to keep a flat pace of growth until the end of the year. Back in September, the global financial crisis was not as evident as it is right now."
He said the fear in the market might induce a few cancellations in advertising, mainly from the property development and the financial sectors. "We have not heard of any cancellations yet, however, some campaigns might be held back until the end of the year, despite the pre-allocated budgets for them."
"The annual report on advertising spend might give a better picture on the magnitude of global impact on the local and regional advertising market", added Al Jichi.
Despite that, the third quarter results of advertising expenditure show a persistent enthusiasm, mainly in TV and print advertising. Print advertising topped the media split grid with a total of $1.289bn in the UAE, almost 87 per cent of the total UAE ad spend. Almost $1.145bn were allocated to newspapers and $144m to magazines.
Television marked $134m ad spend, while outdoor saw $42m of spend, radio $17m and cinema $6m.
According to Parc, insurance and real estate sectors were the largest advertising spenders with a 33 per cent share up to the third quarter of 2008, with an increase of 114 per cent compared to the same period of 2007.
Real estate witnessed a surge in advertising in the beginning of October, due to exhibitions such as Cityscape filling almost 70 per cent of ad space in newspapers, yet to appear in the fourth-quarter results. The real estate sector also held the first four ranks for top TV spenders, led by Dynasty Zarooni, and followed respectively by Deyaar, Nakheel and Emaar.
Government organisations took up a share of 20 per cent of the total ad spend.
EtisalatEtisalat
maintained its position as the number one ad spender in UAE newspapers and second largest spender in the region. Outdoor advertising in the UAE, according to the PARC report, saw more ad spend from the FMCG sector, with Americana and Macdonald's coming first and second respectively, and Kentucky in the fourth place.
The region
Oman maintained its position as the top growing advertising market in the region during the first nine months of the year with a growth rate of 56 per cent. This rate is a huge stride from 15.7 per cent growth in third quarter of 2007.
Lebanon advertising market saw a growth of 35 per cent, ranking third after Oman and the UAE. Egypt grew 34 per cent, and Pan Arab media 30 per cent, while Saudi Arabia came in sixth with a growth rate of 16 per cent. Jordan, on the other hand continued to witness a drop in advertising spend reaching 14 per cent.
During the first half of the year, the Jordanian market dropped by 10 per cent.
The top 30 league of spenders during the three quarters of 2008 was led by Saudi TelecomSaudi Telecom
. Two other telecommunications firms, ZainZain
and EtisalatEtisalat followed closely behind. MobinilMobinil and VodafoneVodafone came in seventh and eighth respectively, thus, making five places out of the top 10 spenders. The league also included Pepsi, Pantene, Coca-Cola, Dove and Toyota. In the GCC, Levant, Pan Arab and Arasian markets, government organisations were the largest advertising spenders with a 14 per cent share. Insurance and real estate sector had a 12 per cent share of the regional advertising market.
By Dima Hamadeh
© Emirates Business 24/7 2008
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