| 01 Sep 2010 |
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Advertising expenditures in UAE decline 4% in first half
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ABU DHABI -- The advertising expenditures in the GCC region grew by 20 per cent in the first six months of the year, showing significant growth in all member nations of the economic bloc, in contrast with a four per cent dip in the UAE.
According to the Pan Arab Research Centre (PARC), advertising expenditure in the region, which includes Pan Arab media which is mainly satellite TV channels, grew 19.66 per cent to reach $5.05 billion from January to June. The increase exceeded the expectations of the impact of the global financial and economical crisis on advertising activity in the region which caused the sector to grow by a relatively modest nine per cent in 2009, reaching $9.2 billion compared to $8.9 billion in 2008.
Khamis Al Muqla, Chairman of Gulf Marcom Group headquartered in Bahrain, who is on the board of the International Advertising Association, said that these figures are a good indicator that the advertising activities in GCC are recovering and steadily returning to the previous level of growth seen over the last ten years.
Should the rate continue, Al Muqla said, advertising expenditure will exceed the $10 billion barrier by end of 2010 for the first time, a milestone which was expected to be reached last year had it not been for the economic crisis.
Al Muqla noted out that the PARC report indicated that the Pan-Arab media share of the advertising expenditure rose to $2.86 billion representing an increase of 34 per cent compared to $2.14 billion in 2009.
According to these figures, Pan Arab media had the greatest share of the increase in GCC advertising expenditure with 57 per cent of the total GCC spending.
By country, Bahrain's advertising expenditure grew by 40 per cent, the highest rate amongst all GCC countries, followed by Oman 12 per cent followed by Qatar 11 per cent.
The largest Arab economy Saudi Arabia showed a nine per cent increase4 and Kuwait's expenditure rose eight per cent.
The UAE was the country to record a decrease of four per cent.
Despite the drop, the UAE maintained its leadership position in terms of market share in GCC ad spend at 31 per cent, followed by Saudi Arabia 27 per cent, Kuwait 21.7 per cent, Qatar 10.2 per cent, Oman 6 per cent, and Bahrain 3 per cent. These percentages do not include Pan Arab expenditure which is directed to key markets in the GCC, particularly Saudi Arabia.
Furthermore, Al Muqla added that TV advertising - including Pan Arab media - grew by 39 per cent to reach $3.48 and continues to lead the total GCC advertising expenditure with a market share of 57 per cent.
Print media was a distant second at 37 per cent, with newspapers comprising 31 per cent to reach $1.89 billion, an increase of six per cent, followed by magazines with six per cent market share and $368 million in total spend.
Outdoor advertising's market share shrunk to four per cent having decreased by six per cent to $244 million.
The list is rounded out by radio one per cent, which increased by 10 per cent to reach $73 million, while cinema barely reached $10 million, the same figure as 2009.
Amongst local markets, print media dominated local media ad spend with a share ranging between 70 - 80 per cent.
The biggest advertising sectors during this period were communications and public utilities which recorded a 39 per cent increase to grab 15 per cent of the market share. It was followed by toiletries hygiene/house care products 15 per cent, up 26 per cent, government organisations 14 per cent, up 27 per cent, and food, beverages, and tobacco 11 per cent, up 37 per cent.
© Khaleej Times 2010
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