01 July 2008
MUSCAT: Advertising spending in the Sultanate has jumped 69 per cent to $57 million in the first quarter period ended March 31, 2008, against $34 million reported during the same period last year, according to the Dubai-based Pan Arab Research Center (PARC).
Of the total $57 million advertising spend in the first quarter of the current year, the print media accounted for $48 million which is 85 per cent of the total advertising market pie. The rest of the miniscule 15 per cent revenue was shared by television ($6 million), magazines ($2 million) and others, according to latest data. Data on outdoor advertising was not available.
The first quarter report for the period ended March 31, 2008, shows advertising spend is continuing its upward spiral and may well cross $200-million-mark this year.
Top spenders during the first three-month period, according to PARC, included: Saud Bahwan Group; Oman Mobile; Muscat Festival; BankMuscat; Nissan; Omantel; Nawras; Bank Sohar; The Wave Muscat; Al Ahli Bank; Oman Air; Global Investment House.
The PARC had reported an advertising spend of $171 million in fiscal 2007, an increase of 24 per cent compared to fiscal year 2006. PARC said advertising spend in the country for the past three years has steadily increased from $105 million in 2005 to $139 million in 2006 and further to $171 million in 2007.
With Oman's economy booming with surging oil prices and increased spending by the government and corporate sector, the advertising expenditure is set to increase as companies would allocate more funds on advertising and marketing.
World over when the economies do well the advertising spend also increases while advertising budget becomes the first casualty in times of a recession.
The global media services group ZenithOptimedia, in a recent report, downgraded its combined growth forecasts for this year in North America and western Europe, from 4.4 per cent to 3.8 per cent on account of the credit crunch drain and the sagging consumer and business confidence in that part of the world. On the other hand, ZenithOptimedia, increased its forecasts for emerging markets to 11.1 per cent growth in 2008.
However, the Middle East's advertising markets including that of Oman are growing steadily at higher rates. The pan-Arab industry touched $7.963 billion revenue mark in 2007, up 19 per cent compared to 2006, according to PARC.
According to media watchers, the booming real estate market and financial services sectors in Oman will take the advertising segment to new highs with advertising space increasing in the print, electronic and outdoor segment.
Projects like The Wave, Blue City and Sama Dubai will provide an added impetus to the sector.
MUSCAT: Advertising spending in the Sultanate has jumped 69 per cent to $57 million in the first quarter period ended March 31, 2008, against $34 million reported during the same period last year, according to the Dubai-based Pan Arab Research Center (PARC).
Of the total $57 million advertising spend in the first quarter of the current year, the print media accounted for $48 million which is 85 per cent of the total advertising market pie. The rest of the miniscule 15 per cent revenue was shared by television ($6 million), magazines ($2 million) and others, according to latest data. Data on outdoor advertising was not available.
The first quarter report for the period ended March 31, 2008, shows advertising spend is continuing its upward spiral and may well cross $200-million-mark this year.
Top spenders during the first three-month period, according to PARC, included: Saud Bahwan Group; Oman Mobile; Muscat Festival; BankMuscat; Nissan; Omantel; Nawras; Bank Sohar; The Wave Muscat; Al Ahli Bank; Oman Air; Global Investment House.
The PARC had reported an advertising spend of $171 million in fiscal 2007, an increase of 24 per cent compared to fiscal year 2006. PARC said advertising spend in the country for the past three years has steadily increased from $105 million in 2005 to $139 million in 2006 and further to $171 million in 2007.
With Oman's economy booming with surging oil prices and increased spending by the government and corporate sector, the advertising expenditure is set to increase as companies would allocate more funds on advertising and marketing.
World over when the economies do well the advertising spend also increases while advertising budget becomes the first casualty in times of a recession.
The global media services group ZenithOptimedia, in a recent report, downgraded its combined growth forecasts for this year in North America and western Europe, from 4.4 per cent to 3.8 per cent on account of the credit crunch drain and the sagging consumer and business confidence in that part of the world. On the other hand, ZenithOptimedia, increased its forecasts for emerging markets to 11.1 per cent growth in 2008.
However, the Middle East's advertising markets including that of Oman are growing steadily at higher rates. The pan-Arab industry touched $7.963 billion revenue mark in 2007, up 19 per cent compared to 2006, according to PARC.
According to media watchers, the booming real estate market and financial services sectors in Oman will take the advertising segment to new highs with advertising space increasing in the print, electronic and outdoor segment.
Projects like The Wave, Blue City and Sama Dubai will provide an added impetus to the sector.
By K. Mohammed
© Times of Oman 2008
