Ramadan soap operas are the bull's-eye among prime time slots for advertisers.
For most agencies and their clients, Ramadan is the most crucial time of the year for companies to advertise because of the intensity of mosalsalat viewership on terrestrial channels 1 and 2.
Insiders estimate the number of television viewers to be in the range of 55 million during the two hours following iftar (this year, between 5:30 and 7:30-8 p.m.), excellent for companies that want to showcase their goods to a more guaranteed and enormous audience. During these key hours, ad rates increase by as much as 150%, according to figures by the Pan Arab Research Center. Last year, a 10-second slot on state channels during prime time cost as much as LE 20,000.
While some warn that Ramadan has become over-commercialized, the rush to advertise on local channels is not waning yet. FMCG companies and telecom operators are among the biggest advertising spenders during the holiday season. "Ramadan is a time when TV is an integral part of the activities; it's also when the best of TV programs and series appear," says Amgad Sabry, managing director of AMA Leo Burnett. "It's a time when ads represent a form of entertainment."
Viewership during Ramadan shifts from satellite channels to the local terrestrial ones, and only after peak viewing hours do audiences shift back to Arabic satellite channels. Even with a captive audience of 55 million, Mahmoud Osman, general manager of Savola Sime Egypt, a market leader in edible oils and an important advertising spender, says that with so many ads flashed before viewers' eyes, it's hard to make an impact during this time of the year. "Ramadan is like a carnival, everyone wants to get noticed, so making an impact on the consumer becomes extremely hard so it's not about impact but about necessity," says Osman.
Osman says that in terms of sales, the Ramadan season lasts two months: Ramadan and the month before it, as consumers prepare for the month of fasting. 40% Savola Sime's yearly advertising spending goes into Ramadan, mostly in the form of TV ads. The chunk is not disproportionate, considering that their sales during Ramadan represent 35% of their yearly revenue.
The increase in ad spending does not only apply to companies with products directly relevant to Ramadan celebrations: the impact of a strong Ramadan campaign can last all year. According to Vodafone Egypt's Chief Commercial Officer Richard Daly, "in an average month we spend around 8% of our annual budget -- in Ramadan we spend 12%."
While Savola Sime maintains a strong brand presence during Ramadan, Osman says the real strategic impact is possible in the months that precede "the season," which is why his company usually launches new products four to five months prior to Ramadan so people have time to become familiarized with the brand and are ready to buy. With so much commotion during Ramadan, a product launch in the middle of the hubbub isn't the wisest venture, in his opinion.
Vodafone shifts the tone of their ads during this month. "We see Ramadan as a different period of the year, and we change the way we do a lot of our business Our advertising is less hard-product specific, much more emotional, and with more of an Egyptian perspective. We don't want our message to be too commercial or too hard edge," says Daly. Many companies that already enjoy strong brand recognition orient the message of their advertising toward social responsibility to show that they are attuned to the spirit of the season.
While some brands take a back seat during this time of the year, others shine -- viewers become harsh critics of the ads. By the end of the month, you even find people humming the jingles that have been drilled into their consciousness.
Tarek Nour, chairman of Tarek Nour Communications, thinks there is no better time in the year to say what you have to say. "Nowhere in the world do you have that amount of people watching at the same time of all levels and all segments. If I had a room filled with 55 million consumers, I'd be crazy not to advertise in that room -- I must have something to say," he says. "It's the only time where we know they're watching Egyptian channels 1 and 2."
The value of Ramadan advertising is only increasing, according to Vodafone's Daly. "Given the success in Ramadan last year in building our brand reputation, we will further invest this year, with a 10% year-on-year growth," he says.
Radio is increasingly gaining in momentum as a media channel, reaching 13% of annual spending going into Ramadan, but TV remains prime during this time with 23% of the total annual spending channeled into Ramadan period.
By Gazbeya El-Hamamsy
© Business Today Egypt 2005
