Eddie Maalouf, managing director, Nokia Middle East and North Africa, discusses, with ArabAd, the current standing of Nokia International - the communications giant, which aims at 'connecting people' - in the UAE market. Maalouf offers a broad-based analysis of Nokia's future in the region with regards to the company's achievements and challenges in an ever-growing and competitive market.
ArabAd: Has 2004, been a difficult or good year for you and why?
Eddie Maalouf: 2004, has set a new milestone in our business in the region. This year we saw the introduction of new key-design trends in the Nokia portfolio mainly related to new expressions, fashion, multimedia, and enterprise business groups' product launches. Our business indicators are well in place with our plans for 2004 - another growth year in MENA.
AA: What significant changes, in the market and/or the ad industry, can you identify as having taken place in the past year?
EM: This year has seen the 'wake up' of many previously dormant players in the region. This has undoubtedly rendered the market much more competitive. This phenomenon has also pushed the expenditure levels substantially higher compared to 2003.
AA: Have advertising budgets in the UAE increased significantly over the past year? If so, by how much, why, and in what sectors?
EM: They have increased, of course, as already stated in the previous question. By how much? I would rather we leave this question to the market monitor specialists to give their accurate results, before I comment on the results. The 'why' part of your question is clearly answered by the increase in the competitive arena, fragmentation, and multiplied opportunities for brand building, unfortunately most of which are not monitored mediums locally. Which means that brands that have followed the diversification trend in spend might show at the end year a decline in their YOY expenditure (despite an actual increase). Interesting I would say!
AA: What do clients expect of agencies in today's complex market?EM: Different clients have different expectations, no doubt. If I may represent what the client's would want then I would say: 'We need data to substantiate our growth in spend'. (Just the basics would do for now).
AA: Is Dubai a tougher market because of its ethnic diversities?EM: It is because we have little research data available. The mediums, the budgets, and competence are available to cater for such ethnic diversities, but the data is missing. So, yes, it is not easy and, hence, the tendencies of setting spend strategies is usually an'all you can afford' approach.
AA: What changes do you think are needed, for a more prosperous and mutually serving relationship between clients and agencies, and between clients and MBUs?
EM: If you and the readers would agree that local models of advertising are growing inefficient in an increasingly complex media environment populated with communication-saturated consumers, then the need to regulate (positively) is crucial today. Agencies driven by clients (and maybe I should start by stating the client first) have to seek better understanding of the spend efficiencies and other maximisation strategies. This is not to be done in the interest of lowering cost or budgets - since we have already agreed that spend levels are on the rise - but rather to get a better grip - as opposed to no grip -- on whom are we talking about and what are we getting in return.
AA: Has the role of MBUs grown in the past year, in your opinion, and has it promoted the interests of clients in general or not?
EM: What is the interest of clients in general? To me it seems to be cost-cutting! If this is the role of MBUs then I suggest we start setting up MPUs (Media Planning Units). If the trend is to remunerate agencies on a performance-based approach, then better gear up for planning competencies and not buying. Nevertheless, back to your question: Has their role grown? I don't really know, but if it hasn't then it should - hint: MPU!
AA: Would you say there has been more reliable research and statistics made available, and has this helped you in any way?
EM: It seems that I have been handpicked to answer these questions. I addressed the industry players earlier in September, at the IAA conference, and was criticised by some to have been too blunt. The straight-forwardness came on the back of not only research available, but also basic data is still not available. My question back to ArabAd and the industry spokespeople: Who is doing what about this issue?
AA: What varieties of research sources do you think are still lacking? How do you think this can be remedied, if at all, in the near future?
EM: I came to the region in 1992, and since then, the industry was discussing 'People Metres'. 12 years later, we are still discussing 'People Metres.' I would rather not delve into what is needed in research cause then I would be another one talking and not acting. But here's a hint; what about if we start looking at what is available as opposed to what is missing. (For those reading and thinking 'yeah another preacher', please note that I am ready to commence the investment in research in the region, but I cannot do it alone). So, here is an invitation to all of you suffering.
AA: What new kind of thinking would you like to see being adopted in the industry, at the level of agencies, clients and MBUs, respectively? Why and to what end?
EM: Start challenging the status quo! Middle East and North Africa is actually bigger than Europe... Let's stop competing on quantitative currencies; billing per head, commission level, gross billings...etc. Let's look into a new currency where win win win is achievable. Clients' growth, Agencies contribution level to growth, assessment and evaluations, efficiency trends, ...etc.
AA: What factors make the advertising industry in the UAE successful?EM: The same factors that make the advertisers successful. Both, by the way, are far from being so.
AA: What, in your opinion, are some of the issues that still hamper the advertising industry in the UAE?
EM: All of the above 11 questions!
© ArabAd 2004
