INTERNET advertising in Qatar and the rest of Middle East and North Africa is still a fraction of what it is in the rest of the world. Despite this, Google is investing in the region, believing that the use of the internet, internet advertising and ecommerce is about to explode.
In 2006, spending on internet advertising for the whole of the Middle East and North Africa came to less than $20 million around 6 cents per person (Source: Madar Research).
That represented less than 1 percent of total advertising spend in the region, and a tiny fraction of the $17 billion the US spent on online advertising in the same year (Source: Internet Advertising Bureau).
All this could be about to change.
"We are really very bullish about this whole region," said Yasmina Brihi, Marketing Manager, Google Middle East and North Africa, in an interview to Qatar Today. "We are very optimistic. That is why we have established offices in Dubai, and are creating Arabic language tools for local users."
However, at present internet penetration in MENA remains low, at around 10 percent of the total population, although Brihi believes that it is slightly higher in Qatar and the Gulf.
Part of the reason for low penetration may be the lack of content in Arabic.
Google Global Communications and Public Affairs Manager (MENA) Joanna Kubba estimates that there are around 300 million pages in Arabic.
While that may sound like a lot, it can't compare to the 30 billion pages available in English. What's more, according to Kubba, the depth, variety and relevance of information available in Arabic simply does not compare to what is available in English.
"English speakers are simply getting a different level of information to Arabic speakers."
With between 30 and 34 million users out of a MENA population of 300-320 million, a much lower proportion than in the West, the internet as a business proposition becomes less attractive. Brihi believes that as use increases this could change.
"The number of searches in the region are lower than elsewhere but they are growing. As the number of tools and services increase, so will the number of searches and then the internet will become a more attractive place for businesses."
What's more, both the quantity and quality of Arabic pages are increasing rapidly, and Arabic speakers will now be able to use new Arabic translation tools initiated by Google.
Meanwhile, internet in the region is seeing a growth in what is usually the first wave of internet use email, chat and social networks.
In Qatar, this can be seen in the growing popularity of both international networks such as Facebook and Orkut, and of local sites such as Qatar Living. E-commerce in the region is still very undeveloped, although the UAE and Saudi Arabia are ahead of other countries in MENA. Even in these countries, though, e-commerce is still nascent. However, Brihi believes that after the current growth in social networking, e-commerce will be the next wave of development.
"Before e-commerce takes off, it needs a critical mass of consumers.
Only now is the region beginning to approach that."
Grabbing a proportion of the $20 million spend in internet advertising would be of little interest to major companies like Google. What excites Brihi is the speed and potential at which internet advertising is predicted to grow.
"Experts predict that internet advertising will grow by 650 percent by 2011."
What was not mentioned in the interview, but must be in the minds of companies like Google, is that regions like MENA may well be able to set off the effects of the looming recessions in the UK and the USA and to compensate for eventual saturation in their domestic markets.
Certainly, search engines' interest in the region opens up a huge opportunity for smaller businesses.
The advertising models of the major search engines, known as PPC (pay per click) allows businesses to target consumers who are already searching for the types of products they sell. In addition, advertisers are only charged for leads generated - if the consumer doesn't click, the business doesn't pay.
(An alternative model for those worried about click fraud is CPM cost per thousand impressions where the advertiser pays for the quantity of ads viewed rather than the number of ads that are clicked.) Google is not the only operator in this field MSN and Yahoo! both run similar advertising services however, neither can currently match Google in either its ability to reach consumers or in the sophistication of its advertising platforms. Small advertisers, with neither the time nor the inclination to set up full websites, will also be able to take advantage of Google business pages which allow AdWords advertisers to quickly and easily set up an online presence.
Brihi, whose company's motto is "Do no evil", argues that pay per click advertising levels the field of competition for small businesses, and "makes the world a more democratic place."
I asked Brihi if she had any advice for businesses especially small businesses that are looking to take advantage of the growth in internet use.
"Try to get in on the online aspects, try to understand how AdWords (the google advertising network) really works it really is very easy. Then, in only a matter of minutes, you can be sending a message to millions of people".
By James Dunworth
© Qatar Today 2008
