Friday, Jul 04, 2014

Dubai: Companies across a range of industries in the UAE have launched their advertising campaigns for Ramadan, a time when consumer spending rises.

Ad campaigns launched during Ramadan, a month of fasting, show images that are related to the period, such as lanterns and a dark background with a moon. A theme that is omnipresent in these campaigns is family and community. A typical ad for a food and beverage (F & B) product shows family members gathered around a table for Iftar, a meal consumed after sunset.

Ramadan is often associated with hosting lavish dinners, spending time with family and friends and giving money to charity.

“The food and beverage industry adapts to Ramadan with special campaigns, seeking to mix tradition and consumption,” said global consultancy Euromonitor International in a recent report.

While the amount invested in ad campaigns during Ramadan varies from one industry to another, F & B, automotive, telecommunications and fast moving consumer goods (FMCG) companies are the biggest spenders, industry experts said.

“Between 2009 and 2012, telcos, cars and F & B were the top in terms of advertising during Ramadan,” said Ziad Skaff, regional executive director of research and insights at Omnicom Media Group, the media services division of Omnicom Group.

Regional automotive companies spend around 3-4 per cent of their advertising budget on Ramadan campaigns, according to Khalil Salem, brand leader at TBWA\RAAD, the regional arm of global advertising agency TBWA.

According to him, Ramadan campaigns are not aimed at driving sales. Instead, they are aimed at building a brand’s relationship with customers.

The UAE’s advertising industry is on an upswing, with an estimated $398 million being spent in the first three months of the year against $381 million in the same time last year, according to data from Pan Arab Research Centre (Parc), which tracks official media rate cards.

There was a sharp spike in spending in the second-half of 2013 in the build-up towards the confirmation of Dubai as the host city for World Expo 2020 in November. The following month saw a round of advertising highs as the upbeat sentiment was felt by the local advertising industry.

During Ramadan, brands advertise mostly on television, especially after Iftar and late at night, when television viewing is at its peak. This is followed by print, outdoor and digital media, Skaff said.

Television commercials fetched $31 million in the first quarter of the year, according to Parc data.

Media spend during Ramadan is at its peak.

“It’s driven by two factors: the cost of media peaks since Ramadan programmes have a big reach, so brands spend more. The other factor is people boosting their consumption in Ramadan because of CSR activities and promotions,” said Jean Traboulsi, regional new business director at Leo Burnett.

By Sarah Algethami Staff Reporter

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