Gulf and Arab Advertising Spend in 2013
Gulf advertising spending in some Arab markets such as Egypt, Lebanon and Jordan, grew in 2013 by 14% to total $17.66 billion against a total spending on advertising of $15.45 billion in 2012, said Pan Arab Studies & Research Company (PARC) in its annual report 2013.
The report said advertising spend focused on Arab satellite TV channels to have a share of 70.66% of the total Gulf advertising spend after having increased on the Arab satellite TV channels by 19% to reach $12.47 billion compared with $10.53 billion in 2012.
In the local markets, advertising spend increased in the UAE by 5% to reach $1.65 billion against $1.57 billion and declined in Saudi Arabia by 6% to reach $1.34 billion against $1.42 billion in 2012. In Kuwait advertising spend increased by 2% to reach $988 million in 2013 against $968 million in 2012. In Qatar spending rose by 36% to reach $630 million in 2013 against a total spend of $464 million in 2012. In Oman advertising spend increased by 9% to reach $356 million in 2013 against $271 million in 2012. An increase of 5% was registered in Bahrain where advertising spend totaled $94 million in 2013 against $90 million in 2012.
Analyzing the results, Khamis M. Al Muqla, Member of the IAA International Council and President of Gulf Marcom said the Arab satellite TV channels, known as the trans-Arab media, had the lion’s share of the total Gulf advertising spend with a total of 70.66% while Qatar witnessed the highest growth rate of 36% followed by Oman 31%. Other Gulf local markets witnessed a very modest growth while the Saudi local market declined by around 6% which confirmed that a large proportion of advertising budgets for the local markets led by the Saudi market were cut. Of special significance is the cut in TV commercial budget cuts since the majority of advertising and publicity targets the Arab satellite channels that broadcast successful mass programmes.
Al Muqla added the print media were still in control in the local markets with the share in Saudi Arabia for example at 71% (66% for daily newspapers and 5% for magazines, followed by outdoor advertising with a share of 20%, TV commercials with a share of 7% and radio advertising accounted for a mere 2%. Likewise, in the UAE market the print media attracted a big share of 71% (65% for daily newspapers and 5% for magazines) followed by outdoor advertising of 14%, TV commercials by 10%, radio advertising by 3% and cinema advertising by 25%.
Speaking about advertising spend in the pan-Arab markets such as Egypt, there was a decline of 34% to reach $745million in 2013 against $1.13 billion in 2012. In Jordan, the advertising spend fell by 7% to reach $129 million against $139 million in 2012. In spite of the increase in advertising spend in Lebanon by 9% to reach $503 million against $463 million in 2012, the total spending in these markets declined by 21% to reach $1.38 billion in 2013 against $1.74 billion in 2012. Similarly spending fell in many other Arab markets due to the unstable political conditions in these markets and their impact on economic conditions and advertising business.
Commenting on advertising business in Bahrain, Al Muqla said the PARC report confirmed earlier forecasts that Bahrain’s advertising spent would not exceed $100 million in 2013 as it totaled $94 million against $90 million in 2012, an increase of 5%. However, advertising business is set for growth in Bahrain in 2014 to regain its earlier growth rate after having totaled $140 million in 2010, but with the impact of the global financial crisis and local political conditions advertising spend fell to such modest levels. Still the print media had a share of 86% which included 71% for daily newspapers and 15% for magazines, followed by TV commercials with a share of 8% and outdoor advertising with a share of 5%.