Young demographics and digital investment help ad spending overall
In 2011, significant political and cultural events affected much of the Middle East and North Africa. That change—compounded by weak global economic conditions—impacted and depressed marketing spending in the short-term, but now digital is helping the industry rebound, propelled by young demographics and growing technology adoption.
According to the April 2012 Dubai Press Club report, “Arab Media Outlook (2011-2015),” produced in collaboration with Deloitte, the media outlook is positive overall, even as total media spending dropped nearly 10.3% last year, from $5.28 billion in 2010 to $4.74 billion in 2011. The Dubai Press Club’s Executive Director, Maryam Bin Fahad explained in the report: “In several markets directly affected by the political uprisings, the structure of the media industry is virtually being overhauled with a significant break from the past.”
The report forecasts a modest return to growth in 2012, at 3.6%, but expects media spending to accelerate through 2015 for a compound annual growth rate (CAGR) of 5.9% from 2011 to 2015.
Digital media, which played a key role in political change throughout the region, will benefit the most from ad spending’s recovery. The firms expect it to account for 10% of total spending by 2015, up from 4% in 2011.
According to the report, digital investment is enjoying a surge due to improving ICT (information and communications technology) conditions, changing media habits, younger demographics and a willingness to experiment by large, corporate advertisers.
“Large advertisers, which were initially shy of venturing into online advertising, are increasingly experimenting with the use of social media and a few campaigns launched have met with resounding success,” stated the report’s authors.
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Check out today’s other articles, “Mobile Wallets Have Uphill Climb to Consumer Acceptance” and “Hunger for Online Content Remains Undiminished.”