Arab Advisors Group launches report on satellite TV advertising rates in the Arab world

The average advertising rate for a free-to-air satellite TV channel in the Arab world is US$ 3,698 for a 30-second advertisement during peak time. The Arab Advisors Group believes that, despite the boom in the supply of FTA channels in the region, few popular channels are emerging; these retain a large share of the region's viewer base and as such, should have a stronger bargaining power with advertisers. The Arab Advisors Group believes that the FTA Sat TV advertising rates are low in the region due to the lack of an agreed-upon rating system that diminishes the bargaining power of TV stations.

Arab Advisors Group's analysis of advertising rates across 14 free-to-air satellite TV channels reveals that average FTA Sat TV ad rates are at their highest (US$ 3,698) during the night hour of 9 to 10 PM, followed closely by the hour between 10 and 11 PM (Saudi Arabia time).

These rates are considerably higher than both their terrestrial and pay TV counterparts. The average peak advertising rate represents the mean for a 30-second TV commercial spot on a weekday: Tuesday. The analysis revealed that news channels have the highest average FTA advertising rates in the region, while music channels have the lowest.

A new report, "Satellite TV Advertising Rates in the Arab World 2007", was released by the Arab Advisors Group on August 27, 2007 to the Strategic Research Service Media subscribers.

The 37-page report, which has 33 detailed exhibits, provides detailed analysis of satellite TV advertising rates across 14 FTA satellite TV channels chosen as a representative sample of the total market: Al Rai TV, Dubai TV, Future Television, LBC Sat, MBC1, Dubai One, MBC 4, MBC Action, Al Arabiya, Al Jazeera, Melody Hits, Rotana Clip, MBC 3 and Spacetoon Arabic. The choice was also partially based on Arab Advisors Group's survey findings on viewership in Jordan, Egypt, Saudi Arabia, Morocco and Qatar, and as such the list includes very popular channels as well as much less popular ones. Additionally, the report also gives an overview of the rates of the region's three major satellite pay TV operators: ART, Orbit and Showtime Arabia.

"In 2007, the rates of major channels appear to have stabilized: slightly above those of 2005 and below those of 2004," Mr. Jawad Abbassi, Arab Advisors General Manager said. "This can be attributed to the fact that, although the number of FTA satellite TV channels in the region continues to increase dramatically, advertisers and channels alike are beginning to recognize that some popular channels grab the largest share of the viewership pie" Mr. Abbassi added.