Web 2.0 propels OMD Digital in 2007

In 2007, the GCC market witnessed an increase of some 50%, capping six years of continuous double-digit growth. In the last 12 months, OMD Digital, the region's leading digital media agency, has outpaced the market and increased its market share thanks to both organic growth and new business wins.

A company of the Omnicom Media Group, which operates the communications planning networks OMD and PHD, OMD Digital has introduced 44 new brands to digital advertising from its sister agencies' portfolio, in addition to securing several 'digital-only' accounts. In fact, its billings grew by 155% in 2007 over the previous year. In doing so, OMD Digital improved its market share from an estimated 25% in 2006 to close to 30% in 2007.

Unofficial figures put the total market value at about $45m in terms of gross billings. The medium still hasn't reached the landmark 1% of total advertising investments in the GCC but it's getting closer every year.

"There is a definite positive trend in the digital advertising market," explained Dimitri Metaxas, director of OMD Digital. "Whether you look at clients' enthusiasm for the medium, the development of new sites, technologies and formats, even the mergers and acquisitions activity in the region, digital advertising is definitely maturing."

Metaxas argued that international trends are adopted and adapted locally faster than ever before. "Social media and video sharing have quickly been localized here and we now have a host of regional versions, including in Arabic, which all contribute to driving people online," he commented.

Between 2000 and 2007, the Internet grew faster in the Middle East than anywhere else in the world, increasing by 920% against a world average rate of 265%.

"The increasing online population, a very interesting audience for advertisers, the rising broadband and 3G penetration, the current WiMax tests, more interactive, engaging and entertaining ads and appealing sites are all key drivers of the industry's growth,"

Metaxas continued.

"It's certainly becoming easier to convince advertisers to go online or digital and there's a growing level of expertise at the client end too. We now deal with online advertising managers more and more and are now developing increasingly complex campaigns. Last year saw us manage a record number of international campaigns out of Dubai."