Advertisers shun Arab satellite TV (page 2 of 2)

That's why pan-Arab satellite TV - with its border-hopping reach and lack of censorship - has always been a popular choice. Before the current blip, the sector had been enjoying rapid growth, with advertising revenue almost doubling since 2000 to close to $1 billion.

Tarek Ayntrazi, the CEO of another media specialist, Starcom Mediavest in Dubai, confirms: "Pan-Arab satellite stations offer the most liberal environment in which to advertise in the Arab world. MBC, for example, is far more liberal than the Saudi terrestrial television channels, where women cannot appear in a TV commercial unless their hair is covered. With pan-Arab satellite, one only needs address the sensitivities that are common across the region: avoiding nudity and references to religion, for example."

While Arab viewers regularly tune in to Western satellite broadcasters like CNN, BBC World and even Euronews (which is seen as the most impartial non-Arab current affairs broadcaster), Ayntrazi says the increasing sophistication of the pan-Arab channels makes them difficult to beat.

"Media in the Arab world have never been so dynamic. It was never as diverse, and options were never as abundant. Broadcasters like MBC and Al Jazeera are producing programs that are on a par with international standards. This is providing advertisers with a world-class TV environment." He cites Al Jazeera and Abu Dhabi TV - for its "very strong news product" - as among the most influential broadcasters in his region.

He adds, "Among the general news and entertainment stations, MBC is by far the most popular, followed by the Lebanese stations LBC and Future TV, and ESC [Egypt Space Channel]."
For advertisers, however, this abundance of choice can cause headaches. "Enormous audience fragmentation is increasing the cost of advertising to Arab consumers," Ayntrazi points out. Getting your message to potential customers when they are spread over a wider range of channels means, inevitably, spending more cash. Or at the very least, pumping cash into alternative media.

The other challenge facing multinational advertisers in the Middle East concerns the content of the commercials. For giant brands that employ one international advertising network, the cheapest way of running a campaign is to make one ludicrously expensive spot and then knock it out across the globe. The problem? Not many Arab viewers identify with white, middle-class actors.

This has led to two approaches: either making a commercial specifically for the market, but based on a global advertising message; or tweaking an international campaign so that it becomes appropriate for Arab viewers. Mindshare's Samar Salman provides a couple of examples.

"Pepsi's current worldwide concept is The Pepsi Generation. But while the ad in the United States features [Latina pop sensation] Shakira, the ads here used local star Nawal Zoghby. Meanwhile, the ad for Dove soap was exactly the same as the one screened in Europe - except that testimonials from local consumers were tacked on the end."
The second approach is becoming increasingly rare, says Ayntrazi.

"These days most campaigns are developed for the region, although they are usually based on global marketing strategies. Major advertisers like Procter & Gamble, Nestlé, Unilever, General Motors, Kraft and Coke are big enough to have a strong local presence. Being on the ground usually helps them produce ads that are relevant."

Ayntrazi suggests that to take any other approach is to invite trouble. "Clients who continue to run this region from European headquarters usually fail to capture local market insights or evolving media trends."

Paddy MacGregor, the communications manager for Coca-Cola, Europe, Middle East and Eurasia, wholeheartedly agrees. "Even with a region as diverse as ours, it would be possible to run a generic campaign - but we choose not to. We've had people on the ground in all our markets for many years, and while we steer things from the top, all our advertising is locally driven. A global strategy is all very well, but there is absolutely no doubt that you need local execution."

However, some things are capable of crossing borders regardless of race or religion. A recent Nike ad starring English football superstar David Beckham ran on Arab satellite TV completely unchanged. A love of football, it seems, unites the world. But so does a mistrust of US policy.

In the Arab world, that has translated into a sometimes fervent hatred for all things American - including symbols like McDonald's golden arches or a rich red can of Coke. This has hurt US brands - and pan-Arab satellites. For networks like MBC, LBC, Abu Dhabi TV and even Al Jazeera, the sooner this war is completely over, the better.