Advertising spend in the Gulf rises to a record USD 2.8 billion

This unexpected rise came despite the Iraq crisis, which left a negative impact on the economic climate for the first six months of the year followed by the two lean summer months. However, the last quarter witnessed a surge in spending with more activities, bringing the average up.

Khamis Al Muqla, Chairman and Managing Director of Gulf Saatchi & Saatchi and Board Member of the IAA Worldwide said, " The PARC (Pan Arab Research Centre) figures indicate that the Pan Arab Media which constitute mainly of satellite channels, accounted for 87% of the total TV advertising. TV advertising accounted for 50% of the total expenditure, followed by print 45% (Newspaper 34%, Magazine 11%, Outdoor 4% and Radio 1%)."

"Print media is still the main vehicle for the local markets like Bahrain and Saudi Arabia. Saudi Arabia alone accounts for the largest print expenditure in the Gulf, accounting for 84%. (Newspaper 74%, Magazine 10%).

The same applies for Emirates. With the expenditure on Print accounting for 68% (Newspaper 52%, Magazine 16%) and Television 20%, Outdoor 8%, Radio 3% and Cinema 1%." Mr. Al Muqla added.

Speaking about other gulf markets, he said, "The increase in advertising expenditure was between 4.5% to 26%.

In Saudi Arabia, the increase was from $ 477M to $ 499M representing an increase of 4.5%, followed by UAE from $ 355M to $ 446M an increase of 25.6%, Kuwait from $ 280M to $ 303.5M an increase of 8.3%, Bahrain from $77M to $86M an increase of 11.4%, Qatar from $ 49.9M to $ 56M an increase of 12.2% and Oman recorded a 26% increase from $ 43M to $ 54M. Oman and UAE witnessed more growth than the others, followed by Pan Arab media which had a 19.9 % increase. Expenditure on Pan Arab media reached $ 1.38 Billion in 2003 compared to $ 1.15 Billion in 2002.

The category wise break up of advertising spend in the GCC and Pan Arab media for the Period of January to Dec 2003 constitute Toileteries, Hygiene, Housecare 15.51 %, Food, Beverages and Tobacco 12.32%, Vehicle Accessories and Supply 8.06%, Shopping Malls & Retail Stores7.39%, Communication and Public Utilities 6.65%, Entertainment 6.50%, Government Organisation Advertising 6.38%, Publishing and Media 5.98% and Hotel, Travel and Tourism 5.75%.
" The advertising spend in the Gulf has witnessed continuous growth over the last 10 years. What started as $ 607M is now $ 2.8billion. The level of growth is expected to continue due to economic development, open market policies and increased competition. In addition, local advertisers have also been active in the banking, telecom, travel and tourism, shopping festivals, govts, and diary sectors. However the per capita advertising expenditure is still quite modest compared to markets in other countries." Mr. Al Muqla added.