Internet Ad spends increase 51% by end 2005 but still region's smallest percentage allocation by a wide margin

Attending the recent Dubai IAA Congress one would have had to be asleep or too busy furiously working their translation headphones to miss some of the IAA's views on digital media being discussed throughout the four days.

Some of the ad industry's most prominent leaders and brightest minds descended on Dubai to express industry views and share in their awe of fast moving regional developments. As was expected, this esteemed group of industry peers didn't agree on all topics, but it was clear early on that amongst the few media "buzz" words being brandished this year, "digital" figured prominently on the list.

Percentages as high as 70% or more were frequently quoted when the speakers were questioned on digital media's role in the media mix of the future. Even rival media agencies were in agreement as to the importance of new technology integrating into media channels with digital's ability to provide brand measurability and direct ROI as well as prolonged consumer engagement being cited as the reasons for the bullish predictions. If one attending this particular event, like myself, happened to be working in the digital media trenches day-in-day-out, the IAA congress served as a sort of mini-redemption for us, our "dog's day" so to speak.

But that redemption was short-lived back in the reality of the office. "The client has decided to put the online component on hold until further notice" was heard for the 3rd time in as many days. Finally "Madar Research" release their latest journal on Internet ad spends and we are consigned to the "kid's table" again, digital spends account for less than 0.43% of total Ad spend in 2005. Clearly the dog hasn't had his day after all.

Or am I just being an utter pessimist here? 51.3% growth in 2005 is twice the global average set at 25% by the Interactive Advertising Bureau (IAB), much higher growth rates than 2003 & 2004 combined (18% & 23% respectively). So not only are we growing, but our growth is exponential. Furthermore, higher activity was recorded across traditionally less active categories such as FMCG and Oil & Gas. Industries which have historically shunned digital media in favor of the "tried and tested" traditional counterparts.

And the biggest reason given by advertisers for not investing in online advertising? Answer: "Lack of awareness". Clearly an objection that can be managed simply through time and education.

I could spend an afternoon listing the numerous reasons for us to remain positive in light of the latest research findings and indeed there are a handful of companies operating in the region that are already experiencing many of those reasons profitably, but research findings, as with the latest Madar Research paper help to provide that much needed reality check to cut-through the ongoing digital industry hype and serve to remind us that the mountain is far from conquered yet.