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However, while Facebook penetration across most Arab countries has reached double digit figures, there is still room for growth. Female participation is relatively low in some countries such as Egypt, according to the recently released Arab Media Outlook (AMO), developed in collaboration with Deloitte. Markets such as Egypt added close to 2 million new Facebook users in the first quarter of 2011 alone.
"Companies and advertisers are aware of the widespread use and importance of Facebook throughout the region, and have tailored their digital strategies to target Middle Eastern users through the platform," said Santino Saguto, partner in charge for the Telecommunications, Media and Technology (TMT) industry, Deloitte Middle East.
Digital industry booms in Middle East
According to the AMO report, digital is in fact the fastest growing platform in the region and accounted for 4% of the total advertising spend in 2011. However, it is expected to grow 35% from 2011 to 2015, generating around $580m by 2015 across the region. It will account for an estimated 10% of the total advertising spend by 2015.
"There is a lack of audience measurement systems in the Middle East that, as in other markets, allow advertisers to assess the reach and impact of their advertisements through traditional mediums. Digital platforms on the other hand, offer a more quantifiable return on investment," said Emmanuel Durou, Telecommunications, Media and Technology (TMT) director at Deloitte in the Middle East.
"The digital advertising market in the region is expected to grow dramatically in the coming years as advertising budgets follow the migration of eyeballs from traditional to digital platforms, representing a significant opportunity for regional media outlets and overall industry development" he added.
As advertisers and media outlets in the region catch up with the increased usage of Facebook and other social media sites, Deloitte predicts heightened digital advertising spend in the coming years. The rise of tablets and smartphones in the Middle East will serve as a driver for this growth.
Mena users believe Facebook drives political change
The AMO report analysed how social media platforms were involved in driving political change. Research conducted in four major Arab countries indicates that 87% of the public believe that social media sites, such as Facebook, played an important role in inciting events during the political issues.
"Companies and advertisers are aware of the widespread use and importance of Facebook throughout the region, and have tailored their digital strategies to target Middle Eastern users through the platform," said Santino Saguto, partner in charge for the Telecommunications, Media and Technology (TMT) industry, Deloitte Middle East.
"However, it is a tool that needs to be used properly. It is not just a matter of investing in advertising on Facebook. Rather, companies need to manage a social community," he commented.
While traditional measures of economic impact may be limited, it is important to consider the broader impact of Facebook in allowing other enterprises to generate revenue through the platform. Comparable figures are not yet available for Mena, though it is clear that Facebook and other social media platforms have hugely impacted the region.
Boye Balogun, Mindshare's Regional Head of Digital, agrees that Facebook's growth in the Middle East will provide opportunities for many other digital firms in the region. "In the trail of this user growth, we can also expect to see an economic impact in the Middle East, as the Facebook ecosystem creates more opportunities for local Arab developers and content providers. We won't see an app developer firm as big as the likes of Zynga overnight but we are already seeing a growth in local Facebook developers," he said.
Steven Bond, Reporter
