Advertisers shun Arab satellite TV (page 1 of 2)

Even before the conflict in Iraq, the international advertiser's map of the Middle East was undergoing a seismic shift - to the detriment of the pan-Arab satellite channels.

Economic woes and renewed doubts about the effectiveness of mass broadcasting had caused many multinational companies to drain cash away from TV and consider alternative forms of marketing that were either more sophisticated - including direct mail, sponsorship and public relations - or were simply cheaper, like billboards.

Now the war has altered the advertising landscape completely, and possibly forever. According to Khaldoon Tabaza of Arab Advisors roup, "Satellite news channels have recently gained a tremendous audience with the rise in news interest due to war in Iraq. However, this rise did not necessarily translate into revenue as advertisers have put on hold most of their plans. These channels will have to face a significant increase in their costs as they attempt to provide the most comprehensive and continuous coverage of the war."

Samar Salman, the regional managing director of Mindshare for the Levant and North Africa, agrees that war is keeping advertisers away. "The situation is that while the viewing figures of news channels such as Al Jazeera and the recently launched Al Arabiya have risen," he says, "advertisers are staying away from a context they consider sensitive, choosing instead to buy blocks around entertainment programs."

Salman is a media strategist - in other words, an analyst who helps multinational advertisers decide where to spend their money. The paradox at the moment is that the Coca-Colas and Unilevers of the world want to advertise in the slots that have the least viewers. This is perfectly understandable, given that many multinationals are American-owned. And they can justify it by saying they are after the right target audience for their products, rather than just trying to rack up numbers of eyeballs. But there is another problem.

"The entertainment programs themselves are disappearing," says Salman glumly. "The most popular youth program on [Lebanon-based] Future TV, Superstars, has been replaced by a news bulletin. Right across the grid, programming is in disarray, with half-hour news shows being extended to an hour or two hours and lighter shows being moved to off-peak slots."

Wary and frustrated, many advertisers have pulled out completely. Salman says that spending on television in the region is down 50 percent - an unsurprising figure given that American trade paper Advertising Age recently reported that multinationals had shaved a total of $100 million off their ad budgets worldwide.

"Luxury goods, cars and, of course, travel have all vanished from TV screens," says Salman. "Instead they are moving into media that have nothing to do with politics, such as fashion magazines or cinemas. They are choosing the media people turn to when they want to escape the news."
But what will the post-war media map look like? Will the situation normalize? Salman says, "Pan-Arab satellite TV will continue to attract a big slice of the ad spend, but I think that by experimenting with other media, advertisers have begun to see the benefits of establishing a more strategic, one-to-one dialogue with the consumer. I believe we are entering an era when you will see much more effective use of below-the-line marketing."

While the current situation is unique, global advertisers have always trodden carefully in the Middle East. For a Western marketer, the region's complex mix of cultures, combined with religious and political sensitivities, require a diplomatic and well-informed approach.