|
Dubai: Advertisement spending in the UAE is expected to reach Dh7.3 billion ($2 billion) by 2010, according to a new report.
"Advertising spend in the UAE alone increased from $869 million in 2005 to $1.3 billion in 2007, the highest in the Middle East. So applying an average 54 per cent growth, the UAE will spend well in excess of $2 billion by 2010," Spencer Felix, exhibition manager for Signage, Imaging and Media (SIM 2008), which takes place at the Abu Dhabi National Exhibition Centre from November 25-27, said in a statement.
The bulk of the money - about 64 per cent - went to Arabic and English newspapers. Television accounted for 16 per cent while magazines got 13 per cent. Another two per cent went to radio commercials, five per cent to outdoor advertising and one per cent to cinema adverts.
"In terms of where advertisers are expected to spend their money, digital media is expected to reap the benefits in the future," Felix said.
While the report downgraded 2008 advertising growth forecasts for North America and Western Europe from 4.4 per cent to 3.8 per cent, growth continues to strengthen elsewhere and the agency has increased its 2008 forecasts for the rest of the world from 10.9 per cent to 11.1 per cent.
"Of the top 10 contributors to growth in global advertising expenditure between 2007 and 2010, Russia comes top - it is expected to grow by 92 per cent over the period, followed by China with 61.5 per cent, the Middle East with 54.2 per cent growth, India with 52.2 per cent, Brazil with 46.6 per cent and South Africa with 45.8 per cent," the latest forecasts of global media services agency ZenithOptimedia said.
"The credit crunch may be impacting advertising in the developed markets, but it is being largely balanced globally by dynamic emerging markets such as the Middle East."
Recessions in the North American and Western Europe advertising markets are doing little to dampen the mood in booming developing markets such as the Middle East, the organisers of the region's most comprehensive trade show for the marketing communications industry said.
Role of internet
The ZenithOptimedia report said that internet spend will continue to grow and will account for 9.7 per cent of world advertising expenditure this year and 12.3 per cent in 2010.
Cinema and outdoors are the media expected to gain market share in addition to the internet.
Cinema is growing rapidly in the US, where it is benefiting from the spread of digital distribution technology, which reduces production costs and allows advertisers to run time-sensitive campaigns and easily target local areas. Digital technology also enhances the value of outdoor advertising.
|
