“Saudi Arabia’s advertisement sector witnessed a double digit growth with ad-spend expenditures rising to $ 550 million at the end of first half of 2008.
“The advertisement sector has witnessed an overall increase of 23.60 per cent during the same period. Pan Arab media mainly satellite TV reached $ 1.57 billion, an increase of 24 per cent compared to the same period of 2007. This is followed by the UAE with $ 929 million, an increase of 42 per cent; Saudi Arabia with $ 550 million, an increase of 11 per cent; Kuwait $ 337 million, an increase of 11 per cent; Qatar $ 157 million, increase of one per cent and Oman $ 120 million, an increase of 69 per cent followed by Bahrain $ 50 million, an increase of two per cent.
The Pan Arab media share represents 41.64 per cent of the total advertising expenditure in the Gulf. The advertising budgets in Pan Arab media are to cover the key markets of the GCC in different proportions, with Saudi Arabia being one of the main targets.
Oman had recorded the highest growth for the first six months of 2008 followed by UAE while Pan Arab with Saudi Arabia and Kuwait on par followed by Bahrain and Qatar.
Khamis Al Muqla said, according to the Pan Arab Research Centre (PARC), print media took the lion’s share. With 84 per cent of the advertising expenditure leaning towards print media ($ 42 million), out of which 63 per cent was newspapers ($ 32 million) and 21 per cent magazines ($ 10 million), followed by 13 per cent going to TV ($ 6 million – a definite increase compared to the same period last year, as it did not exceed 10 per cent ($ 5million)) and finally outdoor, cinema and radio occupying the remaining three per cent ($ one million).
Al Muqla added that the advertising expenditure for the first six months of this year ranged between $ 7 million in January and $ 10 million in March, the increase in ad-spend being due to the F1 season. July and August will witness a decrease in advertising expenditure as it coincides with summer.
Al Muqla added that the important categories for this period are Government/ Organisations advertising 15 per cent, (increase of 39 per cent) entertainment 12 per cent, (increase of 12 per cent) Clothing, Jewelry and Personal Accounts – 3 per cent, (increase of 30 per cent) Toiletries, Hygiene and House-care products two per cent (increase of 98 per cent) while other sectors witnessed a decrease between one per cent and 40 per cent.
In the next four months, September to December, 2008 the advertising expenditure is expected to pick up. The total advertising expenditure for 2008 is expected to exceed $ 110 million achieved in 2007.
Al Muqla emphasised on the importance of stimulating the private sector and government institutions to invest in the marketing, advertising and promotional activities which will reflect positively in the economic growth that Bahrain is witnessing in various sectors such as banks, financial institutions, real estate, telecommunications, tourism, insurance and others.
