Regional spending on online advertising is expected to grow by 25-35 percent as a result of the downturn, as we witness a greater shift from print to online advertising, according to a study titled “Game Not Over”, that was recently released by global management consultant firm, Booz & Company.
According to Gabriel Chahine, a partner at Booz & Company, “Online advertising is cheaper compared to other mediums such as television and print and is far more targeted. It offers better investment and a better return.”
The report says that around 90 percent of marketers are focused on campaigns that are cross-platform and inclusive of digital media while 80 percent believe insights into consumer’s digital behaviour will become more important to their brands.
Online advertising spending in the GCC-Levant countries remains below 1 percent of the total globally, according to a recent study by Madar Research.
Chahine thinks that growth of online advertising is hampered in the Middle East by a lack of supply of regional products and that companies head to Google, Yahoo and Facebook for online advertising because of a lack of compelling offerings from the Arab world.
On the other hand the report states that just 25 percent of marketers consider themselves savvy enough to capitalise on opportunities in online advertising, which I think is the bigger reason why online advertising hasn’t taken off in the region.
The report says that marketers’ key concerns include the efficacy of digital metrics, the need for greater education and new models so they can build a more effective advertising presence online.
[Source: Arabian Business]
Online advertising is still less than 1 % ( 0.68%) of the total region’s advertising budget, we really have a long way to catch up and consider proper growth in comparison to the other regions.
I just wonder given the current economic situation where every cent counts, would traditional unsavy marketers in our region try to get savy enough and capitalize on opportunities in the online advertising and contribute to the regions growth or stick to their traditional methods of advertising…
I agree with this.
Online advertising is still less than 1 % ( 0.68%) of the total region’s advertising budget, we really have a long way to catch up and consider proper growth in comparison to the other regions.
I just wonder given the current economic situation where every cent counts, would traditional unsavy marketers in our region try to get savy enough and capitalize on opportunities in the online advertising and contribute to the regions growth or stick to their traditional methods of advertising…
Real estate sector has one of largest chunk of the online advertsing spend in the last 2 years in the region and conributed alot to the figures growth…Given that figures are estimated to grow further in 2009, Would the cut down within the real estate in this current economic slowdown affect the estimated online ad spend gowth or it will just shoot up and compensate with eager marketers looking for quick result on ROI…
Real estate sector has one of largest chunk of the online advertsing spend in the last 2 years in the region and conributed alot to the figures growth…Given that figures are estimated to grow further in 2009, Would the cut down within the real estate in this current economic slowdown affect the estimated online ad spend gowth or it will just shoot up and compensate with eager marketers looking for quick result on ROI…