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]