Tag: online advertising

Arab Mobile Advertising Startup Noqoush Raises $3 Million

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Noqoush Mobile Media Group, an Arab mobile advertising and mobile media monetization startup, announced concluding its first 3 million dollar investment round a couple of weeks ago.

In a press release, the company stated that a group of Arab and Foreign angel investors invested in its technical capabilities and future visions aiming at developing a full-fledged mobile advertising platform and mobile media monetization solutions targeting the massive mobile growth in the Middle East.

This first round of investment is aimed at providing the company with the required liquidity to enhance its capabilities, boost its growth, and attract the needed skills and competences to meet the increasing demand on its mobile media solutions.

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Video: AdGoing Online Ad Marketplace At DemoCamp Dubai

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AdGoingAdGoing is a Saudi based company that bills itself as an online ad marketplace, aiming to make it easy to buy and sell advertising online, giving advertisers and publishers a platform to find each other.

The service supports both banner and text ads, as well as their variations. The system is mainly targeted at smaller publishers and bloggers who want to make money out of their advertising spaces, as well as advertisers who want to tap into the system for cheaper advertising rates and to have their ads go on a variety of sites and blogs.

Ads served up on the system are on a CPC (Cost per click) basis, and the system displays ads on a real time auction basis.

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Arab World: Current State Of The Internet & Future Growth

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Over the past few days, a number of articles sprung up about reports and predictions that have been announced by various parties, analyzing where the Internet stands today in the Arab world, and where they see it a few years from now.

Here is a quick straight-forward round-up of these opinions, reports and projections:

Present day:

  • At present there are roughly around 56 million Arab internet users in the Arab world, representing only 17% of the 337 million population. [Madar Research]
  • There is not enough Arabic content on the internet to take full advantage of newly built broadband networks in the region. [Ali al Ahmed, chief strategist, Etisalat]
  • More people are getting online in the Arab world, and are relying more and more on the Internet for their news, videos, social interactions and more, but only 1% of all content online is in Arabic, not offering them much choice. [Arab Media Outlook report]
  • Online news consumption is gaining ground with 22% to 34% of the people using internet at least as much as print media to read news. [Arab Media Outlook report]
  • On average, 70% of the people in the four main Arab markets researched use social networks in some capacity and about 15% use social networking sites at least once a day. [Arab Media Outlook report]
  • About 6 million internet users in the Middle East – or about 12% of the total online population in the region – have access to broadband networks. [Arab Media Outlook report]
  • People in the Arab world are spending about three hours per day on the internet on average, which is already on par with the amount of time spent on TV. [Arab Media Outlook report]
  • About $56 million or 1% of the total media advertising spend is online in the Middle East. [Arab Media Outlook report]
Looking forward:
  • The number of Arabic internet users in the Middle East and North Africa is expected to grow by nearly 50% over the next three years, rising to 82 million users by 2013. [Vint Cerf, Chief Internet Evangelist, Google]
  • Broadband usage in the region is expected to grow at an annual rate of 25% until 2013. [Arab Media Outlook report]
  • Broadband growth around the region over the next five years will stimulate the media industry, driven largely by Egypt and Saudi Arabia. [Arab Media Outlook report]
  • Internet advertising spend in the Middle East will rise to at least 4.5% by 2013, to around $266 million. [Arab Media Outlook report]

[Sources: The National, Zawya, BI-ME, Arabian Business, AMEInfo]

Search Advertising’s Double-Digit Growth In The Arab World

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As several regional reports and studies have shown, online advertising in the Arab world is pretty much still in its infancy, with it only representing around 1% of total advertising spends in the region. Search advertising which is a relatively newer form of online advertising has just started making inroads into the market over the past couple of years, and it’s interesting to have some insight into how things are looking with it, and what kind of growth it is seeing.

Google of course is the main player in the search advertising market worldwide and in the region, and according to Husni Khuffash, Google’s Country Business Manager, Google search advertising is witnessing a double-digit growth in the Arab World, despite the reports of a worldwide decline in the performance of search ads.

Meanwhile, David Sheridan, CEO, Neo Digital, commented that search ads currently consist well under 10 per cent (5-6%) of total online advertising budgets, which in turn constitute only around one per cent of the total ad spend.

Sheridan, however, agrees that search advertising is seeing a double-digit growth in the region, with Neo Digital seeing more than 10 per cent growth in online advertising based on pay per click.

In fact, he said search ads constituted 15 to 20 per cent of the total agency expenditure, with some clients spending about 10 per cent of their online budgets on Google search display ads, and between 15 and 20 per cent on text search, varying according to each client’s needs.

However, he also thinks that search ads aren’t probably the best way to advertise to a specific targeted audience, and that more specific advertising is still better placed on specific portals.

An important point he makes is that one of the main reasons why the search ad market is not so big here compared to other markets is because those are heavy e-commerce markets as opposed to the Arab region, where pay per click is more intended for lead generation and directing traffic to websites, not to drive direct sales.

This, I think, not only applies for search advertising but online advertising in general. As long as businesses don’t see the results of their online campaigns translated into conversions and revenue, their investments in online advertising in general will be limited. The only way for them to start seeing those conversions and that revenue rolling in though if for them to work on more elaborate online strategies and start venturing into e-commerce.

Most digital advertisers in the Arab region are still government, telecommunications and automotive; with smaller companies that search advertising should appeal to not being very active.

Expectations are that the search ad sector will maintain a steady growth, just like online advertising as a whole, despite the almost untapped e-commerce market in the Arab World. But, in my opinion, it will only take off hugely when the internet starts being perceived as a really important sales channel by companies.

[Via: Business 24-7]

More Arabic Websites From The Gulf, But Few Visitors?

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Arabic websites based in the Gulf are increasing in number but the locals are not using them much, according to experts discussing “Investing in Future Media” at the TMT Finance and Investment 2009 forum that was recently held at Sharq Village hotel in Doha, Qatar.

The opening presentation at the forum expressed concern over the fact that although the number of Arabic websites was increasing, these were rarely visited by those who know the language because they were not satisfied with the contents of the sites.

“This is still an open question,” said Mohamad Murrad, Principal, Vice President and Partner of Booz & Company, when asked if Arabic websites from the region can compete successfully with English websites.

Based on the study explained in the presentation, although there are now more Arabic websites in the region than before, their number is still small compared to that of English websites. Another fact is that most people in the Gulf access the popular sites such as Google, Facebook and Yahoo.

The same study highlighted the growth of the mobile platform, on which it is believed Arabic content can get a market share since 99 percent of the sales in the telecommunications industry are derived from it.

Mobile content is already on the rise and has high penetration in the region but the online network infrastructure for Arabic is still very limited, the study disclosed. It said SMS/MMS-based advertising offerings, although still small, showed strong growth.

Online ads are not very effective in the region, fetching just $2 per user, which is way behind the worldwide average of $27 per user and $59 per user in the United States. “The problem with online ads is very much skeptical, that is how to reach and capture the audience,” said one of the speakers.

[Source: The Peninsula]

Survey: Traffic Transparency Would Help Internet Advertising

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Web TrafficA recent survey by the market research company Real Opinions shows that 87% of those involved in advertising or marketing for their organisations in the Middle East said that transparency in website visitor numbers and profiles of visitors would be influential in increasing their usage of the Internet for advertising.

Put into perspective, 58% claim their budgets for marketing and advertising have decreased, but the current economic climate has encouraged them to look online for maximizing their impact, with 37% claiming their interest in the Internet has increased (50% claim no change).

Dan Healy, the CEO of Real Opinions who conducted the survey commented, ‘With decreasing budgets, organisations appear to be looking around for new paradigms in which to conduct their advertising and marketing activities to help them reach their goals. They are looking at the Internet advertising industry and websites to help them justify a new approach.’

‘As the Internet allows users to follow their special interests, websites have the ability to accurately show how unique their visitors are and how it can match an advertiser’s target market they wish to reach with communication. It’s shouldn’t just be how many visitors a website receives, advertisers want to know the profile of these people. This in turn can provide a very cost efficient advertising model for many organisations to achieve the return on investment they seek in this economic climate,’ Dan added.

Mobile Internet Users On The Rise In The Middle East

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Mobile InternetMore Middle East business people used mobile devices to hook on to the internet last month, compared with February 2007, while fewer used computers, a just released survey showed.

The survey, presented to the Digital Marketing Conference in Dubai by the Dubai-based research company Real Opinions, said computers were still by far the main way to connect to the internet.

The percentage who regularly logged in to the web with their mobiles increased from 33.5 per cent to 40 per cent.

Numbers of people using desktops to log in decreased from 63.50 per cent to 58.93 per cent, while those using laptops slid from 82.80 per cent to 81.35 per cent.

Mr Dan Healy, the chief executive of Real Opinions, said mobile device users tended to be professionals and high-end targets for advertisers.

“This is a select group of business internet users,” he said. “These are people with authority and relatively high disposable income, which are the target group for the travel industry, the hotels and the airlines. “This gives advertisers more creative ways to access them.”

The survey, of 446 business internet users in the region, also found they spend far more time using the internet than they do with any other kind of media.
The survey said users spent an average of 3.51 hours a day surfing online, compared with 2.28 hours watching television.

But it found that, while internet use dominated other media in the mid-morning and mid-afternoon, radio was stronger in the morning rush hour, and television was stronger in the evening.

Most respondents, 58 per cent, said the current economic climate had affected their organisation’s budget for marketing and advertising, but 37 per cent also said it had increased their organisation’s interest in internet marketing.

[Source: The National]

Media Experts Think 80% Of Arab Advertising Will Go Digital

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Media experts believe that the current financial crisis, in tandem with the fast changing demographics of the region will turn as much as 80 per cent of advertising to digital platforms such as internet and mobile phones.

Speaking at a conference, titled “Coping with Change, Yes, We can”, at the Dubai Press Club, some of the region’s media experts conveyed that the current projections for ad spent on print media will hold on to a mere 20 per cent, while digital platforms will grab the rest in a few years’ time.

Echoing the findings of the latest edition of the Arab Media Outlook 2008-2012, some speakers said that broadband would make a strong impact on the media scene, bringing better efficiency and cost-effectiveness.

The new edition of the Arab Media Outlook, the media analysis recently brought out by Dubai Press Club in conjunction with PricewaterhouseCoopers, has revealed that demographic factors are among the principal reasons why the Arab World is most suitable for the growth of new forms of media, such as digital media and mobile TV.

The report based its conclusions on extensive research in 12 Arab countries, says that one common feature across all 12 markets is that young people make up a relatively high percentage of the population. “Over 50 per cent of the population in Yemen, Oman, Saudi Arabia, Jordan, Morocco and Egypt are estimated to be currently less than 25 years old, while in the rest of the countries the under-25 ‘net generation’ makes up around 35 per cent to 47 per cent of total population,” said the report.

The seminar, which saw a detailed discussion on rapid changes in the media industry and the challenges posed by the current financial meltdown, was addressed by Richard Withey, Dr Ali Al-Assam, Managing Director of KnowledgeView Ltd, Francis Matthew, Editor-at-large, Gulf News and Magdi Hannah, Press IT supervisor, Abu Dhabi Media company.

Personally, with all due respect to the speakers and their opinions, and even though I’m pretty optimistic about the outlook for online advertising in the Arab world over these coming years, and am on the side that thinks this financial crisis will grow the market of digital advertising, I still think a growth from around 1% of overall advertising budgets to 80% in just a few years is a bit exaggerated, and neither is it healthy.

Cyber Gear Launches DIYads For Self Serve Advertising

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diyadsonline.com

Cyber Gear, a UAE based web design and online marketing firm, has just launched DIYadsonline.com, a new “do it yourself” online ad creation, placement and performance analysis service for the Middle East.

The service is targeted at advertisers who are on a budget, and need to cheaply put together an online display ad, and get it out there as quickly and easily as possible. At DIYadsonline.com prices start at US$ 99/month for up to 5,000 banner impressions.

Currently, online campaigns created through the service can be run on DubaiCityGuide.com, another service by Cyber Gear, with the company aiming to add new sites to the DIYads publishers network in the coming weeks.

Sharad Agarwal, CEO of Cyber Gear, said in the company’s press release that “Self serve display ads are the ‘killer app’ of Web advertising. We have developed a proprietary real time ad customization tool and intuitive web-based interface that deploys XML Feed to create more engaging display ads using Flash technology. The new tool will enable advertisers select from a number of ad targeting factors such as geographic, demographic and various user interest categories.” 

diyadsonline.com

The new service comes at a time when many companies are cutting down their advertising budgets, and many people are expecting a bigger push towards online advertising; so it should be interesting to see how well it does.

I wouldn’t expect the system to create some really awesome or ultra creative banner ads, but it still could be enough for someone making an entrance to online advertising, with a limited budget, and wanting to test the waters.

Middle East Online Ad Spend Set To Grow By Up To 35% In 2009

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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]