WebDialn@ Study Of Algerian Internet Users Results

AlgeriaA new study entitled WebDialn@ (meaning ‘our web’ in the Arab Algerian accent) by Med&Com and Ideatic that polled about 6,000 Algerian internet users on ADSL, mobile internet, online advertising and e-commerce, estimates that 4.5 million people (12.8% of the Algerian population) use the internet, and that they heavily rely on it for news, research and activities such as social networking.

75% of Algerian internet users call the web an “indispensable tool”, with more than 90% confessing to “not being able to get by without going online ‘at least once a day'”. Most users reported spending two hours on average in front of their monitors.

The study also shows a gender gap and regional disparities in internet use. The typical Algerian Web user is described as male (72.2%), aged between 20 and 29 (29.2%), educated at least to the baccalaureate level + 1 (66.2%), and living in Algiers (29.28%). However, women represent just 25.8% of Algerian Web users.

The researchers reported that 82.6% of Web users communicate via email. Of this percentage, 42.5% also use instant messaging (such as MSN or Yahoo Messenger), 33.8% visit discussion forums, 33% make telephone calls over the Internet (Skype), and 9.9% use video conferencing.

Online media are the Algerian web users’ top online destinations, with 80.8% reading online newspapers, 19.9% listening to the radio, and 11.4% watching TV programmes. The internet is also used for research (80.7%) and making business contacts (22.9%). Social networks seem to be quite popular too with 40% of respondents having profiles on Facebook.

The study also shows that Algerians aren’t very active contributors, with 82.2% visiting online media-sharing sites (YouTube, DailyMotion, Flickr), but only 23.5% contributing.

Numbers from the Algerian Post and ICT Ministry say that there are 585,455 residential ADSL subscribers in the country. Nearly 65% of those surveyed said they can log on from home, compared with 24.6% who log on at work. Over 61% of web users say there are at least three people using the internet in a single home. Youth clubs and libraries with internet access, which used to be crammed, are hosting fewer users.

Some 72.1% of users say they are unsatisfied with the speed of their connection at home, and 79.7% complain about frequent service outages. 53.8% of Web users think the connection rates are affordable, while 43.8% of them think subscription rates are expensive or very expensive.

A presentation of the study results is available here in French: WebDialn@ Study Results (PDF)

[Source: Magharebia]

MENA Twitter Habits Survey Results Released By Spot On PR

Spot On PRA survey of Twitter users has shown the microblogging social media platform not only continues to attract new users throughout the Middle East and North Africa but is also starting to affect the way that brands are perceived.

According to the Middle East & North Africa Twitter Demographics & User Habits Survey, published by Spot On PR, over 90% of users in the region say they have found out about a new product or service through Twitter and over 60% have had their perceptions of a brand changed by Twitter.

Carrington Malin, managing director of Spot On Public Relations, said: “Twitter’s fast growth, coupled with the high level of activity amongst the region’s users, is making a number of key regional organisations sit up and take notice. We hope that this survey of MENA Twitter demographics and user habits will provide marketers with a baseline from which to further explore the opportunities that Twitter is opening up.”

While some 70% of users surveyed said they had formed a positive perception of a brand through their interactions over Twitter, over 50% had also formed negative perceptions of a brand. A small but influential crowd of opinion leaders, many Middle East Twitter users were closely linked with the advertising, marketing, public relations and media industries, some 35% of respondents in all.

59% of respondents said they interacted frequently with journalists, some 76% interacted frequently with bloggers and over 65% actually being contributors to a blog themselves.

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The Internet Captures Eyeballs Away From TV In Egypt

Arab Advisors GroupA new Arab Advisors’ survey of Internet users in Egypt revealed that the peak time for browsing the Internet for entertainment and personal issues is after 9 PM which coincides with the peak time for TV viewing, confirming that Internet -especially broadband- has become a major competitor for TV amongst Internet users in Egypt

This online survey of Egypt Internet users revealed that the Internet was the most common source amongst respondents for getting daily and global news (69.7%), getting information (97.6%) and for looking for job vacancies (57.1%).

The survey also revealed that international players have the largest share of email and search services where 85.8% of respondents, who have an email account, use Yahoo and 99.0% of respondents, who use search engines, use Google. Regional players lag far behind with shares of less than 4%.

In addition to that, it showed that a majority (94.7%) of respondents had a landline phone in their house. 93.5% of respondents had a desktop computer, which is expected as the survey is of Internet users in Egypt.

The new survey of the Internet users in Egypt was concluded by the Arab Advisors Group on August 2009, and released under the title ‘A Survey of Internet Use and Online Advertising Consumption and Effectiveness in Egypt‘ (Table of Contents PDF) on September 1, 2009. The survey covers media consumption habits, online use habits and trends, online advertising and online security.

The survey results encompass answers from 3,348 randomly targeted respondents from the general internet population. Quality control was conducted by Arab Advisors Group’s team, and they claim a confidence level of 99% with a margin of error of less than 3% for it.

Growing Internet Usage In The Middle East & North Africa

EuromonitorAccess to the Internet has been expanding dramatically in the Middle East and North Africa over the past years. A new study by Euromonitor International provides some interesting general key indicators, as well as some indicators on the effect of this growth on the business environment, government and future prospects.

The following is a selection of some of the key points from the study:

  • Internet access in the Middle East and North Africa has expanded rapidly since 2003, reaching 85.5 million users in 2008, or 5.2% of the world’s users (The study includes Iran in these numbers);
  • Internet users in the region are typically under 35 years old and predominantly male, although there are indications that the digital gap between men and women is narrowing;
  • The young profile makes Internet users a promising consumer market as they are more likely to be influenced by global consumer trends. The dominance of Arabic is an advantage as it allows addressing a wide audience in many countries;
  • The spread of the Internet is part of a wider trend of growing access to media and communications in the region. In the 1990s and 2000s satellite TV systems and mobile phones became a standard household item even in poor countries in the Middle East;
  • Judging by blogs, Internet users seek primarily content relating closely to their country, rather than regional issues. Thus, bloggers tend to cluster according to country with interests varying between politics, religion and culture;
  • Online retailing offers consumers greater choice and convenience. Internet retailing is developing rapidly in the region, especially (though not exclusively) in the small Gulf states such as Kuwait and UAE. From international brand megastores offering electronics and entertainment products, to family-owned sweet shops, businesses are expanding their online presence to capture the growing market;
  • Internet literacy improves chances in the labour market. In addition, the Information and Communications Technology (ICT) sector is growing across the Middle East and North Africa, providing employment opportunities in countries such as Jordan and Egypt, which suffer from high unemployment;
  • Governments across the region are investing in e-government. According to a United Nations survey from 2008, UAE, Jordan, Kuwait, Saudi Arabia and Egypt all substantially improved their e-government services between 2005 and 2008, and their level of readiness was above the global average. New e-government services in Middle East countries included online consultation, forms downloading and submission, and online payments for government services.
For more indicators from the study, you can go here:
Regional Focus: Growing Internet usage in the Middle East and North Africa

Total Country Connectivity Measure For The Arab World

The annual results of Arab Advisors Group’s Total Country Connectivity Measure (TCCM) reveal substantial –mostly cellular service driven- improvements in overall scores. The Arab broadband Internet markets also registered very positive growth.

The United Arab Emirates is the most connected country in the Arab World according to the Arab Advisors Group’s annual report; Bahrain and Saudi Arabia followed in second and third ranks respectively.

The Arab Advisors Group calculates its Total Country Connectivity Measure (TCCM) by adding the household mainlines penetration, cellular penetration, and Internet users penetration rates in each country. The household mainlines penetration is measured by dividing the residential mainlines by the number of households in each country.

The TCCM shows the extent of connectivity of individuals in a certain country whether via fixed lines, cellular lines and/or Internet. Of course, there will be an overlap since many individuals will be using these three communications technologies at the same time. However, the measure still yields an accurate and informative picture on the level of ICT services penetration in each country.

As previously mentioned the Total Country Connectivity Measure results for 2009 revealed that UAE, Bahrain and Saudi Arabia still dominate the top three spots as the highest adopters of telecommunication services, with values of 321%, 249% and 248% respectively.
The results for the rest of the Arab World came as follows: Qatar (205%), Libya (199%), Kuwait (184%), Oman (170%), Algeria (141%), Jordan (141%), Syria (129%), Egypt (128%), Tunisia (128%), Morocco (127%), Lebanon (125%), Iraq (100%), Palestine (95%), Mauritania (74%), Yemen (55%) and in last place Sudan with a TCCM value of 34%.

“Only four out of the nineteen countries covered in this year’s study have a total country connectivity measure that exceeds a 200%. This indicates a substantial potential for more growth in most Arab markets, especially in the under penetrated Internet markets.” Mr. Andrawes Snobar, Arab Advisors’ Research Manager wrote in the report.

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

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]

Report: Private Equity in the MENA Region (October 2008)

Global Investment HouseAccording to a report by Kuwait-based Global Investment House, titled “Private Equity in the MENA Region”, the spending power of the region’s growing middle class is influencing a shift in investment focus away from oil & gas to service-based and consumer-oriented businesses.

During the period from 2007 till H1-2008, investments made were highest in the Basic Materials sector with a total of US$1,422mn worth investments. It was followed by Healthcare sector (11% of all investments) followed by Financial Services (11%), Transport (8%), Oil and Gas (7%) and Services (5%) sectors.
Basic materials sector was again influenced by the US$1.4bn investment in Egyptian Fertilizers Company.

As the economies and population of the region will grow, social infrastructure needs in healthcare and education will increase and these will be the sectors that private equity players would look for.

The Telecoms and IT sector got only 1% of all investments in the period from 2007 till H1-2008, of which I’m sure only a tiny fraction made it to internet and technology startups.

UAE Second Most Socially Networked Country In The World

SynovateA recent worldwide survey by market intelligence firm, Synovate, revealed that 58% of people don’t know what social networking is, plus over one third of social networkers are losing interest.

Over 13,000 people between the ages of 18 and 65 in seventeen markets around the world took part in the survey.

Across these 17 markets surveyed, 42% of people know what online social networking is, which leaves 58% in the dark… either saying ‘no’ or ‘don’t know’.

Overall, 26% across the markets surveyed are members of social networking sites. This peaked with the Netherlands at 49%, United Arab Emirates (UAE) at 46%, Canada at 44% and the US at 40%.

Synovate’s Managing Director for the UAE, George Christodoulides, says: “The popularity in the UAE makes sense. It is a place that’s very connected to the world; a hub for cultures, business and people.”

“These sites also offer a way for people to meet — online — in a society where traditionally men and women don’t always mix freely.”

The survey also asked social networkers to name the sites they belong to. Some markets seemed to favour multiple memberships and some seemed to stick to one or two major ones. The markets where social networking aficionados favour signed up for many sites are UAE, India, Indonesia, and Bulgaria.

Thirty seven percent of all people from the UAE, 35% of South Africans and 29% of Taiwanese agreed that they had more friends online than they have in the ‘real’ world.

On a global level, users did have some reservations about social networking, with 51% saying they were aware of the dangers of social networking such as identity theft, and 36% of respondents saying they were losing interest in social networking.

# Synovate Social Networking Survey Results

Bahrain’s Mobile Penetration Rate Rises To 138%

Flag of BahrainBahrain’s mobile penetration rate has the potential to reach 164 per cent by 2012, a penetration rate, which is already being reached in some European countries and in other parts of the Middle East.

By the end of 2007, the number of mobile subscribers in Bahrain had increased to 1.116 million, translating to a penetration rate of nearly 138 per cent.

Bahrain’s mobile market continues to produce remarkable rates of growth, in spite of the regulator’s recent insistence that operators count only active subscribers within their reported customer totals.

This was revealed by market research firm Companies and Markets in its recently released Bahrain Telecommunications Report Q3 2008.

Growth in the final quarter of the year was stronger than in all three previous quarters combined. The number of mobile customers saw a 15.7 per cent surge in Q4 of 2007, with growth being mainly driven by Zain’s expanding prepaid customer base. Zain’s prepaid customer base grew by 47.4 per cent in Q4 ’07, compared with a mere 3.1 per cent increase in the number of Bahrain Telecommunication Company (Batelco) prepaid customers.

Despite the already highly saturated nature of Bahrain’s mobile market, announced in April 2008, it was reported that the country’s Telecommunications Regulatory Authority (TRA) had invited telecoms industry players and interested parties to express interest and opinions on the planned award of a third mobile network operating licence.The regulator has asked potential applicants to give opinions regarding preferred spectrum bands and size of frequency blocks to be assigned, plus related issues including infrastructure sharing, national roaming and length of shared exclusivity period.

In separate news, reported in February 2008, it was revealed that Bahrain’s government planned to sell the majority of its shares in fixed-line incumbent Batelco over the next three years, as part of the country’s Second National Telecommunication Plan approved by the Parliament earlier in the same month.

The planned sale is aimed at enabling the full-service telecom company to operate with full independence from the government and make commercial decisions free of political influence.

Bahrain Telecommunications Report Q3 2008

Jordan’s Internet Penetration Rate Grows To 21%

Flag of JordanAccording to official numbers released by the Jordanian Telecommunications Regulatory Commission, the number of internet users in the kingdom reached 1.2 millions users at the end of the first half of 2008, which represents a penetration rate of more than 20.5% of the Jordanian population which currently stands at around 6 million.

The numbers show a growth of more than 1.5% happening in the second quarter of this year in comparison to the first quarter, as the rate back at the end of the first quarter was just under 19%. The penetration stood at 17% at the end of 2007.

According to the reported numbers, 16% of Jordanian households have internet access; with differences in the percentage between urban and rural areas, which is explained by the still relatively high cost of computers and internet services.

The national strategy for the telecommunications sector aims to reach an internet penetration rate of 50% by end of 2011. The government has actually lowered the sales tax on internet related services from 16% to 8% to help spread internet services and grow the internet user base in the kingdom.

# Source: Arabian Business