Online advertising spend in the Arab region to hit 4% by 2013, predicts Arab Media Outlook

‘The Arab Media Outlook 2009-2013: Inspiring Local Content,’ the third edition of the ground-breaking report on the Arab media from Dubai Press Club, has predicted that online advertising would grow in the Arab world substantially in the next five years, from the current $54m to $266m.

Though it will still constitute a minuscule percentage of the overall advertising spend in the region, 4%, the report termed it as significant given the low broadband penetration in the region, which is only 12% currently. The range of broadband penetration across Arab countries is extremely disparate, the report disclosed, ranging from 0-1% in emerging markets like Syria and Sudan and up to 84% in Qatar. However, broadband penetration across the board is likely to grow in every Arab country and this growth will be driven by Egypt and Saudi Arabia, two of the largest countries in the region, who together will make up 70% of total broadband subscriptions by 2013, it was revealed.

According to the report, the strong proportion of youth demographic in the region is one of the principal factors that will drive the growth of online platforms. The slow pace of broadband penetration still remains a major impediment for the growth of online platforms, the report warned. Currently, the online platform forms close to 1% of the overall advertising spend in the region. “While over 85% of the Arab newspapers we spoke with currently operate an online platform, only around 2% of their advertising revenues are derived from online. There are significant opportunities for the regional online industry to develop its offerings and grow its user base,” the report pointed out.

Arab Media Outlook, which was recently launched at an impressive function followed by a high profile panel discussion, covers 15 Arab countries in detail, in addition to in-depth market research on media consumption habits in Saudi Arabia, UAE, Lebanon and Egypt. The countries that are covered in the third edition are Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Sudan, Tunisia, the UAE and the Yemen.

The Arab Media Outlook is now available online in both languages English and Arabic on the Dubai Press Club website. This would provide direct access of the outlook’s findings to information seekers such as policy makers, media corporations, journalists, students and the general public.