Multiculturalism is beauty of UAE

Dubai: Joseph Ghossoub, president and chief executive officer of The Holding Group (THG), is an advertising industry veteran.

THG is the parent company of Team-Young and Rubicam, Intermarkets Advertising, Asda'a Public Relations, Polaris Public Relations, mediaedge:cia and Wunderman.

One of the Middle East communications industry's most prominent spokespersons, Ghossoub has been involved in managing companies for about 30 years.

THG has grown into one of the top regional communications groups with offices in 14 countries. British advertising firm WPP acquired a majority stake in THG in February this year.

In 2004, Ghossoub was decorated with Lebanon's highest civilian honour, Knight of the Order of the Cedar. In 2007, the Dubai government re-appointed him to the board of directors for Dubai Media Incorporation, which owns One TV, Dubai TV, Sama Dubai and Dubai Sports channels.

Until 2008, he served as chairman and world president of the International Advertising Association (IAA).

In an exclusive interview with Gulf News, Ghossoub shares his insights into the Arab world's advertising scene.

Gulf News: How is the advertising industry growing in the region?
Joseph Ghossoub: The industry has grown between 15 and 25 per cent in the last three years. I see similar growth going forward. I am not one of those pessimistic people who ask questions a lot. The facts in front of me tell me that there is no big problem for growth. I can see a slowdown for sometime, but things will pick up and people will go back to business as before.

Which segments of the industry do you see affected by the global economic crisis?
The immediate impact is on financial institutions. They will probably have to bring down their expenditure. But soon they will have to come back [to normal spending] because they have to rebuild consumer confidence. Let us face it, financial institutions and banks will still be in business; they have to come out of the situation they are in today. That will make up for the slowdown that we have today.

What about the property sector?
The property sector today is in a wait-and-see situation. Everybody is under the shock of what has happened [in the global economy]. As far as my research, outlook and data are concerned, there is still demand. Today supply does not meet demand in the real estate sector.

As a key player in the market, what prospect do you see for consolidation in the regional advertising sector?
I am for consolidation and acquisitions. This creates bigger entities. When companies rely on a single source of revenue they immediately become vulnerable to anything that happens to the market when business environment turns bad.

How do you view the evolving regional media scene and the use of new technologies?
What I have observed over the last few years in the UAE is that there is an excess of print media. The trend these days is more towards digital. I think everybody is following the herd than looking at what the trends are. They will say "Oh, magazines are good, so let's start a few more." It is time to sit down and reflect on the new trends around the world and adopt some of them here. Today the whole world is living on the internet, the whole world is connected. Who is without the internet, who is without a mobile phone? This is where new trends are happening. Today television, radio and newspapers are changing. We have to be involved in the changes that are taking place. If we do not foresee what is coming, then we will be left behind. The audiences are fragmented. We have to look at this fragmentation, from children to teenagers to the elderly.

In a diverse demographic environment such as the one that exists in the UAE, what challenges do advertising agencies face in reaching out to their target audience?
This is the beauty of the country. It is not a challenge, it is learning and knowledge and being able to have a single line of approach that crosses ethnicities and nationalities. It is about getting across all these lines and delivering the message.

Can you have a one-message-fits-all approach or do you think there is a need to tailor your message according to an audience?
It depends on who you are addressing. Most of the time it is pretty much one message that is suitable for all. If you are raising a particular issue, then of course it is directed at a specific audience.

Now that there is a slowdown in the US and Europe, how important has this region become for companies like yours?
This area is showing a lot of growth. But there is also growth in China, India, Russia, Brazil, and many other parts of the world. These are going to be given much more attention. This is good for us. We will get better expertise, bigger tools and events in the region. We will see more experienced people and knowledge coming to this area. We are in a privileged place. Today we are one of the five markets that are showing [prospects for] the future.

How big is this market?
Last year's collection was Dh2.2 billion in the UAE. This year it will be 15 per cent more. The wider Middle East region last year grew by about five per cent, much of it was contributed by the UAE. I see the same trend this year. Saudi Arabia led the market for a long time. Today the UAE is the biggest advertising market. What is happening in real estate, finance, telecom, and every kind of service industry has brought up the market to a different level in the UAE. Transport and tourism are really picking up. The market in Saudi Arabia has remained the way it was, dominated by consumer products, a little bit of telecommunications, and much less financial services.

What kind of new brands and companies do you think would target this region?
Every brand would like to target this region. Some products are appropriate for the region, others are not. There were many products that were not interested in the region earlier, but today they are.

The industry has grown between 15 and 25 per cent in the last three years. I see similar growth going forward. I am not one of those pessimistic people who ask questions a lot. The facts in front of me tell me that there is no big problem for growth. I can see a slowdown for some time, but things will pick up and people will go back to business as before."

The wider Middle East region last year grew by about five per cent, much of it was contributed by the UAE. I see the same trend this year. Saudi Arabia led the market for a long time. Today the UAE is the biggest advertising market."