Dubai: Online advertising in the Arab world is predicted to grow from $54 million (Dh198 million) to $266 million in the next five years.
According to ‘The Arab Media Outlook 2009-2013' report, money spent on online advertising is predicted to grow by nearly 400 pr cent by 2013.
"Because of the current economic climate, people want to spend their money smartly now more than ever. Online advertisement is a great way to get to the masses and social forums are very big now," Nirmal Diwadkar, regional creative director at TBWA\RAAD told Gulf News.
While the increase in spending will still constitute a minuscule percentage of the overall advertising spend in the region, 4 per cent, it is a significant milestone given the low broadband penetration in the region which currently stands at only 12 per cent in the UAE according to the report.
Broadband availability ranges throughout the region with only 0-1 per cent coverage in emerging markets such as Syria and Sudan and up to 84 per cent coverage in Qatar.
According to the survey, a growth in broadband penetration in the region is likely to be driven by Egypt and Saudi Arabia, who together will make up 70 per cent of total broadband subscriptions by 2013.
According to the report, this growth is driven by a growing youth demographic
"While over 85 per cent of the Arab newspapers we spoke with currently operate an online platform, only around 2 per cent 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 stated.
Growth factor
- $266m Growth in online advertising
- 400% growth in money spent by 2013
