Dubai: Confidence was the name of the game as the UAE’s ad spend in the first three months totalled $379 million (Dh1.4 billion) against the $359 million from a year ago, newly released data suggests. In doing so it easily retained the mantle of being the region’s leading advertising market by some distance, even as most other markets mirrored the increase in spending.
Saudi Arabia came in next with $340 million ($323 million from a year ago) and ahead of Kuwait’s $211 million ($219 million last year). Even Lebanon reported a slight increase — $102 million and up from $96 million — during the first quarter despite the unceasing troubles in its immediate neighbourhood, according to figures from Parc which bases its findings on official media rate cards.
However, digital media spend is not tracked in these findings. But there was quite a drop in spending patterns in Egypt, in no small measure due to the political and social uncertainties. Spending in the first quarter was estimated at $187 million, down from $257 million.
In the UAE, it is quite clear that the favourable factors evident all through last year came out in force during the first quarter. A boost was provided by the latest Dubai Shopping Festival, plus the continued surge in consumer spend in the retail, automotive and tech sectors were reflected on the ad exposures.
Steady growth
But this time out, government agencies were loosening their marketing budgets. “We have seen positive vibes which has certainly led to a return of confidence and steady growth in ad spend patterns as well,” said Glenn Netto, buying director at BPG Maxus.
“The bid of Expo 2020, various initiatives by Dewa, RTA and other government entities have significantly added to the spends. Additionally, we have also been noticing decent spends by the real estate sector in the first quarter and if this trend continues subsequent quarters, we could look forward to a promising 2013.”
The UAE’s print media was an immediate beneficiary from marketers and brands seeking increased exposures. While newspapers are estimated to have pulled in $218 million — based on official rate cards — in the first three months from a 6 per cent growth over the first quarter of 2012, magazines took in $54 million.
Outdoor media received a $60 million boost — with Dubai Shopping Festival in the top spot — while the TV space took in $25 million (unchanged from the first quarter of 2012). Radio accounted for $13 million.
“The entertainment sector has pulled up spending in the UAE,” said Shaharyar Umar, marketing director at Parc. “It does look like this trend will keep repeating through the rest of the year.”
