UAE advertisers reverse decline to reclaim top spot

Dubai: Though it managed only a one per cent gain over the corresponding figures for 2010, the UAE regained its status as the region's largest advertising market with $1.44 billion (Dh5.28 billion) in 2011, according to data from Pan Arab Research Centre (the data is based on the published media rate cards).

The incumbent, Egypt, saw ad spend plummet by nearly 40 per cent as political turmoil overtook that country.

Saudi Arabia came second in the region with a 9 per cent gain in ad spend. "Only Saudi Arabia and the UAE out of the monitored markets in the region posted growth," said M. Shaharyar Umar at Pan Arab Research Centre.

"The UAE market is in the black after two consecutive years of decline. The statistical trend is clearly on the upswing."

Reliable data

According to Umar, this year will see the introduction of TV meters that will provide an accurate picture of what people are watching and how many of them at that. "It will deliver reliable data conforming to global industry standards and analysts have projected that ad spend will gradually increase to $2 billion once the TV meters start delivering the data."

In 2011, newspapers in the UAE retained their position as the top choice for ad campaigns with $858 million and a share of nearly 60 per cent, but the gains contrast with a drop in spending of 8 per cent compared with the 2010 data.

Filling the breach was television, up 11 per cent to $166 million, and radio, which totalled $52 million from a 45 per cent increase, $130 million from a 31 per cent year-on-year increase. Local magazines also posted a good showing by accounting for $227 million from a 15 per cent gain over 2010.

As a combined entity, local government agencies led the way among leading advertisers for 2011 by accounting for more than a quarter of the spend. But the final numbers still represented a drop of 2 per cent of what they put out in 2010.

But retailers and mall owners were more than willing to be seen on any available platform, with a 6 per cent increase in exposure for 2011, while entities in travel and tourism spent 16 per cent more than in 2010.

Real estate advertising, not surprisingly, remains a straggler and accounted for only 5 per cent of the total ad spend last year after a 23 per cent drop from 2010 levels.

Spending: Telecoms in UAE top five

The top five ad spenders in the UAE during 2011 were etisalat, du, Carrefour, McDonald's and Sedar, the furnishings retailer.