Newspapers account for 70% of UAE ad spending

Dubai: Newspapers as a group represented the single largest platform for UAE advertisers by pulling in a still substantial $478 million in the first six months of 2010. The corresponding figure for 2009 was $486 million.

This works out to 70 per cent of the overall ad spend in the country during the period, which was valued at $680 million (compared to 68 per cent of $712 million in the first half of 2009).

However, ads in English language newspapers in the UAE dropped 13 per cent in the first six months of the year, and the overall numbers were only held up by a 20 per cent gain recorded by the Arabic newspapers.

So much so, "Arabic newspapers now constitute nearly 42 per cent of the total ad spend in newspapers in the UAE," said Shaharyar Umar of the Pan Arab Research Centre. Going forward, advertising in local English language newspapers will need to deal with the ceasing of the print edition of Emirates Business 24/7.

But the going was particularly rough for local television channels in the first six months. "Local television was hardest hit as spending plunged 24 per cent after it braved the challenging year of 2009," said Umar.

In fact, for the first half of 2009, television accounted for $75 million and was the only media platform to record growth over corresponding 2008 figures.

But in 2010's first six months, television's pulling power waned to $57 million, even lower than the $59 million recorded in the corresponding period of 2008.

Regionally, ads on television were up 39 per cent which translated into a share of 57 per cent of overall spend across all media vehicles in the first six months, according to Parc data.

Industry observers point out that this relationship will only get closer. "No extra or special discounts were offered in 2010 compared to what we used to get in 2009, but I believe the high reach levels and content development are the reasons behind attracting more business into regional television," said Satish Mayya of BPG Maxus.

Meanwhile, ad spends in online media still represents a marginal factor in the region, but retains significant potential. No one believes it's going to usurp any of the traditional media at any point in the near future.

"Coupled with the increased usage of the internet and the need for greater interaction, low-cost social media is in focus by marketers," said Umar.