DOHA: The print media, which is fast losing circulation and advertising revenue in the West, continues to maintain its sway in the oil-rich GCC region.
But a steep surge in the popularity of digital media in the region might soon begin making a dent in the advertising-driven earnings of print media.
The global financial downturn that raised its head in 2008, hit the media and advertising industry hard in most parts of the world, pushing down revenues.
But the GCC region remained less affected with the industry’s earnings declining only marginally, only to rebound by the later half of 2010.
Last year, advertising revenues in the region grew five percent year-on-year to a staggering $4.8bn (QR17.47bn), with the UAE and Saudi Arabia having the largest shares — 33 and 30 percent, respectively — in advertising spending. Kuwait trailed with a 20 percent share and the remaining three GCC states — Qatar, Oman and Bahrain — together accounted for 17 percent share of the total.
Kuwait Financial Centre (Markaz) report said yesterday companies in the region have begun to increase their media spending budgets as regional economies seem to come out of their hiatus.
The landscape of the regional media industry is changing at a rapid pace as a result of technological advancements and changing consumer habits.
Digital media is growing in influence and effectiveness, the report said. The digital media has a share of 18 percent in global advertising spending and the percentage is set to inch up to 20 in 2014.
The print media is still going strong in the GCC with a high 71 percent share in the overall advertising spending. The digital media is still in its infancy but growing at a brisk pace.
Social networking and use of social media sites have been on the rise in the region. Of all social media sites, Facebook has the highest penetration — about 40 percent in the UAE and 35 percent in Kuwait, distantly followed by LinkedIn and Twitter.
Kuwait has the highest Twitter penetration of 13 percent in the Arab world, in comparison with three percent each in Saudi Arabia, the UAE and Qatar.
The print media is struggling due to dwindling circulation figures in US and Europe. In 2011, North America witnessed 4.3 percent decline in newspaper circulation, and in Europe it declined 3.4 percent. The Middle East and North Africa (MENA) region, on the other hand, clocked the highest worldwide growth rate of 4.8 percent. The growth in Asia was 3.5 percent.
The changing habit of media use is driving advertising spending from the traditional print media towards digital platforms.
In the GCC, print media is still considered more trustworthy and, thus, grew at an average of 3.5 percent annually between 2007 and 2011.
The Peninsula
