By Sachin Kumar
DOHA: The Media Industry, in terms of ad revenues, has shown a weak but stable growth in the Mena region over the past five years. The total ad market in 2015 in the region was worth an estimated $5.5bn in net advertising revenues, according to a study conducted by Northwestern University in Qatar (NU-Q) in cooperation with the Doha Film Institute (DFI).
The study, Media Industries in the Middle East 2016, noted global advertising market is undergoing fundamental changes due to changing dynamics and the increased use of digital media.
This transition is also causing a slow expansion of ad revenue in the Mena region.
“Disruption across the media industries largely driven by new, digital developments and the displacement of traditional media outlets, is the nature of advertising revenue globally and in the region,” said Everette E Dennis, Dean and CEO of NU-Q. “This report provides decision-makers with insights, based on hard data, that suggest how technological developments have and will influence the trajectory of media related industries, including advertising,” he added.
The report found that digital still represents only 10 percent of ad spend, compared to 30–35 percent spend on print. Collectively, Mena countries trail other regions in innovation and adoption of new technologies (for example limited digital measurement, programmatic buying, and non-advertising forms of marketing).
As a result, many of the opportunities of digital advertising have yet to be realised, despite high levels of digital consumption in the region.
Ilhem Allagui, Associate Professor at NU-Q noted that the transition from traditional to digital is having an impact on the region.
“Understanding how agencies buy media today is not simple. It is certainly not as simple as it was before the rise of digital advertising. Agencies have challenges when considering media choices, as measurement is increasingly difficult to trust,” said Allagui. “The Arab Region is no exception,” he added.
The report said several key dynamics are changing the industry, such as the convergence of advertising platforms (traditional versus digital) and services (strategy-only versus execution). The market structure of advertising buyers and agencies in Mena is highly fragmented, with the strong presence and influence of international players.
A number of acquisitions are taking place, mainly by international players seeking to break into or expand their presence in the region.
Northwestern University has conducted research related to the increasingly complex media landscape in the Middle East over the past several years.
The Peninsula
