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According to Price Waterhouse Coopers, the MENA region enjoys the highest growth index of the Entertainment and Media (E&M) market across the globe. The MENA region’s E&M market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 16.5 per cent for the next five years. Neighbouring markets of Turkey and India also have high E&M market growth rates.  In fact, Price Waterhouse Coopers predicts these three leading global markets will grow at a higher rate than the markets of North America and Europe.

 

AD Spend Market

AD Spend Market

  • The MENA region is expected to lead the Entertainment & Media sector growth for the next five years.  This fact is evident in the growth and health of the MENA region’s Ad Spend Market.
  • By 2013, MENA’s advertising market is expected to grow at a breathtaking 12.6 per cent CAGR.  The UAE continues to lead with the largest Ad Spend market in the MENA region. Despite the UAE Ad Spend decrease from H2 2009 to 2010, the Arab Media Outlook projects, coupled with a myriad of business opportunities, especially in Dubai and Abu Dhabi, are expected to enhance the Ad Spend growth from 2010- 2013 onwards.
  • Spurred on by business opportunities, especially by small businesses in Dubai and Abu Dhabi, UAE’s overall Ad Spend was the highest in the MENA region in 2009-2010. This makes UAE an attractive market and a strategic location for media companies.
  • Although Saudi Arabia is the second biggest advertiser, the UAE, with its ample business opportunities, remains an easier location for doing business. Despite the fact that Egypt is one of the fastest growing Arab countries, growth, especially in terms of new business opportunities and expansion is expected to decelerate to a CAGR of 7 per cent between 2009- 2013. On the other hand, UAE and Qatar are forecasted to be the fastest growing advertising markets with 11per cent CAGR.
  • In terms of fractions Newspaper and Television account for almost 80 per cent of the Ad Spend in the MENA region. However, in 2009-2013 the internet has made significant inroads to become a popular, and flexible platform for marketing and advertising, especially for younger demographics.

Platform Ad Spend

Young Population

  • Age distribution in the Middle East, is more heavily tilted towards the youth. On an average 60 per cent of the population in the GCC countries is below the age of 35.  With a young population and an increase in high-speed broadband penetration, digital migration in the MENA region is expected to be in full force in the coming years.

Broadband Penetration

  • High-speed Broadband penetration levels in the MENA region are set to rise from 18.5 per cent in 2010 to 38.5 per cent in 2014.  Similarly, Internet penetration levels are predicted to increase from 39.7 per cent in 2010 to 64.3 per cent in 2014.  This mammoth increase in internet usage, particularly in urban households, is set to give a fresh impetus to digital media sectors such as online marketing, social media platforms, mobile applications, and Arabic language web content amongst others.