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According to Price Waterhouse Coopers, the Entertainment & Media (E&M) market in the MENA region has the highest growth compared to global markets. The MENA E&M market is forecasted to grow in the next 5 years at a 16.5% compound annual growth rate (CAGR). Surrounding markets such as Turkey and India also have high E&M market growth rates. These three leading global markets will grow at a higher rate then North American and European markets.
The MENA region also leads in E&M sector growth for the next five years. Once of the most important sector growth, determining and indicating the health of the media industry is the Ad Spend market. By 2013, MENA’s advertising market will grow at a 12.6% CAGR. The UAE continues to lead with the largest Ad Spend market out of the MENA region. Despite the UAE Ad Spend decrease from H2 2009 to 2010, the Arab Media Outlook projects Ad Spend growth from 2010-13 bringing UAE to the lead in the MENA region.
The above table shows that in 2009, Ad spends in the UAE were the highest in the MENA region, making it an attractive market and strategic location for companies. Although Saudi Arabia is the 2nd biggest advertiser, UAE remains an easier location for doing business. Egypt has become one of the fastest growing Arab countries in 2008, growth is expected to slow down to a CAGR of 7% from 2009-13. UAE & Qatar are forecasted to be the fastest growing advertising markets with 11% CAGR.
Television and Newspaper platforms make up almost 80% of the Ad Spend in the MENA region from 2010-13. However, given the young demographics in the region, internet has a huge potential become a more popular platform for advertising.
Age distribution in the Middle East, especially in the GCC countries is more heavily skewed towards the youth segment. On average 60% of the population in the GCC countries is below 35. With a young population and increase in broadband penetration in the MENA region, digital migration will be at full force in the coming years. Broadband household penetration levels in the MENA region will increase from 18.5% in 2010 to 38.5% in 2014. Internet household penetration levels in the MENA region will increase from 39.7%% in 2010 to 64.3% in 2014. This will drive the regional trend for the digital media sector with new developments for Arabic online content such as online advertising, social media platforms and mobile applications etc.
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