Marketing and Advertising expenditure in Gulf registers 25 percent increase

BY MOUSHUMI DAS CHAUDHURY

DUBAI — The marketing and advertising expenditure in the Gulf surged to $943.77 million in the first quarter of 2005 compared to $753.07 million for the same period last year, registering an increase of 25.32 per cent.

The UAE saw a jump of 45 per cent over 2004, with expenditure reaching $ 206.45 in the first quarter. Stephen Walsh, exhibition director of The Domus Group, organiser of The Media and Marketing Show 2005 which is being held at the Dubai International Exhibition Centre told Khaleej Times, "The media industry in the AGCC region has been progressing and media industry in the UAE is dominated by print and publishing media, television and radio and outdoor advertising. The Gulf region has a total expenditure outlay of $3.9 billion. ’’

A recent study shows that Qatar recorded a 160 per cent increase in advertising expenditure in 2005, with expenditure jumping from $12.87 million in the first quarter of 2004 to $33.33 million for 2005. Similarly, Saudi Arabia witnessed a 68 per cent growth (from $121.38 million to $203.79 million) and Oman's expenditure hit $20.78, a 49 per cent improvement over 2004. Kuwait increased by 14.40 per cent at $93.49 million, and Bahrain's expenditure rose by 3.62 per cent, touching $25.20 million during the first quarter of 2005.

Ahmed Bin Byatt, director general of The Dubai Technology and Media Free Zone inaugurated the exhibition and said, “ The launch of the Media and Marketing Show could not have come at a better time, four years after the setting up of Dubai Media City and when the media industry in Dubai has reached new levels of maturity. ’’

This year, 114 exhibiting companies representing 400 brands from more than15 countries are participating at the Media and Marketing Show 2005. The participants includes prominent members from the print, broadcast and online media such as Khaleej Times, DIT Publishing, Al Khaleej, Concept group, Al Ghurair Printing and Publishing among others. Khaleej Times with an ABC certified circulation of more than 68,000 copies is positioned strongly among expatriate residents that form the majority of the population in the UAE and has built a reputation for responsible journalism covering both sides of the coin. The paper is now printed in colour throughout in three distinct sections, main body, business and city times, the leisure section including sports.

Alongside the exhibition, the 6th Gulf Marketing Forum adds an additional dimension to the mix, with some of the best brains in the business addressing the hottest issues of the day, from press freedom, to people metering and audits, and traditional versus new media. The Marketing and Media Show is being backed by powerful media players that realise the significance of the event. It will give the industry a much needed platform to generate business and enhance inter-industry linkages.

Analysts say growth is easy. Maintaining it needs effort. The media industries in the region are slowly realising this and are moving towards opening up and developing better ties with one-another to provide better service to their clients. Credibility is key to ensuring media success. Lack of transparency is detracting from otherwise increasingly impressive deliverables in terms of service and output.