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Saudi advertising market rises as Mideast spending hits $13.7b
Published in The Saudi Gazette on 29 - 01 - 2011

JEDDAH: Advertising industry in the Middle East region recovered in 2010 from a slump in 2009 as advertising expenses jumped 24 percent to reach $13.7 billion, Pan Arab Research Centre said.
All markets in the Middle East gained except for the United Arab Emirates which lost a major source of ad revenue from the real estate market which is in decline. The UAE advertising revenue fell 3 percent, a much better result than in 2009 when revenue tumbled 27 percent.
The top 3 spenders in the region were Zain, STC and Mobily.
The top 3 advertisers of the previous year, P&G, Unilever and Pepsico retained and consolidated their ranking in 2010 with a 21 percent increase in their combined spending to around 11 percent of the regional market share.
Saudi Arabia expenditure posted post a 6 percent gain in 2010 from a 4 percent fall in 2009.
Egypt emerged as the leading advertising market in 2010 with $1.49 billion, up from $1.2 billion in 2009.
Elsewhere, Kuwait logged 11 percent rise, Lebanon climbed 16 percent, Qatar recorded 16 percent increase, Oman gained 17 percent, Jordan picked up 1 percent, and Bahrain soared 37 percent.
Among major media types, television's share of the regional spending increased from 54 percent in 2009 to 62 percent in 2010. Newspapers share fell to 27 percent in 2010 as compared to 41 percent in 2008 and 33 percent in 2009.The spending on newspapers inched up 3 percent in 2010. Magazines gained modestly to 5 percent in the year, compared to 2009. Radio gained 10 percent but the share is still around only 1 percent compared with major media types.
Telecommunication topped the rank among most advertised sectors in the region with a 17 percent category share. Spending skyrocketed 56 percent last year. Toiletries slipped from the top to second position with 25 percent increase.
Government advertising followed closely to third position.
Internet usage in the Kingdom doubled to 48 percent in 2009 from only 26 percent in 2005.


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