Marketing consultant Dr. Abdullah Ali Bankhar, professor of communication and media economics at King Abdulaziz University, Jeddah, discusses the PARC's findings. (SG photo) JEDDAH: The Saudi Arabian advertising market has recorded a remarkable 11 percent growth in advertising expenditure in the first quarter of 2011. This was disclosed by Tony Proudian, Managing Director of Pan Arab Research Center for Marketing Consultancy (PARC) at a press conference recently. Dr. Abdullah Ali Bankhar, a well-known marketing consultant, professor of communication and media economics at King Abdulaziz University, Jeddah, led the discussion on the PARC findings. The PARC report said advertising spending in Arab countries during the first quarter of the current year dropped by one percent compared to the first quarter of last year. A number of reasons, including unrest in various countries in the region, were cited for this decline in ad spending. However, the PARC report says ad spending has increased in some countries, keeping a balance in the total advertising spending in the Middle East. Proudian said the countries that recorded a sharp decline were Egypt (51 percent) and Bahrain and Jordan (21 percent each). The size of advertising spending in the Saudi market reached $1.17 billion in 2010, a six percent increase compared with $1.1 billion in 2009. “The ad spending in different Arab countries has fluctuated, with Kuwait showing 11 percent growth; Lebanon and Qatar at 16 percent; Oman 17 percent; Jordan one percent; while Bahrain showed the highest spending rate of 37 percent growth in 2010,” said Proudian. “The ad spending growth in the Arab region in 2010 was up 24 percent to $13.7 billion. Bankhar indicated that the Saudi market should achieve the target of more than $10 billion in the next three years. This projected increase depends on Saudi economic growth as well as stability in other Arab countries. The Saudi market is unique since it does not count on local media only although the Saudi local market is 75 percent less than it should be, he added. “The Saudi market attracts almost 90 percent of the Pan Arab media ad spending,” said Bankhar. Bankhar confirmed that all the economic indications project a very promising performance in 2011 and in the next three years. Before the end of this year, the Saudi market will witness the growth of both real estate businesses and investment companies including banks, as soon as the mortgage law is introduced in the Kingdom. “Needless to say the most recent decrees issued by King Abdullah, Custodian of the Two Holy Mosques, will have a great impact on sustained development in Saudi Arabia over the next five years.” “There are indications that the Saudi Gross Domestic Product (GDP) is expected to reach double digits in 2011 and other macro-economic variables will also positively affect the flourishing Saudi economy in the next three years.”
