Gulf states: Advertising market booming
Advertising expenditure in the Gulf region rose by 25.32 percent during the first quarter of 2005 compared to the same period last year. According to a market study quoted by Arab News the market amounted to $943.77 million in 2005 compared to $753.07 million in 2004.
The study found that for the first time in six years advertising expenditure in the United Arab Emirates surpassed Saudi Arabia, which came in second.
Advertising expenditure in UAE hit $206.45 million for the first quarter of 2005 and in Saudi Arabia $203.79 million.
The study found that the reason for the increase in advertising expenditure in the region is because of the mounting expenditure in several local markets mainly Qatar, Saudi Arabia, Oman and the UAE. Qatar had the highest advertising expenditure increase - 158.80 percent for the first quarter of 2005 from $12.87 million for the same period last year to reach $33.33 million. Saudi Arabia witnessed a rise of 67.88 percent from $121.38 million to $203.79 million. As for Oman, it boasted an increase of 48.93 percent with an expenditure of $20.78 million and in the UAE advertising expenditure increased by 45.22 percent and reached $206.45 million. In Kuwait, the increase was 14.40 percent at $93.49 million, and in Bahrain by 3.62 percent with $25.20 million during the first quarter of 2005.
Print advertising continues to lead advertising expenditure, according to the study. In Saudi Arabia, print advertising for the quarter captured 82 percent of total advertising expenditure - 66 percent in daily newspapers and 16 percent in magazines - followed by television with 11 percent, outdoor billboards with 6 percent and finally radio with 1 percent.
The study found that advertising expenditure in pan-Arab media which is mainly the satellite channels, increased by only 1.14 percent. Advertising expenditure in the pan-Arab media had a share of 47.36 percent of the total expenditure in the first quarter of 2005 compared to 38.22 percent in 2004.