Jordan: Advertising Expenditure registers US$303 million in 2008
The International Advertising Association – Jordan Chapter (IAA Jordan) announced that total advertising expenditure in 2008 increased 10% to US$303 million -rate card- compared to 2007, according to IPSOS Advertising Spend Monitoring System.
“The total advertising expenditure growth continues to increase, however, slowly. 2008 marks the lowest percentage for growth since 2000. Excluding exceptional political reasons, core growth in Jordan was tracking in the range of 20% for the past 8 years,” said Naim Al- Hourani, Vice President of IAA Jordan during a press meeting held at the Association’s offices.
“The outlook for advertising revenue continues to be positive, although the global financial crisis which accelerated in the last quarter of 2008 will continue to suggest uncertainties relating to the global economy in the near- and medium-term future”, Al- Hourani added.
Looking at the advertising expenditure within the wider Middle East region, Jordan had maintained a 3% share of the total advertising expenditure within the region, compared with UAE which leads with 22% market share, followed by Saudi Arabia at 10%, Lebanon with 7% Kuwait and Egypt at 6% each, Qatar with 2%, while Bahrain and Oman with only 1%. Of course the lion’s share of ad spend within the region, is classified as Pan Arab Spend, which controls close to 41% of total regional ad expenditure.
Although figures revealed that the advertising expenditure in the region had grown by 32% from 2007 to 2008, according to Al- Hourani, implications for the region in general, and its advertising markets, are unclear.
“In the near-term, we foresee significant changes underlying fundamentals that would move the overall ad market onto a different track. But for now, the full year performance, locally, followed the same core patterns observed in recent quarters with press, including daily and weekly newspapers, taking the lead with 76% of the total share, followed by TV with 9%, Radio came third with 8%, while the outdoor came fourth with 6%”, Al- Hourani said.
On the other hand, and despite the fact that the growth percentage was not the highest, Telecommunications remained as the top spending sector in 2008 at US$45 million. The intense competition in this arena was reflected in the growth rates of ad budgets by nearly all key operators including Orange, Zain, and Umniah.
Service companies jumped to claim the second spot at US$35 million, an increase of 51% from 2007 achieving the highest growth rate among the top 10 categories in 2008. Entertainment & Leisure came in third, with US$31 million, a 24% growth as compared to 2007. However, Banking & Finance expenditures fell 13% to US$22 million, primarily as a result of the global crisis and cut backs on expenditure, while Property & Building retained its number 5 slot with US$17 million in expenditures for 2008, same as 2007.
“With industry pundits claiming that the current economic recession would be deep and lengthy, continuing challenges for the advertising and media industries will come along. These industries will have to develop scientific bases that will lead to a more effective and efficient industry in the years ahead”, Al Hourani concluded.