Mideast spending on mobile ads goes through the roof
Spending on mobile display advertisements is expected to boom in Jordan and the rest of the Middle East countries in the coming years due to growth in the number of mobile phone holders, according to experts.
The experts, who said spending on mobile advertising, especially on mobile display ads, in the Middle East is expected to reach $10 million in 2012, added that they predict the figure to grow annually from 15 to 20 per cent.
They noted that traditional media outlets including newspapers, TVs and radio stations still enjoy the lion’s share when it comes to advertising.
Mobile display ads include showing ads for mobile users when they use certain applications or access the Internet using their mobiles, according to the experts. Mobile advertising also includes sending advertisements via text messages to mobile holders.
“The potential for mobile display ads in Jordan is large… We see a trend nowadays where businesses in different sectors are seriously considering resorting to mobile advertising to reach out to a wider audience,” Wael Quader, chief executive officer of Noqoush Mobile Media Group, said in an interview with The Jordan Times last week.
“What triggers growth in spending on mobile display ads will be also the rise in number of mobile holders, especially those using smartphones,” Quader added.
Mobile penetration in Jordan reached 138 per cent by the end of September of this year, with about 8.767 million mobile subscriptions, according to official figures released by the Telecommunications Regulatory Commission last week.
Of the total, about 8.047 million were prepaid mobile subscribers, according to the figures.
Jawad Abbasi, founder and general manager of Arab Advisers Group, agreed that spending on mobile ads will rise in Jordan in the next few years.
“Mobile advertising, especially mobile display ads, is the future and it will get a bigger share than advertising in traditional media in the upcoming period,” said Abbassi over the phone on Saturday.
“In Jordan, the number of smartphones holders who use their devices to download apps and access the Internet is on the rise and mobile advertising is key in targeting those users,” added Abbassi.
Abbassi indicated that smartphone penetration in Jordan currently ranges from 45 to 50 per cent and is expected to rise annually by about 5 to 6 per cent.
According to figures cited by Quader, spending on mobile display ads is estimated to reach $44 million in the Middle East and North Africa in 2012.
Quader noted that there are 250 million mobile subscribers in the Middle East. In addition, there are about 43 million mobile Internet consumers in the Middle East and North Africa.
According to Quader, 10 per cent of the overall digital media spending targets mobile ads. About $28.6 billion is expected to be spent on mobile ads globally in 2016.
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