Arab world Internet ads valued at only $6 million

Published June 24th, 2001 - 02:00 GMT

Recently published market reports estimate spending on Internet advertisement in the Arab world at a mere six million dollars. Investment development manager of the DAMAC company, Ahmed Samaray, stated that advertisement via Arab Internet portals must increase to reach targeted levels.  

 

Many Arab Internet portals are fighting for the relatively small share of advertising funds, not expected to exceed six million even this year. According to market sources, if a single company obtains a mere two percent of the total share, it will only earn $120,000 annually, not nearly enough to cover the costs of employee wages of an entire company.  

 

Internet companies are expected to face further economic losses in the future, according to Al-Bayan daily. In an attempt to alleviate the imminent crisis, Samaray recommended that Arab countries cooperate rather than compete and illegally reproduce each other’s products.  

 

The crisis is attributed to a number of reasons. Firstly, the number of the Internet users in the Arab world is relatively small and does not exceed 3.5 million. Secondly, of the few people that do use the Internet, most tend to use only free computer services. ― (MENA Report)

© 2001 Mena Report (www.menareport.com)


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