A recent financial study by the Pan Arab Research Center (PARC) revealed that expenditures on advertising in Gulf countries as well as those of the Arab Mashreq (Egypt, Syria, Lebanon, Jordan and Oman) rose by a staggering 21 percent in 2006.
In all, expenditures for advertising in such countries climbed to reach some $6.55 billion. Of this amount, $3.1 billion comprised advertising expenses in the Gulf states of Kuwait, Saudi Arabia, Qatar, Bahrain, Oman, and the UAE. During the previous year, such expenditures only reached 2.5 billion.
The study also revealed that during the first quarter of 2006, advertising markets were somewhat lackluster. By the fourth quarter of the year, however, the market witnessed notable expansion, mainly as a result of the Muslim holy month of Ramadan, which began at that time.
Notably, the UAE ranked the Gulf's as well as the region's as top spender on advertising with some $1.06 billion. Advertising expenditures on the Saudi market reached 1.03 million in 2006.
The UAE's impressive figures on advertising are a result of extremely aggressive marketing campaigns by telecommunication giants, real-estate developers and governments, according to Arab News. Fourth quarter spending was also boosted by national elections in the UAE as well as the launch of Du Telecom, both believed to have contributed a combined $326.7 million to advertising spending. The largest spender on advertising nation-wide in the UAE was Watania-UAE, a government entity responsible for carrying out national identity program. Watania spent a whopping $14.5 million on television spots, which pushed Nokia from its former No. 1 position.
In the Arab Mashreq, on the other hand, the largest market in terms of advertising expenditures was Egypt, with $754 million. Also notable in the Mashreq was the advertising market of Lebanon, which rose 21 percent year on year during the first six months of 2006 and then plummeted 60 percent in July and August as war broke out with its southern neighbor, Israel.
Indeed, the summer war with Israel spared none of Lebanon's more than 60 advertising agencies, whose clients cancelled pre-booked campaigns across all media once the violent conflict began, according to Ya Libnan. Despite the fighting and the drop in expenditures, Lebanon's advertising market, characterized by its brashness, managed to put up its own fight. In fact, only days after the war ended, the nation's tourism sector flexed its advertising muscle with signs such as that at the Edde Sands beach resort which read: "Come back ... The war has finished."
Advertising major Leo Burnett Middle East and North Africa later went ahead with plans to hold its annual planning meeting in Lebanon in November in a major show of support for Lebanon. Speaking on the strength of the Lebanese advertising industry, chairman and chief executive officer of Leo Burnett, Tom Bernardin, said that Beirut had "proven time and again to be a city for the ages and a city that breaks through the clutter by defying all challenges to create world-class advertising."
Advertising campaigns revealed not only good marketing strategy in Lebanon, but also, a sign of hope for the war-torn country. Leo Burnett worked with Bank Audi to produce billboards on the theme "Whatever happens, the sun will always rise again in Lebanon."
