Meet­ing the Mar­ket’s Growth Need

ArabAd - - COVER STORY -

Mar­ket overview

Af­ter a decade of sus­tained oil-based growth, Saudi Ara­bia is at a tran­si­tion point. Global oil prices have fallen and the Saudi econ­omy has slowed dur­ing the se­cond half of 2015. This trend is ex­pected to con­sol­i­date in 2016 be­fore the re­cov­ery in oil prices rises again and busi­ness picks up in the year to come. Do­mes­tic eco­nomic ac­tiv­ity in the first half of 2015 was quite re­silient. Govern­ment spend­ing will re­main the cor­ner­stone of the econ­omy. Spend­ing on wages and other ben­e­fits is likely to con­tinue grow­ing, lend­ing sup­port to pri­vate con­sump­tion and as­so­ci­ated sec­tors, such as trade, trans­port, and hous­ing, which will con­tinue but at a rea­son­able pace.

As for the ad­ver­tis­ing in­vest­ment trends, and ac­cord­ing to IP­SOS 2015 fig­ures, to­tal ad­ver­tis­ing in­vest­ment in KSA me­dia ac­counted for US $ 1.4 bil­lion as com­pared to US $ 1.5 bil­lion in 2014 (a 6.7 % de­crease) while Pan Arab me­dia to­tal ad­ver­tis­ing in­vest­ment ac­counted for US $ 8.7 bil­lion in 2015 as com­pared to US $ 8,1 bil­lion in 2014

Hisham Mak­soudian,

(an in­crease of 7.4%). We hope that 2016 will main­tain the same in­vest­ment across the sec­tors.

At the busi­ness level, ad­ver­tis­ing agen­cies should call for clients’ re­view of cur­rent mar­ket­ing mix so­lu­tions and the lat­est changes and trends in the macroen­vi­ron­ments of the King­dom in or­der to de­fine re­al­is­tic and achiev­able ob­jec­tives for 2016; Also, this will be nec­es­sary to im­ple­ment an ef­fec­tive mar­ket­ing mix strat­egy to pre­serve their com­pet­i­tive ad­van­tages by de­fend­ing their cur­rent mar­ket share sta­tus and con­tinue at­tract­ing new cus­tomers. Clients should con­duct more cus­tomer sat­is­fac­tion sur­veys to know the state of mind of their cus­tomers in re­la­tion to their prod­ucts and ser­vices. Agen­cies are in­vited to be a mar­ket­ing com­mu­ni­ca­tion con­sul­tants for their re­spec­tive clients. The most ur­gent need for both ad­ver­tis­ing agen­cies and clients in to­day’s con­text is to keep the cur­rent cus­tomers sat­is­fied by ac­ti­vat­ing their CRM process and in­no­vate to stay com­pet­i­tive.

In­ter­nally, we hope that in­ter­na­tional Agen­cies don’t re­peat the sce­nario of 2008/2009 by down­siz­ing if their fore­casts are not met.

On agen­cies’ fo­cus and strat­egy

The power of the In­ter­net is lim­it­less. In most cases, the In­ter­net is the first place peo­ple will look to find in­for­ma­tion about a busi­ness, and ev­ery­thing from de­sign to con­tent will have an im­pact on po­ten­tial clients and cus­tomers. The re­cent and rapid in­crease of In­ter­net cul­ture and new com­mu­ni­ca­tions tech­nolo­gies in the GCC coun­tries in gen­eral and in Saudi Ara­bia in par­tic­u­lar is one im­por­tant facet of changes in con­tem­po­rary so­cial life.

Con­sumers in Saudi Ara­bia are more aware of what’s hap­pen­ing in the re­gion and world­wide and are be­com­ing more de­mand­ing and selec­tive when it comes to buy­ing prod­ucts or seek­ing ser­vices. To­day’s client is seek­ing the most cost ef­fec­tive and ef­fi­cient ways to reach their tar­geted seg­ments within the King­dom. Con­se­quently, propos­ing an ef­fec­tive and ef­fi­cient off­line and on­line me­dia mix plan to achieve cam­paign ob­jec­tives.

For sure, digi­ti­sa­tion is gain­ing mo­men­tum com­pared to off­line. How­ever, it has a long way to go. No ex­act fig­ures are avail­able to quan­tify the to­tal ad­ver­tis­ing in­vest­ment on on­line and so­cial me­dia chan­nels within the King­dom.

We hope that in­ter­na­tional agen­cies don’t re­peat the sce­nario of 2008/09 by down­siz­ing if their fore­casts are not met.

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