Q1 ad spend in region’s retail sector shows little change from 2012.
AD SPEND in the Mena retail sector saw a single-digit flattened growth in Q1 2013, when compared with the same period last year.
The UAE is leading and further consolidated its position by posting an eight per cent increase in ad spend. Saudi Arabia ranks second, managing a double-digit increase of ten per cent.
Kuwait comes third, as its ad spend declined by six per cent during this period. Pan Arab media spend also plunged by 35 per cent, since advertisers predominantly prefer local spending.
This is in sharp contrast to other sectors where Pan Arab media spend is growing at a phenomenal rate.
Other markets’ spending variations in the sector during the period are: Lebanon by +15 per cent, Qatar by +39 per cent, Egypt by -16 per cent, Oman by +161 per cent and Jordan by - six per cent.
Newspapers account for nearly half of the total ad spend – 51 per cent – among major media vehicles. It saw a 14 per cent surge overall.
TV spend dropped by 24 per cent and shares one fifth overall, and there was only a slight variation in this specific media vehicle. Magazines held 17 per cent of the overall share, while OOH covers nearly one tenth of the total ad spend.
Carrefour and Lulu Hypermarket are the top spending supermarket chains in the retail sector, while apparel and footwear brands hold 19 per cent of category share and saw a 22 per cent jump over the same period last year. Department stores’ and hypermarkets’ spend posted a single-digit growth rate of six per cent and comprises 17 per cent of category share. Electronic stores saw a 23 per cent increase, whereas jewellery shops saw a surge of 27 per cent in ad spend during the period. Both electronics and jewellery stores take up nine per cent of the total category share. Meanwhile, ad spend in other categories reduced by 18 per cent overall.
Ad spend is calculated on media rate cards and does not take into account incentives and discounts that advertisers may avail from media owners.
Marketing director Pan Arab Research Center