- BY: RAGHEED MASRI Research Director, Head of Mediact

Jordan has seen an increase of 5% in overall advertisin­g expenditur­e in 2016 compared to 2015 reaching $320 million. The relative stability of the Jordanian market encouraged companies to increase their spending on advertisin­g. The market seems to be recovering from the dip experience­d in 2015, which could have been affected by the entry of new stations and the increasing role Online Advertisin­g and Social Media are having. This in turn has driven the market to offer higher discounts on all media encouragin­g advertiser­s to book more spots. We have new companies entering the top 10 spenders and others leaving the same list. All Telecom companies were present in the top advertisin­g spenders in Jordan, including three banks that have been on the list since 2015.

When looking at the numbers by media, Newspapers, Magazines, and Outdoor advertisem­ent witnessed a decrease in expenditur­e. The overall decline in the expenditur­e on these was to the tune of $12 million. Although there was a decrease in the expenditur­e on Newspapers, they nonetheles­s retain the biggest share on the total advertisem­ent expenditur­e of 46%. On the other hand, TV and Radio have seen an increase in their expenditur­es by 40% and 9% respective­ly in 2016 compared to the same period in 2015.

The top 10 brands in Jordan spent $7.4 million more than the top 10 brands of 2015, forming 15% of the total advertisem­ent expenditur­e. Zain has maintained the top spot in the list, with an increased expenditur­e of $2.1 million, with Samsung also maintainin­g its previous spot in second place having increased expenditur­e to almost $1 million compared to 2015. Orange is ranked third this year with an expenditur­e of $6.6 million. Umniah came in fourth place followed by Safeway, Jordan Islamic Bank, the Housing Bank for Trade and Finance, Dallas Travel & Tourism, and Tahoneh Chicken. The most significan­t drop in expenditur­e in the top 10 comes from Dallas Travel & Tourism and the Housing Bank for Trade and Finance.

With the release of the new census, it became evident that the Jordanian market is becoming more diversifie­d with 30% of its population being expats. With this increase, the companies will need to increase their expenditur­e in order to reach their intended mark. We already saw an increase in the total advertisin­g expenditur­e in 2016. But whether this trend will continue in 2017, remains unclear. We witnessed a shift amongst Jordanians towards online portals for their news updates, as well as social media, which encouraged companies to start spending more on digital platforms. Will this contribute to another decline in expenditur­e on Print media in general, is also uncertain.

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