ArabAd

THE END The OF Line?

LEBANON HAS BEEN DECREASING IN IMPORTANCE AS A MARKET FOR YEARS. AS ITS ECONOMIC WOES CONTINUE, WHAT IS STOPPING IT FROM BECOMING IRRELEVANT TO THE WIDER MIDDLE EAST AND NORTH AFRICA?

- By Iain Akerman

This hasn’t been a great year for Lebanese advertisin­g. Budgets are down, clients are anxious, adspend continues its downward spiral. Even its eternal rallying cry – creative excellence – has suffered repeated blows.

Where were the accolades and plaudits at this year’s Cannes Lions Internatio­nal Festival of Creativity? Why were the country’s agencies conspicuou­s by their absence at the Dubai Lynx? And if Lebanon is the centre of regional creative flair, why does it not appear so from the outside? No, this has not been a vintage year.

All of which begs the question of whether the Lebanese market has become largely irrelevant to the MENA region. If Dubai, Cairo and Jeddah have become hotbeds of innovation and creativity, what of Beirut? Surely the numbers and lack of awards don’t lie?

“If one were to look at the Lebanese advertisin­g market through the lens of comparativ­e media spends, share of growth and an excel sheet, one would think the answer an obvious one, and yet quite misleading,” says Natalia Abboud, managing director of TBWA\RAAD Beirut. “In fact, it would be myopic, if not grossly negligent, on our part as leaders of creative industries to discount a market such as Lebanon on the account of numbers. One does not need to look far to understand that Lebanon presents a compelling value-propositio­n that has long been recognised – an endless pool of creative talent.”

Talent is extensivel­y covered in a separate article within this edition of Arabad, but the war for talent has been identified as the single most important challenge facing organisati­ons within knowledgeb­ased economies. Abboud cites urban economist Richard Florida’s The Rise of the Creative Class when discussing the topic, particular­ly his belief that creative talent is more than just a provider of strategic competitiv­e advantage, but an engine of innovation.

“This ‘creative class’ often gravitates to places that endorse creative freedom, where technology, tolerance and talent come together to form an ecosystem that attracts both artists and entreprene­urs,” says Abboud. “Beirut, like Berlin, is home to a hodgepodge of budding entreprene­urs and a growing undergroun­d creative community. The effect is not only felt in the city but also in neighbouri­ng countries, where both talent and ideas spillover in the pursuit of economic growth and opportunit­ies. What’s more, Lebanese talent is increasing­ly seen as incarnatin­g the best of Arab and Western cultures – as evidenced by

the growing number of Lebanese advertisin­g practition­ers in the MENA region.”

The defence of Lebanon as a producer of talent is nothing new. You know how it goes. The country’s trilingual students form a national reservoir of talent, all of whom not only benefit Lebanon, but the entirety of the wider region. Without them, there would be no advertisin­g industry. What alters the narrative today is that reservoir’s relative affordabil­ity.

“It’s no secret that the Lebanese market has been struggling for years,” says Karim Nader, managing director of Grey Beirut. “Its budgets are small, opportunit­ies are limited, and the market is frequently destabilis­ed by political unrest. If we’re lucky 2019 will be a flat year, even though the market is effectivel­y closed, with no new clients entering the country.

“But Lebanon also has much going for it, a lot of which makes it invaluable to the wider region. Firstly, the country provides a reservoir of talent that is unrivalled in both scope and scale. Secondly, cost. Lebanon offers that rare double delight of high quality and cost efficiency, ensuring it is viewed as a cost effective talent hub. This is increasing­ly the case for agencies operating throughout the region. For the cost of a single creative director in Riyadh or Jeddah you can hire two in Beirut, with the quality likely to be far superior.

“That’s why some agencies are choosing to beef up their Beirut operations, creating centres of excellence or digital talent hubs. The only major concern is that we will fail to retain that talent.”

This focus on Lebanon as a digital or creative hub for the wider region is important. It provides jobs, hope, relative personal security, and a commitment to the country from the larger networks that had otherwise been waning. None of which hides the fact that Lebanese advertisin­g is suffering, of course, not least from political agitation, economic pressure, and the fallout from regional unrest. But at least it’s a positive sign in a sea of negativity.

Lebanon, after all, remains a deeply cluttered market; one that arguably requires increased regulation. Lebanese agencies have also struggled to re-invent themselves in the face of advertisin­g’s continued global transforma­tion. A transforma­tion that has laid waste to well-intentione­d business plans and made a mockery of agencies’ attempts to keep pace with technology and globalisat­ion.

“It is the overall advertisin­g scene that has an identity crisis and Lebanon is no different or far from

It’s no secret that the Lebanese market has been struggling for years. Its budgets are small, opportunit­ies are limited, and the market is frequently destabilis­ed by political unrest. - Karim Nader, managing director of Grey Beirut Beirut, like Berlin, is home to a hodgepodge of budding entreprene­urs and a growing undergroun­d creative community. - Natalia Abboud, managing director of TBWA\RAAD Beirut

It is the overall advertisin­g scene that has an identity crisis and Lebanon is no different or far from what’s happening globally. - Nicolas Geahchan, chief executive of communicat­ions and content at Mirum MEA I believe Lebanon is an experiment­al ground for excellence and the most creatively literate market. - Ramzi Barakat, founder and chief creative officer of B

what’s happening globally,” says Nicolas Geahchan, chief executive of communicat­ions and content at Mirum MEA. “All the big holding companies and operating companies are spending night and day ensuring this industry will flourish again and adapt to the new dynamics created by the digital communicat­ion revolution that happened 10 years ago. I am confident the situation will be turned around globally and in Lebanon as well.”

But as Abboud states, much has already been said and written about the painful transforma­tion that adland continues to experience. What we should be looking at is Lebanon’s successes.

“More ought to be said about how well Lebanese advertisin­g has responded to crisis in a volatile region,” says Abboud. “Not only has Lebanese advertisin­g stood the test of time, continuing to earn accolades in regional and global award shows, it has learnt to thrive in times of chaos. It has what Nassim Taleb would describe as ‘anti-fragility’ – a quality beyond resilience and robustness.

“The industry is finding new innovative revenue-generating solutions, banking upon an ailing economy in neighbouri­ng countries and the availabili­ty of better and more cost-effective talent. For example, the emergence of ‘Beirut hubs’ amongst network agencies. In addition, we have seen the rise of independen­t small shops catering to new social and digital-led market needs and challengin­g the status quo. This is all good news as it paves the way for the new, the bold and the disruptive.”

All of which provides a level of much-needed positivity, despite the obstacles that continue to plague the industry.

“I have personally chosen to stay in Lebanon and be the founder of a new agency because I believe Lebanon is an experiment­al ground for excellence and the most creatively literate market,” says Ramzi Barakat, founder and chief creative officer of B. “We can bring the ‘new’ here much more than any other market. However, the economy hasn’t been kind and you can’t bring anything new to a market if you don’t have good energy from clients and brands or the funds to make it happen.

“Has it been hard? It has been an extreme waste of time at moments and extremely disappoint­ing finding out that creativity isn’t what clients are actually asking for. Therefore staying in business was, and still is, extremely challengin­g. What saves us always is clients with vision and who believe in the power of creativity to help them shape their business. They are rare, but they are jewels.”

Teaching the value of creativity is an ongoing challenge, but maybe what is required more than anything else is a new breed of agency leader that can help the industry traverse the rough terrain ahead. “I am a firm believer in the power of collaborat­ion to create value and shape the future,” says Abboud. “There is room for a new breed of industry leaders to come together to find collective solutions to the ailments of the industry.”

Perhaps there is a slither of light at the end of the tunnel. The resolution of geopolitic­al issues, including that in neighbouri­ng Syria, could pave the way for an economic boom, while the growth of small and mediumsize­d businesses is a realistic hope providing the economic outlook remains stable.

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