NEW TRENDS OR NEW THREATS

Diana Georges,

Regional Group Account Director, TBWA\RAAD at least saw “occasional glimpses of stability” which is correct because economists have long predicted that 2023 was the year where things were supposed to restart anew. However, since the said “stability” ended up being volatile, Georges said that TBWA\RAAD “believe in the future prospects of Lebanon’s market and are committed to navigating its complexities. However, revitalizing the advertising industry to mirror Lebanon’s golden age demands collaborative efforts, investment in skilled individuals, and the adoption of modern technologies with a dedicated focus on innovation.”

Georges, like Toutounji before her, also mentioned AI saying that “AI adoption remains limited among Lebanon’s clients, some still value traditional creativity. TBWA’S team adeptly combines both techniques to cater to diverse client preferences.”

Georges, pragmatic in her analysis, details the many hurdles the market is up against: “Various obstacles, including currency devaluation, inflation, and financial instability, arise continuously. Economic uncertainties, the spread of fake news, and global events have disrupted consumer behaviour and impacted local market expenditures, influencing our marketing strategies.”

Now that 2024 is already in fullswing, Slim looks on and forecasts that “understanding and adapting to evolving consumer preferences, such as AI Powered advertising, immerse experiences, leveraging user-generated content and favouring purposedriven and empathetic messaging, will be crucial for businesses to stay competitive.”

Chebaibar almost seconds his opinion, “AI has disrupted the industry, it is driving the transformation of

“Building a thriving advertising industry in /HEDQRQ ZRXOG UHTXLUH HFRQRPLF VWDELOLW\ SROLWLFDO UHIRUPV DGGUHVVLQJ LQIUDVWUXFWXUH LVVXHV IRVWHULQJ D EXVLQHVV IULHQGO\ HQYLURQPHQW and efforts to restore investor and global DGYHUWLVHU FRQÀGHQFH µ

“conventional” advertising and marketing; digital is becoming more personalized. As such, marketers anticipate that by 2025, customer lifetime value will be the most important factor and driver of the industry. While this evolution is beneficial, it still poses two threats for us: disappearing jobs on one hand and the capacity / capability to keep up with AI on the other. According to an analysis by the International Monetary Fund (IMF), “nearly 40% of jobs worldwide will be affected by artificial intelligence (AI).”

Obviously Chehaibar is asking the same question everyone is asking: Is her own job part of the 40% that will be affected?

Kaddaha Khatib agrees with them, yet seems to be unfazed. For her, 2024 is the year where “embracing the global trends and the widespread adoption of advanced AI and machine learning for personalized marketing, the rise

of new communication channels or platforms, the influence of augmented reality in advertising, and increased emphasis on sustainability and social responsibility. When clients need to embrace these trends to find opportunities, our focus as advertising and media agencies should always be on helping them building and maintaining strong relationships with audiences.”

Interestingly, for her 2024 will also be the time for “finding solutions to emerging threats like increased privacy concerns and regulations, evolving consumer behaviours shaped by new technologies, heightened competition in the digital space, and the ongoing impact of global events on consumer sentiment.”

Sahyoun at least is cautiously optimistic about the year. Despite the decrease of GDP (Gross Domestic Product) from 55 Billion to 20 Billion, he still believes that “while it may not be a standout year, it promises growth opportunities for businesses and the economy, dependent on regional stability and the resolution of ongoing conflicts. This cautious optimism is based on the expectation that, although challenges persist, there will be gradual improvements, offering a more conducive environment for business and trade activities.”

Ghotmeh joins the chorus agreeing,“ai is revolutionizing marketing by providing us with tools that enhance agility in content creation, facilitate fast reviews, enable precise customer segmentation, conduct predictive analysis, and deliver personalized experiences. It empowers us to engage our audience effectively and stay ahead in the rapidly evolving digital landscape. The need to adapt quickly to the evolving capabilities of AI is imperative for staying competitive and relevant.”

Georges gives a more logical answer, one that is completely adapted to the local market, for her “the continuous occurrence of distressing events has taken a toll on consumers’ mental, emotional, and financial well-being, reducing their willingness to spend or engage in productive activities. The threat posed by our country’s political situation, in addition to the absence of a presidential figure presents a significant risk. These factors contribute to market fluctuations and occasional collapses, restricting our clients’ budgets and influencing the purchasing power of consumers as they grapple with the constant changes and uncertainties in their daily lives.” Because whereas AI is indeed knocking on our door, the Lebanese consumer has a much more different take on things – there is a daily struggle, which AI is not part of.

The current Lebanese consumer is very price-sensitive, tired, trying to go on with the daily grind, not always succeeding, all within the backdrop of internal population movement, financial crashed, job uncertainty, inflation, and the list goes on. According to Sahyoun, 2024 is a year where “the current economic climate has led to budget constraints, pushing businesses to seek more cost-effective solutions. TNCG is poised to educate and assist traders in adopting digital models, such as e-commerce and digital marketing, to ensure their survival and growth in a budgetsensitive market. This shift is not merely about adapting to limitations but about opening new doors and exploring innovative advertising practices within these constraints.” In short Sahyoun sees opportunities for the sector even within the new AI “game changer” as he calls it.

Russian writer Alexander Heren did say “the departing world leaves behind it not an heir, but a pregnant widow” – Lebanese advertisers are trying to be suitors, midwives, and bystanders as they wait for the “heir” to show up. The “middles” of Robert Frost is not just a metaphor. As one can see clearly – 2023 was a year of trials and errors, although mostly errors. The market has not recaptured any mojo yet; there were glimmers of hope here and there. Nothing like the major resurgence economists had promised us, but also less of the doom and gloom that enveloped the sector between

2020-22.

Basically a “middles” when the end of the tunnel is still not in sight.

Yet paradoxically, neither the tunnel’s entrance is at this point.