Q1 ad spend in re­gion’s re­tail sec­tor shows lit­tle change from 2012.

Gulf Marketing Review - - SECTOR ANALYSIS -

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.

Sha­har­yar Umar

Mar­ket­ing di­rec­tor Pan Arab Re­search Center

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