DUBAI: The UAE topped the list of GCC countries in advertising spending in the first quarter of this year with $531 million (Dhs1.95 billion), followed in the second place by Saudi Arabia with $312 million, Kuwait with $144 million, Qatar with $83 million, Oman with $46 million and Bahrain with $32 million, said Ramzi Raad, Chairman of TBWA.
By this, the GCC countries aligned with the global expectations that the total advertising spending would rise from $2.493 billion in the first quarter of 2015 to $2.615 billion in 2016, up by 4.8 per cent.
In an interview with Al Khaleej, Raad pointed out that studies showed that the regional mass media, commonly known as Pan Arab Media, got the lion’s share of advertising during the first quarter of this year as it recorded $2.185 billion of the total advertising spending.
According to Carat Global, the global advertising spending is expected to rise by 4.5 per cent in 2016, despite the economic downturn resulting from the lower oil prices, ongoing regional wars and other successive changes in the region.
The expectation is based on a review conducted by the group in 95 advertising markets in America, Asia, Pacific Basin, Europe, Africa and Middle East which showed that the global advertising spending would reach $538 billion by the end of this year. The group attributed its expectations to a number of global activities to be organised during 2016 including the Olympic Games and Paralympic Games, which would be held in Brazil between July and September, the European Cup in France, Monaco Grand Prix by the end of May and the US presidential elections.
Most of these events would cast shadows on the advertising programmes of the Emirates Airline, Etihad Airways and Qatar Airways, the group added.
Interestingly, the study noted the sharp rise in online advertising rate, which amounted to 27 per cent of total global ad spending, reducing the gap between online advertising and traditional advertising (TV, newspapers, magazines, radio, etc).