MidEast digital ad spend to double this year

About 8% of budgets expected to be spent on digital platforms in 2013

Tags: E-commerceMcCann WorldGroup (www.mccannworldgroup.com)United Arab Emirates
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MidEast digital ad spend to double this year The Middle East is expected to see the largest growth in digital advertising spending this year, with a global average of 3 to 4%. (Getty Images)
By  Courtney Trenwith Published  April 2, 2013

The proportion of money spent on digital advertising in the Middle East is forecast to double this year compared to 2011, as the region finally moves in the direction of Western markets, according to leading international advertising agency McCann WorldGroup.

About 8% of advertising budgets are expected to be spent on digital platforms in 2013, compared to 4% in 2011, McCann WorldGroup president Americas, Middle East and Africa, Luca Lindner, told Arabian Business.

"Such a move from 4% to 8% in one and a half years only is clearly saying that it's very possible that over the next five years the proportion of investment in digital will reach [the levels of] Western countries such as Australia and Asia, which [spend] 20%," he said.

The digitisation of advertising is also causing the industry to become younger and younger to the point that Lindner believes it will be dominated by under-35s within five years.

"Advertising people over 35 years old, we just don't get digital," he said.

"The people who are joining McCann or other agencies are now in their early 20s, they don't even know a newspaper, they don't even use email, they use Google+ or Facebook [to communicate].

"I guess in five years all the CEOs and top people of advertising agencies will be in their late 20s or early 30s. I would not be surprised."

The Middle East is expected to see the largest growth in digital advertising spending this year, with a global average of 3 to 4%, according to McCann WorldGroup, whose clients include Coca Cola, L'Oreal, MasterCard, Kingdom Holding and Dubai Duty Free.

The strong growth is a positive sign for the global economy, with advertising and marketing budgets having long been used as a barometer for the health of company finances.

1631 days ago
J. Jaljouli

Social media, social media,,, I would like to know how social media contributes to a nations' productivity & GDP!
I am afraid we have not yet learned the lesson of the digital bubble well. We are heading towards it but this time at a slower pace.
I am not saying abandon social media but let us give it what it is really worth. Spending billions on social media companies whose only revenue generator is advertising is not wise. Such companies will one day go bust simply because they do not have genuine and sustainable business value that contributes to productivity and economy.

1631 days ago
Vinod Mehra

Business got to be on the social media bandwagon. Because sooner than later if your business is not on he social Media ; you don't have a business.

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