DUBAI, 27 January 2007 — Aggressive marketing campaigns by telecommunication giants, real-estate developers and governments cause advertising spending in the Gulf Cooperation Council member states to balloon by 22 percent, to $5.43 billion, last year, led by performance in the UAE and Saudi Arabia.
According to a report issued this past week by the Pan Arab Research Center (PARC), the Emirates continues to be the regional leader in advertising spending, $1.06 billion in 2006, followed by the regional giant Saudi Arabia, at $1.03 billion. The GCC also includes Oman, Bahrain, Qatar and Kuwait.
Du Telecom’s launch and the national elections in the UAE both contributed to $326.7 million in advertising spending to grow in the fourth quarter of last year.
Watania-UAE, a government entity responsible for carrying out national identity program, emerged as the biggest spender in the country with $14.5 million, mostly on television spots, which knocked Nokia from its No. 1 position. Other sectors that witnessed a surge in advertising spend last year were insurance and real estate.
Newspapers profited the most from the ad money spent in 2006, attracting $702.5 million, or 66 percent, of all advertising in the country. Despite the rising number of television channels in the UAE, TV as a medium saw its market share fall this year, accounting for $119 million, or 11 percent, of all advertising.