Business

Advertising revenue set for year of growth in MENA

Advertising spending on websites, television and radio advertising is forecast to increase across the Middle East by as much as 20 per cent.

Ben Flanagan

January 02, 2011

Advertising revenues in the MENA region are expected to increase this year, with some media executives estimating growth of up to 20 per cent.
Spending on websites, television and radio advertising is forecast to increase across the region, although gains in the UAE are tipped to be lower than elsewhere.
"Regionally I think we'll see 18 to 20 per cent growth," said Avi Bhojani, the group chief executive of the marketing and communications agency BPG Group.
Mr Bhojani said that while the "opening up of government initiatives" was likely to cause an increase in advertising spending in the UAE, gains in this market were likely to be lower.
"I'd put my expectation at 14 to 15 per cent growth on 2010 in the UAE - I'm seeing that trend. Consumer confidence is increasing; investor confidence is increasing," he said.
Elie Aoun, the managing director for the MENA region at Ipsos MediaCT, which tracks advertising spending, said he also expected revenues in the region to grow this year.
"I think overall . we will be having double-digit growth. If you look around, I think we are witnessing most of the industries recovering, with the exception perhaps of the UAE real estate sector," Mr Aoun said.
"I think it will keep the same trend as 2010. TV will grow a little bit, and online will grow. I expect radio will see a big boom, especially in the UAE and Saudi Arabia."
Mr Aoun added that while some growth was expected in website advertising, this would remain a tiny part of the market.
"I think we will be witnessing a big growth in digital, but it will remain insignificant compared to other media," he said. "It's currently 3 per cent of total [advertising] revenues in the region. I think it will be 4 per cent maximum in 2011."
According to the Pan Arab Research Centre, in the first 11 months of last year, there were double-digit increases in GCC and pan-Arab advertising spending. But there was a 2.7 per cent decline over the same period in the UAE, said the research firm.
While most commentators point to gains in the region, some were less optimistic about advertising growth this year.
"I think we are certainly looking at a better 2011 than 2010," said Mohan Nambiar, the MENA chief executive of the media planning agency MEC. "We are certainly looking at upward spend, but I don't expect double-digit growth."
Elie Haber, the managing director of the media planning agency Mindshare in the UAE, said there could even be a decline in spending this year. The change in advertising spending in the MENA region this year would be "similar to 2010 - plus or minus 3 per cent to 5 per cent".
Media operators say they are optimistic about this year. Mazen Hayek, the spokesman and group director of PR and commercial at the free-to-air TV operator MBC Group, said the company recorded "two-digit growth" in advertising revenue last year.
"We're looking [at this year] in an optimistic way. It looks even better than 2010 did at the same time," said Mr Hayek.
"It is too early to predict the percentage or amount of growth. We see growth - but at the same time, costs are increasing."
 
bflanagan@thenational.ae

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'The worst thing you can eat'

Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

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Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

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