Sales Merchandiser Janet Silayan checks out the TVs in the electronics department in the Carrefour City Center store in Deira.
Sales Merchandiser Janet Silayan checks out the TVs in the electronics department in the Carrefour City Center store in Deira.

The ad revolution will be televised



Much to the dismay of advertisers, television viewers often treat commercial breaks as the time to make a cup of tea, call a friend or even switch channels.

But such urges could diminish with the arrival of targeted TV advertising, which would deliver more appropriate marketing messages to individual television viewing households in the Middle East.

Billions of dollars are spent annually on TV advertising in the Arab world. But almost none of this is targeted effectively, because most of the region's 500 free-to-air channels are beamed out across the entire Arab world, with the same programming and advertisements reaching all viewers.

Because the ads on a particular channel cannot be changed, there is no effective way for TV advertisers to target consumers in markets such as Egypt or the UAE, which clearly differ in their demographic structures.

This means that an advertiser has to buy airtime across all Arab countries when advertising on certain TV channels, even if it is targeting only one market. A luxury goods manufacturer may be compelled to advertise across the entire region when it wants to target only a high-income country such as the UAE.

But the growth of internet protocol television (IPTV) - digital television services delivered via broadband - could change all this.

Regional telecommunications operators such as Etisalat, du, Qtel and STC have launched IPTV services in recent years, and the sector is expected to see significant growth.

According to the management consultancy Booz & Company, IPTV revenues from subscriptions in the MENA region stood at US$32 million (Dh117.5m) last year. But this figure is expected to almost double this year and reach $467m by 2014.

IPTV typically comes with features such as an electronic programme guide, video on demand and interactive features such as media storage and personalisation.

But another potential feature is targeted advertising, which delivers marketing messages tailored to the profile of an individual viewer.

Last year, the US company Cablevision started testing technology to send targeted ads to specific households. The ads were chosen according to demographic data on individual households, including variables such as income, ethnicity, gender and whether a homeowner had children.

While such marketing is technically possible, it has not yet been implemented in this region. But the telecommunications company du is working on introducing targeted IPTV advertising in the UAE, the company says.

"The day is not too far when commercials will be segmented by geography and demography - making adverts even more relevant to both viewers and advertisers. At du, in conjunction with our partners, we are working to bring these services to the UAE," says Farid Faraidooni, the chief commercial officer at du.

"With technology no longer being a barrier, networks, broadcasters and service providers the world over have already begun experimenting with the concept of targeted commercials as a viable business proposition."

There are barriers to overcome before targeted TV advertising arrives in the Middle East, says Hadi Raad, a principal in the communication, media and technology practice at Booz & Company.

Telecoms companies must build up the number of pay-TV subscribers in a region - a tough task given that many Middle East consumers are accustomed to receiving television free.

"It will only be viable or possible for [telecoms companies] to sell advertising once they've built the customer base," Mr Raad says.

"In the Middle East and North Africa, there are challenges for IPTV. First of all, free-to-air channels are in abundance in the region … So MENA users are not convinced to pay for television."

Despite this, Booz & Company forecasts healthy growth in the number of IPTV subscribers in the region. Currently, about 100,000 households in the MENA region are connected to IPTV, and more are in the UAE. But this "could grow to 1.5 million households by 2014", Mr Raad says.

"That represents an opportunity of around half a billion dollars by 2014," he says, referring primarily to subscription revenues.

Another barrier to targeted TV campaigns is that advertisers may not be ready for it, Mr Raad says.

"The market is not there yet. Advertisers in general are not used to this sort of advertisement.

"There needs to be a mind shift - and that will only come after the telcos have the scale of users."

If and when such a shift occurs, the arrival of targeted - and even interactive - TV advertising could yield great benefits for marketers, Mr Raad says. Telecoms companies have a great deal of information about their users, and much can be derived about a consumer simply from the person's address.

"Telcos are able to identify users. That would really be valuable," he says.

The number of IPTV subscribers globally is expected to grow to 100 million by 2014, drawing in subscription revenues of $18 billion, he says.

"IPTV will provide several benefits to consumers. It will provide the choice, the convenience and the ability to control your viewing experience."

For advertisers, the hope will be that this experience is enticing enough to keep viewers glued to the screen - and not wandering off making cups of tea - especially during commercial breaks.

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Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

Rating: 3.5/5

About Takalam

Date started: early 2020

Founders: Khawla Hammad and Inas Abu Shashieh

Based: Abu Dhabi

Sector: HealthTech and wellness

Number of staff: 4

Funding to date: Bootstrapped

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Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

Results

2pm: Handicap (PA) Dh80,000 1,600m; Winner: AF Al Baher, Bernardo Pinheiro (jockey), Ernst Oertel (trainer).

2.30pm: Handicap (TB) Dh100,000 1,600m; Winner: Talento Puma, Xavier Ziani, Salem bin Ghadayer.

3pm: Handicap (TB) Dh90,000 1,950m; Winner: Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.

3.30pm: Jebel Ali Stakes Listed (TB) Dh500,000 1,950m; Winner: Mark Of Approval, Patrick Cosgrave, Mahmood Hussain.

4pm: Conditions (TB) Dh125,000 1,400m; Winner: Dead-heat Raakez, Jim Crowley, Nicholas Bachalard/Attribution, Xavier Ziani, Salem bin Ghadayer.

4.30pm: Jebel Ali Sprint (TB) Dh500,000 1,000m; Winner: AlKaraama, Antonio Fresu, Musabah Al Muhairi.

5pm: Handicap (TB) Dh100,000 1,200m; Winner: Wafy, Richard Mullen, Satish Seemar.

5.30pm: Handicap (TB) Dh90,000 1,400m; Winner: Cachao, Tadhg O’Shea, Satish Seemar.

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

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Directed by: Jeethu Joseph

Starring: Mohanlal, Meena, Ansiba, Murali Gopy

Rating: 4 stars

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

Maestro
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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MATCH INFO

Manchester City 4 (Gundogan 8' (P), Bernardo Silva 19', Jesus 72', 75')

Fulham 0

Red cards: Tim Ream (Fulham)

Man of the Match: Gabriel Jesus (Manchester City)

THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

SPECS
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