ONMEDIA OMD Middle East Newsletter
Issue No.11. Spring 2008
Playing with Knowledgebase: The way forward: Opinions and
advertising: digital lighting the path content, formats debates: media/
keeps innovating to Influence and concepts ad regulations
Page 2 Page 3 Page 4 Page 5
A new balance of power
From brands to retailers, from advertisers to consumers, from agencies to media, market forces are changing in the
region. To remain on top of the game, it’s crucial not to take your eyes off the ball
he Middle East is a market full outdoor companies but the latest Without a shadow of a doubt, categories and answering diverse
of contradictions. If, on the one development is the collaboration some of these developments are briefs, that make agencies the
hand, change often happens between Stroer Concept, itself a testing the current market dynamics. interface of choice between clients
rather slowly, on the other, the region UAE-German combination, with Arab When Google creates technology and media.
evolves at breakneck speed. One Media Group’s outdoor advertising allowing businesses to create and What is changing though is the
thing is for certain though, global company Shoof. Together, they will buy advertising independently of negotiation power of the various
trends are catching up with us face other contenders in the RTA agencies, while making its money out parties, with a noticeable hardening of
increasingly faster. bid. Another such development is the of agencies’ media plans, it’s clear key media owners’ position as a result
All over the world, there is talk of the partnership between MBC and ART things could change. of their increasing market domination.
empowered consumer, technology to jointly launch free-to-air pan-Arab But these limited developments
reshaping media groups along with sports channels. hide a broader reality. The search Blurring of the lines
consolidation in several markets and Once a market where company for specialization and the separation Several media groups have tried, locally
industries. These conversations are ownership was extraordinarily stable, of ‘church and state’ in marketing and internationally, to bridge the gap
happening here too. almost to the point of paralysis, today services remain as high on marketers’ with advertisers. Some broadcasters
While some get lost in the details the region is a lot more fluid. Local or agenda as they have been for the last and publishers have created marketing
and ignore the big picture, others fail family ownership is gradually opening few decades. Advertisers, agencies services divisions to offer creative ways
to spot the emerging trends preferring up, creating new possibilities. and media are tied to each other to use their media. In a few cases, these
‘executive summaries’ in order to plan Kingdom Holding’s acquisition of much like in an eco-system, each have been presented as ‘agencies’
their future. Both visions are essential crafting solutions even beyond their
to get clarity on what lies ahead. The search for specialization and the need for own media.
While successful in devising
Welcome your frenemies the separation of ‘church and state’ in marketing innovative solutions, these remain tied
Consolidation is gathering pace services remain high on marketers’ agenda to the mother media brand, acting on
across many industries and some its behalf. It is therefore unlikely that
mergers and acquisitions are more a 30% stake in Saudi Research & needing the other to live. these will present a true alternative
significant than others, by virtue of Publishing Company (SRPC), will Clients need agencies’ experience to agencies and will, instead, work
either scale or consequences. The extend the TV and radio group’s of reaching the consumer, through with them to develop interesting
retail market is of prime importance media interests into print. Unlike a their creative executions or impartial propositions to advertisers.
to a lot of brands, particularly FMCG. decade ago, media groups are now understanding of communication Undoubtedly, media has finally
The recent announcement of the expanding beyond their initial area of channels, and media to provide the come to the top table. A recent survey
merger of Savola Group’s Al Azizia expertise such as TV or print, creating content consumers seek. It is this by Booz Allen Hamilton has found
Panda supermarkets with its former content synergies between various impartial expert advice, built on the that 52% of US marketers believe
competitor, The Giant Stores Company, traditional or digital platforms, much experience of accounts from different that media companies, media and
acts as a reminder of the consolidation like their Western counterparts. communications planners will be more
seen in 1980s and 1990s in Europe. integral to their business by 2010.
This turned the balance of power A marketing eco-system This is partially explained by the
between brands and retailers on its With an increasingly hard to reach growing field of expertise media
head, giving the latter the upper hand audience, now ‘liberated’ from agencies are developing in the
in trade negotiations. passive media and advertising area of content, with branded
Old enemies can be the new consumption by emerging entertainment or digital. But media is
friends, giving rise to the catchy new technologies and media, it’s easy to also becoming the common ground
name of frenemies. As competitors envisage how radically different the between, retailers, brand owners
become partners, new synergies are future looks. and telecom companies who are
created, affecting existing business Much has been written about user- all moving into media ownership.
relationships. This is visible in the generated advertising, particularly Headline developments like
media market where competitors join with the Superbowl spot for Doritos, these, however, do not change
forces when they share a common created by a group of budding the true role and mission of each
interest of vision, albeit temporarily. The film-makers. Some have pushed party in the advertising chain.
tender for the Dubai Metro advertising the argument as far as wondering What will keep on changing is the
concession has generated the whether this was going to spell the balance of power, in a permanent
interest of both local and international end of advertising agencies. search for equilibrium. l
Playing with advertising:
digital breaks new ground Philip Schilling
02 Director-Planning, OMD Digital
When a game release breaks all opening records and mobile penetration levels reach dizzying heights, some signs
are just too big to ignore. But are you ready to join in the fun and ring in the change?
redictions that mobile are actively involved and focused on
advertising will finally take the ‘content’ or experience, unlike
off have been pouring in as traditional TV viewers.
regularly as Elvis sightings across the If gaming is big as a hobby, it’s
world. So will 2008 be the year when getting bigger as an advertising
mobile advertising finally comes of vehicle with major moves in this
age and demands its rightful share industry. Google has added video
of the advertising budget or will it be game advertising to its footprint
another year in Heartbreak Hotel for with its $23 million acquisition of
mobile marketers? Adscape. Its AdverPlay product lets
By and large, the mobile advertising developers place dynamic ads right
industry is still in its infancy. Mobile inside the game. Last year, Microsoft
advertising generated about $871 acquired a similar in-game advertiser
million in 2006, according to Informa Massive to run advertising across
Telecoms & Media, a figure that its Xbox Live and MSN gaming
pales in comparison with the $24 platform. Massive provides in-game
billion invested in Internet advertising advertising for Electronic Arts titles
and the $450 billion in all advertising. and allows for dynamic updates of
But with nearly three billion cell A recent survey conducted by of thousands of visitors to the 10-week in-game advertising by streaming
phone users in the world, more than Acision during Gitex 2007 showed long entertainment extravaganza but ads from a server whenever a game
37 million of whom are in the GCC, that the potential for mobile advertising also the votes of the media jury at this is played. It currently provides in-
it’s clear that mobile advertising in the Middle East was equally strong, year’s Dubai Lynx Awards. OMD is game advertisements for the PC and
represents a huge opportunity. with 64% of the 300 respondents gearing up for increased activity in this Xbox 360 versions of several titles in
stating that mobile advertising space, adding this specialist skill set in EA’s Need for Speed series, Madden
Call me will mirror the success of Internet its digital offering. NFL, NBA Live, NHL and NASCAR.
Part of the excitement comes from advertising. About half stated that
the improved handset technology. they already received mobile ads at Gaming delivers an audience of early adopters.
Products such as Apple’s iPhone and least two to four times a week. As they communicate more with others, their
Google’s Android operating system for Another contributing factor is that eyeballs tend to be worth more to brands
mobile handsets have helped spark Middle Eastern users renew their
marketing and advertising interest. A handsets more frequently than the
report by eMarketer said that by 2012, global average and tend to have the Pushing all the right buttons Evidence of the effectiveness of in-
advertisers are expected to invest latest technology. Another survey Gaming has a lot in common with game advertising is starting to show.
some $19 billion on mobile advertising. has also shown users here spending mobile phones and has become According to a Nielsen study, 64% of
The vast majority of this will be spent more time with their phone than the a mainstream activity for large gamers are susceptible to in-game
on text-messaging campaigns, with global average. segments of the population, crossing advertising. Players of EA’s Need for
mobile display advertising and mobile Realizing the potential of the age groups and gender lines. Speed: Carbon showed an increase in
search making up the remainder. region, several international mobile Consequently, in-game advertising their purchase consideration of products
Recognizing the potential, Google advertising giants, including Nokia is growing exponentially each year. advertised via in-game billboards by
has jumped into the fray too, joining and Vodafone, are extending their Advertising investments in video 41% over an ad-less control group.
the ranks of Yahoo, AdMob and footprint to the Middle East. Not one games totalled only about $75 Brand familiarity rose 64% in the group
Third Screen in bringing display ads to stand on the sidelines, OMD has million in 2005, but estimates have of ad-viewers, while the average ad
to cellphones. The mobile image ads already deployed mobile advertising that figure rising to $1 billion by the rating, described as players who liked
are targeted based on keywords that solutions for Middle Eastern clients. Its end of the decade. the advertisement, increased by 69%.
appear on the websites people visit On-Device Portal for Dubai Summer The release of Grand Theft Auto IV, It’s too early to assess the results
on their cell phones. Surprises has won not only the hearts the latest instalment in the popular of our first campaign of this type for
car game franchise, has beaten Mobily in Saudi Arabia. We bought
even the mighty Halo 3, to become 250,000 impressions across major X-
the biggest entertainment release. It Box and PC titles, such as Burnout,
has exceeded the takings of movie Guitar Hero, NFS Pro Street and Pro
opening weekends, including “Pirates Evolution Soccer, with the ads being
of the Caribbean 3”. downloaded onto new-generation
Despite the scale of the industry, game consoles and PCs linked to
advertisers have only just started to the Internet.
turn to gaming as a way to reach But we know that gaming, along
the elusive 18-34 year old market. with mobiles, delivers an audience
While this target audience is the of early adopters. Because they
main driver of growth for in-game communicate more with others,
advertising, it has grown beyond their eyeballs tend to be worth
a male dominated world, offering more to brands. In this fragmented
instead a comprehensive channel media world we live in, digital media
for any advertiser. Brands such offers a unique combination of mass
as Apple, Procter & Gamble and and niche audiences for brands to
Visa are already relying on product engage with in a whole new way. l
placement in games. What they
seek in gaming are ‘viewers’ who Ashwin Salian contributed to this article
lighting the path to Influence Firas Ghazal
03 Director-Strategic Planning, OMD
To fuel OMD’s Influence Planning process, the network and its research consultancy Integral introduce yet another
landmark study, Pathway, to uncover consumers’ sources of influence. Firas Ghazal explains
he communication world is OMD has also identified how the
ever changing and if we are to various communication channels and
lead the transition from mere touchpoints come into play over time
media agencies to communication to shape consumers’ mental and
specialists, we must embrace the emotional state. Following this path
latest in communication techniques allows us to see where consumers
without losing sight of what we’re are losing sight of the brand, what is
trying to achieve. Our role is to making them shift to another brand
influence consumers into acting or or product category and why.
thinking in a desired manner that
delivers on our clients’ business and Implications on planning
brand objectives, while fulfilling the A print campaign that succeeds in
needs of consumers. building brand awareness but fails
Influence Checkmate is OMD’s to transform consumer interest into
unique approach to creating a an online information request or
brand’s communication strategy. It purchase, for lack of integration, is
is a planning framework that puts a case of missed opportunity. The
today’s consumer at the centre information generated by Pathway
of our thinking, one that is flexible also helps us identify whether our
and dynamic enough to embrace communication needs to address the
yesterday’s, today’s and tomorrow’s post-purchase dissonance.
communications models. Yet, it We indeed need to consider all
remains simple and eye-opening stages to ensure our influence carries
enough to create compelling consumers through to the end
business and communication goal. It is also worth noting that the
ideas that bridge the gap between importance of each stage differs from
consumers and brands. product category to another and
For OMD, influence is about from one brand to another within the
creating breakthrough 360° This is a major step towards bigger and better same category based on the brand
brand communications strategies digital planning as we are working on further awareness levels, image, strength,
to achieve the brand goals or research and tool developments in this sphere position and objective.
business objectives. Like electricity, In other words, our communication
influence flows at different rates and planners will be able to identify all
intensities according to the power survey designed to understand the A one-size-fits-all approach is a the key stages for a particular client,
of the brand, its message and the influence value of various media thing from the past. While brands need product and task, and pinpoint the
‘conductivity’ of the consumer and touch points on consumers’ decision to have a uniform communication crucial ones in their current brand-
the channel. Influence is a force that making funnel. It will provide a unique platform, they also must rely on consumer life cycle. By then focusing
works through different channels dataset to study consumers’ path different channels to influence on the stages that have the most
to generate different outcomes, to purchase a product and discover consumers at the various stages of impact on the purchase decision,
such as awareness, ‘buzz’, affinity, how various elements influence their their ‘Pathway’ to purchase. they will ensure the effectiveness
consideration, purchase and so on. It decision-making process, along with In addition to the various mental of the plans in delivering the results
is also content and channel-neutral. their relative importance. and emotional mindsets or steps, clients are after. l
Delving into their minds
In order to better understand what Influencing purchases in different ways
influences consumers in the region
across a number of product categories, OMD UK’s Pathway survey has shown reflecting the degree to which people are This will help everyone recognize the role
OMD in the Middle East is launching very interesting findings, illustrating really engaged in the process. Dealerships that various channels play in the consumers’
Pathway, the largest quantitative the point that different people shop in come up early, not only going in to make a purchase journey and using them to both
study conducted by Omnicom Media different categories in different ways. purchase but also for their initial research. fulfil that need and move shoppers along
Group’s research consultancy Integral. Consumers plan and buy their holidays Previous experience is also really important the path to purchase towards a brand.
This regional survey is part of a global differently. Families with young children at the outset, and then
Pathway research initiative by the take much longer to buy than upmarket comes back in at the
media network. adults travelling without kids. There are end as people try and
It will map all the various sources also significant differences in the effort close down all the
of influence for consumers and help they put into each decision, families choices they’ve got.
us define their path to purchase. In spending much longer thinking and Another interesting
other words, it will allow us to better researching their holiday, the older point is how paths
understand the way in which they go upmarket group spending more time differ according to
about making a buying decision in a looking for the best deal. the product and/or
particular product category, the steps or The path to purchase for electronics, takes target audience. For
mindsets they go through, and how the an average of 10 weeks and is remarkably example, buying a
various communications channels and consistent throughout. In the case of a car 4x4 takes 40% longer
touchpoints impact over time to push purchase (see right), the numbers (hidden) than buying a car in
them into buying a particular brand. are really high across all touchpoints, the B segment.
It is the most comprehensive
The way forward:
content, formats and concepts
Follow the content, not the vehicle
Mayssoun Abdelghani, Director, Fuse
a global communication platform. the Imagination (VOI), an international victory on the podium and hearts of
Cricket, football, tennis, golf and now art program created for children ages their respective nations, if not in the
rugby have achieved great results 10-14 to learn about the Olympic ratings tables.
globally. The 2007 Rugby World Cup Movement while participating in an But there is much more to sporting
(RWC) attracted approximately four artistic competition. events than TV broadcasts. This
billion viewers across the globe. An active football supporter, Kia Summer Olympiad is the first to have
Two major sporting events will be Motors Corporation, in conjunction added mobile to the broadcasting
staged this summer: the Summer with Hyundai Motors, is a partner for rights on offer, after adding live
Olympic Games in Beijing and the the upcoming Euro 2008. In addition internet broadcasts in 2004. Sports
UEFA’s Euro 2008 in Austria and to promoting its brand at the event ecstacy waits for no one and this
Switzerland, providing exciting and supplying the official vehicles, passion must be expressed as and
platforms for brand communication, Kia is using this platform to launch its when (and where) it is triggered.
ports are one of the strongest globally and regionally. Both events “Be Kia, Be Together!” campaign in Merchandising and promotions will
passion points for consumers are already heavily supported by multi- the lead up to the tournament. also be unavoidable.
and one that advertisers have million dollar, global sponsorships. Both the Olympic Games and the Today’s list of possibilities to
long embraced. Sporting events are General Electric Co. has more Euro 2008 are expected to generate associate a brand with sports is
usually a prime target for brands than 300 projects related to the wide attention in the GCC region. endless. While official sponsors have
wanting to market themselves to a Olympics including work at Beijing’s But the region’s love of football will prime access to the events, others can
mass audience. FIFA estimates the National Stadium, athletic fields and most probably see the Euro 2008 still find ways to locally embrace the
cumulative audience of its World Cup international airport amongst other be more assiduously followed by energy and share in the excitement.
at 30 billion viewers. More and more projects. Visa, among other initiatives, local audiences. National pride will, It’s about having the best strategy and
sports have succeeded in becoming will host its eighth Visa Olympics of hopefully, carry the Arab athletes to tactic, just like in sports. l
M&A activity points to maturity Emotions as a new ad KPI?
Jassim Ali, Planning Manager, OMD Digital Christian Fedorczuk, Director-Planning, OMD Dubai
edia mergers and acquisitions This is likely to have some far A person’s ‘blink rate’ relates directly
are becoming less and reaching and positive repercussions to the heart rate and, in turn, to instinctive
less landmark events and on the way digital media is produced, reactions such as fear and excitement.
increasingly an expected and accepted consumed and commercialized here. Pupils work in a similar way making their
part of the landscape. Figures run in The international experience of Yahoo! behaviour an important aspect of the way
the hundreds of millions of dollars and and Google in diverse markets such someone responds to what they see.
unless there’s an anti-trust case, they as China, Japan, India and Brazil has To use the equipment, a person sits
almost go unnoticed. Microsoft’s on-off- had a significant impact. They either down in front of a computer and is
on again purchase of Yahoo! for an initial set up local operations from scratch or shown a series of images. While they
$44 billion certainly didn’t. acquired a stake in a local player, before watch the screen, a camera behind the
There have been a few other large improving the local offering in line with nowing what to measure screen tracks the movement of their
scale acquisitions in the Internet space, global standards. This year has already to properly identify whether eyes. A computer then rates various
such as MSN’s purchase of Aquantive seen Google’s Blogger make Arabic an advertising campaign aspects of their gaze - including the
for $6 billion, or Google’s take-over one of its 40 languages. is working is one of the industry’s speed of their blinks and their pupil
of Double-click for $3.1 billion. They Scale is another significant factor for biggest challenges. Emotion Tool is dilation - on a scale of one to ten, from
indicate the integration of content and the industry to take control of its own throwing another currency on the table: which it derives the emotional response.
technology, including the deployment destiny and shape public policy. More emotional reactions. The test works better for static images
of the latest adserving technology than a teenager, the region’s Internet Denmark’s iMotions has developed and in a calm environment.
‘upstream’ to help media planners get sector is looking more like an adult. l a revolutionary technology to measure The technology is initially being
a message to the right audience at the the emotional impact of advertising, targeted at market research
right time. primarily print and outdoor, on companies, which give feedback to
The web is clearly maturing as a consumers. Based on the existing ‘eye advertisers about the effectiveness of
medium and as a business. Even in tracking’ technology, which analyzes their creatives. While pre-testing has
the region, we’ve seen the acquisition the eye movement over a document been around for a while, this type of
of AME Info by the UK’s Emap or visual, Emotion Tool analyzes where analysis, directly linked to emotional
Communications, itself sold in January a person is looking before detecting and physical reactions rather than the
to a consortium of the Guardian Media more minute variations, such as the verbal expression of an emotion, is an
Group and Apax Partners for close to way pupil size changes and the way interesting development.
$2 billion. There are persistent rumors they blink. Both measures are related to With the eyebox2, another eye-
that more transactions affecting high- a person’s emotional response to what tracker based system counting eyeballs
profile Middle Eastern web properties they are seeing and are likely to be of in front of outdoor and ambient ads, we
are on the way, possibly involving use to advertisers keen to monitor the may soon buy ads and measure their
global Internet majors. effectiveness of their campaigns. effectiveness in a totally new way. l
Opinions and debates:
My way or the highway Diversity? Not on our screens
Hisham Abi Nassif, Deputy General Manager, OMD Dubai Eric Mirabel, Business Development Director, Omnicom Media Group
code of what is acceptable and what f media regulations in general,
isn’t is largely unwritten. In the case of and broadcasting in particular,
outdoor media, municipal bodies often were primarily the privilege
act as censors before advertisements of national governements in the
are posted. Satellite operators also region, the meteoric rise of satellite
retain the right to remove a station TV presented a new challenge.
whose content is deemed offensive. The recent adoption of a charter
Today, other bodies are coming regulating ‘Principles for Organising
into the fray, most noticeably Dubai’s Satellite TV in the Arab World’ is
Roads & Transport Authority (RTA). It certainly addressing this head on.
has recently banned mobile advertising The final non-binding document,
on Dubai’s roads and streets, except adopted by 20 of the 22 Arab League
he last few years have seen between midnight and 5.00 am. states with the exception of Qatar and regulations”. It calls on member states
a marked increase in the Outdoor sites are also being pulled Lebanon, was issued at the end of to introduce all necessary measures
number of regulations affecting down if they are deemed ‘dangerous’ meeting convened in Cairo on February in their national legislations in order to
advertising. Some have been self- to traffic. This follows the Dubai 12, 2008 at the request of Egypt and ensure that the document’s principles
imposed by professionals of the Municipality’s move to remove rooftop with the support of Saudi Arabia. are fully implemented.
industry, others have come from sites in a beautification drive. It requires satellite TV broadcasting News media have reacted angrily
authorities, be they municipal or Industry bodies, such as the in the region to refrain from offending at what they regard as new threats
national. In addition, several bodies International Advertising Association, the leaders or national and religious to freedom of expression and
have voiced their opinion concerning provide guidance to advertisers and symbols in the Arab world, not to independent news reporting. This is
the development of media and agencies but questions still outnumber damage social harmony, national indeed the latest in an increasingly
the result is a cacophony that is the answers most provide. unity, public order or traditional values long list of interferences with media
increasingly hard to follow. The situation is fast reaching and to conform with the religious and companies, journalists and bloggers
The number of bodies involved in the stage where a rationalization of ethical values of Arab society and on ‘editorial’ grounds.
the practice of media and advertising advertising and media regulations is take account of its family structure. The question is whether these
is growing and while it could be a required, at both national and regional More broadly, it calls on broadcasters regulations are in line with consumers’
good thing, the lack of concertation level, covering both ‘licensing’ (the to refrain from broadcasting anything aspirations. Maybe they reflect a
is a concern. The content of media right to operate) and ‘content’ (what that calls into question God, the popular sentiment, then again maybe
is regulated by several ministries can be said/shown), both for ‘editorial’ monotheistic-religions, the prophets, they don’t. In the absence of public
across the region, while in the UAE, and advertising. sects or symbols of the various consultation on the subject, we’re all
the National Media Council is the In most countries, the number of religious communities and to protect left to our own interpretation.
licensing authority. The Dubai Media regulators have been reduced, the path Arab identity from the harmful effects One thing is certain though: if
City also has an independent tribunal is clear and the playing field is level. As of globalization. governments start restricting what
to provide guidance on content, this market matures and becomes The document threatens to can be said or shown on satellite TV
usually before it appears. a part of the global media scene, it “withdraw, freeze or not renew the at regional level, advertising could
When it comes to advertising, the deserves nothing less. l work permits of media that break the well be next on the agenda. l
President orders French state TV to do away with advertising
Dennis Tuckwell, Director, OMD International
s a means to shape public number of people being watered lead the total French TV advertising
opinion, the media market is access to culture” down, with talk ‘pie’ to shrink because up to a third
often prone to governmental by functioning on of a “progressive” of advertising investment could be
interference. In France, every “purely commercial weaning of France redirected to non-broadcast media.
President has felt the need to reform criteria”. It has Televisions off Other channels would then share the
it in one way or another and even also promised to advertising. rest of France Televisions’ revenues.
though he is calling for a “revolution” maintain the public The shortfall, While the country’s main private
in the financing of public television, b r o a d c a s t e r ’s more than $1 broadcasters (TF1 and M6) stand to
Nicolas Sarkozy is following in that income, most france télévisions billion, is a concern gain from the move, the real winners
tradition. Earlier this year, he called for probably through a as the broadcaster could be the new digital free-to-air
state TV to stop carrying advertising. subsidy generated by a tax on private is operating its transition to a fully channels, which now have about one
While some observers explain the broadcasters or mobile telephone/ digital platform. It’s also causing a fifth of viewing share but hardly one
move as a gift to Presidential friends internet operators. Advertising could headache on the programming front per cent of advertising revenues.
in the media industry, since it diverts stop on the public broadcaster’s four as the freed airtime will need to be In the short-term though, the
advertising investments to the private main stations (France 2, 3, 4 and 5), replaced with fresh programs to uncertainty this decision has created
sector, the government argues that possibly as soon as January 2009. some extent. and the weak advertising market in
public broadcasting cannot fulfil its Consultations are already under way The removal of advertising airtime France are pointing to a dismal 2008
mission “to offer the largest possible and the ambitious plans are already on France Televisions channels would in terms of TV advertising. l
Famous for its ancient civilization, Egypt is an important political
and cultural nation of the Middle East. Its rising population rates
and lack of natural resources however are straining its economy and
forcing the Government to act quickly. Whilst Egypt does not have the
spending capacity of most other countries in the Middle East, it still
holds promise and its economic fortunes are definitely on the rise.
Selected indicators gypt is the region’s most to continue its aggressive pursuit of
Economy populous country but is also reforms in order to sustain the spike
Year GDP (current prices) GDP PPP per capita Inflation % change one of the poorest. With its in investment and growth and begin
2005e $538.5bn $1,269.77 127.4 8.8% current 81 million inhabitants, the to improve economic conditions for
2006e $617.7bn $1,488.61 132.7 4.2% country’s rapidly growing population the broader population.
2007f $731.2bn $1,738.81 147.2 10.9% is overstraining the Nile and its The increase in population and
2008f $857.6bn $2,015.57 160.2 8.8% natural resources. It’s not all doom emerging consumer market are
Source: International Monetary Fund, 2007; e/f: IMF estimate/forecast; Inflation: 2000=base 100 and gloom though. motivating both investors and
In 2005, the government reduced brand owners to invest in Egypt.
Population (2006) personal and corporate tax rates, The advertising market is led by the
Ethnic groups Male/Female 15-24 y.o 25-44 y.o reduced energy subsidies, and telecommunications, banking, real
Egyptians (77.3m) 50%/50% 19% 20% privatized several enterprises. The estate, automobile and soft drink
African origin (0.8m) na na na stock market boomed and GDP sectors. Egypt is characterized by a
European origin (0.8m) na na na grew about 5% per year in 2005-06, young population, with a median age
Total population (78.9m) 50%/50% 19% 20% topping 7% in 2007. Despite these of 24.5, creating progressively more
Source: Integral estimates based on international sources achievements, the government has opportunities for brands. Much like
failed to raise living standards for in other Middle Eastern nations, they
the average Egyptian and has had aspire to the trappings of today’s lifestyle
Top 5 media properties 2007 Jan-Apr 2008 to continue providing subsidies for and the increasingly urban society. In
Vehicle $m $m Type basic necessities. The subsidies have 2006, over 18 million Egyptians had a
Al Ahram 123.5 56.8 Newspaper contributed to a sizeable budget deficit mobile phone and a recorded 6 million
Al Akhbar 83.7 34.8 Newspaper (7.5% of GDP in 2007) and represent were Internet users.
Channel 2 53.7 16.0 TV a significant drain on the economy. Much has yet to be achieved to
Channel 1 50.9 11.0 TV As it imports about 40% of its food liberalize the economy, which, like
Nogoom FM 39.8 10.9 Radio from international markets, Egypt is the media market, is still dominated
Source: OMD with data from Ipsos-Stat particularly susceptible to rising food by government or semi-government
prices. The elimination of import tariffs entities. But illustrating the current
Media split 2006 2007 on several food products, combined state of flux, satellite TV broadcasters
Media $m $m % (2007) with reduced food exports, aims to are removing the favorable conditions
TV 289.1 343.9 22.3% increase domestic supply and fight they had set for Egyptian advertisers,
Radio 46.5 116.6 7.6% inflationary pressures. But ultimately, now bringing them in line with the rest
Press 413.2 962.8 62.7% enhancing agricultural production is of the region.
Outdoor 16 113.1 7.4% the only measure that can help the The country clearly aims to
Cinema na na na country become self-sufficient. capitalize on recent economic gains
Total 764.80 1536.4 100% Foreign direct investment has and build on its small successes. If
Source: Ipsos-Stat increased significantly in the past two nothing else, Egypt is witnessing a
years, but the government will need degree of optimism. l
OMD Digital grows further Investment in creativity pays off with impressive award success
A clear sign that the region is following In 2007, OMD invested in enhancing winning a third of the total awards,
international trends, advertising its creativity, launching OMD Ignition, including two gold (Wrigley’s and
investments in digital media have its thought-starter unit, and introducing Barclays), three silver (DSS, du and
grown by a stunning 50% in the GCC. the OMD Creative Masterclass. This Nissan) and two bronze (Kellogg’s
OMD Digital, already the leading strategy has already paid off since and Pepsi). In the Internet/New media
investor in the medium in 2006, has three recent awards festivals have category, OMD walked away with the
not only strengthened its position but recognized OMD’s quality of thinking gold, silver and bronze.
also outpaced the market. and execution on several of its “These awards are a testament
After growing by 155% on the accounts. Two clients have come out to the tremendous talent in and
previous year thanks to organic growth of the Gulf Marketing Review’s 2008 around our agency. None of this
and new business acquisitions, OMD GEMAS with three wins, including would be possible without teams and
Digital estimates its market share in the Gold Grand Prix, while OMD was clients who embrace creativity and
2007 at around 30%, up from 25%. awarded three wins at the MENA the work on a brand and looking at the innovation in thinking and execution,”
“All indicators are positive,” said Cristals and seven awards at the effectiveness of the campaigns.” commented Eric Bequin, regional
Dimitri Metaxas, director of OMD Dubai Lynx’ first media awards. The MENA Cristal Awards, managing director of OMD MENA.
Digital. “We’ve definitely acquired the The GEMAS judges named produced by 2C Associés, awarded More than 270 people attended the
critical mass we were looking for. Barclays Bank as winner in the ‘Best media prizes for the first time this year. second OMD Creative Masterclass of
We’re now focusing on a new set Product Launch’ and ‘Best Integrated The international jury awarded a Media last year. The one-day event reviewed
of metrics, such as crossing 1% Campaign’ categories and awarded Cristal to OMD in three categories trends in media creativity and focused
of total media investments, and on it the Gold Grand Prix, the most out of the seven that received an on innovations in digital media. Two
expanding our offering to clients.” prestigious award of the night. SAMA, individual award. OMD won for its more events are scheduled for 2008.
from Saudi Arabia, was also highly take-over of 7Days for Barclays Bank
commended in the ‘Best New Brand in the Banking & Finance category,
Launch’. More than 80 entries made it the product integration in/sponsorship
to the short list. of Perfect Bride by Kellogg’s in the
“It is tremendously heartening to Women category and the Chester the
see our work pay off for our clients,” Presenter operation for Cheetos in
commented Shadi Kandil, general the Young People category. No other
manager of OMD Dubai. “These agency was more awarded.
awards are particularly important in Most recently, OMD dominated the
that they recompense the total sum of media category at the Dubai Lynx,