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					ONMEDIA                                                                                  OMD Middle East Newsletter
                                                                                         Issue No.11. Spring 2008
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               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

DIGITAL                                                                                   FUTURES

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:
advertising/media regulations

GCC                                                                                         LEVANT

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
Executive summary:
                                                                                                  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,

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