Bahrain saw by far the fastest growth in the region's advertising market in the first half of the year as spending increased by 40 per cent.

There was a significant increase across the region of 20 per cent with only the UAE experiencing a decline, though it remained the largest market.

All sectors were up with the exception of insurance real estate and properties which was down 16 per cent, and construction equipment and supply which fell 2 per cent.

Advertising expenditure in the GCC region including Pan Arab media, which is mainly satellite TV channels, reached $5.05 billion compared to $4.22bn during the same period in 2009.

According to Pan Arab Research Centre (PARC), this increase exceeded expectations after the effect of the global financial and economical crisis on advertising activity which hit the region with an increase in 2009 of just 9 per cent.

The PARC report indicated that the Pan-Arab media share of the advertising expenditure rose to $2.86 billion representing an increase of 34 per cent compared to $2.14 billion in 2009.

Thus, the Pan Arab media had the greatest share of the increase in GCC advertising expenditure representing 57 per cent of the total GCC spending.

The local GCC markets have seen a variant growth of 40 per cent in Bahrain, reaching $67million in 2010 compared to $48 million in 2009.

Oman increased by 12 per cent reaching $132 million compared to $118 million.

Qatar had an increase of 11 per cent reaching $219 million compared to $197 million.

Saudi Arabia increased by 9 per cent, reaching $581 million compared to $532 million and Kuwait an increase of 8 per cent reaching $463 million compared to $429 million whilst UAE saw some improvement compared to 2009, despite the 4 per cent decrease, reaching $680 million compared to $712 million.

The UAE has the largest share of GCC advertising spend amounting to 31 per cent, Saudi Arabia 27 per cent, Kuwait 21.7 per cent, Qatar 10.2 per cent, Oman 6 per cent and Bahrain 3 per cent.

These percentages do not include Pan Arab expenditure which is directed to key markets in the GCC, particularly Saudi Arabia.

"The increase in the first half of the year could be an indication of a recovery of the advertising activities in the Gulf and a return to the previous level of growth seen in the last 10 years in the region, and could lead to advertising expenditure exceeding the $10bn barrier in 2010," according to Gulf Marcom Group chairman and International Advertising Association board member Khamis Al Muqla.

"We were supposed to reach this figure in 2009, which had witnessed a small increase of 9 per cent to reach $9.2bn compared to $8.9bn in 2008.

"The most important advertising sectors during this period were communications and public utilities with a share of 15 per cent, up 39 per cent, toiletries, hygiene and house care products 15 per cent, up 26 per cent," he added.

Government organisations at 14 per cent were up 27 per cent, food beverages and tobacco 11 per cent up 37 per cent, publishing media 6 per cent up 2 per cent, shopping malls and retail stores 5 per cent up 9 per cent, vehicles, accessories and supply 5 per cent up 24 per cent, professional services 5 per cent up 4 per cent, hotels, travel and tourism 5 per cent up 7 per cent, financial services 4 per cent up 22 per cent, entertainment 4 per cent up 24 per cent, insurance and real estate and properties 3 per cent, down 16 per cent, household appliances 2 per cent, up 23 per cent, business and construct equipment and supply 2 per cent, a decrease of 2 per cent, clothing, jewellery and personal accessories 2 per cent up 4 per cent, other services 2 per cent up 28 per cent. – TradeArabia News Service