Advertising expenditure in the GCC reached $5.05 billion in the first six months of 2010, marking an increase of 20 per cent over the same period last year.

The increase exceeded the expectations of the impact of the global financial and economical crisis on advertising activity in the region which caused the sector to grow by a relatively modest 9 per cent in 2009, reaching $9.2 billion compared to $8.9 billion in 2008, according to the Pan Arab Research Centre (Parc).

Khamis Al-Muqla, chairman of Bahrain-based Gulf Marcom Group and Worldwide Board Member of the International Advertising Association, said these figures were a good indicator that the advertising activities in GCC are recovering and steadily returning to the previous level of growth seen over the last ten years.

Should the rate continue, Al Muqla said, advertising expenditure will exceed the $10 billion barrier by end of 2010 for the first time, a milestone which was expected to be reached last year had it not been for the economic crisis.

Al Muqla noted out that 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.

According to these figures, Pan Arab media had the greatest share of the increase in GCC advertising expenditure with 57 per cent of the total GCC spending.

By country, Bahrain’s advertising expenditure grew by 40 per cent, the highest rate amongst all GCC countries, followed by Oman (12 per cent), Qatar (11 per cent), Saudi Arabia (9 per cent), and Kuwait (8 per cent). The UAE was the country to record a decrease (4 per cent).

Despite the drop, the UAE maintained its leadership position in terms of market share in GCC adspend at 31 per cent, followed by 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.

Other Arab markets also registered impressive growth with Egypt topping non-GCC countries at 36 per cent followed by Lebanon (19 per cent) and Jordan (9 per cent).

Al Muqla added that TV advertising - including Pan Arab media - grew by 39 per cent to reach $3.48 and continues to lead the total GCC advertising expenditure with a market share of 57 per cent.

Print media was a distant second at 37 per cent, with newspapers comprising 31 per cent to reach $1.89 billion, an increase of 6 per cent, followed by magazines with 6 per cent market share and $368 million in total spend.

Outdoor advertising’s market share shrunk to 4 per cent having decreased by 6 per cent to $244 million. The list is rounded out by radio (1 per cent), which increased by 10 per cent to reach $73 million, while cinema barely reached $10 million, the same figure as 2009.

Amongst local markets, print media dominated local media ad spend with a share ranging between 70 to 80 per cent.

Al-Muqla added that the biggest advertising sectors during this period were communications and public utilities which recorded a 39 per cent increase to grab 15 per cent of the market share.

It was followed by toiletries hygiene/house care products (15 per cent), up 26 per cent, government organizations (14 per cent), up 27 per cent, and food, beverages, and tobacco (11 per cent), up 37 per cent. – TradeArabia News Service