Dubai

How Will Dubai’s Metaverse Sector Contribute To Its Economy By 2030?

The Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum announced earlier this month that Dubai’s metaverse sector will contribute $4 billion to the emirate’s economy by 2030.

Dubai Crown Prince Sheikh Hamdan bin Mohammed and Sheikh Maktoum bin Mohammed, the Deputy Ruler of Dubai have now directed the formation of a task force to track the latest developments in the digital economy, including technology and metaverse trends.  As quoted by Arabian Marketer, Sheikh Hamdan said,  

The directives of Sheikh Mohammed bin Rashid to form a higher committee to supervise Dubai’s future technological developments reflect the importance of facing the future with an open mind. The move will help us fully understand reality and explore unique ideas that will shape a brighter future for Dubai and the UAE, maximising future business opportunities.

.@HamdanMohammed, @MaktoumMohammed review vital technology trends in the metaverse and issued directives to form a task force to track the latest developments in the digital economy. #Dubai https://t.co/oY819Rs5MU pic.twitter.com/lVtk79uYLT

— Dubai Media Office (@DXBMediaOffice) May 19, 2022

But what exactly is Metaverse? Metaverse users interact with other users in computer-generated environments such as shops, learning environments, and meeting rooms, among other things, in three-dimensional, hyper-realistic virtual rooms. It combines elements of social media, augmented reality, virtual reality, video games, and other advanced technologies.

Interesting Read: Admix And JGroup Partner To Bring In-Play Advertising To MENA Brands

The Dubai Metaverse Strategy

Dubai is capable of attracting and retaining the largest technology companies in the world.  Hence, Dubai Metaverse Strategy’s higher committee plans to utilize metaverse technology. This will enhance resident surgeons’ performance by 230%.and raise the output of engineers by 30%. It also aims to raise the metaverse’s contribution to one per cent of the emirate’s GDP.

During the meeting with Sheikh Hamdan and Sheikh Maktoum, Omar bin Sultan Al Olama, who is the UAE Minister of State for Artificial Intelligence, Digital Economy, and Teleworking Applications and chairman of the Dubai Chamber of Digital Economy, outlined how Dubai stands to benefit from the metaverse in a way that enables it to generate business opportunities beyond its physical borders.

Further, it is implementing activities and projects that will increase its web presence. The higher committee is actively examining opportunities and challenges. It is trying to qualify human capital so that it can excel in the virtual environment. 

Moreover, it’s constantly working to establish a legal framework that addresses the needs of all sectors in the future. Forecasts indicate that business revenues from the metaverse will increase from $180 billion to $400 billion by 2025.

Interesting Read: Bloomberg Media Studios Unveils First Creative Hub In The UAE

Dubai’s metaverse regulatory authorities

Dubai’s Virtual Assets Regulatory Authority (VARA) established its Metaverse HQ earlier this month, making it the first regulator with a presence in the emerging digital space. 

Dubai plans to create a prototype of a decentralized regulator model by expanding VARA’s resources beyond borders. Moreover, it intends to make it readily accessible to government and industry leaders, other authorities, and virtual asset providers to shape the future of the digital economy.

VARA’s MetaHQ will utilize The Sandbox platform, an Ethereum blockchain-based application that allows users to create, sell and purchase digital assets.

Interesting Read: OSN Rebrands Its Streaming Service With OSN+

To Promote Sport Inclusivity, Adidas Unveils World’s First Swimmable Billboard!

Adidas, in a revolutionary move, has launched the world’s first-ever liquid billboard at one of Dubai’s most attractive tourist beaches – the Kite beach. 

This move came as a promotion for Adidas’s launch of its new collection of accessible swimwear. This swimmable billboard is also an attempt on part of the company to live up to its oath of breaking sport taboos and creating inclusivity for women. 

The liquid billboard was erected on the beach, right in the sand, after which, the company encouraged women to dive in. 

‘Watch Us Move,’ a 2021 roadmap launched earlier this year, promises to overcome sport taboos through modernizing Adidas’ product offering and services. 

Adidas introduced performance tights as a method to reinvent its product offering and services to better meet the requirements of its varied female community after discovering that adolescent girls were dropping out of sport at an alarming rate, with one of the main reasons being fear of period leaking.

In fact, it is important to take note of the fact that, in UAE, Only 12% of women feel fully at ease wearing a swimsuit at a public beach or pool, with body shame and a lack of privacy being the two most common causes for women’s discomfort in their swimwear. 

Also, 59 percent of UAE women aged 18 to 42 feel the media portrays female swimmers in an unachievable body ideal. 

It is in wake of such statistics, that Adidas decided to sponsor a survey by YouGov, as part of its wider “Watch Us Move” campaign, to get an even understanding of the physical, emotional, and cultural hurdles to sports participation.

When the study revealed the hurdles that hinder women from participating in swimming, the mega sports company decided to create a line of swimwear based on community involvement. 

Joao Medeiros, executive creative director at Havas Middle East, in an interview, said that the concept of a liquid billboard was born to literally give women a spirit of independence and freedom. 

Fabio Silviera, general manager at Havas Middle East, said – 

“Of the three ideas pitched, the swimming billboard was the one that Adidas immediately bought into. They were fully supportive, which made us believe that OK, we can pull this off. “

The swimming pool billboard is five meters high and three meters deep, and it is made of strengthened transparent acrylic and holds 11,500 gallons of water (the equivalent of 163 bathtubs). The crew put a camera inside the pool to broadcast live footage to the city’s largest digital display, allowing a broader audience to see the action.

Giovanna Altomare, marketing operations manager at Adidas said –  

“We loved the creative idea because our whole point was to inspire the women in Dubai (and hopefully all around the world) to take a leap of faith and embrace the water.” 

He further commented on the swimmable billboard  – 

“So the idea of this billboard that has real women swimming inside, showcasing the movement of the water in front of people in a public space, was really driving our objective.”

Women of Dubai were asked to join in a dive “beyond the surface” to reaffirm the brand’s global effort to guarantee that sport is inviting to everyone. 

Adidas ambassador and amputee triathlete Dareen Barbar, who is also a Guinness world record holder, and Adidas ambassador Raha Moharrak, the first Saudi Arabian female to climb Mount Everest, were among the inspiring women who made the public plunge into the liquid billboard.

The content from the liquid billboard was shown live on a digital screen above the famed Dubai Mall ice rink, close to the Adidas flagship store, allowing customers and mallgoers to participate in the experience.

In a conservative landscape like the UAE, such a swimmable billboard is more than just an ad – it symbolizes the need for inclusivity in sports and otherwise for women. 

Success Story Of First Programmatic Campaign In Gulf!

One of its kind and the most awaited event in the history of advertising took place in Sheikh Zayed Road. Sheikh Zayed Road is the most iconic and busiest road in Dubai. The event was an Out Of Home campaign by The Trade Desk and L’Oreal recorded by BackLite Media.

James Harrison, The Chief Commercial Officer at BackLite Media, shared a post on his LinkedIn profile congratulated all involved in the campaign over its success.

“Something I’m very proud of and really excited to share. Back in March, we recorded a first for the region. In collaboration with The Trade Desk, Marie-Christine Kienlen, Morgane Desessard, UM MENAT, the guys at L’Oréal and through the efforts of our fantastic team here at BackLite Media with Ashin John at the forefront. We launched the first Programmatic Out of Home campaign on Sheikh Zayed Road, the busiest and most iconic road in Dubai.”

The event was the first programmatic DOOH campaign launched in the Middle East, and because of its huge success, it is inevitable to see more such events in the future. The Trade Desk has already started strengthening its bonds with the local brands active in the Middle East.

James Harrison further stated that “ I salute all involved, for taking this step and showing the region what can be done through Data-Driven Out of Home. It’s the first step of many, and we’ll be along for the ride, helping the market understand the importance of data when planning Out of Home.”

With the help of this campaign, L’Oreal successfully reached 1.4 million individuals. L’Oréal, was able to target audience groups by geography using The Trade Desk’s platform, based on where programmatic DOOH was accessible. 

“We have invested heavily in our data analytics platform, BackLite Intelligence, and will continue to do so, to provide a robust and transparent platform to plan and buy programmatically,” stated James Harrison.

Amazon.sa is about to Replace Souq in Saudi Arabia

Highlights:

• Amazon.sa has been launched in Saudi Arabia replacing Souq.
• The eCommerce giant is operating three fulfillment centers and 11 delivery stations with a workforce of more than 1400 across Saudi Arabia.
• All existing Souq customer credentials, wish lists, delivery addresses, payment methods, and customer support queries have been converted to new Amazon.sa accounts.
• In the wake of the pandemic, eCommerce is booming in the Middle East and this online store brings Souk’s local know-how and Amazon’s global experience.

Amazon and Souq announced the launch of Amazon.sa in Saudi Arabia to replace Souq.com. This move came after a year after Amazon rebranded Souq to Amazon.ae in the UAE and 3 years after the e-commerce platform was acquired by Amazon in a deal worth $580 million (Dh 2.13billion).

Ronaldo Mouchawar, founder of Souq and now the Vice President of Amazon in the Middle East and North Africa commented on the launch, said,

“Today marks a key milestone … with Amazon.sa, we want to provide what customers have been asking us for the ability to shop a broader selection of both local products and international goods from Amazon.”

He further added,

“Partnering closely with our local and global sellers, we will continue to delight customers in Saudi Arabia by growing our product range while ensuring great prices, fast delivery, and a convenient and trusted shopping experience.”

Shoppers in Saudi can enjoy free next day deliveries on orders above Saudi Riyals 200(Dh196) or can opt for paid same-day delivery to the selected areas of the kingdom. However, Amazon Prime is not yet available on amazon.sa yet. Customers will be able to shop in Arabic or English on both the Amazon shopping app and website.

Shoppers can search for products and pay in local currency or credit/debit cards or opt for cash-on-delivery options and make installment payments from select Saudi banks.

Rafid bin Amin Fatani, Amazon’s head of public policy in Africa and the Middle East said,

“As we launch today, thousands of Saudi businesses use Amazon.sa to reach their customers and we look forward to growing this number further in the coming years.”

Expansion on cards

The Saudi eCommerce market is growing rapidly and is anticipated to surpass US$ 25 Billion by the end of the year 2026.  Amazon is building a local logistics and operations network spreading across the kingdom. The company announced a new 226,00 square-foot Jeddah facility and Saudi women will make up approximately 40% of the workforce.

This partnership will encourage Saudi consumers to move further towards digital payments. Ziyad bin Bandar Al-Yousef, managing director of Saudi Payments said,

“This new partnership with Amazon will only serve to strengthen the kingdom’s digital transformation in the payments sector.”

Learn more: Adimo Joins Forces With FutureTech, To Create A True Commerce

Nisnass Will Be Winding Up Business By July 16

Due to the severe damage done on the retail market by Covid-19, another e-commerce has to shut down its business.

Nisnass, a beauty and fashion venture from Al Tayer Insignia, recently announced that they no longer be operating from Thursday, June 16. Therefore, it is offering a 90% discount on its products.

Image credit -Al Tayer

However, Ounass, the sister company of the Nisnass, will still be fully operational.

Nisnass started its journey in the e-commerce market in the month of January, the year 2018. Nisnass started its user interaction with a mobile application. Therefore, it made sure to provide the users best on-hand experience, in terms of online shopping. Later, it also expanded the market with the help of a desktop website.

They had a brilliant strategy in terms of delivery! They delivered the product within 2-hours if in Dubai. Also, they assured a next day delivery in all over UAE.

Collection on the website offered the best products and services. Their wide variety range of products, extending from men to women and even for kids. The product range also offered beauty products, homewares and clothing.

In an email, Al Tayer announced the closure, stating: “As with many start-ups, we are compelled to continuously review our trajectory and focus our resources towards achieving our mission in the most effective way”.

They further added, “Nisnass has played an instrumental role in our evolutionary journey and has valuably contributed to the maturity of our organisation and the growth of our digital team.”

https://www.instagram.com/p/CBas_GIJeza/?utm_source=ig_embed

Although, they provided no specific reason for the sudden closure.

However, according to Al Tayer, they would be refocussing their “talent, absolute focus and resources into accelerating the successful growth of Ounass as the leader in the Middle East online luxury sphere”.

The news of the closure was sudden, and disheartening for the customers. Earlier, The Modist, Dubai e-tailor had to close its business due to the global crisis. They were operational for 3-years and closed their business, two months ago.

Where Do These Global Companies Stand At The End Of Q1: Performance, Insights, And Statistics

We bring you insights and earning calls on various media companies, publishers, agencies, brands, and tech companies performing on a quarterly basis. The iteration focuses on media companies’ financial performance in the 2020 first quarter and taps all the vital data.

Q1 2020 earnings and performance

Though the waters are choppy ahead, we are optimistic that the worst is behind us and have learned to live with the new normal. Consumer habits are changing and the future is more accelerated towards the digital economy. The media landscape has changed especially the TV front and the focus is on opening businesses again with advertising driving the demand.

Q2 Outlook

Q2 advertising for publishers is estimated to be significantly down as much as 25-30% Y-o-Y and for some even 50-55% down. Few companies like Facebook, Snap, Dotdash expects Q2 revenue to be flat or slightly up Y-o-Y. Here are a few key points to consider:

• Google revenue declines by 15% year- over -year, though search activity increased. Advertising spends decreased due to coronavirus recession. However, other advertising mediums are growing like connected TV, ads in video games, or ads in video conferencing. 
• International TV ad sales are down by 30-35% Y-o-Y whereas programmatic revenue decreased by 40-45%.
• Performance ads are down year-over-year and demand from industries like restaurants, travel, retail, auto, and luxury has declined.
• Some advertisers seek opportunities and increase spending in financial services, insurance, telecom, technology, streaming services, and app downloads. Gaming and streaming are gaining a strong foothold and permanently taking a share of our time and wallets.
• CPM’s down by almost 50% giving an advantage to advertisers for huge bargains. New and existing advertisers are looking to acquire new customers at a lifetime low value.
• With no new live events expected on TV  till September/October, it will boost the growth of CTV.
• Attribution for marketers is easy as most sales are online than in-store. The animation is expected to be robust in Q3 and Q4. 
• 90-95% workforce for media companies are operating from home and CMO’s can justify spending using data-driven advertising with trackable ROAS.

Let’s take a look at the financial report card of the global giants.

The Trade Desk

The opening remarks from the trade desks on the present scenario are as follows – Programmatic’s greatest feature is ‘Agility’. One can easily start and stop the programmatic campaigns, unlike linear television. Early April witnesses advertisers stopped/pause ad spend in certain verticals especially travel and remained active in health, technology, games, home, and garden.

However, by mid-April year-over-year spend decline stabilized, and as the month progressed things started improving. Advertisers were trying to adapt to the present environment. For instance, restaurants changed their messaging to “We are open” or “We deliver.”  Consumer products focused on pantry loading and travel companies planned to waive off cancellation fees for bookings. Basically, advertisers started to strategize on how to run businesses on the other side of the pandemic. Now, every company is trying to work out an advertising strategy to connect to consumers and gain share once the economy gets going.

CTV is a clear winner as linear TV’s life is shortened. Unlike traditional TV ads investment where brands and agencies commit billions of dollars without knowing the content and audience, they have the freedom to be more deliberate, liberal, and agile on CTV.

Roku:

• Pandemic has accelerated the shift to streaming by viewers due to excellent content and value.
• In the short term, the video advertising business has slowed down due to budget cuts and low spending by advertisers.
• In the streaming business, active accounts grew roughly 38% Y-o-Y with an increase in new accounts of more than 70% Y-o-Y. 
• Streaming hours grew roughly 80% in April and the increase in streaming hours per account is approximately 30%.
• It is estimated that ad business will grow at a slower pace and gross profit margin will be lower than expected for the year. 
• The behavioral changes of TV ad buyers are positive in the long-term and more people are expected to stay home to control spending in the light of economic hardships and the shift to streaming business will grow further.

Google: 

• In March there was a sudden slowdown in ad revenues owing to COVID 19 and lockdown orders. The first two months of Q1 reflected strong growth. Google search and other advertising revenues generated $24.5 billion, up 9% Y-o-Y.
• After the 2008 crisis, the Google search can be adjusted easily-quickly turn-off and back on which is cost-effective and ROI based. At the inception of the coronavirus crisis, users’ interest was more for information on the virus and non-commercial topics providing less opportunity for monetization. 
• Q2 looks difficult for the advertising business. 
• YouTube advertising revenues were up 33% year-on-year to $4 billion however there were different performance trajectories for direct response and brand advertising.
• Direct response continued to grow throughout the quarter but brand advertising growth grew for the first two months of the quarter and declined in March. This resulted in the slowdown of Youtube ad revenues by the end of March.
• Similarly, networking ad revenue was $5.2 billion, up 4%Y-o-Y for the first 2 months of the quarter, and declined in March in the low-double-digits year-on-year.

Spotify:

• Ads are a small part of the business, nearly 10% of the overall revenues. Therefore it is less impacted compared to other businesses.
• From a long term perspective, it will be an opportunity to move from linear to on-demand due to COVID 19 crisis.
• It is suspected that advertisers will move from pure reach to more measurable ad formats -mostly analog ad formats.
• The conjecture on advertising and consumption front is what is already happening of linear shifting to digital.

Learn more: Spotify Adds $1.7B To Market Cap In 23 Min Post A Deal With Joe Rogan, World’s Leading Podcaster.

Rubicon:

• The first half of April’s revenue was roughly 30% down until it showed signs of stabilizing in the second half.
• CTV continued to grow at a slower rate in April with a Y-o-Y increase of nearly 10%. Ad slot availability grew by roughly 25% compared to pre-COVID 19.
• Being an omnichannel SSP there has been diversity in ad categories and even more after the merger with Telaria. Certain verticals were highly impacted like travel in entertainment but e-commerce, technology, and direct-to-consumer were benefitted. 
• Upfront deals are canceled and focus is shifted to spend from linear to the spot market that programmatic serves.

Microsoft: 

• Reduction in ad spend affected Search and LinkedIn business and assumes that the advertising spend will not improve in Q2 as well.
• Search revenue ex-Tac increased by 1%.

Apple Advertising:

• The economic slowdown and uncertainty on business reopening have impacted the advertising business – which is the sum of App Store search ads, Apple news, and third party agreements on the advertising front.
• This slowdown and uncertain future will have a strong effect on the Service business for the June quarter.

Verizon:

• Owing to the COVID-19 crisis, ad revenue declined by 10% in the second -half of March and the rate of decline only increases in April.
• Industry forecasts a fall of 20-30% in digital media and Verizon media results are likely to be similar.
• It also experienced a decline in advertising and search revenue due to hold back or cancellation of campaigns by advertisers and users searching for fewer commercial terms providing less opportunity for monetization.
• Finally, some staggering numbers were seen- 200% up on gaming, 40% up on video, and 10 times up on the collaboration tools. 800 million calls a day, is double the amount on Mother’s Day, the biggest day of the year.

Netflix:

• Increase in subscriber growth in March and is a pull forward for the rest of the year leading to an assumption that subs will be light in Q3 and Q4.
• Filming is stopped globally except Korea and Iceland.
• Customer services are fully restored with 2000+ agents working remotely.
• With the lockdown orders coming into effect in LA, animation production is up and working from home whereas the post-production of 200+ projects is in pipeline remotely.
• Series writers’ rooms are operating virtually.
• Netflix has invested in Open connect, a pioneering cache system that puts content library as close to members’ homes as possible.  This enables ISP’s to run their network efficiently and at a lower cost. However, some countries networks may face issues due to the increasing usage of the internet.

Omnicon

• The company doesn’t collect weekly revenue numbers by the agency and roll them up at the  Omnicom group level.
• Q2 downfall is expected in double digits and year-on-year revenues will be down.
• The future is challenging but the company expects to get many of those people back as they move into the year ahead.

Learn more about the quarterly performance of other media companies: Financial Report Card Of The Global Giants And Industries In COVID-19

Noise-O-Meter By Bose Rewards Rising Noise Level With Discounts On Its Headphones.

Wunderman Thompson and Bose launches Noise-O-Meter to bring noise-cancelling savings to loud homes.

The new normal for millions of office goers is Working From Home (WFH) owing to COVID-19 pandemic. Many are able to maintain their productivity while working from the home offices but it may not be true for all. The volume indoors can be so high that the streets outside may sound calm and quiet.

To combat this cacophony, Bose is taking a singular approach and offering savings on its newest and innovative noise-cancelling headphones: The louder your home office, the larger your discount.

The new video ‘Noise-o-meter’ is developed by Wunderman Thompson, Dubai, and launched it in UAE. It measures ambient noise levels and instantaneously converts the decibels into discounts.

Bose Noise-Canceling Headphones 700 was launched in a new era of audio technology. Bose partnered with Wunderman Thompson Dubai, which engineered a unique algorithm for interpreting sound data.  Thus, offering Bose fans a playful, enriching, and rewarding way to get their hands on these unrivalled headphones. The video ad is a blend of creativity and innovation.

Pablo Maldonado, Executive Creative Director at Wunderman Thompson Dubai, explains:

Unwelcome decibels are everywhere, from the whooshing hairdryer to that rattling washing machine and those boisterous neighbors. We wanted people to have some fun even as they save more and bring the calm inside. What makes Noise-O-Meter extra rewarding for us is the fact that it was dreamt up and brought to life from our home offices!

Project Agora Partners With Taboola For A New Native Content Solution- ‘Explore More’

Publishers have a new tool in their monetization kitty with the launch of Project Agora’s new Native Content Solution, Explore More.

Over 15,000 websites use Project Agora’s Native Content feature in partnership with Taboola to drive revenue, increase engagement and page views, and acquire new customers.

What is Explore More?

‘Explore More’ is designed to make mobile users, who are visiting the publisher’s site directly from social media and apps to stay longer and re-engaging them before they exit with the relevant content recommendation.

Explore More serves organic and sponsored content. However, they feature 70% organic content which increases organic re-circulation and improves revenue.

How Beneficial is it? 

Explore More has impressive results on smartphones and Tablets.

On Smartphones, it brings 60% uplift in RPM (Revenue per Thousand Pageviews) and 100% uplift in Organic CTR whereas, on Tablets, it brings a 45% uplift in RPM and 30% uplift in Organic CTR.

How to Use it?

It is simple to use for publishers already working with Project Agora by just adding the Explore More feature to the website. Project Agora’s expert team will undertake all the processes, and there is no work needed from the publisher to start seeing immediate results. 

Project Agora’s Publishers such as protothema.gr, alon.hu, a1.ro, alwatanvoice.com have already upped their game by implementing Explore More on their mobile websites

Dimitris Tsoukalas, Regional Director MEA, Project Agora said,

“More than 19 of Project Agora’s publishers, in the Middle East and Africa, have already upped their game by implementing Explore More on their mobile websites. In their battle to retain users for as long as possible and increase ad-revenues, Explore More is a no-brainer, quick win for publishers.”

Also Read: Project Agora Co-founds the New EMEA Video Advertising Platform- Union

Omnicom Media Group MENA To Provide Complimentary Media Space To Charities

Omnicom Media Group MENA has decided to work together with regional media owners in the Middle East to provide complimentary media space to its long-standing partner charities. This initiative is a part of the company’s COVID-19 relief efforts. This noble act will help Dubai Cares, Gulf for Good, and Médecins Sans Frontières to reach out to a larger audience with their call to action. The COVID-19 campaigns are mainly aimed at education, health, and critical support for people especially children who are in need in the region and beyond.

The response from the media industry is astounding. The media partners currently include Backlite Media, Digital Tree, DMS, Elevision Screens, Eye Media, Future Tech, Group Plus, Maddict, MMP, Reach MENA, and Snap Inc. They have offered free media space to promote various charities and draw support for their causes. Omnicom Media Group MENA also provides creative support.

Omnicom Media Group MENA has shared a long-term relationship with these three non-profit organizations and supported their causes over the years. The latest initiative is a step to ensure to get the means for the mission of these charities towards the community continues when donations are down due to coronavirus crisis.

Mario Stephan, Executive Director MSF UAE said,

“This pandemic is like no other we’ve seen in modern times, impacting our patients, our staff, and our programs. Only together can we muster hope to get through it successfully.”

He further added,

“We’re very grateful for this initiative as it will help drum further support for our patients. It’s important we never lose sight of the less fortunate than ourselves, even now.”

Alanna Turpin, Sustainability Lead at Omnicom Media Group MENA added, 

“Our industry has a very powerful talent that’s acutely needed right now. It’s the ability to raise awareness, rally and move people to achieve great things through collective action.”

In this crisis, it’s about saving people from illness and poverty. It’s urgent our charity partners get the resources they need to alleviate the suffering. Media owners with available advertising inventory they wish to commit to this effort can contact us at CSR-MENA@OmnicomMediaGroup.com”.

IAB GCC Report: Ramadan Budgets Shift Towards Performance based Ad Spends

Advertisers are changing their digital ad spend due to the ongoing coronavirus crisis affecting the businesses and the economy. The Dubai based Interactive Agency Bureau(IAB) that empowers GCC based media and marketing industries surveyed the marketing teams of nearly 30 Agencies and Clients between April 6 to  April 12, 2020, for the impact of COVID-19 on Advertising. 

Here are some  main points from the report:

The findings suggest a huge downturn with 48% of respondents expect less than 30% of budget cuts in April and 41% of respondents see a decline in ad-spending or paused post-June.

With the Holy month of Ramadan expected to begin within weeks, there are still 34% of respondents who are yet to take decisions on Ramadan budgets while 51% are unsure about the directions of second-half budgets in this unprecedented period. This suggests that the majority of marketers are in ‘wait-and-see’ mode.

The report also states that 59% of respondents are suggesting that they will significantly increase the ‘Performance-based’ ad spend. This indicates marketers are in favour of Performance media in the second half. 

Even though advertisers might be working on leaner budgets but are opportunistic to see 17% growth in Digital display in the second half. They also expect a rise in the audience and programmatic buying.

Lastly, 77% of respondents see COVID-19 will have a significant impact on the MENA advertising market than the 08/09 financial crisis.

Take a look at the pictorial images of findings and methodology from the report.

Image Credit:CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

Image Credit: CampaignMe

There is a wave of optimism about the second half right now and are looking ahead of a post-pandemic world whenever it is possible. Definitely,  there is a pendulum swing in the minds of advertisers whether to decrease ad spend or pause it entirely to what we hope for a clear picture very soon.