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UNITED ARAB EMIRATES, July 30, 2010: Advertising spending during the key Ramadan period is expected to rise this year, reversing a drop estimated at 25 per cent last year, Middle East industry executives told The National. MBC Group, the largest broadcaster in the region, is forecasting strong growth in revenues for its MBC1 channel, which airs well known comedies, dramas, religious programmes and game shows during the Holy Month. “We are expecting a forecast two digit growth in Ramadan ad revenue on MBC1 this year versus last year, said Mazen Hayek, the group director of public relations and commercial for MBC Group.

It is a bit early to confirm this forecast bookings are still being confirmed and coming our way on a daily basis and every day counts. Ramadan is the most important time of the year for regional TV channels, with a boost in advertising as families gather in the evenings to watch big-budget dramas and comedies on television. The leading broadcasters typically earn about 30 per cent of their annual advertising income during the Holy Month.

Ramadan for MBC1 represents 25 per cent of its revenues every year, said Mr Hayek. “Ramadan is a season by itself. Yes, it falls in summer, but people’s lifestyles change dramatically and people are indoors more than outdoors, when they gather around that virtual family member, the TV.

The UAE chapter of the International Advertising Association (IAA) said last September advertising revenues were down by a quarter during Ramadan, compared with 2008. The decline came from the property sector, which contributed up to 50 per cent of media spending in the UAE in 2008, the association said.

The Pan Arab Research Centre (PARC) said Ramadan ad spending was down by 40 per cent in the UAE last year. But a 65 per cent rise in the Egypt market saw the total spend across the MENA region increase by a modest 8 per cent last year compared with 2008, PARC said. But most analysts expect stronger revenues this year. I think there will be an increase, said Elie Aoun, the MENA region managing director of Ipsos MediaCT, which tracks advertising spending in the region. A lot of stations are concentrating on Ramadan, investing in new programmes. It’s very important: one month can be as important as the other 11 months of the year together.

Sami Raffoul, the general manager of PARC, agreed there would be more spending.My impression is that yes, it will be up, because it has been on an ascending trend. The broadcasters have understood the importance of Ramadan in a very clear demonstrable way. Advertising is more costly this year and there has also been an increase in TV production costs, Mr Raffoul said.

Other industry executives are not as optimistic. Ghassan Harfouche, the treasurer of the UAE chapter of the IAA, said the market would be flat this year. My experience is that the market will remain the same. MBC Group is benefiting from this situation, but they are not representative of the entire market, he said. Mr Harfouche is also the managing director of Middle East Media Services, the division of the Choueiri Group that sells television advertising for Dubai Media Incorporated’s television channels. Other media could also see increases in revenue. Mr Raffoul said there could be slight increases in ad sales for Arabic-language newspapers. Ramadan remains a very active period for readership and advertising, he said.

But for other print media, the next two months pose a challenge.

The bottom line is that it is quiet, and that may be an understatement, said Mark Rix, the chief executive of 7DAYS and Catchpole Communications, the management company running the UAE’s free tabloid. Mr Rix said 7DAYS would go weekly after August 5 and not resume publishing five days a week until after Eid. “We took the decision five months ago that we would print 7DAYS weekly during Ramadan, said Mr Rix. There is is not really sufficient activity in the market in print to sustain 7DAYS daily. That strategy in past years has meant he has not had to lay off any editorial staff, as many other publishers have, Mr Rix said. (online)