Group M releases their mid-year report for the MENA region, which forecasts the future of spending in the region’s media industry for the remainder of 2020 as well as 2021. In 2019, MENA advertising spend declined by 5.8%. This year, the number is expected to reduce even further as the industry faces a dual-shock from Covid-19 and a drop in oil prices.
Retail and Hospitality sectors have been severely impacted by the disruption of Covid-19, while Lebanon’s economic crisis continues to worsen. Iraq continues to face civil unrest because of the inadequacy of state services and the lack of jobs. In North Africa, the currency faces a depreciation close to 30-40% against the dollar across Egypt and Tunisia. These conditions have forced the World Bank to slash the MENA region’s growth rate for 2020.
But not all industries are suffering from the economic impacts of Covid-19. Demand for video conferencing technologies and SVOD services have surged during the pandemic. A survey by Ipsos found that 70% of VOD users stated that their usage had increased on these platforms, and 40% expressed intent on subscribing to a new platform. The e-commerce sector continues to flourish as more and more people transition towards online shopping for almost everything. The UAE and Saudi Arabia (KSA) represent 60% of the e-commerce market in the region.
Below are the highlights of forecasted growth/decline for different marketing media channels –