Saudi Arabias plan to measure television ratings will provide a much-needed boost to the media landscape and advertising revenues across the Kingdom and the rest of the Gulf region, according to the Arab Advisors Group. The comments followed an announcement by the Kingdom’s Undersecretary for Information Abdul Rahman Al-Hazaa at the Saudi Advertising Market Symposium […]
Saudi Arabias plan to measure television ratings will provide a much-needed boost to the media landscape and advertising revenues across the Kingdom and the rest of the Gulf region, according to the Arab Advisors Group.
The comments followed an announcement by the Kingdom’s Undersecretary for Information Abdul Rahman Al-Hazaa at the Saudi Advertising Market Symposium 2012 in Jeddah last month that Saudi Arabia’s Ministry of Culture and Information is to set up a closed joint-stock company to measure television ratings.
The television audience measurement (TAM) contract will be awarded in April with operations beginning in March 2013.
Such intelligence will guide broadcasters to segment their content and [advertising] rates, said a spokesperson from the Arab Advisors Group.
Across the Gulf, those leading channels with the highest audiences are able to command a premium on their advertising. These channels are held by a few groups from the Gulf, namely MBC, Rotana / LBC, Abu Dhabi Media Company, Dubai Media Inc., and Al Jazeera.
The Jordanbased research and consulting company added that the move will drive competition between broadcasters in the Gulf and boost advertising revenue.
Currently, the advertising market in the Gulf States is worth SR8.4 billion (US$2.2bn), with Saudi Arabia comprising 45% of the total, according to reports.
This figure is set to grow as additional broadcasting platforms emerge in the Kingdom, such as IPTV, mobile TV, and Online streaming channels.
We believe this will drive growth in media consumption, which will drive the growth of advertising revenue generated by broadcasters. As the media market becomes more diverse, and media provision is being provided through different technologies to different market segments, advertising rates can be offered through more cost effective means and rates, which will drive non-advertisers to consider media advertising as a means to promote products and services, the Arab Advisors Group spokesperson added.
At present the Arab region ranks 12th in global advertising markets.
