The use of the internet has increased as never before in recent years. The most cost-effective way to support any company right now is through digital advertising. The United Arab Emirates, as well as the other GCC participants, have not been forgotten. According to various estimates, the Middle East and Africa are among the fastest-growing areas in terms of digital marketing.
This essay offers an in-depth examination of how advertisement in the United Arab Emirates has evolved over time. We'll send you an overview of recent developments and where the country is right now. We'll also look at the potential of digital ads in the UAE in terms of developments and growth rates. You should have a good view of the industry in the Emirates by the end of this post, and you should be able to determine for yourself which promotional path to take when we analyse the results of both of these choices.
Digital Advertising Trends Around the Globe
For several years, advertising has been the most important element in the selling of products and services. And if you have a fantastic product of superior content, it must attract the right kind of customer, which advertisement or promotion will help with. As a result, companies now spend much more money on advertisement than on product development. According to an eMarketer study released in April 2017, global paying media advertising expenditures would rise to $583.9 billion.
Google and Facebook, the two largest names in digital advertising, are the industry leaders. According to a survey undertaken by the company eMarketer, they are expected to account for more than half of all sales globally, and more than 60% in the United States. In China, Baidu dominates the market, while some local media networks fight for show market share.
The Middle East's Digital Advertisement
Experts also projected that digital ads will expand rapidly in the Middle East and North Africa in recent years. Let's take a peek at the MENA region's digital ad spending. In the global programmatic advertising network market, the Middle East and Africa (MENA) are expected to expand at a faster rate.
Digital Advertising in the United Arab Emirates
The UAE, and especially Dubai, serves as the region's commercial hub. In a plan to promote a product or service, advertising is critical. The President appoints the National Media Council (NMC), which licences all newspapers and grants press authorisations to editors. Press material and forbidden topics are also regulated by legislation. Everything imported media were subjected to a content analysis and cut by the National Media Council. This includes businesses in free zones like Dubai Media City (DMC), Ras Al Khaimah Media City (RAK Media City), and twofour54 in Abu Dhabi. Marketing and communications services, mass media, enterprise and information services, recording labels, multimedia/Internet, broadcasters, and entertainment companies are all expected to flock to these free zones. In addition to tax breaks, businesses operating in these free zones have been assured that their news and information content would not be censored by the government if they follow those comparatively liberal rules. The material does not criticise regional leadership, disparage religion, incite religious or ethnic hostility, or infringe on a person's privacy. In any advertising campaign, U.S. businesses are highly encouraged to recognise cultural sensitivities.
Online advertising is becoming more common throughout the country, and it is now the second-largest revenue-generating advertising medium after newspapers. Residents of the UAE spend an estimated 3 hours and 11 minutes a day on social media, the highest average in the MENA region and the sixth highest globally. This is owing to the UAE's 173 percent smartphone penetration rate, which is the highest in the world.
Through several changes in the advertisement market, the United Arab Emirates has carved out a niche for itself. It has strengthened its role in the world economy by introducing free zones devoted mainly to the broadcast and advertisement industries. Given the current level of government and entrepreneur funding, it will continue to achieve higher goals.
Analysing the Digital Forms used In the United Arab Emirates
Different methods of digital ads were used by the Emirates. They have everything from radio and television to SEO and SEM.
Owing to its simplicity and reputation, social media has largely taken over the market and is now used by the majority of advertisers. The social media craze is as popular as smartphones, and anyone who owns one will almost probably have one or more social media accounts. Several channels are used in social media marketing. Facebook, Instagram, Pinterest, and LinkedIn, among other video marketing platforms, are the most prominent today. Yahoo and Twitter both have devoted followers. As both millennials and generation Z become increasingly embroiled in this never-ending internet, the prevalence of these types has grown. Marketers have taken advantage of this ability by maximising ad placement on these sites. You will almost never leave a social media site without encountering many commercials – Google makes millions off this.
Email marketing is another common method of B2B marketing that is now approaching a record number of B2C customers. Regardless of which website you visit right now, you will be given the option to subscribe to their services in order to receive valuable email alerts or even download helpful eBooks. When it comes to email marketing, you can still rely on the clicks to turn into purchases if you do it correctly.
Advertising and Social Media's Effect on UAE Businesses
Any year, it is expected that the number of internet users will increase by 13%. With such a sharp spike, it is only sensible to continue investing in various types of advertisement in the UAE. Pure social media marketing firms can provide businesses with complete access to the global audience. With almost 99 percent of the UAE population online, it would be difficult for the business to avoid successfully prying the markets, unless you do it incorrectly.
In addition, digital marketing in the UAE will assist you in focusing on your target audience. Whether you're using trends or geography to inspire a specific buyer, you're more likely to convert your ads to revenue once you've found your target group. This reduces the need to invest vast quantities of money contacting a wide market using conventional approaches. Nonetheless, since "everyone" has a smartphone or other way of accessing the internet, the web market is far broader.
UAE National Media Council
The National Media Council (NMC) is a federal agency created by Federal Law (1) of 2006, which amended Federal Law (91) of 1972 regarding the mandates and specialisations of ministries and ministers.
The NMC grants licences to media organisations and monitors all written, distributed, and broadcast media content produced in the UAE, as well as content imported from other countries. The NMC is required by law to:
Create a media plan for the UAE.
Draft media legislation to ensure that it is carried out.
Coordination of media policies between the Emirates, in compliance with the UAE's rural and international policies.
Ensure federation support and foster national unity
Both media outlets in the UAE must adhere to the NMC's standards and regulations, as well as include facts and statistics as required.
The NMC published an official guide for ads in 2018, with the aim of explaining recommendations for the advertising industry in the UAE and protecting the public against advertisements that do not adhere to relevant requirements.
All specialised ads, such as those for medication, food, drugs, sales promotions, real estate, special incentives, or colleges and educational institutions, requires prior approval from the appropriate authorities. Aside from that, the quality of the commercial must –
Not endorsing astrological forecasts or the use of black magic.
Meet the requirements and instructions for the UAE flag, national anthem, and national symbol.
Respect IP rights of others
Advertising of alcoholic drinks, cigarettes, narcotic drugs, smoking, or all other associated items or services is forbidden.
Don't be vague, and don't have any fake, deceptive, or dishonest information.
Not to use photographs that are fabricated, imitated, or infringe on intellectual property rights.
Not cause confusion or misperception of other items or practises
Include the Emirati dialect or the standard Arabic script.
Determine who the advertiser is.
How do you start an advertising agency in the UAE?
Regardless of the market in which it works, any organisation can work on ways to advertise its goods and services. Many times, the marketing campaigns and promotional techniques are developed using the company's money. Selling a company's product or service is effective in attracting the desired exposure and meeting as many customers as possible. To open an advertisement agency in the UAE, the organisation must adhere to the Advertising Standards, which are published in the official gazette of the UAE. The Information and Human Development Authority (KHDA) in Dubai has released these requirements, which mandate all marketing companies to register their ads with the Authority's Regulations and Enforcement Committee.
Activities allowed under Advertising in the UAE
The KHDA proposes the following strategies for supporting advertisements:
Billboards
Printed advertisement
Radio and Television ads
Email
Multimedia ads
Posters
Before establishing an advertisement agency in the UAE, the KHDA imposes such requirements on the advertiser:
They must show respect for religious beliefs
They must respect the privacy of people
They must not be offensive
They must be impartial
They must present accurate information
They must include the name of the creative agency
PROCEDURE TO SET UP
The measures to file an advertisement company are as follows:
Fill out an evaluation form and send it to the Department of Economic Development for preliminary approval.
To obtain an advertisement licence, mention the practises that the organisation engages in under the banner of advertising.
Your agency's trade name should be registered.
To register a company, fill out an application and submit the required documentation.
It will be sent to DED until you have received all of the paperwork and permits, and you will get a licence and a certificate of incorporation after making the final payment.
PROCEDURE TO OBTAIN A LICENSE
To start an advertising company, you must first acquire a licence. The protocol is quick and easy to execute.
Obtain the Initial Approval Certificate. This can be accessed by sending the requisite documentation to the Department of Economic Development, such as a copy of one's passport and identity card.
Rent or lease an office. Any authorization under DED includes a minimum of 200 square feet of office space. (Ft.) It also depends on the activity; some need 500 square feet. The rent for an office varies depending on the location or region.
For all of the partners present at the court, sign the Memorandum of Association.
The Chamber of Commerce and Industry, the Emirati Municipality, the National Broadcasting Board, and the Department of Economic Development must all grant an advertising licence.
You will legally begin ads in the UAE until you have acquired the licence.
Dubai Media City is a free zone in Dubai
Dubai Media City, a free zone in Dubai, was developed in January 2001 as the region's leading media centre. The free zone is home to a media culture of over 20,000 people who work for over 2,000 regional and foreign media firms, many of whom are constantly expanding the boundaries of innovation. Following the start of DMC, the free zone soon established itself as a global media centre. It is also a leading free zone devoted to facilitating and supporting the Middle East's media and advertisement sectors. It offers these businesses a market climate that helps them to network, cooperate, and operate openly with other companies across the entire value chain while taking advantage of free zone benefits.
BENEFITS
100% foreign ownership
100% repatriation of profits and capital
Companies in DMC are global giants and well-known both regionally and internationally
One-stop-shop service for various government issues
Zero corporate tax for 50 years
Zero import duties and no currency restrictions
PROCEDURE
Apply to the free zone authority for initial approval.
To register a firm, send legal documentation.
Make the required payment and sign and return the Customer Confirmation Letter.
The Memorandum of Association must be written and signed.
Sign the lease and the staff sponsorship deal after depositing the share capital.
There are over 1,300 Dubai Freezone companies in the Dubai Media City Free Zone. This location is open to every form of media company. This is why entrepreneurs looking to form a company in the Dubai Free Zones chose this place if they want to launch a media-related company.
Media-Free Zone in RAK
The Media Free Zone in Ras Al Khaimah is another free zone devoted to media and advertisement. In the year 2006, it was created. It is thought to be Dubai Media City's direct competitor. Since Dubai is a relatively expensive area, they are positioning this zone as a good option for investors looking for a lower-cost option. In terms of economic development, RAK Media City has developed at an exponential rate in recent years. Its business-friendly climate laws, which favour media companies, have made it an ideal location for the development of the media and entertainment industries. Tv corporations have full creative control of their films, radio broadcasts, and news shows.
RAK Media City, like every other free zone, has procedures that people can follow in order to start a business in the UAE. Apart from the primary benefits presented by every free zone in the UAE, there are a few additional advantages to developing a company in this free zone.
Advertising practises that are both cost-effective and diverse.
The process for forming a business is simple and painless.
SMEs and startups will benefit from premium value-added bundles.
A professional and welcoming expert support team will assist you with the application process and offer ongoing business assistance.
CONCLUSION
In the United Arab Emirates' advertisement business, there are a few things to bear in mind.
Although conventional television advertisements will continue to dominate the advertising industry in 2019, the digital ad spending market will continue to grow in 2019 with a huge potential to keep up with global market rates in the coming years. The area can't seem to keep away from lucrative ads.
Customers have continued to seek reimbursement based on performance, as well as enhanced market awareness and analytics. Even from cutting-edge agencies and ad buyers. This means the entire industry will transition to more accountable digital and advanced programmatic ads.
YouTube Ads is one of the most recent developments in the Gulf Cooperation Council (GCC), and it is expected to capture a large portion of TV advertising spending in the coming years.
In the MENA field, the UAE continues to lead in digital ads. The majority of Dubai-based local and foreign brands are actively invested in digital. The agencies, on the other hand, outsource a large amount of technological and artistic jobs to Egyptian, Lebanese, and Jordanian startups.
Unfortunately, due to a lack of sophisticated tracking, programmatic technologies, and expertise, there is still a significant gap in digital advertising competence in the region. When it comes to search engine marketing, some of the world's most well-known brands continue to rely on the United Kingdom's support. However, there are several highly specialised regional agencies that need to spend more in developing dynamic digital advertising capabilities.
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