Professional Documents
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Winning in MENAs New Media Scene (Booz & Co.)
Winning in MENAs New Media Scene (Booz & Co.)
Jayant Bhargava
Chady Smayra
Adel Belcaid
Winning in MENA’s
New Media Scene
Contact Information
Beirut
Gabriel Chahine
Partner
+961-1-985-655
gabriel.chahine@booz.com
Chady Smayra
Senior Associate
+961-1-985-655
chady.smayra@booz.com
Dubai
Jayant Bhargava
Principal
+971-4-390-0260
jayant.bhargava@booz.com
Adel Belcaid
Senior Associate
+971-4-390-0260
adel.belcaid@booz.com
Exhibit 1
MENA Consumers Are Shifting to New Media at Accelerated Rates
Digital Media
2007 90
2008
78 80
77
58 58
50 48
40 39
33
28 28
23
21 20 21
15
13 13
3 4
Note: Survey participants were asked the following questions: “Which of the following do you usually use to view media and entertainment content?”
“In the coming year, which of the following are you most likely to use in order to view media and entertainment content?”
Source: YouGovSiraj UAE and KSA Internet User Profile Survey
Exhibit 2
Broadband and Mobile Connections Are Expected to Grow Strongly in the MENA Region
Broadband Connections1 in the MENA Region, 2009–14 Mobile Connections in the MENA Region, 2009–14
(In Millions of Lines) (In Millions of Lines)
CAGR
132 354
+8% 340
323
300
271
CAGR 89 237
+60%
58
37
23
13
2009 2010E 2011E 2012E 2013E 2014E 2009 2010E 2011E 2012E 2013E 2014E
Penetration2 4% 8% 12% 19% 28% 41% Penetration2 82% 92% 100% 106% 110% 112%
1
Includes fixed and mobile broadband connections. Fixed connections account for 47 percent of the total in 2009 and 17 percent in 2014.
2
Penetration is calculated out of the total MENA population, which is expected to increase from 295 million in 2009 to 322 million in 2014.
Note: The MENA region includes Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, the United Arab Emirates, and Yemen.
Source: Informa (WCIS, WBIS); Booz & Company analysis
Exhibit 4
Leading Websites in the MENA Market Provide Truly Regional Coverage
Exhibit 5
The New Media Audience in the MENA Region Comprises Four Key Segments
CAGR
(2009–14)
249 258 5.8%
239
209 226 5.39% 5.38% 7.8%
195 5.11%
4.85% 5.05%
4.89%
30.06% 30.08% 5.2%
30.29%
30.55% 30.33%
30.90%
Note: The MENA region includes Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, the United Arab Emirates, and Yemen.
Source: AMRB Survey, Informa; Synovate Madar; Booz & Company analysis
DRIVEN REVENUE in the MENA region is primarily As that changes, revenue from the sale
MODELS generated through user fees for
content accessed through mobile
of content is likely to be overtaken by
advertising revenue, primarily to reach
devices. The need to balance consumers on mobile devices through
revenue from content with that from broadcasting, embedded content,
advertising remains a big challenge display, and search-related ad formats.
for the region’s CMT sector. In short, the regional market is wide
open for a shift to ad-supported
In part, the gap between the amount revenue, with marketing that supports
of revenue earned from fees and that platform-independent content. Instead
earned from advertising stems from a of consumers paying for access to con-
lack of viable options. Popular local tent, the coming model is for advertis-
sites lack the qualities that advertisers ers to pay for access to consumers.
consider essential; they have poor
creative design, weak content, poor The evolution of sophisticated
service levels, little user-friendliness, marketing approaches will only spur
and a lack of bilingual support. In this trend, thanks to digital content’s
Exhibit 6
Digital Ad Spending in the MENA Region Remains Below That of Developed Markets, with Room for Growth
63% 64%
51%
TV 42% 40%
35% 36%
25%
Exhibit 7
The Nature of Online and Mobile Ad Spending Will Change
25% 9% Search
9% E-mail
24% Mobile TV
29% Search
SMS/MMS 93%
15% Display
61%
36% Display/Sponsorship
30% SMS/MMS
1
Includes rich media as well as video-embedded advertising.
2
Includes video, games, and music clips embedded in advertising.
Source: Madar; Zenith Optimedia; Parc; Group M; Ovum analysis 2007; Booz & Company analysis
Exhibit 8
Both Telecom Operators and Media Companies Will Need to Forge Strategic Partnerships
to Expand Along the New Media Value Chain
Content Content Content Advertising Application Service Access Customer Care Customer
Creation and Acquisition & Aggregation Management Service and Delivery & Billing Equipment
Production Management Provisioning Terminal
Management
Traditional
Media
Telecom
Operators