UPWARD MOBILITY

REFLECTING ON THE GROWTH OF

MOBILE IN MENA

09/14

When it comes to mobile, users are

evolving rapidly, much faster than
advertisers and publishers. Here, we
analyze the market to assess what
needs to take place so that all parties
can realize the invaluable benefits of
this fast-growing technology
and habit

IN PARTNERSHIP WITH

AUTHORS
Ziad Skaff
Eric Mirabel
Dimitri Metaxas
Nadim Khouri
Qadeer Ahmed
Kinan Jarjous
Hania Mattoo
Neeraj Khanna
Google contributors
Bilal Kabbani
Layal Sawaf
COVER IMAGE Shutterstock

METHODOLOGY
This paper is based on several data
sources, including Integral-OMGs 'State
of Mobile Study' - exclusive research on
smartphone users, publishers
and advertisers.
The study, conducted between April and
May of 2014, used a face-to-face
methodology. A representative sample
of smartphone users was recruited in the
United Arab Emirates and Saudi Arabia,
with 1,000 and 800 respondents
respectively.
In addition to mobile users, key
publishers and advertisers were
interviewed to capture their perceptions,
interests and future plans with regards
to mobile media.
Other sources used: Google,
Euromonitor, eMarketer, Deloitte,
Nielsen, the International
Telecommunication Union (ITU), the
Telecommunications Regulatory
Authority (TRA) of the United Arab
Emirates and the Communication and
Information Technology Commission
(CITC) of Saudi Arabia.

UPWARD MOBILITY

EXECUTIVE SUMMARY
The growth in mobile penetration over the last few years has
been staggering, both globally and in the region. Saudi Arabia
and the UAE now have some of the highest penetration rates
in the world, reaching almost 200%. Having more than one
device is no longer the exception, its becoming the norm.
The sales of smartphones are also up, which is reflected
in the increase in mobile broadband subscriptions.
Demand is rising as users seek access to social media and
web messenger services. Mobile devices have become
ubiquitous in peoples lives and feature heavily in their
daily time consumption, overtaking laptops and TV. As
brands seek to engage with consumers in today's multiscreen environment, they will be heartened by the fact
that consumers respond favorably to advertising on this
medium. Ads on mobile devices are perceived in a more
positive light than ads on laptops, desktops and TV.
The mobile habit is transforming more than media
consumption, as it is altering purchasing habits and
shortening the path to purchase. Around a quarter of
online transactions in the region are now done through
apps, and mobile commerce is expected to reach US$5
billion by 2015, a third of the total e-commerce value.
In spite of this, there is a lag in the adoption of mobile
between consumers on the one hand and advertisers
and publishers on the other. Advertisers do see the
potential of highly targeted messages delivered to their
consumers at the right time and the right place, yet don't
feel ready to embrace this platform because of a lack
of education and understanding of all its dynamics and
metrics. This is changing however, as publishers prioritize
detailed analytics and reporting to quantify the value
of this form of advertising. By 2020, 58% of all digital
investments are projected to come from mobile, indicating
that brands will fast-track their adoption of this medium
and reflect market realities better than they do today.

02 /03

UPWARD MOBILITY

1. MOBILE: A RAPIDLY GROWING MARKET

Today, the global average mobile penetration rate is
approaching saturation. More specifically, the latest
Ericsson Mobility Report states that the global mobile
penetration reached 93% in the first quarter of 2014. Our
region has also seen phenomenal development in the
sector and, in many ways, it leads the way. According to
A.T.Kearneys Mobile Economy study, emerging markets
are the main drivers of growth in mobile connections
and subscribers, with Asia Pacific and the Middle East
accounting for more than half of all new connections
between 2014 and 2017.
The International Telecommunication Union (ITU)
estimates that the mobile penetration in Saudi Arabia
and the UAE stands at 192% and 167% respectively,
meaning that mobile users in these countries have
more than one device. Euromonitor also estimates that
UAE consumers spend 6.6% of their annual income on
telecommunications, while Saudi consumers spend 5%.
This is backed by the latest report from UAEs Telecom
Regulatory Authority (TRA). Their data claims that as
of April 2014, the Emirates had just over 17 million active
mobile subscriptions, more than twice the number of
residents in the country. The Ericsson Report predicts
rapid growth in the Middle East and Africa, with mobile
subscriptions expected to rise from 1.2 billion to 1.9 billion
by 2019. This is especially evident in the UAE and
Saudi Arabia.
The growth is not just about mobile telephony
though. In the UAE, as mobile Internet subscriptions
increase, non-Internet subscriptions have decreased.
With rapidly advancing mobile technologies, the rise
in smartphone penetration is very visible. Smartphone
sales are growing rapidly in the UAE and Saudi Arabia,
faster than the global average. According to Gartner and
Independent Data Corporation (IDC), annual smartphone
sales have already surpassed those of feature phones
last year. The TRA states that smartphones constitute
about 52% of the total handsets registered in the
Emirates (Q1 2014). The Communication and Information
Technology Commission (CITC) of Saudi Arabia reports
smartphone penetration at around 49% (Q3 2013),
just behind the UAE. These figures are derived from a
much larger user base than similar studies. The growth
in smartphone subscriptions could be due to a number
of factors. Globalization, consumer demand, rapidly
growing technologies and a highly competitive telecom
environment are just a few.
Saudi Arabia and the UAE are among the
most developed and advanced information and
communication technology markets, not only in Middle
East but also in the world. In 2011, Saudi Arabia was
the first to launch the next generation 4G service
commercially and launched LTE two years later.

MOBILE SUBSCRIPTIONS BY REGION

TOTAL SIM-ENABLED CONNECTIONS
(IN BILLIONS, INCLUDING M2M CONNECTIONS)

SOURCE: A.T.KEARNEY, GSMA WIRELESS INTELLIGENCE, MACHINA RESEARCH

MOBILE INTERNET SUBSCRIPTIONS VS. NON-INTERNET

SUBSCRIPTIONS
UNITED ARAB EMIRATES
IN MILLIONS

MOBILE INTERNET SUBSCRIPTIONS

MOBILE NON-INTERNET SUBSCRIPTIONS

SOURCE: EUROMONITOR

Saudi Arabia and the UAE are among the most

developed and advanced information and
communication technology markets

04/05

REFLECTING ON THE GROWTH OF MOBILE IN MENA

2. UNDERSTANDING USER BEHAVIOR

According to our research in Saudi Arabia and the UAE, if the
majority of smartphone users own one device, 25% own at
least two smartphones. Google estimates that consumers in
the UAE have an average of three Internet-enabled devices,
while their Saudi counterparts have around two. This impacts
mobile broadband traffic, which is growing annually by
75% and 124% in Saudi Arabia and the UAE respectively,
according to Arab Advisors Group and Machina Research.
In Saudi Arabia, 71% of smartphone users have Internet/data
subscriptions, with 61% relying on pre-paid packages. The
majority of non-subscribers in Saudi Arabia are not interested
in data subscriptions. In the UAE, 69% of smartphone users
are subscribed to mobile Internet, with half of them through
a post-paid package. That said, 91% of UAE mobile Internet
subscribers still prefer to stay connected using Wi-Fi, as it is
faster and more cost-effective.
So how does the typical consumer spend their day on
mobile? Looking at our research, calling and texting are still
the primary reasons for having a mobile device, whether its
a feature phone or a smart device. However, when looking at
reasons for owning a smartphone, accessing social networking
sites and web messengers is the clear motivation. There are
over half a billion active WhatsApp users globally, including
15 million in the MENA region, with the user base in Saudi
Arabia and the UAE growing rapidly. In the Kingdom, 82% of
smartphone owners are active WhatsApp users whereas in
the Emirates, the proportion is slightly higher at 84%. Modern
methods of communication are overtaking traditional SMS,
with more than half of smartphone users accessing WhatsApp
multiple times a day.
Accessing Facebook and sending emails also rank highly,
followed by Internet browsing, particularly among the youth.
In Saudi Arabia, smartphone users are more active on social
media and buy smartphones to engage with their family and
friends. Smartphone users in the UAE also have the same
preferences, particularly Westerners and other expats living in
the country. In a nutshell, the growth of smartphones is fueled
by social media usage.

DAILY ACTIVITIES ON SMARTPHONE

SAUDI ARABIA

83%

88%

76%

WEB BROWSING

NEWS

57

79

MUSIC

GAMES

COMMUNICATION

CALLS

94%

EMAILS

90%

SMS

73%

SKYPE

48%

58%

74%

MEDIA

SOCIAL NETWORKING

TWITTER

91%

CAMERA

65%

FACEBOOK

85%

YOUTUBE

61%

WHATSAPP

82%

UPLOAD

60%

INSTAGRAM

81%

VIDEOS

57%

SNAPCHAT

69%

DOWNLOAD

47%

37%

87%

85%

77%

WEB BROWSING

61

74

GAMES

MAPS

E-COMMERCE

UNITED ARAB EMIRATES

NEWS

33%

MUSIC

COMMUNICATION

CALLS

97%

EMAILS

84%

SMS

78%

SKYPE

49%

76%

59%

SOCIAL NETWORKING

MEDIA

TWITTER

89%

CAMERA

63%

FACEBOOK

92%

YOUTUBE

62%

WHATSAPP

84%

UPLOAD

58%

INSTAGRAM

86%

VIDEOS

59%

SNAPCHAT

58%

DOWNLOAD

51%

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE

STUDY 2014

37%

Google estimates that consumers in the

UAE have an average of three Internet-enabled devices,
while their Saudi counterparts have around two
E-COMMERCE

33%
MAPS

UPWARD MOBILITY

FREQUENCY OF USAGE
SAUDI ARABIA

UNITED ARAB EMIRATES

1%
1%
4%

2%
5%

12%

25%

25%
39%

36%

11%

44%
55%

7%

34%
44%

46%

7%

57%

11%

58%

5%
3%
2%
94%

23%

18%

6%
11%

9%
8%

1%
7%

8%
52%

24%

19%
37%

32%

3%
IPOD

NETBOOK

13%

DAILY

FEATURE
PHONE

1-2 TIMES A WEEK

SMART/
WEB TV

DESKTOP
PC

2-4 TIMES A WEEK

14%

35%
28%

1%
3%
4%
3%

12%
LAPTOP

2%

21%

20%

SMARTPHONE

14%

14%
16%

19%
39%

3%

12%

11%
93%

3%
6%

82%

15%

17%
15%

40%

10%

89%

TABLET

WEEKLY

20%
16%

SMARTPHONE

LAPTOP

FEATURE
PHONE

SMART/
WEB TV

DESKTOP
PC

TABLET

3%
6%
3%

6%

6%

IPOD

NETBOOK

DON'T USE

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE STUDY 2014

Our research also showed that UAE and Saudi smartphone

users spend more than four hours on mobile, twice as much
as they do on TV. More developed markets like the USA have
not seen this happen yet, but mobile is continuing to grow. A
recent eMarketer study claims that the share of time spent on
mobile will grow by 50% globally this year alone. It is clear that
smartphones either replace or complement traditional media
as a means to access content. Regional consumers use their
tablets half as much as their smartphones and their desktop/
laptop usage is higher than that of tablets (by roughly two
hours). In the UAE, nearly all respondents claimed that
they use their phones daily in comparison to other forms of
media. The numbers are similar in Saudi Arabia. According to
Google, the amount of time spent on laptops and desktops is
decreasing, as people use their smartphones more regularly
than any other device. In 2014, 78% of people in the UAE use
smartphones compared to 71% using laptops. The numbers
are far more skewed towards mobile in Saudi Arabia (77% for
smartphones and 46% for laptop).
Unsurprisingly, respondents to our study use their
smartphones primarily for social media, with search ranking
highly in the UAE as well. When looking at tablets however,
social leads the way in Saudi Arabia whereas search is more
popular in the Emirates. This is not unexpected. We had
noticed in earlier surveys that the Middle East has embraced
social media platforms, engaging with them actively on a
daily basis.

BROWSING WEBSITES - SMARTPHONE VS. TABLET

SAUDI ARABIA

39%
30%
75%

SEARCH ENGINES

19%
9%
27%

12%

20%

30%
33%

11%

RETAIL

23%
14%
6%

VIDEO SHARING

14%

BLOGS/FORUMS

15%

SPORTS

12%
8%

HEALTH

18%
11%

FINANCE

11%
6%

TRAVEL

14%
11%

10%
11%

COUPONS/VOUCHERS

15%
9%

12%
13%

ONLINE NEWSPAPERS

11%
7%

19%
17%
13%
8%

ONLINE MAGAZINES

MUSIC WEBSITES

TABLET

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE STUDY 2014

35%

29%
16%

9%
7%

6%
3%

36%

22%
13%

BRAND WEBSITES

13%

8%
11%

SMARTPHONE

27%

SOCIAL NETWORKS

39%

39%

UNITED ARAB EMIRATES

0%
0%

54%
71%

06/07

REFLECTING ON THE GROWTH OF MOBILE IN MENA

Mobile usage has been transformed by apps, which

now dominate mobile web traffic. In fact, three-quarters
of smartphone users choose to ignore websites that are
not mobile-friendly. Apps have enabled a multi-screen
environment, in which media experiences can now be
enjoyed beyond the TV screen across a number of devices,
including mobiles and tablets.
SMARTPHONE USAGE IS INCREASING
% OF PEOPLE CURRENTLY USING EACH DEVICES

SAUDI ARABIA

11%
12%
32%

DESKTOP

LAPTOP

SMARTPHONE

46%
48%
62%

UNITED ARAB EMIRATES

2014
2013
2012

20%
28%
34%

71%
73%
65%

2014
2013
2012

77%
71%
62%

78%
69%
60%

2014
2013
2012

23%
20%
12%

2014
2013
2012

33%
32%
22%

TABLET

SOURCE: GOOGLE

Apps have enabled a multi-screen environment,

in which media experiences are enjoyed beyond
the TV screen across a number of devices,
including mobiles and tablets

UPWARD MOBILITY

3. MORE THAN A DEVICE OR A CHANNEL, IT'S A HABIT

Mobile is taking up an increasing share of individuals time
in general and media time in particular. In fact, respondents
to our study claimed that they spend most of their time
on smartphones compared to any other media devices
they own. This has led to the creation of a multi-screen
environment beyond what computers ever achieved. This
trend can no longer be ignored. According to Nielsen,
84% of US smartphone and tablet owners use them while
watching TV. This is hugely significant to advertisers, as
Nielsen also claims that dual screening is 1.7 times more
effective for brand awareness/brand recall than TV alone
in the USA.
There is a similar trend here in the region. In Saudi
Arabia, 71% of users watch TV (a majority being female)
and 81% claim they use their smartphone while watching
TV. This number stands at 86% in the UAE, higher than the
USA and Saudi figures. While watching TV, smartphone
engagement is highest during commercial breaks at
around 70%.
Whats more, mobile devices play a significant role in
the purchase decision. In the Emirates, 22% of smartphone
users follow up on a TV commercial on their smartphone.
An ad in offline media will lead 35% of Saudi smartphone
users to check it out on YouTube and 29% on the Internet.
In the UAE, 37% would search the ads on the Internet and
26% would go to YouTube. In fact, Saudis have a strong
affinity with YouTube on mobile. Google estimates that
40% of YouTube viewership comes from mobile in the
UAE. This number is higher in Saudi Arabia, at 50%.
As well as being ahead of the trend on mobile, the
region also seems to be taken in by other technological
developments. Around 74% of smartphone users in the
UAE own a smart TV and 42% interact with it using their
smartphones. Saudi Arabias figures are slightly lower, with
64% owning a smart TV and only 29% connecting their
smartphones with it.
Interestingly, consumers do not see mobile advertising
as interruptive. In fact, a lot of them have a very positive
attitude towards it. They find smartphone ads more
informative, modern, useful, clear, convenient, inspirational
and trustworthy than ads on laptops, desktops and TV.
In Saudi Arabia, about a quarter of respondents express
negative sentiments about ads on their PC and TV
commercials. In the UAE, where entertainment options are
more developed, smartphone users find TV commercials
more intrusive and annoying than ads on other devices.
Our study shows that 63% in Saudi Arabia and 72% in
the UAE have seen or noticed ads on their smartphones,
while watching videos, playing app-based games, using
social media or on search engines. Half of smartphone
users will click on in-app advertising if it doesnt take them
out of their current application. A similar proportion prefers
simple text ads on their smartphone and will be more
likely to click on these. Customized advertising is proving
popular with 45% of smartphone users in the UAE and 36%
in Saudi Arabia, who shared their personal information in
order to receive tailored messages. This appeal of relevant
advertising can also be seen in the fact that some 70% of
smartphone owners use geo-location services to remain
informed on things happening around them, such as
friends checking-in at stores or restaurants.

YOUTUBE VIEWERSHIP

60+40+0 50+50+060+40+0
GLOBAL

SAUDI ARABIA

40%

50%

60%

MOBILE

UNITED ARAB EMIRATES

40%

50%

60%

NON-MOBILE

SOURCE: GOOGLE

MULTI-TASKING: USING SMARTPHONE SIMULTANEOUSLY

WITH OTHER DEVICES
0%

10%

20%

30%

40%

50%

60%

70%

29%

LISTENING TO THE
RADIO

90%

100%

40%
41%
36%

USING A PC

3%

GOING TO THE CINEMA

30%
16%
21%

USING A TABLET

12%
18%
11%
15%

READING NEWSPAPERS
PLAYING PS/XBOX GAMES

6%
11%

READING MAGAZINES

5%

READING BOOKS

SAUDI ARABIA

80%

81%
86%

WATCHING TV

10%

UNITED ARAB EMIRATES

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE STUDY 2014

ON WHICH MEDIA DO YOU NOTICE ADVERTISMENTS MORE?

SAUDI ARABIA

21%

79%

50%

UNITED ARAB EMIRATES

SEARCH ENGINES

50%

WATCHING VIDEOS

63%

37%

PLAYING GAMES

64%

36%

SOCIAL MEDIA

78%
55%

APPS

22%
45%

INSTANT MESSAGING

LISTENING TO MUSIC

WEBSITES

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE STUDY 2014

27%

73%

49%

51%

63%
48%
68%
40%

37%
52%
32%
60%

08/09

REFLECTING ON THE GROWTH OF MOBILE IN MENA

4. THE POTENTIAL OF MOBILE COMMERCE

The mobile habit also affects purchasing decisions. Not only
does it help them receive timely and relevant information,
consumers increasingly rely on their devices to help make
the best purchase decision when shopping. In the UAE, half
of smartphone users check out prices online ahead of a
transaction and nearly 30% either research about a specific
product or compare brands. In Saudi Arabia, 40% of users will
check prices online and 30% will look for product details or
compare brands.
At the point of sale, half of smartphone users in both markets
are engaged with their device. However, only 10% are looking
for online discounts and reading reviews about the specific
product or service at this stage of the purchase process. This
has altered the purchase cycle. The ease with which a consumer
can now research a product has resulted in a much shorter
process, where you can look at a product, do research and
compare it to alternative brands within a matter of minutes.
As well, e-commerce is starting to show signs of robust
growth. However, the barriers that hindered its early
development are also impacting m-commerce. Around 60% of
smartphone users in the UAE are concerned about the safety
of online transactions and are reluctant to engage in them. That
said, 37% of smartphone users still engage in online shopping,
for which they show a slight preference for desktop computers
over their mobile devices, paying with cash on delivery or
credit/debit card. About a quarter of online transactions in the
UAE and Saudi Arabia are done through a mobile app. Some
studies forecast m-commerce to reach $5 billion by 2015.
This compares well with the forecast of $15 billion for B2C
e-commerce in MENA for the same year.
What will help this forecast turn into reality? The usual
concerns for payment safety and, more recently, for identity
theft need to be addressed. New technologies would also
be welcomed, like the Beam Wallet platform that launched
in the UAE in the last quarter of 2012. The government and
local banks are now also looking into electronic currencies and
mobile wallet platforms. For these to succeed, they will have to
improve the level of consumer confidence in such projects.

THE ROLE OF SMARTPHONES IN THE PURCHASE CYCLE

SAUDI
ARABIA

UNITED ARAB
EMIRATES

PRICE COMPARISON

39%

17%

50%

23%

RESEARCHING PRODUCTS

32%

16%

30%

14%

COMPARING BRANDS

31%

10%

27%

12%

PRODUCT DETAILS

31%

9%

26%

12%

LOOK FOR ONLINE DISCOUNTS

24%

9%

25%

11%

RESEARCHING

AT POINT OF SALE

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE STUDY 2014

PROPENSITY TO PURCHASE ONLINE

AT LEAST ONCE A MONTH

EGYPT
CHINA

49%

SOUTH
AFRICA

29%

TURKEY

UNITED
ARAB EMIRATES

42%

42%

SOURCE: GOOGLE

MOBILE PURCHASES - SMARTPHONE VS. TABLET

SAUDI ARABIA

24%

ATTITUDES TOWARDS MOBILE COMMERCE

UNITED ARAB EMIRATES

6%
5%
3%

0%

10%

20% 30% 40%

50% 60%

70%

64%
58%

I WELCOME THE DAY WHEN I CAN

MAKE ALL PAYMENTS VIA MOBILE

63%

MOBILE PHONE PAYMENTS ARE

MORE CONVENIENT THAN OTHERS
MOBILE PHONE PAYMENT
INCREASES RISK OF IDENTITY THEFT
MOBILE PHONE PAYMENT
PRIVACY CONCERNS

12%
8%

62%

CANNOT VIEW DETAILED PRODUCT/

SERVICE INFORMATION

21%
8%
22%

8%

28%
16%

47%
59%

21%

50%

5%

55%
59%

3%
1%
14%

55%
61%

16%
9%

GIFTS

16%
9%

HOTEL BOOKING &

CAR RENTAL

2%

ONLINE SHOPPING

PARKING TICKETS
TICKETS
(CONCERT, CINEMA,
EVENTS)
UTILITY BILLS

UNITED ARAB EMIRATES

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE STUDY 2014

11%
10%

DISCOUNT COUPONS

MOBILE APPS

12%
5%
SAUDI ARABIA

BOOKS

20%
12%

80% 90% 100%

59%

SECURITY AND LOCATION

BEING TRACKED

AIRLINE TICKETS

SMARTPHONE

TABLET

SOURCE: OMG-INTEGRAL'S STATE OF MOBILE STUDY 2014

14%
7%
27%
15%
17%
6%
9%
19%
11%
16%
6%

45%

UPWARD MOBILITY

5. THE FUTURE OF MOBILE INVESTMENTS

Digital investments are still not adequately tracked in the region and hence are merely qualitatively monitored. Based on OMG
estimates (Q1 2014), mobile will represent 30% of total digital investments in 2014. This is expected to rise to about 58% by 2020.
Such massive growth is attributed to increased penetration of smartphone devices, state of the art technology and brands realizing
the potential of the media in coming few years. Despite advertisers agreeing that mobile will grow, they are still currently cautious
with their mobile ad spend.
DIGITAL SPENDS FORECAST

23%
36%
92%
SOURCE: OMG ESTIMATES

THE ADVERTISERS VIEW

In the USA, advertisers are very positive towards mobile.
About a third of digital advertising investments for consumer
products goes to mobile. Arguably, the consumer packaged
goods (CPG) industry has found in mobile a way to connect
with consumers closer to the point of purchase. Therefore, it
is understandable that confidence in the platform is high and
continues to grow. In a recent survey of global FMCG retailers
by Retail Systems Research, 50% of respondents saw mobile
strategies as a way to drive deeper customer engagement,
while 40% claimed that they saw it as a way to gain deeper
insights into their customers. There is much optimism, even
though advertisers claimed there is still a technology gap.
What we see in the region is slightly more cautious. Some
brands are investing in the media without even realizing it.
Two-thirds of their digital investments are on Google and
Facebook, where impressions are split nearly evenly between
fixed and mobile. Nevertheless, most of the advertisers we
spoke to revealed their reluctance to advertise on mobile.
They believe that integrating the mobile platform in their
communication strategy creates an engaging experience
for their brands and allows them to interact with consumers
using cutting-edge features and technology. However, they
are not yet confident about allocating more budgets to it.
The majority of advertisers believe there is a lack of education
and that decision-makers need to focus on consumer-led
strategies that can benefit from the platform. Few are familiar
with mobile media metrics or fully aware of the current
mobile media landscape and advertising opportunities
available. Mobile may be seen as part of the digital campaign
that complements campaign objectives, notably building
awareness and acquisition, but its not yet a case of
mobile-first.
There is hope for the future. Advertisers believe that if the
mobile advertising industry today could provide them with
competitive monitoring of data, they would allocate more
funds to it. The lack of standardized metrics and ad formats
in mobile are among their biggest challenges. The majority of
advertisers still feel they arent getting detailed analytics from
publishers and would need more depth in reporting.

FIXED

MOBILE

THE PUBLISHERS VIEW

The publishers we interviewed believe that, despite
research evidence and case studies of mobile marketing
success, advertisers are still holding back from investing
in mobile because of uncertainty about the ROI. That
said, some sectors are actively using mobile and the most
active categories in the region are automotive, retail,
telcos, FMCGs and financial services. They are constantly
on the lookout for new opportunities to engage with their
audiences. Location targeting, special executions, store
location and the use of videos feature heavily in their
approach. Publishers also indicate strong demand from
brands for rich media in terms of interactive ad units.
They also claim that while active clients fully understand
mobile campaign metrics and are willing to allocate more
budgets for their upcoming activities, others are not quite
so comfortable and need more assistance before they are
ready to make the leap into mobile. The timely provision
of detailed analytics to clients is an extremely important
priority for publishers. As well as investing in online
dashboards, most publishers currently share performance
benchmarks and reports with clients in the form of
presentations. This will go a long way in addressing a lot of
the issues that advertisers have with investing in mobile.
There is a clear lag between the adoption of mobile by
consumers and advertisers. Such a lag existed with online
media in the past, yet some argue the gap is closing
faster with mobile. Social media and Internet access are
the prime factor behind smartphone usage. According to
an eMarketer report, in 2014, Google and Facebook have
claimed two-thirds of the mobile advertising revenue
so far. Estimates for the mobile advertising market vary
between $13 and $17 billion for 2013 and research analysts
anticipate a growth of at least a third for 2014.
It is likely that circumspection will ultimately be replaced
by enthusiasm. The question is how much longer it will take
as all the elements are now in place for mobile marketing
to deliver the kind of numbers marketers require.

REFLECTING ON THE GROWTH OF MOBILE IN MENA

CONCLUSION
Consumers the world over have embraced not only the
digital lifestyle but specifically the mobile lifestyle. In terms of
ownership or usage, mobile devices - particularly smartphones
in the region - have become an essential part of their daily life.
There is no doubt that when it comes to mobile, users are
evolving faster than advertisers and publishers. This is true
globally but especially in the region, as in many cases the UAE
and Saudi Arabia are ahead of the curve. We saw a similar
trend in our Omnicom Media Group MENA Digital study in
2011, when social media took the region by storm. What we are
noticing globally is mobile shortening the path to purchase.
A recent eMarketer study looked at how mobile is closing
the loop in grocery shopping, completely changing the retail
environment. In 2013, in the USA, Deloitte found that mobile
devices influenced 19% of all in-store sales (a fourfold increase
from 2012). This is why advertisers in the USA are far more
confident in investing in mobile.
However, in the MENA region, there is still some work
required on the publishers' and advertisers' sides in order
to build more cnfidence in the medium. Both need to work
together to optimize local possibilities, as it is clear that they
share a wide, common ground from which to grow. This will
eventually happen, since mobile is projected to overtake all
other forms of digital advertising in the region by 2020.
The benefits of using mobile does not lie only on the
publishers' and advertisers' end though; consumers have
started to place value on the data that they share with brands.
By providing brands with their behavioral data, consumers
can be targeted more effectively and receive discounts
on products or services in which they are interested. The
emergence of wearable technology and other portable devices
will continue to transform the way consumers and brands
interact. The rise of beacon technology will also enhance that
experience. Grocery stores in the USA have already jumped on
the bandwagon. By having these technologies in place, brands
have the capability of sending highly relevant offers to their
shoppers while they are in the store. Consumers ultimately
benefit from better customization and higher competition on
price and quality.
This is only the beginning. The potential for mobile will only
grow from here, so its time that we embrace it to the fullest.

There is no doubt that when it comes to mobile,

users are evolving faster than advertisers
and publishers

10/11

About Omnicom Media Group MENA

Omnicom Media Group is the media services
division of Omnicom Group Inc., a leading
global advertising, marketing and corporate
communications company, providing services
to over 5,000 clients in more than
100 countries.
Around the world and in the Middle East,
Omnicom Media Group owns and operates
the full service media networks OMD, PHD and
Resolution, as well as a number of specialty
media communications companies. These
include, in the Middle East, Integral-OMG, our
Insights and Research Consultancy.
We offer unparalleled clout in the marketplace
as well as a depth of capabilities and experience
to drive leadership and innovation in every
media type. As we maximize our investment
in building best-in-breed capabilities, we can
draw upon industry-leading talent and bring the
maximum market leverage to bear for
our clients.

2014 Omnicom Media Group MENA