The Middle East is the second fastest growing mobile market in the world with its very high penetration and growth rates. It is now only trailing Africa as the fastest-growing mobile market.
According to a report published by global telecom and media advisor, Analysys, titled The Middle Eastern mobile market: trends and forecasts 2007-12: "The Middle Eastern mobile market presents greater revenue opportunities than markets in Europe when taking into account its size and spending power." According to Analysys figures, a Middle Eastern market -- where the average person's disposable income is US$10,000 -- would generate 20 percent greater mobile revenue than in an equivalent European market.
Daniel Jones, the report's author states: "One big difference between the Middle East and Western Europe is that fixed-line penetration is much lower (in the Middle East). It means mobile operators in the Middle East can attract a greater proportion of disposable income than those in Western Europe."
At the 2008 GSM 3G Middle East Conference in Dubai, it was revealed that even as the world economy struggles and slows, mobile subscriptions in the Middle East have experienced a 47 percent year-over-year increase. Abdulaziz Fakhroo, Chairman of GSM Arab World, the regional representative body of the wireless industry representing mobile operators in 22 Arab countries, stated: "The region is still seeing growth rates in mobile subscriber numbers that are higher than the economies of Europe and the Americas, and this lead seems set to widen in 2009. With each new generation of broadband technology, the nations of the Arab world are enjoying an increasing range of social and economic benefits that are enabling people to benefit from the good times and be resilient in the more challenging ones."
UAE: Model example
One country in the Middle East that has had spectacular growth -- mobile penetration levels were over 175 percent in March 2008 -- is the UAE (United Arab Emirates). According to a study by Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC), the UAE had the highest mobile phone penetration in the Arab world, with its subscribers far exceeding its population. The reason for this extraordinary growth is due to competition. All countries had at least one licensed operator. Presently, a second or third operator has entered the market, causing a reduction in tariffs and improved services. The 2008 Middle Eastern -- Mobile Communications and Mobile Data Market report compiled by Paul Budde Communication, states that in the UAE, "growth has been astonishing since the launch of second operator du".( du is the UAE's integrated telecom service provider).
Opportunities in mobile marketing
Whether it be in the Middle East, Europe, or Asia Pacific, one usually relates "mobile marketing" to ringtones and wallpapers. However, according to Dubai based Ahmed Galal Ismail, an associate with Booz Allen Hamilton: "The key success factors of mobile marketing hinge on multimedia creative services, access to advanced technology, and elaborate permission-based customer databases. The emerging players are challenged to build a sustainable operating model with the required core capabilities. Prime mover advantage is also likely to be a winning strategy for players needing to build capabilities, relationships, and market shares ahead of multiple new entrants in this exciting new market."
Key trends in mobile marketing in the Middle East include a "a shift from voice to increased data usage; increases in customer-driven content, products and services; and a striking decrease in the "digital divide" in the Arab world," states Fakhroo.
As the Middle East, specifically the UAE, has one of the most progressive penetration and growth rates of mobile, advertisers and their agencies should start to view the mobile space as a promising marketing platform to capture consumer interest. This is especially an opportune time as competition is increasing causing lower tariffs and improvement in services, thus making more and more users subscribe to mobile -- a contributing catalyst to the growth in the mobile advertising space.
Elizabeth Lloyd is co-founder and chief revenue officer of 9Global, Inc.
