Regional new media players have to realize that they are looking at a new type of media consumer who is more complex and more sophisticated.
Online User Consumption Behavior in the UAE and Saudi Arabia
Broadband and Mobile Connections Are Expected to Grow Strongly in the MENA Region
New Media Revenues in the Region Are Expected to Triple
Leading Websites in the MENA Market Provide Truly Regional Coverage
The New Media Audience in the MENA Region Comprises Four Key Segments
The Nature of Online and Mobile Ad Spending Will Change
Both Telecom Operators and Media Companies Will Need to Forge Strategic Partnerships to Expand Along the New Media Value Chain
To succeed in this radically different landscape, players must understand four key dynamics and devise strategies to capitalize on them:
1. The Regionalization of Media: The digital platform offers true pan-Arab coverage, providing opportunities for regional expansion. Local players should quickly build regional online assets and invest in the necessary content and marketing to capture their share of the regional audience.
2. The Changing Demographics of Connected Users: “Youth users” and “female socialites” are emerging as the champions of new media and will account for the lion’s share of the regional audience. Successful players will build products and services that address these segments’ quest for ubiquitous and interactive content.
3. The Shift to Advertising-driven Revenue Models: Mobile platforms will remain dominant for new media content, but will increasingly adopt advertising-based revenue models. New media players will need to achieve fluency in common and emerging advertising schemes.
4. The Importance of Strategic Partnerships: The new media value chain requires a wide range of competencies that fall within the cheap online domains of different CMT sectors. Companies will need to secure durable partnerships with best-in-class players that have relevant capabilities to complement their own.
By Booz&Co:
Gabriel Chahine
Jayant Bhargava
Chady Smayra
Adel Belcaid