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Middle East State of Digital 2014


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  • 1. introductionEXECUTIVE SUMMARY Small yet rapid best describes the state of digital in the Middle East and North Africa (MENA). Small because it has the lowest percentage of internet users worldwide, but rapid because internet penetration has seen the fastest growth in the past 4 years compared to the global average or to the rest of the world. This presents a promising potential for eMarketers in the region as we continue to see an increased fragmentation in today’s multi-media environment which is conveniently in favor of the digital arena. In a span of five years, this digital platform has expanded from desktop & mobile computers to include smartphones, tablets, and other mobile and connectivity devices, which has in turn opened up more avenues for social media interactions. Media consumption habits have been transformed as consumers have become less sensitive to specific platforms, conveniently switching devices throughout the day and into the night to stay up-to-date on email, news, and social media. This report scans the latest trends and statistics in web usage, social media and mobile consumption, as well as eCommerce adoption in the Middle East region via information culled from various resources. We hope this comprehensive landscape, which is a product of extensive research, would help foster better understanding of the digital arena in the Middle East, especially for brands looking to invest or expand their online presence in the region.
  • 2. key insights MENA has an online population of approximately 39.2 million, accounting for 3.9% of the world’s internet population. The five countries that had the highest number of internet users in the region are: •  Saudi Arabia (60% of the population with 8.5 million users) •  Morocco (35% of the population with 7.7 million users) •  Egypt (cities– 25% of the population with 5.2 million users) •  UAE (71% of the population with 4.7 million users) •  Iraq (23% of the population with 3.9 million users) By 2014, MENA will have the second largest social networking audience reaching 248M after Asia Pacific, overtaking Latin America. Though Asia-Pacific will have the largest social network population worldwide (reaching 1.2B) through 2017 and the Middle East and Africa will have the second-largest audience (reaching 358M in 2017), their population penetration rates are still among the lowest worldwide. By 2016, MENA will overtake Europe as the second largest region for mobile subscribers. Currently, Arab States & African countries have a total of 396M & 545M mobile subscribers respectively, trailing Asia Pacific with 3,547M and Europe with 790M. Of these, 71M and 93M respectively have active mobile broadband subscriptions, making mobile connectivity an increasingly important marketing platform for brands in the region. eCommerce in the Middle East and Africa will increase more quickly this year than in the emerging market,of Asia-Pacific, but from a significantly smaller base of USD27B. Digital eCommerce penetration in the Middle East, however, will continue to lag behind all other regions at 31%, after Latin America with 33%, Asia Pacific at 44%, and North America and Central Europe at 72%. This only comes to prove that eCommerce adoption in the region remains very low compared to international benchmarks. SOURCE: Internet: Internet World Stars | Social Media & eCommerce: eMarketer. | Mobile: Portio Research |
  • 3. content I.  MENA DIGITAL STATISTICS II.  SOCIAL MEDIA IN MENA III.  MOBILE MARKETING IN MENA IV.  eCOMMERCE IN MENA •  Regional Internet Statistics vs. Global Trends. •  Digital spend in the Region vs. Global Benchmarks •  Regional Social Media Statistics vs. Global Trends. •  State of Social Media in MENA •  Regional Mobile Statistics vs. Global Trends. •  State of Mobile Marketing in MENA. •  Regional eCommerce Statistics vs. Global Trends. •  eCommerce Adoption in the MENA Region.
  • 4. digital statistics
  • 5. GLOBAL BENCHMARKS : INTERNET USERS The Middle East accounts for 3.9% of global internet users, with internet penetration at 40.2%, higher than the world average of 34.3%. SOURCE: Internet World Stats June 2012 | comScore Media Metrics March 2013
  • 6. GLOBAL BENCHMARKS : INTERNET USERS From a total of 360M internet users worldwide, 90M are from the Middle East and North Africa, representing a 2,639.9 % increase from 3.2M in 2000. SOURCE: Internet World Stats June 2012 Internet Users in 2000 Internet Users in Q2 2012 % increase 218.7% 2,639.9% 3,606.7% 1,319.8% 153.3% 393.4% 3,606.7%
  • 7. GLOBAL BENCHMARKS : HOURS SPENT ON INTERNET Average time spent by users online totals 17.3 hours a month, which is 6.1 hours less than the global average of 23.4 hours a month. SOURCE: comScore Media Metrics March 2013 Global average
  • 8. Morocco (7.7M) Egypt (5.5M) Saudi Arabia (8.5M) Oman (0.5M) UAE (4.9M) Qatar (0.9M) Kuwait (1.7M) Iraq (3.5M) Syria (2.7M) Lebanon (1.7M) Jordan (2.2M) Penetration over 50% Penetration under 50% Numbers displayed represent internet users per country. REGIONAL STATISTICS : INTERNET PENETRATION Internet penetration is generally high with three (3) countries reaching a penetration of over 50%. The rest of the countries, though below the 50% mark, are still higher than the world average of 34.3%. SOURCE: IPSOS ArabNet Presentation Beirut 2013 Total Population 15+ Internet Users Internet Penetration Total MENA 102,895,268 40,234,014 39% GCC 26,711,000 16,220,813 61% North Aftica 43,071,000 12,940,822 30% Levant 33,113,268 10,087,433 30% MENA Internet Penetration
  • 9. REGIONAL STATISTICS : INTERNET PENETRATION Internet penetration is highest in the GCC countries of UAE, Kuwait, & Qatar, while internet population is highest in KSA, Morocco, and Egypt. SOURCE: IPSOS ArabNet Presentation Beirut 2013 Internet Penetration UAE 75% Kuwait 64% Qatar 61% Saudi Arabia 60% Lebanon 56% Jordan 55% Morocco 35% Syria 30% Oman 28% Egypt (Urban) 26% Iraq 23% MENA Internet Population vs. Internet Penetration (June 2012) Internet Population Saudi Arabia 8,493,252 Morocco 7,743,266 Egypt (Urban) 5,486,481 UAE 4,921,236 Iraq 3,852,420 Syria 2,736,715 Jordan 2,163,700 Kuwait 1,731,960 Lebanon 1,716,690 Qatar 890,160 Oman 498,483
  • 10. REGIONAL STATISTICS : INTERNET USERS GCC countries, though generally smaller in population, are more internet-savvy than their Levant or North African neighbors. SOURCE: Wolrd Bank Populaation Statsitics | Internet Users in Select Countries in the Middle East and North Africa, December 2012
  • 11. REGIONAL STATISTICS : INTERNET USERS GCC internet users are more mobile than their Levant or North African counterparts who still predominantly access the web via the comforts of their own home. SOURCE: Booz % Co. and Google “Understanding the Arab Digital Generation” conducted by YouGov, Oct. 1, 2012 Internet Users in MENA by Access Location GCC Levant North Africa At home 70% 75% 83% On the move 65% 53% 28% Public spaces 20% 22% 13% Internet Cafes 9% 9% 17% Internet Users ages 15-35. GCC | Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE Levant | Lebanon & Jordan North Africa | Egypt and Algeria
  • 12. DIGITAL AUDIENCE BREAKDOWN Focusing on the UAE and KSA, both have high totals of population who access the internet from their home using a broadband connection (70%and 44%, respectively). Mobile device penetration for the UAE is 74% while the KSA is closely behind with 73%. Each country has a relatively similar mobile penetration rate, and the rates of their populations accessing the internet from a mobile/smartphone are also similar with the UAE at 61% and the KSA with 58%. SOURCE: IAB / TNS / Google Consumer Barometer 2012 UAE > Saudi Arabia [mUAE mSaudi Arabia] Total Internet Access 95% Internet Access 76% Internet Access 5% No Internet Access 24% No Internet Access Home Internet Connection 70% Broadband 44% Broadband 5% Dial Up 7% Dial Up 7% Mobile 22% Mobile 3% Other 1% Other 9% No home connection 3% No home connection Mobile Device Penetration 74% 33% 73% 21% Smartphone Tablet Smartphone Tablet Internet User Segments AE SA
  • 13. DIGITAL AUDIENCE BEHAVIOUR A study conducted by the Dubai School of Government indicated that around 63% of users access the web via an owned laptop. 39% spend as much as 3-4 hours online. 30% spend time online between 6 to 10pm on workdays. SOURCE: The Arab World Online: Trends in Internet Usage in the Arab Region |
  • 14. DIGITAL AUDIENCE BEHAVIOUR Northwestern University in Qatar has compiled years of survey and research data regarding MENA internet. Looking at what MENA populations are using the web for yields fascinating results in general, but because we are more interested in digital marketing aspects of the research the following data was pulled from the online retail information section of Northwestern in Qatar’s MENA Media Survey. SOURCE: IAB / TNS / Google Consumer Barometer 2012 | Northwestern Univesrity Qatar MENA Media Survey Product information: 13% of the users in the UAE use the web for daily product research 14% of the users in the KSA use the web for daily product research 15% in Qatar also use the web for daily product research Purchasing online: 2% of users in the UAE use the web for daily product purchases 8% of users in the KSA use the web for daily product purchases 3% of users in Qatar use the web for daily product purchases SA What are people using the web for?
  • 15. DIGITAL ADVERTISING TREND | AD SPEND We see a gradual yet perceptible shift in advertising spend from traditional platforms to digital in the MENA region as more and more marketers are gaining confidence in the power of digital to reach a broader audience at a more efficient means. SOURCE: 2013 Arab Media Outlook SA 39% 38% 37% 35% 33% 32% 31% 6% 5% 5% 5% 5% 5% 4% 40% 41% 40% 40% 41% 41% 40% 1% 2% 4% 6% 9% 9% 10% 5% 5% 6% 6% 6% 6% 6% 9% 8% 8% 8% 8% 8% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2009 2010 2011 2012 2013 2014 2015 OOH Radio Digital Television Magazines Newspapers
  • 16. DIGITAL ADVERTISING TREND | MILLENNIALS The region has many favorable attributes on which to build including a young and dynamic population called the Millennials (more than 50% of the population is below the age of 25.) The Millennials are now driving digital consumption and engagement via multiple digital tools including social networking platforms, mobile applications, online videos, etc. SOURCE: 2013 Arab Media Outlook Generation Z Age 10-14 Generation Y Age 15-34 Generation X Age 35-44 Baby Boomers Age 45+ Who are they and what they use? Demographic Importance Social Media Usage TV or Internet? Content Consumption and UGC •  Born with prevalent digital adoption •  Use of tablets and smartphones from early stage before PC/ laptops •  Never knew a world without internet & mobile •  Arab springs generation •  Smartphones, Twitter, YouTube, Facebook •  Technology use & work ethics generation •  Started working during the first internet boom •  PC, PVR, MP3, Google, Facebook •  Worth ethic & general respect generation •  TV remains main media consumption platform 34 % 37% 11% 18% Less than once a day More than once a day •  More than half of Gen Z are already on social networks more than once a day…. •  While Gen Y are the most active – 62% use them more than once a day… •  While 48% of Gen X are on them once a day or more… •  And only 35% of the Baby Boomers are there once a day. •  Almost 50% are on YouTube daily. •  75% of them have uploaded a photo on social networks. •  1/3 o You Tube daily. •  60% have uploaded a photo. •  13% daily on YouTube •  50% have uploaded a photo. 33% 42% 43% 20% 31% 28% 26% 43% Internet TV Internet TV Internet TV Internet TV
  • 17. DIGITAL FOCUS ON THE MILLENNIALS In a Google report, these Millennials are now referred to as an emerging market called the ARAB DIGITAL GENERATION (ADG) —1) who tend to be heavier users of the Internet, 2) are a larger proportion of the regional population their numbers are growing. From 2006 to 2011, the number of Arab Internet users grew by 23 percent per annum, compared to 14 percent for the rest of the world. SOURCE: Booz and Co. The Arab Digital Generation Digitally Active Connect to the internet Ages 15 to 35 Population Population Penetration 15-35 Age Group Penetration Europe, 70 Europe, 81 N. America, 43 N. America, 47 SE Asia, 94 SE Asia, 118 L. America, 15 L. America, 20 Arab, 10 Arab, 13 Asia, 19 Asia, 27 MEA, 10 MEA, 12 0 100 200 300 2011 2014 260 318 +7% +11% Digital Generation (DG) Penetration 2011 DG Growth Digital Penetration and Growth Rates Worldwide
  • 18. DIGITAL FOCUS ON THE MILLENNIALS This shows how the Arab Digital Generation uses technology. Some 83% use the Internet daily, & 61% spend more than 2 hours each day on social networks. They prefer the Internet to television &instant messaging to talking on the phone or email—even with family & friends. SOURCE: Booz and Co. The Arab Digital Generation
  • 19. DIGITAL FOCUS ON SEO IN MENA Overall market figures show that across the MENA region, search is growing at around 25% each year. Below are key facts on Search Engine Marketing in the MENA region. SOURCE: | Google, via The National, February 2012] •  Search engines are used most for research in relation to technology (67%) and travel (48%) products. •  Google is the preferred search engine in the UAE with 58% preferring and 38% preferring •  In the UAE, English (76% of respondents) is by far the most popular ‘search’ language (likely to be related to the highly multinational nature of UAE society) vs. 23% preferring to search in Arabic. •  Search engines are the most used source of online research information (81% of respondents). •  Search engine marketing is also frequently used by marketers, with 56% of companies in the Middle East using SEO and just over a third (35%) using paid search or PPC. •  Of all search queries, 10% are made on mobile. •  There are 100m Google searches made across the MENA region each day and the biggest search category in the MENA region is news. •  Google is the most commonly used search engine in the region with 61% of consumers using the English version of the site. Over half (58%) are using the Arabic version of Google.   •  A quarter of respondents (25%) use Yahoo! Maktoob in the Middle East. Bing is only used by 8% of consumers in the Middle East. Over a third of consumers (35%) search mainly in Arabic, while just under a quarter (24%) of respondents search mainly in English. Just under a fifth of consumers (19%) always search in English. Only 7% of respondents search in languages other than Arabic or English. •  More than half of organizations (53%) say they use natural search or search engine optimization for marketing, and over a third (39%) are using paid search or pay-per-click advertising.
  • 20. top 5 digital statistics 90M 2013 413M 2015 There is an estimated 90M users in MENA which is is expected to grow to 413M by 2015. 1 2 40.2 % Internet penetration is higher than the world average of 34.3% 3 17.3hrs MENA users spend an average of 17.3 hours a month online, lower than the global average of 23.4 hours. 4 76% of MENA users still access the web at home, but a growing percentage, 48%, are now going online while on the move. 76% 48% 5 Digital consumption in MENA is driven by the Millennials, Arab youth 35 y/o and below. Currently, they represent 71% of the region’s total population. 71%
  • 21. what do these mean for you? 1 The appetite, interest and growth within digital in MENA is probably the most encouraging among all regions worldwide. It may not be the largest, but its growth potential is so far the most promising. A penetration ratio of 40% means a marketer’s digital spend reaches as much as 40% of the region’s population. Digital media will thrive in MENA because the region has a large, technologically accomplished demographic group—the Arab Digital Generation—who are comfortable with it and will customize it to their own requirements. For marketers, this can only mean an audience highly receptive to digital messages and actions. The MENA digital marketing landscape is evolving quickly and somewhat differently from the rest of the world, which means consumer confidence in digital is also deepening. If the recent Arab Springs are at all an indication, digital will take the front seat in driving further change, development, and progres in the region. 2 3
  • 22. state of social media in mena
  • 23. GLOBAL BENCHMARKS : SOCIAL NETWORK USERS MENA remains the smallest region in the global social networkers community, accounting for a mere 9%. Social media engagement, on the other hand, is the second highest globally at 7.2 hours average. SOURCE: Social Engagement in average hours per user. 7.6 Latin America 7.2 MENA 7.0 Europe 6.4 North America 2.9 Asia Pacific
  • 24. GLOBAL BENCHMARKS : SOCIAL NETWORK USERS By 2014, MENA will have the second largest social networking audience reaching 248M after Asia Pacific, overtaking Latin America. It will have the fastest gains in new users in 2013. Internet usage is expanding and is driving rising social network usage. SOURCE:
  • 25. GLOBAL BENCHMARKS : SOCIAL NETWORK PENETRATION Throughout the forecast period, Asia-Pacific’s and MENA’s social media penetration rates will be lower than the global figure. In this less-developed online markets, internet users, however, skew younger, are more tech-savvy, & more likely to use social networks.  SOURCE:
  • 26. GLOBAL BENCHMARKS MENA social networkers are among the globe’s highest mobile & internet enabled TV users. SOURCE: Nielsen Social Media Report 2012
  • 27. GLOBAL BENCHMARKS : SOCIAL MEDIA BEHAVIOR MENA has the highest percentage of social networkers interacting on social media while watching television, efficiently making their computers or mobile devices their “second screen.” SOURCE: Nielsen Social Media Report 2012
  • 28. GLOBAL BENCHMARKS : SOCIAL MEDIA CONSUMER BEHAVIOR MENA consumers are starting to go online for travel & leisure, banking, fashion, automobiles, and jewelry purchases. SOURCE: Nielsen Social Media Report 2012
  • 29. GLOBAL BENCHMARKS : SOCIAL MEDIA PLATFORMS MENA has the highest percentage of Twitter, YouTube, Google+, and LinkedIn users from its total internet population compared to the rest of the regions. It also has the 2nd highest Facebook users. SOURCE: Global Web Index 2013
  • 30. REGIONAL STATISTICS : SOCIAL MEDIA PENETRATION The UAE in the GCC markets, & Jordan in the Levant markets have the highest penetration of these social sites. SOURCE: Arab Social Media Report:
  • 31. REGIONAL STATISTICS | FACEBOOK Egypt has the highest number of Facebook users though it has the 2nd lowest penetration rate. UAE has the 2nd lowest number of users, though its penetration rate is the highest. The region has a predominantly young user population, below the age of 30. SOURCE: Arab Social Media Report:
  • 32. REGIONAL STATISTICS | FACEBOOK The Levant markets have the highest population of female users compared to the GCC markets. Arabic is the preferred language for predominantly Arab countries. Multi-cultural countries like the UAE, Qatar, & Bahrain, and the Levant markets, prefer English. SOURCE: Arab Social Media Report:
  • 33. REGIONAL STATISTICS | FACEBOOK Growth in Facebook usage has continued in most Arab countries; however, there is a noticeable dip in users in the GCC countries: Oman, Bahrain, Kuwait, Saudi Arabia, Qatar and the UAE. All of the GCC countries have lost Facebook users, but some have lost more users than others. Oman, Saudi, Kuwait and Saudi Arabia have seen the most considerable decline in usage. SOURCE: Arab Social Media Report: 0 1 2 3 4 5 6 7 Jun-10 Jan-11 Apr-11 Jun-11 Oct-11 Jan-12 Jun-12 Jan-13 May-13 Saudi Arabia UAE Kuwait Qatar Oman Bahrain Number of New Facebook Users in the GCC from June 2010 to May 2013..
  • 34. REGIONAL STATISTICS | FACEBOOK The decline shown in the previous slide became noticeable at the start of 2013 and continued on until May 1st 2013. •  One possible explanation or this is the heightened regulation and in some cases censorship on social media usage since 2013. •  Other factors that may have contributed to this drop include the many new social media platforms emerging in the region filling local needs or relatively large segments of society, coupled by a certain level of saturation in largely mature countries in terms of internet usage and penetration. SOURCE: Arab Social Media Report:
  • 35. REGIONAL STATISTICS | FACEBOOK Other notable trends pertaining to the region, as released by Facebook Middle East are as follows: SOURCE: On a daily basis, 28 million people in the region log on to Facebook. 56M monthly 28M daily Every month, 56 million people are active on Facebook in the Middle East and North Africa. About 33 million people access Facebook in the region from a mobile or tablet computer on a monthly basis. 15 million are active on a mobile device on a daily basis. 33M 15M Newsfeed is the most popular form of Facebook advertising in the region and globally.
  • 36. REGIONAL STATISTICS | FACEBOOK SOURCE: Arab Social Media Report: 1 The total number of Facebook users in the Arab world as of end May 2013 is 54.5M, up from 45.2M in June 2012. By May 2103, the country average for Facebook penetration in the Arab region was over 19%, up from 12% in June 2012. The percentage of female users has remained static (at 33.4% in May 2013), having fluctuated slightly between 33.4% and 34% in the past two years. This is significantly lower than the global average of roughly 50%. The percentage of youth users has decreased slightly due to slow and steady uptake amongst users aged 30 and above. As of May 2013, the percentage of users below the age of 30% was 68%. The UAE continues to have the highest Facebook penetration rate in the region with Jordan, Lebanon, Qatar and Tunisia trailing behind. Egypt continues to constitute more than one quarter of all Facebook users in the region and has had the highest number of new Facebook users since January 2013 with an increase of over 1.5 million users. 2 3 4 5 6
  • 37. REGIONAL STATISTICS | TWITTER •  Active Twitter users in the Arab world has reached 3.8M as of March 2013. An “active user” is someone who logs in (but does not necessarily tweet) once a month. •  Saudi Arabia leads with 1.9 million users which accounts for over half of all active twitter users in the region and double the number of second highest country, Egypt. •  Saudi Arabia has by far seen the greatest number of new twitter users this year with over 1M, amounting to a 128% growth, while Egypt has seen over 75% growth. •  The UAE, despite its relatively small size and population has 401,000 active twitter users, the third highest number in the region. This represents a growth of over 52%. SOURCE: Arab Social Media Report:
  • 38. REGIONAL STATISTICS | TWITTER The estimated number of tweets produced by Twitter users in the Arab world in March 2013 was 172,511,590 tweets or 5,564,890 tweets per day. Unsurprisingly, countries with the highest numbers of active twitter users account for the majority of tweets. Saudi Arabia alone, produced almost half (47%) of all tweets in the Arab world, while Egypt produced 12% and the UAE produced 11%. SOURCE: Arab Social Media Report:
  • 39. REGIONAL STATISTICS | TWITTER •  In terms of language, 76% of regional tweets are in Arabic, representing a 10% growth in Arabic tweets since Mar.2012. •  The high number of new users in Saudi Arabia may have contributed to this growth, where 90% of tweets are produced in Arabic. •  Over 50% of tweets produced in other countries which have seen strong growth of users, such as Egypt the UAE, are also in Arabic. This growth also contributed to the 5% drop in English tweets. SOURCE: Arab Social Media Report:
  • 40. REGIONAL STATISTICS | FACEBOOK SOURCE: Arab Social Media Report: 1 Total number of active Twitter users in the Arab world reached 3,766,160 users as of March 2013. The country with the highest number of active twitter users is Saudi Arabia with 1.9 million users which accounts for over half of all active twitter users in the Arab region. The estimated number of tweets produced by twitter users in the Arab world in March 2013 was 335,792,000 tweets or 10,832,000 tweets per day. Saudi Arabia alone, produced almost half (47%) of all tweets in the Arab world, while Egypt produced 12% and the UAE produced 11%. 2 3 4
  • 41. REGIONAL STATISTICS | YOUTUBE MENA is at the forefront of YouTube usage, with Saudi Arabia and the UAE landing at the first 2 positions in terms of total internet penetration. SOURCE: TNS 2012 Enumeration Studies 85% 83% 76% 74% 70% 63% 63% 58% Internet 79% 81% 71% 28% 81% 78% 74% 82% Penetration
  • 42. REGIONAL STATISTICS | YOUTUBE Other notable trends pertaining to the region, as released by Google Middle East are as follows: SOURCE: Alexa, May 2012 and Google Internal Systems 260M views a day Everyday, the MENA region consumes as much as 260M videos on YouTube alone making it the leading region in YouTube usage. 100% playbacks year on year growth of   2 hours of video uploaded per minute.   YouTube site rank for key countries:   #2 #3 #3 #3          
  • 43. REGIONAL STATISTICS | YOUTUBE + GOOGLE+ SOURCE: Arab Social Media Report: 1 Google+ has 500 million users, with 235 million daily active users sharing over 1 billion items every day. YouTube is growing worldwide, with 72 hours of video uploaded to YouTube every minute and over 4 billion hours watched every month In the Arab region, 260 million videos are viewed every day and more than two hours of video are uploaded every minute, putting it in the number 2 spot for video views in the world. Saudi Arabia leads the region with the most playbacks followed by Egypt, Morocco and the UAE. In Saudi Arabia, 50% of all views are from mobile devices, while 40% of all views in the UAE are. 2 3 4
  • 44. REGIONAL STATISTICS | LINKED IN •  As of May 2013, there are over 4.7 million LinkedIn users in the Arab world up from 4.1 million users in January 2013. •  LinkedIn penetration has increased across the board (except for Algeria, Tunisia & Morocco) since June of 2012. •  The strongest increase was seen in the UAE and Qatar with increases of approximately 4% and 3% respectively. •  LinkedIn penetration remains highest in the UAE as does Facebook penetration. SOURCE: Arab Social Media Report:
  • 45. REGIONAL STATISTICS | LINKED IN •  Youth make up the majority of LinkedIn users though the ratio of youth to users above the age of 30 is much lower amongst LinkedIn users than Facebook users. •  Oman has shown a dramatic shift in the age demographics of its LinkedIn users. While 89% of LinkedIn users in Oman were between the ages of 18 and 34 in June 2012, only 31% of these users are in that age group in May 2013. •  Age demographics in the remaining Arab countries have also shown a slight increase in users above the age of 35 since 2012. On average, 60% of LinkedIn users in the Arab world are below 35 years of age. •  As with Facebook the gender ratio on LinkedIn is well below the global average. About 26% of LinkedIn users in the Arab World are Female compared to a global average of 43%. SOURCE: Arab Social Media Report:
  • 46. REGIONAL STATISTICS | LINKED IN Other notable trends pertaining to the region, as released by EMEA Marketing: SOURCE: Prefer to be leaders rather than followers. Young 64% 75% Aged between 25-44. 2 in 5 Highly educated, having received a university degree or higher. hold managerial or even positions. 73% Are socially responsible. 92% Think it is important to have an international perspective. 72%
  • 47. REGIONAL STATISTICS | LINKED IN Most sought after content types by LinkedIn Users in the Middle East, plus user segmentation by gadget are as follows : SOURCE: Own a smartphone. Industry News 81% Own a tablet. 51% Of members in the Middle East access LinkedIn via mobile device. 36% Career opportunities New product information Latest tech updates
  • 48. REGIONAL STATISTICS | LINKED IN SOURCE: Arab Social Media Report: 1 The total number of LinkedIn users in the Arab world stand at 4,716,515 as of May 2013. This is up from4,294,484 in June 2012. As of May 2013, the average LinkedIn penetration amongst Arab countries was about 6% up from 2% in June 2012. As with Facebook, the ratio of female to male LinkedIn users in the Arab world is well below the global average. As of May 2013 female LinkedIn users constitute about 26% of LinkedIn users. This is down from 28% in June 2012. Users below the age of 35 still constitute the majority of LinkedIn users in the region. As of May 2013 60% of LinkedIn users were between the ages of 18-35. Oman has shown a significant shift in its age demographics since last year with 69% of users now above theage of 35 up from only 11% in June 2012. 2 3 4 5
  • 49. top 5 social media statistics 33.4% Facebook continues to grow but in many countries (including Saudi Arabia, Bahrain, Kuwait, Lebanon, Qatar, and the UAE) for the first time, we are seeing some large dips. Female participation in Facebook remains well below the global average at 33.4%. 1 2 68% youth Facebook users between the 15 and 29 decreased by 2%, now constituting 68% of all users. While youth still drive Facebook growth, we are seeing slow uptake by users above the age of 30. 3 Twitter growth in Saudi Arabia has been exponential at 128%. Overall, regional users increased by over 79%. 4 LinkedIn usage has increased by almost 10% in the last year. Users below the age of 35 still constitute the majority of LinkedIn users in the region at 60% of all users. 5 As with Facebook, the ratio of female to male LinkedIn users in the Arab world is well below the global average. As of May 2013 female LinkedIn users constitute about 26% of LinkedIn users 79% regional growth 10% increase 26% female
  • 50. what do these mean for you? 1 Social media is now the new marketing currency that companies and brands can use to communicate with consumers, specifically groups of audiences they are keen to target. This, however, does not replace traditional methods of communication. Instead, it serves as one more powerful tool where many different platforms can be used by both small and large companies, all of which will inevitably bring benefits, provided that they are used properly. CONVENIENCE and REACH are your social media best friends. With the right platforms, you are essentially open all of the time even when you are physically closed. If you are after a wide reach in MENA, Facebook and Twitter are your best options. If you are after quality audiences for more discerning consumer decisions, LinkedIn is now an invaluable tool for MENA marketers.ith a wider target market by allowing your business to be accessible anywhere in the world as it is An emerging platform that is probably not as saturated as yet is LinkedIn. A brand or a company’s presence on LinkedIn allows for a more authentic business (rather than marketing) discourse with audiences. Here , brands have the opportunity to shape opinions, influence topics, or even promote themselves as thought leaders in their specific fields or industries. 2 3
  • 51. state of mobile in mena
  • 52. GLOBAL BENCHMARKS : MOBILE USERS AND GROWTH The Middle East has the 3rd highest growth rate worldwide, higher than the world average of 7.3%. The Middle East alone accounts for some 297M mobile users. Africa, on the other hand, accounts for 784M. SOURCE: Mobile Factbook – February 2013 | Portio Research World Average: 7.3%
  • 53. GLOBAL BENCHMARKS : MOBILE PENETRATION AND GROWTH Asia Pacific will continue to grow w/ the Middle East & Africa, the rest will slowdown. Mobile penetration rates stand at 96% globally. Middle East is at 105%. SOURCE: Mobile Factbook – February 2013 | Portio Research | ITU World Telecommunication /ICT Indicators database World Average: 96%
  • 54. GLOBAL BENCHMARKS : MOBILE SUBSCRIPTIONS In absolute numbers, however, the Middle East and Africa combined hardly make a dent on worldwide figures. Nonetheless, as predicted, by 2016, MENA will overtake Europe as the second largest region for mobile subscribers. SOURCE: Mobile Factbook – February 2013 | Portio Research | ITU World Telecommunication /ICT Indicators database
  • 55. REGIONAL STATISTICS : MOBILE SUBSCRIBER GROWTH •  Growth of mobile subscribers in the Middle East during the period end-2011 to end-2016 is expected to be half of the growth witnessed during the period 2009 to 2011. •  The mobile subscriber base of the region is expected to increase at 7.7 % during 2011-2016. •  Iran and Saudi Arabia are expected to continue their dominance as the largest overall markets over the period 2011-2016. SOURCE: Mobile Factbook – February 2013 | Portio Research
  • 56. GLOBAL BENCHMARKS : SMARTPHONES & MOBILE DATA TRAFFIC •  Smartphone use in the MENA will nearly double this year to 112.2 million, up from 67 million last year, while penetration of smartphones among the population as a whole in MENA will increase from 5.1% to 8.3%. •  With smartphones and tablets replacing PCs as the default computing device for many consumers, so, too, is data traffic shifting from fixed to wireless networks.  •  MENA will have the strongest mobile data traffic growth of any region at 77%. This region will be followed by Asia Pacific at 76% and Latin America at 67%. •  SOURCE: Mobile Factbook – February 2013 | Portio Research | ITU World Telecommunication /ICT Indicators database
  • 57. REGIONAL STATISTICS : SMARTPHONE USAGE AND PENETRATION •  The Middle East and Africa region is seeing a rapid growth in the sales and penetration level of smartphones. Smartphones are the most desired devices among the 18 to 34 year group in the Middle East. •  Qatar has the highest percentage of smartphone penetration, at 75%, while UAE comes a close second, at 73%. Although smartphone sales & penetration has seen a rapid growth, it is still expected to increase by 39% in the Middle East by 2015. SOURCE: Smartphones represent 40% of total impressions in the Middle East, which is 45% higher than the global average. Smartphones penetration in the Middle East region is projected to grow to 39% by 2015. Qatar 75% UAE 73% KSA 60% Jordan 50% Egypt 26% Morocco 16% 72% of smartphone users are less than 35 y/o.
  • 58. REGIONAL STATISTICS : SMARTPHONE CONSUMER BEHAVIOR Regarding the smartphone market share by platform, Android stands at 40% and iOS at 35%. Their lesser known counterparts BBM OS and Windows Mobile stand at a meager 15% and 10%. It is interesting to know that 93% of Middle East smartphones owners, use their devices while at home. SOURCE: 93% of Middle East smartphone owners use their smartphones at home. More than 50% of Middle East youth said if they were allowed just one device, it would be a smartphone. 79% Shopping74% Product Research & Purchase 70% Scan product labels in store 54% Find local retailers 49% Compare prices 48% 44% Find product review Get coupons and vouchers Shopping trends of Middle East Smartphone owners.
  • 59. REGIONAL STATISTICS: SMARTPHONE USAGE IN KSA & UAE The importance of smartphones in this highly mobile & digital society cannot be stressed enough. Below are some snapshots of how marketers can stand to gain from interacting with consumers via smartphones. SOURCE: Understanding the Mobile Consumer May 2013 by Google and IPSOS Media CT
  • 60. REGIONAL STATISTICS: : SMARTPHONE USAGE IN KSA & UAE Smartphones are an emerging point of purchase for consumers who are frequent shoppers in spite of the common barriers they face regarding mobile commerce in the region. SOURCE: Understanding the Mobile Consumer May 2013 by Google and IPSOS Media CT KSA Scenario UAE Scenario
  • 61. REGIONAL STATISTICS: : SMARTPHONE USAGE IN KSA & UAE Marketers now have better chances of connecting with their customers who are active smartphone users. Studies have shown that offline ads now have the potential to lead more customers online. SOURCE: Understanding the Mobile Consumer May 2013 by Google and IPSOS Media CT KSA Scenario UAE Scenario
  • 62. top 5 mobile statistics There are about 1.08B mobile users in the Middle East & Africa combined. 1 2 112M Smartphone users There are about 112M Smartphone users in the region, 72% of which are below the age of 35 and 93% of which use their smartphones at home. 3 Of the 112M Smartphone users, some 95% notice the mobile ads they are exposed to. 4 5 Some 79% of smartphone users use their devices for shopping, while some 72% use it for conducting online product research prior to purchasing a product. Some 95% see ads 79% shopping 784M Africa 297M Middle East A minimum of 72% did an online mobile search after being exposed to the mobile advertising. 72% Product research & purchase
  • 63. what do these mean for you? 1 People are now spending a significant part of each day on their smartphones or mobile devices. What this means for brands and companies is that a growing proportion of consumers are now increasingly using mobile as their primary device. As such, your consumers are also increasingly demanding for compelling content and online experiences that will keep them coming back for more. Business who are timely adopters in providing mobile content are first to benefit from this regional trend. Integrating mobile experiences into the consumer journey will help your brand engage more personally, more timely, and more efficiently with your target market. Simply bombarding them with marketing messages means competing with other brands and other industries for their attention. Adding value to their mobile computing lifestyle, and making their consumer journey with your brand easier and more enjoyable through mobile apps and more would mean far better engagement and deeper relationships. Ensuring that your online presence is mobile friendly is the best service you can give to the smartphone generation now taking over the region. If you are still to launch your web presence, consider mobile compatibility. If you have an existing one, consider migrating to something mobile-friendly. 2 3
  • 64. state of ecommerce in mena.
  • 65. GLOBAL BENCHMARKS : WORLDWIDE SALES MENA remains the smallest market worldwide in terms of ecommerce sales, reaching only USD27B in 2013, and as much as USD46B by 2016. Asia-Pacific already accounts for 1/3 of all ecommerce sales in the world but will top the charts come 2014 onwards. SOURCE:
  • 66. GLOBAL BENCHMARKS : WORLDWIDE GROWTH Sales growth in MENA will increase more quickly in 2013 than in Asia-Pacific, but from a significantly smaller base. It will continue to have above world-average growth rates until 2017, compared to more mature markets like North America and Western Europe. SOURCE:
  • 67. GLOBAL BENCHMARKS : WORLDWIDE PENETRATION RATE eCommerce penetration among total digital users will remain below world average for the MENA region for the next 5 years. This could mean significant room for growth though in an emerging region like MENA where internet users have yet to get used to buying online. SOURCE:
  • 68. REGIONAL STATISTICS: ECOMMERCE SALES VS. GROWTH •  BtoC ecommerce sales in the MENA, including sales of travel, digital downloads & event tickets, are growing faster than in any other region in the world by 10%.But that growth is coming on top of a very low base of spending. •  This is primarily due to a small number of internet users, low penetration and high cost of broadband internet, and a lack of familiarity with online shopping. Online goods available to users in this region are extremely limited. At the same time, there is a lack of stable online payment systems and very low credit card use among consumers. SOURCE: 8.48 14.41 20.61 27.00 33.75 39.56 45.49 92.3% 79.0% 43.0% 31.0% 25.0% 17.2% 15.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 0.00 10.00 20.00 30.00 40.00 50.00 2010 2011 2012 2013 2014 2015 2016 Billions Growth
  • 69. REGIONAL STATISTICS: ECOMMERCE USAGE BY DEVICE Mobile transactions already represent 10% of ecommerce (a level similar to the rest of the world), but they are set to reach close to 20% of transactions in the Middle East by 2015, as the m-commerce market grows from 1.3 billion this year to 3 billion by 2015. SOURCE: Paypal Insights eCommerce in the Middle East
  • 70. REGIONAL STATISTICS: ECOMMERCE USERS & PAYMENT METHODS •  Online shoppers in the Arab world are more likely to come from the over 35 age group, with 53% of that group saying they bought online occasionally. The 26-35 age group follow closely behind with 52% saying they bought online occasionally.  •  Men are more likely than women to shop online in the Middle East, with 46% of males compared to 32% of females shopping online. SOURCE: of the shoppers use prepaid cards for making online payment use credit cards for making online payments use cash on delivery for making online payment use brank transactions for making online payment use PayPal for making online payment 70% of online purchases of physical goods in the Middle East are paid through Cash-On-Delivery (COD), while 30% is paid online. Almost half of the consumers in the region (47%) own a payment card. 70% to 80% of online purchases while 30% is paid online of shoppers who are older than 26 shop online 52% of them are between the age group 26 and 35 53% of them are above 35 years old 41% of them are between the age group 16 and 25 53% of them are less than 16 years old
  • 71. REGIONAL STATISTICS: PAYMENT GATEWAYS & PURCHASES •  Cashu, Paypal, and Gate2Play are the highly favored payment gateways in the Middle East, though only Gate2Play is present in all Middle East Countries. Unfortunately, Paypal is only available in 9 countries so far. •  Aside from Online games which stands at 41% purchase rate, computer software and electronics are the more popular purchases online. SOURCE: Ecommerce in Middle East Statistics and Trends by Ajesh Somassundaram, Senior Project Lead at ISPG Technologies India Pvt. Ltd on Jul 31, 2013 Online Games Computer Software Electronics Clothes Entertainment Accessories Books and Magazines Home Appliances Beauty Products Health Products 6.45%-8.45% + Conversion Fees 2.9%-3.9% + Conversion Fees 7% of overall rate 3.9% of overall+$0.45/ transaction +5.99 monthly fees 2% of overall rate 5% of overall rate 3.1% + transaction fees Credit card payment 5.5% & others 10% Not available
  • 72. REGIONAL SURVEY: ECOMMERCE USERS PER COUNTRY •  While ecommerce companies still struggle with a variety of challenges, from customer trust to reliable logistics, there were over 30 million people shopping online in the Middle East in 2012, an increase of 20% from 2011. •  Penetration varies across the countries but remains fairly low overall. UAE leads at 46%, followed by Kuwait & Saudi . •  Of these, Kuwait has the highest level of online shopping, with 19% of internet users shopping online. SOURCE: IPSOS ArabNet Presentation, MENA Internet Usage and Consumption Habits UAE 46% Kuwait 35% KSA 25% Lebanon 9% Egypt 8% Of whom 6% shop online Of whom 19% shop online Of whom 10% shop online Of whom 16% shop online Of whom 5% shop online
  • 73. REGIONAL SURVEY: TOP PRODUCTS & PORTALS •  In Middle East markets, region-specific eCommerce websites are usually more popular than international ones such as Ebay. In fact, in Saudi Arabia, the top four eCommerce sites are all local providers; Souq, Sukar, Namshi and Markavip. •  In the UAE, Amazon makes it to third place in the top four (11%); trailing behind local offerings Souq (20%) and Cobone (13%), but coming ahead of Markavip (9%).   SOURCE: UAE Kuwait KSA Lebanon Egypt Clothing 24% Computer gadgets & accessories 22% Accessories 20% Clothing 63% Accessories 35% Computer gadgets & accessories 31% Clothing 14% Internet subscription 13% Accessories 12% Clothing 38% Airline Tickets 11% Hotel booking 11% Clothing 69% Others 29% Undefined 31% Top Purchases 20% 17% 11% 9% 13% 8% 7% 5% 10% 7%% 4% 4% Top Portals
  • 74. REGIONAL SURVEY: ECOMMERCE USAGE BY COUNTRY •  THE UAE which has a large population of expats predominantly use e- commerce for airline tickets. •  KSA users use e-commerce predominantly for paying bills. •  Kuwait, Lebanon, and Egypt are mostly involved in e-banking. •  Egypt, surprisingly turn to e-commerce for auctions. SOURCE: IPSOS ArabNet Presentation, MENA Internet Usage and Consumption Habits
  • 75. REGIONAL SURVEY: BARRIERS TO ECOMMERCE. •  The biggest ecommerce concern users face is running the risk of credit card fraud, and the worry that they will be unable to return/ exchange the product if they do not like it. •  In fact, a general problem with online payment has been ongoing in the Middle East for a while now. Lack of trust in payment options has been cited as a substantial barrier to ecommerce adoption. •  The few who have adopted e-commerce now prefer to do online transactions because of better offers. SOURCE: Barriers to eCommerce Advtantages of eCommerce
  • 76. top 5 ecommerce statistics ecommerce sales in MENA will remain the smallest in the world until 2016 because of a low internet user base, and the lack of familiarity with and confidence on ecommerce. 1 2 40.4% Global Penetration There were over 30 million people shopping online in the Middle East in 2012, an increase of 20% from 2011. 3 ecommerce penetration in MENA is lower than the world average & will remain so until 2016. 4 5 The most popular online shopping categories are 1) online games, 2) computer software, 3) electronic products, and fashion. 27B 2013 ss the of onliie purchases of physical goods paid through Cash-On-Delivery (COD), vs. those paid online via a payment card. 41%Online Games 45B 2016 31.3% Regional Penetration 30M 70% - 30% 31%Computer Software 28% Electronics 17% Fashion
  • 77. what do these mean for you? 1 Online shopping in MENA is still in the early stages, but we share the views of many that the future is bright, if certain conditions are met. Although e-commerce is facing the same barriers we see around the world, e-services such as e-government, e-learning and e-commerce in all countries of the region will undoubtedly contribute to the further penetration and usage of Internet and consequently enable and further e-shopping. Brands, therefore, should not hesitate to invest on and institute electronic transactions and services in their business. Many consumers in this emerging region who have no tradition in buying by catalogue still wish to touch and see the goods before they buy. Brands should try to overcome this barrier by offering pleasant online shopping experiences, such as product testing opportunities where possible, as well as easy return and exchange policies. eCommerce is constantly changing. It’s adapting, growing, and evolving. And the thing about business evolution is that if you don’t evolve, you go extinct. That’s the risk of not taking risks. That’s what is going to happen when brands stick with what they have and they don’t move forward with the new technologies that are coming out. Ecommerce is a risk worth risking.* 2 3 *Jus%n  Butlion  is  the  Content  and  Social  Marke%ng  Manager  of  Yotpo  
  • 78. final wordABOUT SERVICEPLAN MIDDLE EAST Serviceplan Middle East is the Dubai-based MENA hub of the Serviceplan Group. The Serviceplan Group is the largest and most diversified owner-managed and partner-managed agency group in Europe with offices in Munich, Hamburg, Berlin, Milan, Vienna, Zurich, and Brussels. Globally, it is represented by Serviceplan International with offices in Moscow, Delhi, Beijing, and Seoul. In Dubai, Serviceplan Middle East is a full-service agency specializing in online & offline creation, dialogue marketing, social marketing, performance marketing, and strategic consultancy. To date, it has successfully integrated the following international clients in the Arab market: BMW, MINI, Continental, Lufthansa, Rolls Royce, including strong regional brands in the hotel, insurance, and consumer industries. Contacts: RAMI HMADEH Managing Partner 009714 434 3404 ext. 106 JAN-PHILIPP JAHN CLIENT SERVICING DIRECTOR 009714 434 3404 ext. 102 Visit:
  • 79. hammad sheikh sr. art director bassant hammad sr. account manager edwin doss studio manager ona johnson account manager hiba mirza english copywriter qadria naji account executive samira benmahria account executive - social media sonakshi gandhi account executive - social media alissa wistorf account manager mohamed fofana account manager - digital fadi mufti arabic copywriter hossam saudi graphic designer shadi aslan account manager khalil haddad arabic copywriter jay morales graphic designer maro goebel account executive amin zeitouni art director artchie belcena graphic designer louise østengaard graphic designer moe jawhar creative director kazuko yokoe creative director - copy frances bonafacio strategic planning director rami hmadeh managing director strategic planning andrea yap accountant rhea balba accountant creative & studio jan-philipp jahn client service director client service your team
  • 80. thank you.