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Imad Sarrouf
General manager, Flow
Agency: Flow
Founded in: 2005
Subsidiary to: MCN (Middle East Communication Network) Media
Key people: Imad Sarrouf, general manager
Key clients: MasterCard, Sony
Billings: Not disclosed
Web site: www.mcnmena.com

What do you predict for digital in 2009?
Two things will mostly move the digital media industry: search engine marketing and social networking sites. As advertisers look for secure and effective methods to combat fear in an economic meltdown, search marketing spend will grow this year, since this medium is highly measurable and effective. It will maintain its place in numerous budgets and increase in some others.
Social networking seems to be the big topic for 2009. I expect social networks to become a shopping destination. Suppliers need to enhance their advertising opportunities and systems to allow consumers and businesses to buy and sell real-world goods and services. Thus, the reviews and conversations will be more vibrant, compelling and full of insight.  

Where are you spending the most (banner ads, search, social networks, etc.), and what do you find is most effective?
Banner ads are still king in this part of the world. Search is catching up quickly, and even though social networking sites are consumed the most, they are still far from being exploited effectively by advertisers. The most effective medium is paid search, as relevant ads are triggered by user inquiries, therefore they deliver contextual ads to users. The beauty of paid search is also that the advertisers pay per click. But a combination of all these approaches is best, as click-through rate (CTR) is only one key performance indicator to look at. Brand recall and user engagement are also important metrics that should not be ignored.

 
David Sheridan
CEO, NeoDigital
Agency: NeoDigital
Founded in: 2004
Subsidiary to: Flip Holding Ltd.
Key people: Martin Diessner, group CEO, Flip Holding Ltd; David Sheridan, CEO, NeoDigital
Key clients: Not disclosed
Billings: Not disclosed
Web site: www.neodigitalme.com

What do you predict for digital in 2009?
Unlike some of our peers in digital media agencies – both in the UAE and internationally – we don’t believe that digital is immune from the economic slowdown. We take a realistic – not dangerously optimistic or naïve – view of the facts we are seeing. Advertisers are going bust, marketing budgets are being slashed, and digital billings are definitely feeling these effects.
On the positive side for digital media agencies, we are already hearing from clients looking to increase the share of ad spend allocated to digital. In some cases, where the surviving budget is quite limited, digital stands to win 100 percent. The reasons are well documented by now: greater accountability, the need for measured return on investment (ROI), and a belief that digital in the Middle East region is now delivering on the numbers.
We are still, however, in a period of stalled budgets (in February 2009). Many clients tell us that the money is there but they cannot release it yet. Chief financial officers are holding sway over marketing directors, and caution (for some, read “fear”) is the mood of the moment. The property sector, needless to say, is severely down and is unlikely to bounce back any time soon.
Predicting the growth rate for digital ad spend in 2009 is therefore much harder than in previous years, as the medium and long-term trends we have got used to tracking must be thrown out of the window and only the shortest of trends considered.
Our prediction for digital spend in 2009 is low-single-figure growth. We believe Q2 will outperform Q1 as some confidence seeps back in to markets. Q3 will equal Q2 as the traditional summer lull is countered by the Ramadan effect, which falls entirely in Q3 this year. Q4 will show modest growth – some advertisers will need to release budgets before the year end or risk having lower budgets in 2010, but others will have had a bad year and their remaining marketing budgets will be at the mercy of management teams looking to shoreup the 2009 bottom line.  
 
Where are you spending the most, and what do you find is most effective?
Because of the need for accountability and material evidence of ROI, we are seeing a continuation of the trend we saw through throughout 2008, moving away from return on sales (ROS) banners and towards more targeted options.
Social networks are gaining share as this medium is currently in vogue. It’s also relatively low-cost. CTR performance of social networks, however, is easily the lowest of the digital media that we track, so we are careful to manage client expectations and only use paid advertising on social networks for brand awareness, not lead generation.
Search engine marketing is growing fast (by more than 20 percent last year), and we predict this will again be the best performing medium by growth in digital media this year.  The dominant medium, however, is now electronic direct mailing (eDM). With CTR for eDMs more than 10 times greater than ROS banners, the reason – in this tough economic climate – is self-evident.
CTR, however, is only one metric. It has become a focus of advertiser attention as clicks generate leads and online leads are becoming the lifeblood of many sales operations. We do our best to impress upon clients that good old-fashioned awareness metrics remain important, and that targeted banners and relevant online sponsorships still have their role to play. So which is the most effective? Well, that depends on what you are trying to achieve.
 

Andreanne Leclerc
Manager, MEC Interaction
Agency: MEC Interaction
Founded in: January 2008
Subsidiary to: Mediaedge CIA MENA
Key people: Mohan Nambiar, regional managing director; Yves-Michel Gabay, international business and development director; Andreanne Leclerc, MEC Interaction manager
Key clients: Sony Ericsson, Ford, Land Rover, Emaar, DHL, Canon, National Bonds, Citibank
Billings: (2008) $12 million
Web site: www.mecglobal.com

What do you predict for digital in 2009?  
The pace of growth of online will decline in 2009. Optimists say it will increase by 30 percent over 2008, and more conservative estimates put the growth at around 18 percent. We will not exceed the 65 percent growth of 2007, but changes in perception and usage of online media are very promising.
The share of online is increasing in the majority of the campaigns, and clients are more confident and comfortable with online. Online is coming up in more discussions, and sometimes it is even used as the lead media for a campaign. A shift is happening and will continue, since clients are seeing results and can calculate their ROI, unlike with any other media.
All that is digitally going on in the region is starting to get very interesting; we now have more and more choices in terms of the amount of Web sites and targeting options, and on the technology side the opportunities are endless. Clients can really benefit from digital in many different ways. They can make a difference in consumers’ minds, and engage in meaningful discussions with them.  

Where are you spending the most, and what do you find is most effective?
Banners are where we are spending the most, followed by sponsorship and search (which is the area with the highest growth), direct e-mail and special operations.
Different approaches will be most effective for different campaigns, depending on the products, the objectives and the message. When you need to reach the masses and create awareness, banners can be perfect, but for a more tactical campaign, search and direct mail can work better.
 

Shyamsundar Ramlal
Regional digital champion, Mindshare
Agency: Mindshare (formerly Mindshare Interaction)
Subsidiary to: Mindshare MENA
Key people: Samir Ayoub, CEO; Elie Haber, managing director (Dubai); Shyamsundar Ramlal, regional digital champion
Key clients: Coca-Cola, Coke Flavors, LG Electronics, HSBC, Etisalat, RTA, Abu Dhabi Culture & Heritage, Chili’s, Groupe SEB, Nike, RSA, Castrol
Billings: $11 million (estimated gross digital billings)
Web site: www.mindshareworld.com

What do you predict for digital in 2009?  
Responsibility. Research. Returns. Respect. This is definitely the year of digital. Client expectations will be high. Every dollar in the budget will be rationalized. Consumer insights and knowledge will become even more critical. The smoke and
mirrors days are gone when it comes to audience numbers. And we will see some pretty cool stuff
happening.
The Holy Grail in digital is going to be consumer data and Web site metrics.  As behavioral targeting takes root, publishers are going to have to pay more attention to what people are doing on their Web sites, and share this information as well.
The Long Tail is going to wag the digital dog. We have to stop using the tommy-gun approach to targeting. There are hundreds of niches out there that don’t come to light unless you dig deep. These offer audiences that the more broad-based portals can’t.
Ad-funded content is definitely going to improve what Web sites offer – by way of quality content.
Format innovations will happen as the Arabic media landscape evolves, integrates Web offerings, and repurposes existing caches of content for digital delivery, like video on demand.
Mobile will make huge inroads. The clients have been waiting for a long time and now, as operators finally put in place business models, mobile advertising will take off.
 
Where are you spending the most, and what do you find is most effective?
Display ads are still the staple – for awareness and brand building. As return on objective [when an initiative achieves previously stated goals] gains increasing focus during the current slow-down, more targeted formats are finding favor. Search and pay-per-click models generating leads will definitely see increased usage.
Who wants to be one in a clutter in a given context? It’s about owning the context itself. To this effect we have been exploring branded content and customized formats for a number of our clients.
And social networking is no longer just another option. A lot of our initiatives are now based around these communities and platforms, where the primary task has been to integrate brands into consumer conversations.
 

Joe Hanoun
 
Digital media director, Media Contacts
Agency: Media Contacts
Founded in: 1997
Subsidiary to: Havas Media
Key people: Joe Hanoun, digital media director; Dany Naaman, general manager
Key clients: Peugeot, IHG, Chanel, Air France, Al Aan TV, Reckitt Benckiser, L’Oreal
Billings: Not disclosed
Web site: www.mediacontacts.com

What do you predict for digital 2009?  
We are looking at a 20 to 25 percent growth in digital advertising, and user penetration growth of 35 to 45 percent.
Digital in the region is behind the UK and the USA by three to five years; however the growth rate in the region has been up to six times faster in the last eight years then any other place. This is exciting news for agencies and brands, since they will have more touchpoint opportunities than before. Digital is the most trackable and cost-effective geotargeted media, and its adaptability to be used with other media channels can give the incremental reach brands are looking for.
New digital media will start coming in. Widgets will be used more on social networks, as traditional advertising banners are seen as too disruptive in a social environment. Another rapid growth area for digital media is in the form of video units; and advergaming represents a virgin territory for advertisers, where opportunities are available through a video game format.
All of this will put pressure on portals and publishers to invest in the newer technologies of Web 2.0 and adapt to industry standards. It will put pressure on digital agencies to offer better datafusion [combining data from multiple sources] and ROI analysis to their clients, and pressure on brands to increase their budgets as their consumers are getting more and more savvy when it comes to avoiding ads.
And we are starting to feel the presence of proper monitoring services, and services that offer international standards for Web audiences by site, demographic profile and behavior (for example, Nielsen NetRating).
 
Where are you spending the most, and what do you find is most effective?
It all depends on the brief and the objective. Sometimes you need to mix a couple of strategies (display and search, for example) to reach your goal. In general, however, we strongly recommend using interactive banners that enable the brand to connect and engage deeper with the consumer, therefore generating a higher impact. Such practice is still weak in the region.
 

Mohammad Itani
Digital director, MediaCom MENA
Agency: MediaCom Mena
Founded in: 1995
Subsidiary to: WPP
Key people: Phillipe Skaff, chairman and CEO; Hisham Tannir, chief operating officer
Key clients: Nokia, Audi, Volkswagen, Marriott, Tag Heuer
Billings: Not disclosed
Web site: www.mediacom.com

What do you predict for digital 2009?  
2009 will see an overall increase in online spending. We are already feeling the growth of digital within the agency. We believe that digital media spend could be 60 percent more than in 2008.
The production cost of digital material is surely lower than TV, print and outdoor. Add to that measurability and efficiency factors, and the ability to target according to different criteria, be it behavioral, contextual, or demographic, and digital becomes an attractive medium.
The ease with which digital can ensure and deliver regional coverage will prove decisive for marketers searching for more efficient ways to reach their prospects.
Although it is distressing to observe cuts to the overall marketing budgets, 2009 will be the year for digital to stand out and prove itself. For that to happen, it needs a collaborative effort among all the concerned parties (clients, media agencies, creative agencies and portals). Digital media (including mobile advertising) has a long way to go, and there is room for more creative innovations, better service and, of course, better understanding of our clients’ requirements.
 
Where are you spending the most, and what do you find is most effective?
Selecting the vehicles depends on the campaign’s objectives. However, we see that spending behind search marketing and social networking is rising. Social networking connects with a growing audience base and offers all levels of engagement and interactivity, while search marketing is cost effective and is based on audience interests, so you get what you pay for.
That doesn’t mean that banner ads and other formats do not serve a purpose. Every medium or format has its own merits and outcomes that must connect with the campaign’s objectives. From MediaCom’s clients, we are witnessing an increased level of interest in digital, which makes us keener to extend our reach.
 

Dimitri Metaxas
Executive group director, digital, Omnicom Media Group
Agency: OMD MENA, PHD UAE
Founded in: 2002 (OMD MENA), 2005 (PHD UAE)
Subsidiary to: Omnicom Media Group
Key people: lain Khouri, chairman, Omnicom Media Group; Elie Khouri, regional managing director, Omnicom Media Group; Dimitri Metaxas, executive group director, digital, Omnicom Media Group
Key clients: Not disclosed
Billings: Not disclosed
Web site: www.omd-mena.com, www.phdnetwork.com

What do you predict for digital 2009?  
We will see continued growth overall, as dollars migrate from traditional media. The agencies that can demonstrate clear and accountable business ROI for their clients through their activities will be the best positioned to capitalize on the economic downturn.
For us, a recession is an opportunity, as it forces clients to move away from business as usual, and forces them to learn about emerging – and often superior – means of communication. This creates market conditions that are ideal for digital growth.
   
Where are you spending the most, and what do you find is most effective?
Display advertising is still the dominant form of digital communication, though this is fast changing with the inclusion of search, mobile, social media and in-game, all of which are taking a growing portion of our clients’ activities. All of the methods can be considered effective depending on the objectives to be achieved. Still, I see a strong growth for search in particular, as its demonstrable ROI and consumer relevance will push it up to the top of many advertisers’ agendas.

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