Digital platforms picking up pace in Middle East

Media and entertainment industry has been facing challenges from within as digitisation picks up pace. A majority of professionals surveyed by international auditing and marketing research company Ernst & Young spoke in favour of depending on digital platform.

As a result, specialised media companies providing tailored digital solutions for branding and mass communication are mushrooming. Emirates Business talks to Alexander Rauser, Chief Executive Officer of Connect that offers bespoke solutions on digital platforms.

Highlighting the country's growing population communicating on the digital path, he says: "More than 20 per cent of the UAE's population is using social networking tools and it definitely makes sense for organisations to explore the opportunities offered by these tools." He talks about some of the most common of the queries and spells out the complexities in an interview.

What is the extent of market for digital and online marketing – in volume and revenue?

The digital and online marketing industry in the region is set to surge, with the growth of broadband penetration in the Arab World, more people are using faster connections and surfing the internet.

Last year, 12 per cent of households had broadband, and by 2013 the figure is expected to rise to 20 per cent. The above statistics signify the rapid growth the industry is going through. According to the Arab Media Outlook report, which was produced by the Dubai Press Club and Value Partners, the online marketing/advertising industry is set to increase from one per cent to 4.2 per cent by 2013.

Today, the online platform accounts for advertising revenues of about one per cent, on a pan-regional level. There is no doubt that the online marketing and advertising industry is a booming sector.

What level of executives are using social networking sites and tools?

Globally, executives at all levels are using social networks and even the top executives will have their private accounts. Within the region, we find that mostly entrepreneurs are using tools such as Twitter to update their followers about their organisation. We have seen some successful examples of this in the past six months.

Do you recommend your clients to use this tool and is this propagated in your office as well?

Yes, more than 20 per cent of the UAE's population is using social networking tools and it definitely makes sense for organisations to explore the opportunities offered by these tools. Activities such as joining the conversation as an individual or a company, running marketing campaigns are all possible on social networks, but the success of these activities depends on the authenticity and added value. With the limited content offered in the region, marketers should look at social networks in order to find their target audiences.

Do you feel that there are not enough sites or tools in Arabic for social networking in the region?

There is definitively potential for Arabic social networking sites. Facebook for example, which is extremely popular in the region, supports Arabic content and attracts (according to internet sources) more than five million Arab users already. The question is: do we need to worry about where it comes from as long as we have a platform available?

However, there is plenty of opportunity to create localised communities in Arabic. We do not necessarily need another Facebook, but more platforms that provide Arabic content.

To what extent do social networking tools and sites contribute to "numbers" revenue and profit of the companies?

Regionally, we have no figures. However, internationally, we have seen many companies increasing their brand and product awareness using social networking tools.

The reason for such success can be attributed to the openness and responsiveness of these tools.

What is the extent of social networking in the region and how does it compare to global figures?

Looking at statistics and growth rate, the region is not behind in the acceptance of social networks, as marketers had success in the past year to use social networks to their advantage. However, there is plenty of room for development, as corporations need to look at this form of communication as an added advantage, while keeping corporate policies in mind.

Social networking is a recent phenomenon and no one realised the potential of this until it arrived and people started using it. Do you see this phenomenon staying around – in near future?

It will definitely stay. The concept of social networking is not new. It has been in existence for a while… only the tools have changed in the past few years which has made it mainstream. In the past, we have had forums, chats or community sites, which were used by selected audiences such as gaming forums or developer communities. Now, social media is for everyone.

Mobile plays a big role in the development of social media as we are now able to interact with others using mobile devices. The growing availability of broadband mobile connections and smarter mobile devices enable users to do even more on the go rather than using the conventional browser on a personal computer.

Where does the digital platform in the region stand when compared to the global scenario?

Comparing the digital platform in the region to the global status is not appropriate because we are talking about differences in market sizes and infrastructures. The digital platform is growing at a formidable rate in the region. We have the technology and expertise. However, we are missing the right infrastructural support: connectivity, content and areas to advertise/market the brand online.

Content is still a major issue – the region does not have enough content, which means there are fewer areas for advertising or interaction between the brand and the customers online. This is not surprising as the region is much smaller to other more developed areas such as the US or Europe.

We need to have more of local content as this is where the opportunity lies, and, therefore, if corporations can generate this content and take it online, the platform will improve further.

What do do you think of the future of social networking?

It will be an integral part of day-to-day communication between people. With some social networks having a user base of more than 400 million, the trend is clear – social networking is here to stay.

All communication will be held on these networks regardless of nature or focus, as the web offers a massive platform for people to have personalities and share information. It is a clear shift in the dominance of communication protocols.

Du tweets to communicate with its customers

As social networking goes beyond socialising and networking, marketing companies are exploiting this tool to communicate with their users/ consumers on an elevated platform.

Du, the country's second telecom operator, moved closer to its users by using the social media network. Dubai-based du opened a 140-character communication link with its client base and started a chain reaction among its users.

The result, it seems, was a barrage of tweets that reinstated the connection between the two – service provider and its consumers. Within days, du representatives and their agency representatives at OMD claim that it had as many as 850 followers.

Farid Faraidooni, Chief Commercial Officer of du, spells out the non-conventional approach to connecting with its users.

What prompted du to use social networking platforms such as twitter for communication with their customers?

Social Media is becoming an integral part of communication worldwide as well as regionally. Conversations about brands are taking place be it positive or negative, whether we like it or not.

At du, we have chosen to listen and participate in the conversation and improve in order to enhance customer experience.

What is the customer profile of du and does it overlap with the twitter user profile?

It's not about overlapping as much as extending to additional channels of communications

When was this exercise started and how long did it take to implement this exercise?

@dutweets started in mid-October and has received a highly encouraging response so far

How many people responded to this effort of du?

We have more than 850 followers of @dutweets so far.

Will they continue to execute such exercises to communicate with their customers?

Social Media is an emerging communication channel and different social media platforms are continuously evolving.

To ensure that we're connected with our customers, we need to be present in their space and engage in the conversation happening on the different platforms

What is the level of accuracy in communicating through such means?

There are some challenges involved when engaging in social media channels, but we have created internal processes that ensure timely and accurate communication with customers

Will OMD recommend this platform to its other clients?

Definitely, but since Twitter remains a niche community, especially within this region, it might not be a perfect fit for all brands. Despite the success of @dutweets, recommending Twitter to other clients would have to be done on a case-by-case basis. (Answered by OMD representative).

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