Yahoo seeks to attract Arabic-speaking netizens

Yahoo is seeking to attract the Arabic-speaking online users in the region with the acquisition of Maktoob.com.

"Maktoob brings a strong community of Arab users, and a portfolio of content verticals that Yahoo does not have today," said Keith Nilsson, Senior Vice-President of Emerging Markets, Yahoo.

"By marrying Yahoo global technology with Maktoob's content and community, we think we have a winning offering in a way that differentiates us from our key competitors," he added.

The deal takes place at the beginning of a new age for online media in the region, with penetration growing promisingly, and advertisers showing increased interest in the efficiency, targeting and measurability of online media.

Yahoo currently has about 29 million unique users and is projecting to duplicate that number.

Ahmad Nassef, General Manager of Maktoob.com, said the deal would provide advertisers with broader target audience and will help meet their needs and aspirations as Yahoo will have more than 16 million users of Maktoob.com.

"This is the right time when advertisers are looking for an efficient medium that will provide them with an outreach that could challenge both print and TV."

Yahoo, whose applications are still not available in Arabic language, has had a sales team representation in the region. Under the acquisition deal, there will be one Yahoo-Maktoob sales team.

Nilsson said: "The details of how we are going to manage our relationship going forward, is something we are going to work out as we close the deal."

Nassef said: "This deal will increase the potential for marketers and customers in the region to optimise their targeting.

"We are still at the beginning of the internet age in the region with 45 to 60 million users, however, the online population of the region has been growing annually by 30 per cent."

Currently, online advertising budgets range between $40 million (Dh147m) and $50m, according to Samih Toukan, the founder of Maktoob Group. "This budget continues to grow at a rate of 30 per cent to 40 per cent despite the crisis. Online advertising is ready to grow."

The acquisition that is expected by the end of Q4 2009, will see the basic Yahoo services in Arabic by the middle of next year.

According to Nilsson, Maktoob will become the Arabic content team in the Arab World and will join as a local sales force in the region.

"We are taking the best of both the global platforms and the local team producing the content and offering the experience that they have here," he said.

Nassef said the main focus is going to be on launching key Arabic communication services for the key audience drivers that Yahoo has as soon as the acquisition deal is completed.

"This will include coming out with local versions of Yahoo Mail, Yahoo Search, Yahoo Messenger and front page. These are expected to roll out in the first half of next year. There will also be a road map of constant rolling of global products that are customised to the region in addition to developing regional products that are focused on the Arab region and the Middle East."

Nassef added: "After the closure of this acquisition deal, we shall go through a process of looking at each of our products and figure out which fit within Yahoo's global portfolio which fit within the regional portfolio for the Arab World."

Yahoo and Google are currently engaged in global battle for internet domination as advertising budgets continue to shrink.

The recent deal between Yahoo and Microsoft was also intended to reinforce their position against Google that resides over more than 60 per cent of global market share.

Along with other multinational companies, they have been eying the Middle East as a future potential, being in it development stage and still witnessing positive growth despite the crisis.

Nilsson said: "We see great growth potential in both audience and advertising in the Arab World.

"This is a big win for publishers, advertisers and consumers in the region."

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