The cost of outdoor advertising in Dubai has rocketed by more than 500 per cent since 2003, say industry sources. And a further rise of up to 20 per cent rise is expected over the next two years, according to the head of one company.
A billboard on such a pole on Sheikh Zayed Road formerly cost Dh400,000 a year to rent. But the price today is between Dh1.5 million and Dh2.5m, depending on the size and location. And hoardings have shot up in price from Dh1.5m a few years ago to more than Dh9m.
“The emergence of Dubai as a business hub, especially the growth witnessed in the real estate sector, banking, fast-moving consumer goods and luxury products, is having a great influence on the outdoor advertising industry,” said Jamal Makki, Shoof’s Chief Operations Officer.
“We are expecting another 15 to 20 per cent increase in the cost of outdoor media space in the next two years. In 2009, the prices will stabilise.”
Concept Group CEO Aldrin Fernandes said: “The growing real estate market has been a boon for outdoor advertising because many companies in that sector have huge advertising budgets.