Crowded airwaves, low radio expenditures…. what's the story?

Sun, 2007-03-11 14:25 - By
5
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How much can the airwaves take? A recent report by Arab Advisors Group shows slightly a growth of around 21% in the number of radio stations in the Arab world, with the total number of FM radio stations jumping from 175 to 211 in the last two years!

The report, covering 18 Arab countries across GCC, Levant and North Africa, suggests that there are two factors behind this growth: liberalization of the sector and the variety in the ethnic groups in few of these countries like the UAE where radio stations broadcast in Arabic, English, Malayalam, Hindi, Urdu and Filipino.

But are the projected advertising revenues a factor in this growth?

Apparently not as, radio expenditures experienced a drop in the last few years. The report suggests that this is probably due to the insignificant exposure and the lack of creativity in radio jingles. But with this rapid growth in the number of radio stations in a market that doesn't spend more than 1% on radio, what's the real story?

According to the report, 113 radio stations are state owned while only 98 stations are private which indicates that more than 50% of radio stations in the MENA region are not for commercial purposes but for political reasons, which puts a question on the role of the radio in this region. Is it a governmental propaganda tool or an entertaining and informative media?

Findings of surveys conducted by the Arab Advisors last year in Morocco and Saudi Arabia, and in year before in Egypt and Jordan show that the majority of the population in these countries listens to the radio.

So, how can anyone explain the low advertising expenditure on this medium and does this call into question the viability of radio as an advertising tool?

To advertising agencies and clients we say: What's the story from your side?

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