Emirates Business 24/7 reports that advertising spend in the UAE increased by a staggering 43 per cent in the first quarter of 2008. The figures are driven more by the increase in costs and not so much in advertising exposure, believe industry experts.

Dubai-based Pan-Arab Research Centre, in a detailed report on the advertising spend in 2007, revealed that the country had witnessed a massive growth in the total advertising budget last year to $1,303 million (Dh4,785m) an increase of more than 26 per cent over the previous year. In comparison, the UAE spent $1,077m in 2006.

This year, the ad spend has already crossed $441m in the first quarter, more than a one-third increase over the previous year.

The country is expected to retain its position this year as the highest spender in the region - second on the list is Saudi Arabia. In the past, the UAE's increase in ad spend has been lower than the regional increase, but this year the rise is expected not only to lead the region but surpass the regional increase percentage-wise.

The increase in ad spend in the pan-Arab region was 26 per cent in 2007 over the previous year, and, in comparison, the UAE's ad spend increase was 21 per cent.

Industry experts are attributing this massive increase to the rise in the cost of advertising. However, they are not ruling out further increases in the advertising budget as more retail outlets are to be added to the existing retail space.

The first quarter of this year continued to see the same trend in the division of advertising budgets, with newspapers claiming the largest chunk of advertising revenue, and magazines and television as distant second and third players. Outdoors showed a steady climb but will most probably still maintain its growth in the single digit. Last year the outdoors segment had five per cent of the advertising share.

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