Emirates Business 24/7 reports that prices for outdoor advertising sites in the UAE have shot up by between 30 and 50 per cent so far this year; compared with increases from 15 to 25 per cent during the whole of 2007.

The outdoor segment accounts for between five and eight per cent of the overall advertising market in Dubai. This year's rises have come as clients compete aggressively for prime locations.

Experts agree that one major reason for the price rises is the increased fees charged for outdoor advertising space by the Roads and Transport Authority (RTA) and Dubai Municipality.

Formerly space cost Dh100 per square metre, so a standard 20 metre by eight metre scaffolding would cost Dh16,000, aside from the landowner's leasing fees. But such a site now costs Dh800,000 while the price of a unipole is Dh312,000.

Bridge banner sites have risen the most above 50 per cent and in some cases have almost doubled while lamppost posters and muppis have gone up by a more modest 10 to 15 per cent. Industry sources say this gap is due to the fact that not all muppis and lampposts are being offered on a tender basis by the RTA yet.

Dubai Municipality controls only licensing and leasing of rooftop advertising and scaffolds but the RTA has taken over the rest of the outdoor advertising as it offers bridges, unipoles, flags and, of course, bus stations.

The RTA has identified 12 categories for locations and has placed minimum bid prices ranging from Dh12 million for the most attractive category down to Dh6m for the least appealing.

Read more.

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.

Read more here.