POINT Consultancy Media research - Cover story GMR Jan 2013 issue

1. COVER STORY
© Getty Images
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2. Media’s future
Exclusive research for GMR forecasts media usage among Arab
populations in the UAE and Saudi Arabia for 2013.
The on-going growth of online media con- even more in 2013 with the rise of new This, and the fact that a higher number
sumption and cross media usage among technology devices. of consumers agreed that the internet is
Arabs in Saudi Arabia and the UAE is Significantly more Arabs will go online the best way to connect with brands that
driving additional spending and interest via smartphones and tablets. matter to them, should be resonate strongly
in technology gadgets and devices. This does not indicate a decline in TV with marketers and brand stewards.
This is among the most striking find- and basic mobile phone usage, however, Then again, half of consumers went
ings of a Point Consultancy study for as a sufficient number of consumers stated online for entertainment mainly to watch
GMR, which examined the 2013 media that their usage of those mediums will TV programmes and stream live music
consumption patterns and saving inten- increase in 2013. and videos online.
tions of 21- to 45-year-old Arabs in Saudi Getting ideas and inspiration was the
Arabia and the UAE. The internet reason for 45 per cent of consumers to
The internet was widely perceived by connect in 2012, and 44 per cent were
More digital in 2013 85 per cent of Arabs as the main means online for work-related activities.
In 2012, consumers in Saudi Arabia and for communication in 2012. Significantly more Arabs in the UAE
the UAE used a vast number of media A growing number had a registered accessed the internet for the latter.
platforms to learn about current news profile on social media sites, accessed The study also reveals that even if at
and events. the internet to chat with their friends and least a quarter of Arabs have not engaged
Most of the content was delivered to family, and to send pictures and share in all online activities mentioned above,
them in a traditional manner, ie. through photos with loved ones. they definitely intend to undertake them
TV, however new technologies seem to The tendency of many connected Arab in the future, which reflects a clear open-
be growing massively as a reliable source consumers to check certain online sources ness to digital activities in 2013.
of information. first, in order to search for information On the other hand, it seems that the
An emergent number of Arabs spent about products and/or services that is contribution to the World Wide Web among
considerable time online on a daily basis, of interest to them, was very high at Arabs in Saudi Arabia and the UAE was
using novel gadgets, such as smartphones 87 per cent. still minimal in 2012, but noticeably higher
– 53 per cent – and tablets – 20 per cent. Arab consumers used the internet to: among Saudis.
Last year was clearly a booming year research a future purchase; review a product Only a quarter or even less started their
for the digital media industry, which is on a shopping or review site, and relied own blog, edited an existing online content
© Getty Images
expected to be even more momentous on the net to review a hotel/restaurant. such as Wikipedia, posted a comment
in 2013, according to Point. Consumers Almost half actually purchased a product on a news site and/or have submitted a
stated that their internet usage will grow online afterwards. story or article on the net.
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3. COVER STORY
© Corbis
The rise of smartphones and tablets has noticeably, at 36 per cent and 32 per cent
respectively especially among Arabs in
drastically altered Arab consumers’ digital the UAE.
Usage of e-readers and mini-tablets
media consumption. will also increase compared to 2012, but
more slowly.
Significantly more Saudis, however, role in their lives and makes them stand Aside from devices used to access the
claimed to have built their own website. out from the crowd. internet, basic mobile phones, LCD TVs
But, online personal contribution will This, along with the growing need to and digital cameras were in high demand
grow during 2013 more among Saudis; access the internet every second of the day, in 2012. For 2013, however, the door seems
given that nearly half of Arabs in the UAE made the existence of various gadgets/ to be more open for LED TVs and games
claim not to be interested in contributing devices essential among Arabs. consoles.
online, even in the future. E-readers and mini-tablets still haven’t Digital cameras are also still on top of
Other online activities of less interest reached the penetration levels of devices the list.
among Arabs are: internet radio, paying such as laptops, smartphones, desktops,
for music downloads online, subscription tablets and internet-enabled TVs. Gadget spend grows
to RSS feeds and podcast downloads. Looking at the differences by country Without doubt Arabs intend to increase
many more tablets were brought into UAE their spending in 2013 on various con-
Digital media gadgets on the up households, and internet-enabled TVs in sumer categories mainly automotive loans,
Arabs in Saudi and the UAE are, generally Saudi Arabia. food and household products, communi-
speaking, tech-savvy and early adopters. During 2013, the purchase of tablets cations, clothes and fashion, entertainment
They agree that technology plays a big and smartphones will continue to grow and gadgets.
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4. SMARTPHONE ACTIVITIES WHILE WATCHING TV
0% 20% 40% 60% 80% 100%
Browse social networks (Facebook, Twitter, Linkedin etc) 68% KSA UAE
46%
Instant messaging/ chatting 65%
30%
Play online games 45%
32%
Read news 31%
46%
Do work / homework 29%
48%
Browse content not related to the program I am watching 29%
44%
Browse content related to the program I am watching 20%
16%
Look up info on a TV commercial I just watched 11%
17%
GADGETS PURCHASE INTENTION IN 2013
0% 20% 40% 60% 80% 100%
Basic mobile phone 70%
4% KSA UAE
Gaming console 29%
4%
E Reader 26%
9%
LED TV 20%
18%
Tablet 18%
60%
Apple TV 13% About the study
9%
Smartphone 12% The GMR/ POINT Consultancy 2013
53%
Laptop 11% Media Future Survey was conducted of-
11%
11% fline through quantitative face-to-face
Internet enabled TV
9%
10% interviews for GMR within the UAE and
Mini Tablet 13% Saudi Arabia and is based on respons-
DVR (Digital Video Recorder) 9%
5% es from more than 625 Arabs aged 21
LCD TV 9%
5% to 45 years. The study was fielded No-
8%
Digital camera
24% vember 25-December 11, 2012. POINT
DVD Blu Ray player 5% Consultancy offers full-service qualita-
8%
Desktop 5% tive and quantitative market research
2%
4% that expands the traditional research
© Corbis
MP3
7%
Plasma TV 3% methodologies.
13%
In Saudi Arabia, on average consum- popularity in 2013, while Apple iPhone, phones while in home while watching
ers tend to spend SAR3,000 to $800 on Samsung and BlackBerry will continue to TV, lying in bed and in the bathroom.
technology gadgets/devices in 2013. be consumers’ preferred purchase.
In the UAE they plan to spend around Consumers are relying heavily on Top tablet brands
AED 3,700 ($1007) on the same. their smartphone’s Facebook, YouTube, The usage of tablets among Arabs in Saudi
Whatsapp and Twitter apps. Arabia and the UAE is increasing, even
Top smartphone brands Google+, Skype and MSN messenger if they are still considered a new device.
The demand for smartphones continues apps follow. About a third of consumers owned tablets
to grow. Some 64 per cent of respondents Noticeably, more males and younger in 2012 and there is no sign of this slowing
owned one in 2012, and 32 per cent intend consumers use Facebook apps, while as 36 per cent of consumers are likely to
to buy one this year. YouTube is more prominent among Ar- purchase a tablet in 2013.
BlackBerry is the most heavily used abs within the 26 to 30 year age group. Apple iPad and Samsung seem were the
smartphone, especially in the UAE, com- Due to their portability smartphones are most popular tablet brands in the UAE and
pared to Saudi Arabia. used in various situations, mainly out-of- Saudi Arabia in 2012, and are expected
Apple iPhone accounts for the second home, with friends and family, commuting to be most used during 2013.
highest percentage of smartphone owners. and/or while engaging in activities such Apple tablet brands seem to be more
Nokia and Samsung brands come third as shopping or running. popular in the UAE than in Saudi Arabia.
place, even if Samsung is used much more More Saudis use smartphones while Kindle Fire, Google Nexus, LG and
popular among Saudis. commuting, while a noticeably higher HTC are also used, but in lower volumes.
The other smartphone brands are less number in the UAE use them while shop- Facebook, YouTube, Twitter, Google+
popular among Arabs in both countries. ping and running. and Skype are seeing the highest growth
It is projected that Nokia will decline in Arabs, mostly Saudis, use their smart- in tablet apps.
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5. COVER STORY
Country Facts
© Getty Images
A comparative analysis of media consumption behaviour of and entertainment; however they are planning to spend more on •
Arabs in the UAE and Saudi Arabia reveals some surprising clothes and furniture in 2013.
variations, says POINT Consultancy.
Saudi Arabia
UAE • Saudis use the internet more often for non-work related activi-
• Significantly more Arabs in the UAE use the internet for work- ties compared to UAE Arabs.
related activities (“to get some work done”) compared to • Online personal contribution is growing in popularity among
Saudi nationals. Saudis. A considerable number of Saudis are building their own
• Low individual (future) digital contribution in the UAE. A large websites and/or planning to contribute to blogs, edit existing
majority of Arabs in the UAE claim not to be interested in con- online content and/or add a story/article online.
tributing to blogs, building websites and/or adding stories and • Spending on smartphones and tablets will increase in 2013, but
articles on websites. They don’t see it changing in the future. Saudis mention to spend more on basic mobile phones.
• There will be a significant increase in the purchase of smart- • Saudis plan to spend, on average SAR 3,000 to $800 on
phones and tablets in 2013. technology devices in 2013.
• Arab consumers plan to spend, on average, AED 3,700 ($1007) • Samsung is preferred over Blackberry and iPhone brands when
on technology devices in 2013. it comes to current ownership.
• BlackBerry smartphone is preferred over iPhone and Samsung • YouTube smartphone app seems to be favoured over smart-
brand, looking at the current ownership. phone apps in Saudi Arabia.
• Watsapp app seems to be favoured over YouTube app in the UAE. • Noticeably more Arabs in Saudi Arabia use smartphones at
• Noticeably more Arabs in the UAE use smartphones outside home while watching TV or lying in bed. And more Saudis use
home, while commuting or at work. And more consumers use their tablets with friends and family.
their tablets when running or shopping. • A large number of Saudis use various gadgets all of the time
• Multi-screening is common. Arabs in the UAE use other plat- while watching TV either before, during or after their favourite
forms while watching TV, however, not when their favourite TV TV programme.
programme is airing, but mainly during ad breaks and/or at the • Looking up information related to the programme being aired
end of the programme. and working are the core activities on tablets while watching TV.
• While watching TV, playing online games is the core activity • Saudis spend more on clothes and entertainment than on rent
performed on tablets. and medical expenses, and also plan to spend significantly more
• Consumers usually spend more on housing rent than on clothes on entertainment in 2013.
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6. January 2013 Gulf Marketing Review 31
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7. COVER STORY SMARTPHONE BRANDS PURCHASE INTENTION IN 2013
0% 20% 40%
Apple iPhone 44%
44%
Samsung 40%
34%
Sony Ericsson 17%
2%
BlackBerry 14%
28% KSA UAE
8%
Nokia 9%
8%
Sony Xperia 2%
© Corbis
Finger on the button: The internet was widley perceived by 85 per cent of Arabs as the main means of communication in 2012
...online activities of less interest among sites; read news; play games and browse
any content, even if not related to the
Arabs are: internet radio; paying for music programme being watched.
While watching TV and aside from the
downloads online... activities undertaken via smartphones,
Arabs tend to do more practical things on
their laptops/desktops, such as finishing
Tablet owners use devices everywhere, Younger consumers are definitely some work or reading news.
in home and outside home. At home, using more smartphones and tablets However, when using tablets and
the majority use them while lying in while watching TV. watching TV, it appears that consumers
bed or watching TV. Alternatively, This is a good opportunity for brands are accessing more content related to
6 out of 10 consumers use them out- given that Arabs agree that if they see the programme being watched or even
of-home, while being out with friends/ a website for a brand they like on TV, looking up info on a TV programme
family or commuting. they will look at it online, which could they have already seen.
trigger their purchase decisions of Simultaneously, when using the inter-
Cross media usage roducts/services. net, Arabs access other media platforms.
The rise of smartphones and tablets While watching TV the greater number They watch TV, use their mobile phones
has drastically altered Arab consumers’ of Saudis use various media gadgets and also normally use other gadgets
digital media consumption. continually before, during or after such as smartphones or tablets if they
Those devices not only facilitate com- TV programmes. are using them to go online. n
munication and connection, but also allow In contrast, a higher number of
them to access content from different Arabs in the UAE show more enthusiasm
touch points and engage into more than towards the TV programme watched
one media simultaneously. and so use other media gadgets after
When watching TV, for example, con- the end or during ads.
sumers are jointly using their smart- Initially, when in front of the big screen,
phones, opening their laptops/desktops/ consumers primarily use smartphones Yasmina Amara
notepads, and are on their mobiles and/ to: chat and get in touch with their Senior Consultant
or accessing their tablets. friends/families on social networking POINT Consultancy UAE
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8. January 2013 Gulf Marketing Review 33
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