Report: Covid forces Arab FTA channels to alter ad-rates
October 21, 2020
A report from Arab Advisors Group analysed the impact of Covid-19 on the advertising rates of 20 free to air satellite TV channels broadcasting in the Arab World. Arab Advisors Group established comparison basis to determine the initial impact of Covid-19 on the channels and corresponding media groups in the Arab World.
Covid-19 affected media content consumption routines; with lockdowns imposed by governments or partial closures, viewers spent more time consuming media content of various distributors (including FTA satellite TV channels). Growth in content viewership usually results in growth in advertising revenues; Covid-19, however, has been detrimental to economies and drastically changed the norms of business. Consequently, as financial performance has been negatively impacted, priorities shifted to reduce operational costs. The advertising industry has been impacted by this conservative behaviour where despite the increase in advertising rates, the majority of advertising and media agencies in MENA reported a drop in their advertising revenues during 2020 due to the pandemic.
“Arab Advisors Group detected expansion in prime time slots as consumers seem to consume media for longer and at different hours. The Group highlighted the changes which would be important for broadcasters, agencies and brands which are active in the FTA satellite ecosystem,” commented, Fayez Abu Awad, Chief Advisor, Arab Advisors Group.
“Arab Advisors Group analysed the overall average advertising rate of 20 FTA satellite TV channels which broadcast in the Arab World. The channels had an increase of 3.5 per cent in their cumulative average ad rates in 2020 over their average rates in 2019. Additionally, eight FTA satellite TV channels increased their average advertising rates during 2020 compared to their advertising rates in 2019, while six FTA satellite TV channels did not alter their rates during the year,” Omar Jaabari, Senior Research Analyst at Arab Advisors Group added.