Real advertising expenditures in Lebanon rose by 1.9 percent from $185.5 million in 2013 to $189 million in 2014, according to the annual survey of the advertising market in the Arab world.
The survey, which was conducted by research firm Ipsos and ArabAd magazine, showed that advertising expenditures grew 1.9 percent in 2013 and 4.5 percent in 2012. It contracted by 3 percent in 2011, and increased by 15.4 percent and 18.5 percent in 2010 and 2009.
The survey added that television attracted $80 million, or 42.3 percent of advertising expenditures, followed by outdoor billboards with $44 million (23.3 percent), newspapers with $28 million (14.8 percent), radio with $15 million (7.9 percent), magazines with $13 million (6.9 percent), online with $7 million (3.7 percent) and cinemas with $2 million (1.1 percent), as reported by Lebanon This Week, the economic publication of the Byblos Bank Group.
It added that ads at cinemas increased by twofold last year, online advertising rose by 27.3 percent, radio ads grew by 7.1 percent and TV ads improved by 6.7 percent. However, magazines ads regressed by 7.1 percent, newspapers ads contracted by 6.7 percent and ads on billboards fell by 4.3 percent year-on-year.
Procter & Gamble was the biggest corporate spender on advertising in Lebanon, followed by Solvid, XXL, BankMed, Nestlé, Jane Nassar, Sayfco Holding, Byblos Bank, Banque Libano-Française and Mondelez International.
Procter & Gamble was the largest spender on TV ads last year, while Samsung was the biggest client of outdoor billboard ads and BankMed spent the most on ones in the press.
On the other hand, Yokohama was the biggest spender on radio ads and Sayfco Holding was the largest spender on cinema ads.
According to Ipsos, monitored advertising expenditures in Lebanon reached $1.6 billion in 2014, up 6.2 percent from $1.5 billion in 2013.
Lebanon’s monitored advertising expenditures accounted for 6.4 percent of total spending in Arab countries, the fourth highest such share behind Pan Arab (34 percent), Egypt (31.6 percent) and theUnited Arab Emirates (9 percent).
The survey indicated that the discrepancy between monitored rates and actual figures continues, as monitored rates are 8.4 times larger than real advertising expenditures. It attributed this trend to big client discounts, inflated rate cards and big barter deals, as well as to a lack of transparency in the industry in reporting earnings.
It noted that monitored ad spending on TV is 15.7 times larger than actual spending, followed by outdoor billboards with a 3.8 ratio, radio with a 3.4 ratio, magazines with a 3.2 ratio, newspapers at 2.1 times and cinema with a ratio of 1.6