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AUTOMOTIVE
As is the case every year, there are no surprises here, the automobile sector continues to hold on to the numero uno position. For a nation passionate about cars, and some of the biggest names in the country involved in the business of selling cars, it is little wonder that the automobile sector tops the survey year after year. Most market the brands they sell aggressively, as a result of which their advertising budgets remain high. Yet it is interesting to note that the sector’s share in the total ad spend has been on the decline despite pumping in more money. From claiming an 18.3 per cent share in the ad pie in 2005, the figure is down to 11.9 per cent in 2007 though the ad spend has gone up by 18.66 per cent. But dealerships point out that the focus is not merely on increasing ad spends but more on targeted advertising.

Paradox
From RO4.75mn in 2006 to RO4.96mn in 2007, the ad spend by the sector has gone up, but the share in the total ad spend is down by three per cent. Analysts say this is a healthy trend, showing participation by several other sectors. This is the sign of a healthy market.

The big three
The market is dominated by three big distributors – Saud Bahwan Group, Suhail Bahwan Automobiles and Zubair Automotive. Their overall spend accounts for 70.30 per cent of the total spend in the sector.

Going below the line
Most automobile dealers have concentrated on getting their communication across in the most effective manner and have been more judicious on ad spend. The sector has been using both above-the-line and below–the-line advertising as a prudent step. Multiple channels like outdoors, SMSs, retail offers and direct mailers are all being used to get their message across. Dealers like Saud Bahwan Group say the traditional mass media has a limited reach, especially in the interiors. They also rely heavily on non-traditional activities including various shows, sponsorships of local events, product displays and direct contact programmes.


BANKING
Checks and balances
No 2 yet again, this is one sector that proved most soothsayers wrong. When the ad spend in the banking sector increased by 49 per cent in 2006 compared to that of the previous year, it was predicted that 2007 was going to be a bonanza for the advertising industry. With more players entering the market, nothing less than an ad war was expected. Yet, turning traditional wisdom on its head, despite more players in the arena, banks spent just RO2.89mn in print media ads in 2007 compared to RO3.13mn the previous year. Not only did its spend fall by 7.67 per cent in 2007, the overall percentage in the total ad spend also dropped to seven per cent from 9.9 per cent in 2006. The reason, sources in the industry and advertising agencies say, is that banks have discovered the advantages of alternative advertising media compared to print media ads.

Bank Muscat
The decline in print media spend was led by BankMuscat, which spent 40.44 per cent less on this media in 2007 than the previous year. The bank, which spent RO1.11mn in 2006 making up 35.6 per cent of the sector's ad spend in print media, spent just RO0.66mn in 2007. This is part of a conscious strategy adopted by the bank to be more target specific in its advertising. Funds were redeployed into billboards, event sponsorships and below the line (BTL) advertising like direct mailers as per a revised marketing strategy aimed at increasing visibility without scattering funds. This, we are told, is necessary as the bank is striving to achieve its ambitious goal of one million customers by 2010.

NBO
NBO continues its aggressive run, becoming the second biggest spender in the sector, one step up from its No 3 position in 2006. It has garnered a 22.6 per cent of the ad spend share within the sector in 2007 compared to 16.3 per cent in 2006 and 7.5 per cent in 2005.

OIB is another bank whose ad spend has declined drastically – by 64.3 per cent. The bank, which was next only to BankMuscat in its ad spend in 2006, has moved to No 6 this time.

Bank Sohar
Bank Sohar, the new kid on the block, despite starting operations only in the second quarter of 2007, has put up an impressive performance on ad spend, coming third in the charts, with 13.2 per cent share

.AHB
Alliance Housing Bank (Ahli Bank from January 2008), spent considerably less in 2007 on advertising than the previous year, slipping from fourth position to eighth. It may be noted that the bank was in a state of flux during much of 2007 as it was negotiating terms for a possible tie-up with various partners. As obvious from the chart, since May 2007 when the bank turned down a takeover proposal from BankMuscat, its ad spent has gone down considerably. The only exception was July 2007, when Ahli United Bank (AUB) came out with advertisements following its announcement on June 16 that the US$21bn entity has entered into a memorandum of understanding with AHB to take a 35 per cent share in the bank. If the ad blitzkrieg of January this year and later is anything to go by, 2007 was a temporary phase when its ad spend dropped by 57.36 per cent. The bank spent RO108,082in 2007 as against RO253,492 in 2006 and its overall share slipped to 3.7 per cent from 8.1 per cent in 2006.


TELECOM
Hello... who’s there?

The telecommunications category, despite the presence of only four players, of which one is the regulatory body, maintained its ranking in the 2007 survey, coming in at No 3. The spend in this category was a bit disappointing, accounting for RO2.8mn compared to RO3.01mn and 9.5 per cent of the total ad spend in 2006. In percentage terms, the telecom sector spent 4.1 per cent less in 2007 as compared to the previous year. The rankings within this category remain the same as last year with Oman Mobile at No 1, followed by Nawras. Omantel trails at No 3 with the Telecommunication Regulatory Authority rounding off the list.

Oman Mobile
Last year, the government-owned mobile operator was in its element, launching a slew of services that propelled it to the top and helped it widen the gap with Nawras. The launch of BlackBerry services was a feather in its cap. Oman Mobile's ad spend increased from 39 per cent of the overall spend in this category to 53.3 per cent.

Nawras

The sultanate's sole privately owned mobile operator, which accounted for 36.6 per cent of the overall ad spend in this category at RO1.1mn in 2006, spent just RO853,023 in 2007. Towards the latter part of 2007, Nawras dedicated its advertising efforts to talk up its third-generation services. The launch of 3G services, which allows for hi-speed Internet browsing and video-calling, boosted its subscriber numbers and recently crossed the 1mn mark.

Omantel
The fixed-line operator also saw its ad spend fall in 2007. Omantel, which accounted for 21.9 per cent of the spend in this category, saw it falling to 15.9 per cent in 2006. Omantel's visibility in the print media has certainly been diminishing. One of the reasons for this is that no new services or offers were launched to entice consumers.

financial services
The big churn
Up one rung in the ad spend ladder with an increase of RO1.20mn in its print media spend, this is one sector where there has been a spectacular churn. Of the top three spenders in the category, only Vision Investment Services had made it to the top ten list last year, that too at No 9 with a meagre 2.3 per cent share within the category. Booming stock market and rising oil prices have contributed to the surge.

Prime position
United Finance Company, which was nowhere in the picture in 2006 has made an impressive entry into the chart at No 1. A new office, two new branches at Barka and Mawaleh and celebrations to mark ten years in business has kept the brand firmly in the public eye. Jamal Said al Ojaili, chairman, UFC, also announced plans to construct a pedestrian bridge across Sultan Qaboos Street outside the new office on the company’s expense. Al Nemu, a non-conventional product was introduced by the company with much fanfare as part of its tenth anniversary celebrations.

Branding propositions
Vision Investment Services, which was at No 9 as far as ad spend was concerned last year, makes it to No 2. With products like Vision Emerging GCC Fund and Vision Emerging Oman Fund being marketed aggressively this comes as no surprise. The company has worked on building its brand with consistent advertising.

The shake-up
The ups and downs in the ad spend in the financial sector is the most spectacular. Global Financial Investment, which was No 1 garnering 25.2 per cent of ad spend within the category in 2006 has moved to No 6.

Appliances & Electronics

The cool factor

A notable feature of this category is the skew in spend, with TVs and air-conditioners garnering the lion's share. The spend on the television category stood at RO665,057 of the total, of which LCDs accounted for RO606,389. On the other hand, air-conditioners accounted for 13.8 per cent of the spend within the category at RO335,627. The electronic appliances sector slipped to No 5 in the 2007 survey, accounting for RO2.43mn or 5.9 per cent of the total ad spend. Mustafa Sultan Electronics, which narrowly missed the No 1 spot to OHI in the 2006 survey has swapped places with its rival. There has been a massive churn in the ranking thanks to the split in Muscat Electronics, which was the distributor of Sony and Supra products in the sultanate. Muscat Electronics, which ranked No 5 in 2006, accounting for RO64,232 in 2006, slipped the top ten in 2007, even though the company spent over RO68,622 in 2007.


A Jumbo fight

Jumbo Electronics, the UAE-based retailer and purveyor of Sony products in the region, made a big entry into the sultanate following its more than two-decade-long partnership with Muscat Electronics. The partners went their separate ways following an acrimonious battle that had raged on for a good part of 2006. Jumbo heralded its entry by opening a huge showroom in the capital's MBD district and spent massively on full-page colour adverts in all major newspapers, both Arabic and English. Thanks to all the hoopla in the media, Jumbo immediately made an impact rising to No 8 in the ranking.

The electronic appliances category slips one rung to No 5


real estate

Realty strikes
With integrated tourism projects like Jebel Sifah and Al Madina A’Zarqa taking off in 2007, the ad spend of companies in this sector has also witnessed a remarkable jump. The category, which was ranked No 12 in 2006, jumped six places to No 6 on the list in this year's survey. The Wave Muscat remains the biggest advertiser, accounting for 18.5 per cent of the ad spend, shelling out RO375,374, followed by Al Madina A'Zarqa. Muriya Tourism Development, with its projects in Muscat and Salalah, also had its share of limelight, bagging 15.4 per cent of the total ad spend in the sector. As we go forward and the sultanate's dream of becoming a world-class tourism destination comes closer to reality, the advertising outlay of the sector will only increase and probably will rank higher up in the survey next year.

The Wave Muscat
The developer has been consistently talking up the release of its properties with full-page ads in both Arabic and English press. In fact, The Wave's auction of exclusive beachfront villas in December was the talk of the town. This year too, expect the company to hog the limelight. With Muscat Municipality finally giving the go-ahead to use treated water for golf courses, expect The Wave to make a splash announcing the start of work on an 18-hole PGA standard green golf course.

Big bucks & small players

The appearance of companies like Al Nakla Trading, Sweet Homes Real Estate, Al Aseel, Al Kalbani Real Estate and Hilal Properties in the survey is because of their presence on the front pages of the Arabic newspapers throughout the year.


shopping centres
All for footfalls
The retail sector in the country is particularly known for going in for below-the-line (BTL) advertising compared to those in print media. Sources in the advertising industry say this sector will be one of the biggest spenders as far as advertising goes if one takes into account all those glossy pamphlets and brochures that arrive at your doorstep every week, announcing various promotions and schemes. But going in for BTL advertising hasn’t stopped the sector from being in the top ten ad spend sectors year after year. Shopping centres seem to have perfected the art of having the right mix of mass media and BTL ads ensuring high visibility and increased footfalls. With its total print media ad spend for the year 2007 standing at RO1.40mn, the sector has spent 51.71 per cent more compared to the previous year.

The Lulu saga

The Lulu Hypermarket’s domination on the charts continue even though its ad spend in print media has fallen by 4.52 percent. Lulu is also the only super market with considerable presence in print media.

Of brands and ads

Lulu may be the biggest spender, but Muscat City Centre is the big story of the year in shopping centres. The expansion which brought in more international brands and a dedicated flyover to the mall for the convenience of shoppers seem to have been good news for everyone, including ad agencies and print media. City Centre, which spent just RO64,054 in 2006, went on an ad blitzkrieg in last year as the table shows. With more brands and more promotions, the ad spend is expected to go up further in the next survey.

education

Education on board
Competition seems to be hotting up in the education sector, which has spent 31.15 per cent more on ads in 2007 than in the previous year. With the issuance of a royal decree to promote the development of higher education by private sector participation in the country, the sector got the support it needed to move in. Encouraged by incentives, including allocation of land for construction, grants up to RO3mn for capital investment, and scholarships for its students, they have gone the whole hog in advertising. With H M Sultan Qaboos bin Said offering a financial grant of RO17mn to each private university in the country, the sector got another shot in the arm.

Fire and ice
The Fire Safety Engineering College takes over the top spot once again with its ad spend reaching over 13 per cent within the category, compared to 8.8 per cent in 2006 and 4.5 per cent in 2005. Higher Education Admission Center, which made a confident debut at number three in 2006, remains in the top ten arena, albeit at No 8.

Queen’s language
As most colleges need to have foundation courses with an intensive focus on English language, ELS Language Centre and British Council Oman advertise regularly as institutes that can develop students' language skills and thus help them in higher education.

Lack of competition

At this point, the players in the private higher education sector are on a safe wicket. Most regions, except Muscat, have just one college or university. But as the business is evolving competition is increasing. Next year’s ad spend should look even healthier.

Health
What the doc ordered
If you take a look at the ad spend in the healthcare sector, which comprises clinics, hospitals and pharmacies, it looks to be just what the doctor ordered. In 2006, the category came in at No 13, accounting for nearly 1.5 per cent with an overall outlay of RO466,187. Fast forward to 2007, the sector pushed itself into the top ten for a place at No 9. The healthcare sector's advertising budget stood at RO1,112,820 accounting for a 117.45 per cent jump over 2006. The competition between various hospitals and clinics is evident in the adverts, which focus on their specialised services. Al Hayat Polyclinic introduced a 64-slice CT scanner to upgrade its cardiology unit. Welcare's well-placed ads promoted its ENT department. The eventual winner in all this has been the customer. The hospitals have been forced to raise the bar and the customers have a host of clinics and services to choose from.

An eye for ads
The Muscat Eye Laser Centre's series of visual illusion ads, especially the one which teases readers by asking them to decipher how many legs the elephant has in the illustration, is particularly well executed. The eye hospital’s reputation has been lifted with an ISO 9001:2000 certification, which the hospital has carefully played up in most of its ads.

Healthy glow
Kaya Skin Clinic, a new entrant, immediately joined the top ten group thanks to its aggressive advertising campaigns. Kaya has relied on the fact that consumers here are discerning and would pay more for specialised treatment and personalised service. Expect other cosmetic-treatment clinics like Emirates Medical Centre to up the advertising ante.

Food & Beverages
A new flavour
The food and beverages category rounds up the top ten with a total spend of just over a million rials and accounting for 2.4 per cent of the total ad spend. With so many products vying for consumers' attention, it is surprising to see a poultry product like A'Saffa topping the list of spenders at RO183,807 or 18.1 per cent of the category. The company, with its aggressive advertising and marketing campaigns, has rewritten the rules of the agri-related business, churning out profits within two and a half years of commencing operations. A'Saffa has created a name for itself by being the first advertiser in the poultry industry to use the print media for a brand-building exercise. The company has positioned itself as a brand and not as a commodity. Meanwhile, Oman Refreshments, the purveyor of Mountain Dew, Aquafina and Pepsi, continues to maintain a hold on the market, featuring fifth on the list.