WebDialn@ Study Of Algerian Internet Users Results

AlgeriaA new study entitled WebDialn@ (meaning ‘our web’ in the Arab Algerian accent) by Med&Com and Ideatic that polled about 6,000 Algerian internet users on ADSL, mobile internet, online advertising and e-commerce, estimates that 4.5 million people (12.8% of the Algerian population) use the internet, and that they heavily rely on it for news, research and activities such as social networking.

75% of Algerian internet users call the web an “indispensable tool”, with more than 90% confessing to “not being able to get by without going online ‘at least once a day'”. Most users reported spending two hours on average in front of their monitors.

The study also shows a gender gap and regional disparities in internet use. The typical Algerian Web user is described as male (72.2%), aged between 20 and 29 (29.2%), educated at least to the baccalaureate level + 1 (66.2%), and living in Algiers (29.28%). However, women represent just 25.8% of Algerian Web users.

The researchers reported that 82.6% of Web users communicate via email. Of this percentage, 42.5% also use instant messaging (such as MSN or Yahoo Messenger), 33.8% visit discussion forums, 33% make telephone calls over the Internet (Skype), and 9.9% use video conferencing.

Online media are the Algerian web users’ top online destinations, with 80.8% reading online newspapers, 19.9% listening to the radio, and 11.4% watching TV programmes. The internet is also used for research (80.7%) and making business contacts (22.9%). Social networks seem to be quite popular too with 40% of respondents having profiles on Facebook.

The study also shows that Algerians aren’t very active contributors, with 82.2% visiting online media-sharing sites (YouTube, DailyMotion, Flickr), but only 23.5% contributing.

Numbers from the Algerian Post and ICT Ministry say that there are 585,455 residential ADSL subscribers in the country. Nearly 65% of those surveyed said they can log on from home, compared with 24.6% who log on at work. Over 61% of web users say there are at least three people using the internet in a single home. Youth clubs and libraries with internet access, which used to be crammed, are hosting fewer users.

Some 72.1% of users say they are unsatisfied with the speed of their connection at home, and 79.7% complain about frequent service outages. 53.8% of Web users think the connection rates are affordable, while 43.8% of them think subscription rates are expensive or very expensive.

A presentation of the study results is available here in French: WebDialn@ Study Results (PDF)

[Source: Magharebia]

MENA Broadband Subscribers To Reach 27 Million By 2014

Informa Telecoms & MediaAccording to Informa Telecoms & Media’s new Middle East & North Africa Broadband report, the MENA region will continue to experience some of the world’s highest growth rates in broadband subscriber numbers.

The report states that the 66 percent growth that the region witnessed in 2008 will be leveling out at around 24.9 percent (compound annual growth rate) by 2014. At that point there should be a total of 27 million high-speed internet subscriptions in the region, up from the 7.1 Million subscriptions in Q1 2009..

The report cites the demand for media services as one of the major bandwidth drivers.

“The prospects for broadband in the MENA region will continue to grow as operators improve infrastructure to make their services more attractive with multi-play offers. In addition media companies will begin to respond with more relevant online content aimed specifically at the region,” said Mohammed Hamza, senior broadband analyst at Informa Telecoms & Media.

“Operators across the region are beginning to invest heavily in getting high-speed, high-capacity and cost effective telecoms networks into the region and the current infrastructure is much more advanced than perhaps they have been given credit for,” added Hamza.

The largest broadband subscription bases in the MENA region are in Saudi Arabia, Egypt, the UAE, Algeria, Morocco and Iran; representing 79 percent of the MENA’s total broadband subscriptions – 3.8 million from a total of 4.8 million.

Eight countries in the region had a household penetration of more than 10 percent at the end of 2008 – four exceeded 60 percent and two were greater than 70 percent, the report said.

However, excluding the top four, the average penetration rate across the region was just 8.7 percent.

[Source: Digital Production Middle East, Arabian Business]

MENA Twitter Habits Survey Results Released By Spot On PR

Spot On PRA survey of Twitter users has shown the microblogging social media platform not only continues to attract new users throughout the Middle East and North Africa but is also starting to affect the way that brands are perceived.

According to the Middle East & North Africa Twitter Demographics & User Habits Survey, published by Spot On PR, over 90% of users in the region say they have found out about a new product or service through Twitter and over 60% have had their perceptions of a brand changed by Twitter.

Carrington Malin, managing director of Spot On Public Relations, said: “Twitter’s fast growth, coupled with the high level of activity amongst the region’s users, is making a number of key regional organisations sit up and take notice. We hope that this survey of MENA Twitter demographics and user habits will provide marketers with a baseline from which to further explore the opportunities that Twitter is opening up.”

While some 70% of users surveyed said they had formed a positive perception of a brand through their interactions over Twitter, over 50% had also formed negative perceptions of a brand. A small but influential crowd of opinion leaders, many Middle East Twitter users were closely linked with the advertising, marketing, public relations and media industries, some 35% of respondents in all.

59% of respondents said they interacted frequently with journalists, some 76% interacted frequently with bloggers and over 65% actually being contributors to a blog themselves.

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The Internet Captures Eyeballs Away From TV In Egypt

Arab Advisors GroupA new Arab Advisors’ survey of Internet users in Egypt revealed that the peak time for browsing the Internet for entertainment and personal issues is after 9 PM which coincides with the peak time for TV viewing, confirming that Internet -especially broadband- has become a major competitor for TV amongst Internet users in Egypt

This online survey of Egypt Internet users revealed that the Internet was the most common source amongst respondents for getting daily and global news (69.7%), getting information (97.6%) and for looking for job vacancies (57.1%).

The survey also revealed that international players have the largest share of email and search services where 85.8% of respondents, who have an email account, use Yahoo and 99.0% of respondents, who use search engines, use Google. Regional players lag far behind with shares of less than 4%.

In addition to that, it showed that a majority (94.7%) of respondents had a landline phone in their house. 93.5% of respondents had a desktop computer, which is expected as the survey is of Internet users in Egypt.

The new survey of the Internet users in Egypt was concluded by the Arab Advisors Group on August 2009, and released under the title ‘A Survey of Internet Use and Online Advertising Consumption and Effectiveness in Egypt‘ (Table of Contents PDF) on September 1, 2009. The survey covers media consumption habits, online use habits and trends, online advertising and online security.

The survey results encompass answers from 3,348 randomly targeted respondents from the general internet population. Quality control was conducted by Arab Advisors Group’s team, and they claim a confidence level of 99% with a margin of error of less than 3% for it.

Total Country Connectivity Measure For The Arab World

The annual results of Arab Advisors Group’s Total Country Connectivity Measure (TCCM) reveal substantial –mostly cellular service driven- improvements in overall scores. The Arab broadband Internet markets also registered very positive growth.

The United Arab Emirates is the most connected country in the Arab World according to the Arab Advisors Group’s annual report; Bahrain and Saudi Arabia followed in second and third ranks respectively.

The Arab Advisors Group calculates its Total Country Connectivity Measure (TCCM) by adding the household mainlines penetration, cellular penetration, and Internet users penetration rates in each country. The household mainlines penetration is measured by dividing the residential mainlines by the number of households in each country.

The TCCM shows the extent of connectivity of individuals in a certain country whether via fixed lines, cellular lines and/or Internet. Of course, there will be an overlap since many individuals will be using these three communications technologies at the same time. However, the measure still yields an accurate and informative picture on the level of ICT services penetration in each country.

As previously mentioned the Total Country Connectivity Measure results for 2009 revealed that UAE, Bahrain and Saudi Arabia still dominate the top three spots as the highest adopters of telecommunication services, with values of 321%, 249% and 248% respectively.
The results for the rest of the Arab World came as follows: Qatar (205%), Libya (199%), Kuwait (184%), Oman (170%), Algeria (141%), Jordan (141%), Syria (129%), Egypt (128%), Tunisia (128%), Morocco (127%), Lebanon (125%), Iraq (100%), Palestine (95%), Mauritania (74%), Yemen (55%) and in last place Sudan with a TCCM value of 34%.

“Only four out of the nineteen countries covered in this year’s study have a total country connectivity measure that exceeds a 200%. This indicates a substantial potential for more growth in most Arab markets, especially in the under penetrated Internet markets.” Mr. Andrawes Snobar, Arab Advisors’ Research Manager wrote in the report.

Middle East Online Ad Spend Set To Grow By Up To 35% In 2009

Regional spending on online advertising is expected to grow by 25-35 percent as a result of the downturn, as we witness a greater shift from print to online advertising, according to a study titled “Game Not Over”, that was recently released by global management consultant firm, Booz & Company.

According to Gabriel Chahine, a partner at Booz & Company, “Online advertising is cheaper compared to other mediums such as television and print and is far more targeted. It offers better investment and a better return.”

The report says that around 90 percent of marketers are focused on campaigns that are cross-platform and inclusive of digital media while 80 percent believe insights into consumer’s digital behaviour will become more important to their brands.

Online advertising spending in the GCC-Levant countries remains below 1 percent of the total globally, according to a recent study by Madar Research

Chahine thinks that growth of online advertising is hampered in the Middle East by a lack of supply of regional products and that companies head to Google, Yahoo and Facebook for online advertising because of a lack of compelling offerings from the Arab world.

On the other hand the report states that just 25 percent of marketers consider themselves savvy enough to capitalise on opportunities in online advertising, which I think is the bigger reason why online advertising hasn’t taken off in the region.

The report says that marketers’ key concerns include the efficacy of digital metrics, the need for greater education and new models so they can build a more effective advertising presence online.

[Source: Arabian Business]

Report: MENA Advertising Growth To Double In 2009

An industry report released by ZenithOptimedia, a media-buying arm of one of the world’s largest advertising firms, Publicis Group, says 2009 advertising growth for the MENA region will grow by 10 percent, nearly the double of this year’s expected growth rate of 5.8 percent.

Egypt should be a strong contributor to the growth of advertising in the region, with most of the gains coming from the GCC and the growing pan-Arab advertising market.

This stands out against a gloomy worldwide outlook, forecasting a 0.2 percent drop in advertising spend next year, with the North American market taking the worst hit, expected to decline 5.7 percent. 

Internet advertising is expected to grow 18 percent next year though, both globally and in the North American market, taking a 15.6 percent share of global ad expenditures in 2011, 5.2 percentage points ahead of magazines and 5.6 points behind newspapers. The gap between internet and newspapers currently stands at 15.1 points.

Reduced advertising budgets are expected to help boost internet advertising, which costs fractions of what it costs to advertise via traditional media, and offers advertisers a clear way to track audience.

The report also expects television to do relatively well in the downturn, making up a record 38.5 percent of global ad expenditure in 2010 and 2011.

Report: Private Equity in the MENA Region (October 2008)

Global Investment HouseAccording to a report by Kuwait-based Global Investment House, titled “Private Equity in the MENA Region”, the spending power of the region’s growing middle class is influencing a shift in investment focus away from oil & gas to service-based and consumer-oriented businesses.

During the period from 2007 till H1-2008, investments made were highest in the Basic Materials sector with a total of US$1,422mn worth investments. It was followed by Healthcare sector (11% of all investments) followed by Financial Services (11%), Transport (8%), Oil and Gas (7%) and Services (5%) sectors.
Basic materials sector was again influenced by the US$1.4bn investment in Egyptian Fertilizers Company.

As the economies and population of the region will grow, social infrastructure needs in healthcare and education will increase and these will be the sectors that private equity players would look for.

The Telecoms and IT sector got only 1% of all investments in the period from 2007 till H1-2008, of which I’m sure only a tiny fraction made it to internet and technology startups.

Jordan’s Internet Penetration Rate Grows To 21%

Flag of JordanAccording to official numbers released by the Jordanian Telecommunications Regulatory Commission, the number of internet users in the kingdom reached 1.2 millions users at the end of the first half of 2008, which represents a penetration rate of more than 20.5% of the Jordanian population which currently stands at around 6 million.

The numbers show a growth of more than 1.5% happening in the second quarter of this year in comparison to the first quarter, as the rate back at the end of the first quarter was just under 19%. The penetration stood at 17% at the end of 2007.

According to the reported numbers, 16% of Jordanian households have internet access; with differences in the percentage between urban and rural areas, which is explained by the still relatively high cost of computers and internet services.

The national strategy for the telecommunications sector aims to reach an internet penetration rate of 50% by end of 2011. The government has actually lowered the sales tax on internet related services from 16% to 8% to help spread internet services and grow the internet user base in the kingdom.

# Source: Arabian Business

Broadband Subscribers Increase By 48% In The Middle East

The number of broadband subscribers in the Middle East increased by 48 per cent in 2007 compared to 2006, according to a new report published by industry research company RNCOS.

The report, titled ‘Middle East Broadband Forecast to 2010‘, said that ‘the region’s soaring broadband demand has been propelled by the inadequacy of existing broadband infrastructure, and government policies promoting rapid broadband adoption as a tool for economic development’.

Among the report’s other key findings:

– In 2007, Israel dominated the Middle East broadband market having major chunk of the broadband subscribers, followed by Saudi Arabia, Egypt and the UAE.

– Egypt is anticipated to report highest growth in its broadband subscriber base among the Middle Eastern countries at a CAGR of over 83% from 2008 to 2010.

– The total number of 3G subscribers in the Middle East is expected to surpass four million by 2010 end, growing at a CAGR of around 60%.

– Throughout the Middle East region, incumbent and alternative fixed-line operators are rolling out IPTV, helping the operators better maintain their main-line base and gradually increase spend per customer in the face of falling ADSL prices.