MasterCard Survey: Online Shopping In UAE Peaks In Fourth Quarter Of 2008

United Arab EmiratesPer capita online shopping in the UAE reached $1,193 (Dh4,378) in the fourth quarter of 2008, making it the highest in the Asia/Pacific, Middle East and Africa region, according to the latest MasterCard survey.

Online shoppers made an average of 3.6 purchases in the fourth quarter of 2008, compared with 3.1 during the same quarter in 2007.

Shoppers in the UAE conducted 26% of their overall shopping online, and 59% of them splashed out on airline tickets – the number one purchase according to the report.

Around 37% of people surveyed bought home appliances and electronic products and 30% paid for hotel accommodation online.

Surprisingly, not only have UAE consumers shopped more frequently despite the economic situation, they’ve also showed an increased intention for future online shopping compared to a year ago, with 60% of respondents expressing that were “likely” or “very likely” to shop online.

[Source: Gulf News]

Over 69% Of UAE Consumers Have Bought Something Online

Google recently hosted a day for the top agencies in UAE, in an initiative to point businesses to the hotspots in online media.

In preparation for the Agency Day, Google surveyed 1,410 consumers in UAE about their purchasing behaviour, and was able to build an accurate picture of online/offline research and purchase segmentation, use of search engines and attitudes to online shopping in UAE in 2009.

The data gathered from the survey was revealed to the agencies as part of the training, aiming to stress on the importance of getting online. The results reflected the increasing sophistication of consumers in purchasing behaviors and the need for businesses to update their online presence to capture this market.

The main highlights from the UAE report are:

  • More than 69% of respondents have bought something online.
  • Amongst UAE residents, the Internet is the ‘information tool’ used most often when researching possible purchases across a range of categories including digital cameras/camcorders, mobile phones, cars as well as hotel reservations.
  • Search engines are the most used source of online research information (81% of respondents). Manufacturer websites (49%), Directories and local listings (27%), retailer websites (26%), and online auction websites (25%) are also very popular.
  • Search engines are used most for research in relation to technology (67%) and travel (48%) products.
  • Google is the preferred search engine in the UAE with (58% preferring google.com and 38% preferring google.ae)
  • In general, as a mean average across the 20 products listed in the survey, 11% of all product purchases were researched and purchased online; 28% were researched online but purchased offline; 5% were researched offline but purchased online; and 56% were researched and purchased offline.
  • Credit and debit cards (64% of respondents) are the most common payment method when making online purchases
  • 74% of the UAE online users notice sponsored links, and of those who do notice them 7% almost always, 6% regularly, 45% sometimes and 22% seldomly click on them.
  • While one third of UAE respondents say the current economic crisis has not changed their shopping habits, an almost equal proportion say the recent financial turmoil has led to less of their shopping being done online. This may be related to the fact that many of their online purchases may have fallen more into the ‘non-essential/leisure’ categories (i.e. travel and event tickets) which people choose to cut out during difficult economic times.
  • In the UAE, English (76% of respondents) is by far the most popular ‘search’ language (likely to be related to the highly multinational nature of UAE society) vs. 23% preferring to search in Arabic.

Oman Internet Users Spent US$ 236 Million Online In 2008

Flag of OmanA new Arab Advisors‘ survey of Oman’s Internet users revealed that 40.2% of adult Internet users in Oman have used e-commerce services, at more than 158,000 which is around 5.62% of the total population in Oman, spending US$ 236 million in e-commerce transactions in 2008.

The survey of Internet users in Oman was concluded by the Arab Advisors Group on January 29, 2009 and released on March 5th under the title ‘Oman Internet Users and E-commerce Survey 2009’.

The survey covered the Internet usage, e-commerce, cellular and Pay TV usage and habits of the online community in Oman. The survey’s online field work was conducted during January 2009.

Respondents were randomly targeted by receiving an email shot in their inbox to ask them to fill the survey in cooperation with Oman’s incumbent telecom operator, Omantel. The survey results encompass answers from 696 respondents that passed Arab Advisor’s quality control checks. The survey was conducted on the general Internet population that is above 18 years of age. Arab Advisors claim the online survey yields a confidence level of 99% with a margin of error of less than 5%.

According to the report, VoIP usage among Internet users reached 27.0%. 20.7% of total respondents use special software packages (Skype, GoogleTalk, etc) to make calls through the Internet. The majority of respondents (73.0%) do not make calls through the Internet.

The Arab Advisors Group divided the survey questionnaire into four main sections: Telecommunications, Internet, e-services and Pay TV.

Survey: Traffic Transparency Would Help Internet Advertising

Web TrafficA recent survey by the market research company Real Opinions shows that 87% of those involved in advertising or marketing for their organisations in the Middle East said that transparency in website visitor numbers and profiles of visitors would be influential in increasing their usage of the Internet for advertising.

Put into perspective, 58% claim their budgets for marketing and advertising have decreased, but the current economic climate has encouraged them to look online for maximizing their impact, with 37% claiming their interest in the Internet has increased (50% claim no change).

Dan Healy, the CEO of Real Opinions who conducted the survey commented, ‘With decreasing budgets, organisations appear to be looking around for new paradigms in which to conduct their advertising and marketing activities to help them reach their goals. They are looking at the Internet advertising industry and websites to help them justify a new approach.’

‘As the Internet allows users to follow their special interests, websites have the ability to accurately show how unique their visitors are and how it can match an advertiser’s target market they wish to reach with communication. It’s shouldn’t just be how many visitors a website receives, advertisers want to know the profile of these people. This in turn can provide a very cost efficient advertising model for many organisations to achieve the return on investment they seek in this economic climate,’ Dan added.

Mobile Internet Users On The Rise In The Middle East

Mobile InternetMore Middle East business people used mobile devices to hook on to the internet last month, compared with February 2007, while fewer used computers, a just released survey showed.

The survey, presented to the Digital Marketing Conference in Dubai by the Dubai-based research company Real Opinions, said computers were still by far the main way to connect to the internet.

The percentage who regularly logged in to the web with their mobiles increased from 33.5 per cent to 40 per cent.

Numbers of people using desktops to log in decreased from 63.50 per cent to 58.93 per cent, while those using laptops slid from 82.80 per cent to 81.35 per cent.

Mr Dan Healy, the chief executive of Real Opinions, said mobile device users tended to be professionals and high-end targets for advertisers.

“This is a select group of business internet users,” he said. “These are people with authority and relatively high disposable income, which are the target group for the travel industry, the hotels and the airlines. “This gives advertisers more creative ways to access them.”

The survey, of 446 business internet users in the region, also found they spend far more time using the internet than they do with any other kind of media.
The survey said users spent an average of 3.51 hours a day surfing online, compared with 2.28 hours watching television.

But it found that, while internet use dominated other media in the mid-morning and mid-afternoon, radio was stronger in the morning rush hour, and television was stronger in the evening.

Most respondents, 58 per cent, said the current economic climate had affected their organisation’s budget for marketing and advertising, but 37 per cent also said it had increased their organisation’s interest in internet marketing.

[Source: The National]

UAE Second Most Socially Networked Country In The World

SynovateA recent worldwide survey by market intelligence firm, Synovate, revealed that 58% of people don’t know what social networking is, plus over one third of social networkers are losing interest.

Over 13,000 people between the ages of 18 and 65 in seventeen markets around the world took part in the survey.

Across these 17 markets surveyed, 42% of people know what online social networking is, which leaves 58% in the dark… either saying ‘no’ or ‘don’t know’.

Overall, 26% across the markets surveyed are members of social networking sites. This peaked with the Netherlands at 49%, United Arab Emirates (UAE) at 46%, Canada at 44% and the US at 40%.

Synovate’s Managing Director for the UAE, George Christodoulides, says: “The popularity in the UAE makes sense. It is a place that’s very connected to the world; a hub for cultures, business and people.”

“These sites also offer a way for people to meet — online — in a society where traditionally men and women don’t always mix freely.”

The survey also asked social networkers to name the sites they belong to. Some markets seemed to favour multiple memberships and some seemed to stick to one or two major ones. The markets where social networking aficionados favour signed up for many sites are UAE, India, Indonesia, and Bulgaria.

Thirty seven percent of all people from the UAE, 35% of South Africans and 29% of Taiwanese agreed that they had more friends online than they have in the ‘real’ world.

On a global level, users did have some reservations about social networking, with 51% saying they were aware of the dangers of social networking such as identity theft, and 36% of respondents saying they were losing interest in social networking.

# Synovate Social Networking Survey Results