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Digitization is fueling growth for news organizations in the Middle East and North Africa (MENA) region, presenting both opportunities and challenges that must be addressed.
The news market in the region is promising. News consumption and demand are on the rise. MENA region consumers are willing to pay for the news they want, particularly trustworthy, in-depth, and specialized reporting. Additionally, there is significant room for revenue growth, especially in digital advertising and consumer revenues (digital circulation).
The growth is fueled by widespread mobile connectivity, high internet penetration, and social media usage in the MENA region, especially young consumers leading digital lifestyles. To attract and grow revenue from these tech-savvy consumers, news organizations need to transform their business models and methods of delivering content. That transformation must include creating new types of content, formats, and interfaces. Collaboration with governments in the MENA region, regulators, global tech platforms, advertisers, and academia is crucial in creating an enabling environment that supports the growth of regional news organizations. This environment can be achieved through talent development programs, targeted financial support, media literacy initiatives for consumers, and an updated regulatory framework.
Although the news preferences of regional consumers have shifted from print to digital, the underlying demand for news is still strong. The foundational elements of this demand are high levels of mobile connectivity, internet penetration, and social media presence, all of which exceed average global levels in the key news media markets of Egypt, Saudi Arabia, and the UAE.
In the YouGov survey, 45 percent of respondents indicated their willingness to pay for high-quality reporting, particularly in such popular categories as entertainment, health, and sports. The respondents are willing to pay for journalism that demonstrates depth and reach, content they can trust, and timely coverage.
According to the PwC “Global Entertainment and Media Outlook,” advertising revenues in the MENA region are expected to grow at a CAGR of 6 percent between 2022 and 2027—compared with 4.5 percent globally. Digital advertising spending in the MENA region accounts for 79 percent of the $7.6 billion total ad spend in 2022, and it is expected to outstrip global growth by 2027, with a 6.9 percent rise, compared with 6.5 percent globally. Moreover, although the share of traditional advertising is declining, advertising revenues are still growing in absolute terms, with an anticipated 2.1 percent growth in the MENA region, compared with 0.3 percent globally.
MENA news players also can master the challenges they face and capture these opportunities with new strategies and collaborative action in three areas: digital transformation, an updated enabling environment, and a reliable and trustworthy news ecosystem.
Digitization has disrupted the news media industry in the MENA region but has also created new avenues for growth. To capitalize on these opportunities and ensure the stability and prosperity of the news industry, a strategic and collaborative transformation effort is required.
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