In the aftermath of the global economic downturn and demand slump in the markets, corporate houses are seen slashing their advertising expenditures to manage rising costs. As a result, Indian advertising firms are exploring opportunities in new destinations to sustain their margins.
Jordan is one of the destinations Indian ad firms are heading for. In the past few years, the export-oriented economy of Jordan has benefited from the privatisation policies undertaken by its government. Notably, this Arab country recorded 5.8% GDP real growth rate in 2008.
India and Jordan share cordial economic relations with total trade between the two countries hovering around $1,042 million.[ii] A Bilateral Investment Promotion and Protection Agreement (BIPPA) has been recently signed by governments of the two countries to promote investments.
Market overview of Jordan’s advertising sector
Jordan’s advertising industry, which accounts for a mere 3% of the Middle East’s total advertising sector, is gradually emerging as an important destination for foreign players.
In the past, Jordan’s advertising sector was characterised by poor quality in content and technology. However, with rapid industrialisation and exposure to international standards, the country’s advertising scene has undergone major transformation.
According to industry experts, Jordan’s geographical location and business-friendly environment will benefit small-sized Indian advertising firms looking at expanding their reach. Significantly, total advertising expenditure in Jordan increased by 10% in 2008, in comparison to the previous year indicating a high volume of growth.
Sectors facilitating growth for ad firms
Jordan’s thriving Telecommunications Market, which is also the largest revenue generator for advertising firms in the country, is expected to spend aggressively on marketing itself. Other sectors that are expected to facilitate growth for advertisers include banking and real estate.
Indian advertisers may also focus on providing services in outdoor and online advertising to Jordanian firms. Indian SMEs can grab a considerable market share in Jordan’s advertising industry by offering their services at competitive price points.
To gain more insight on the market scenario in Jordan, Indian companies need to tie up with their Jordanian counterparts.
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David Parks is a well known author and has written articles on Leather Manufacturers, B2B Portal, Toys Manufacturers, suppliers, Manufactures and many other subjects.
