The fall of Lebanon

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The fall of Lebanon and the rise of the Lebanese
regional advertising empire
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1- Lebanons pioneering role

• Lebanon was the pioneer of advertising in the
  Arab World
  
• and advertising remains one of the few sectors
  where
  
• Lebanese still have a leadership role in the
  region.
  
• But
• Local market only 6 of total advertising
  expenditures in the Arab countries
  
• Dubai has replaced Beirut as the regions hub of
  advertising.

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2- Plan

• Historical Background
• The weight of the Lebanese ad industry
• SWOT analysis

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3- Historical Background

• The rise and the golden age (before the war)
• The fall and the exodus (from 1974 1990)
• The aborted recovery (since 1991)

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4- Before 1974

• A leadership role due to a unique combination of
  
  
• competitive advantages.
• Mainly
• Open , liberal multicultural society
• Talented and educated human resources

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5- The war period

• Decline of local advertising market
• Exodus of multinational advertisers from Beirut
  to Dubai
  
• Creation of Lebanese regional advertising
  agencies networks

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6- The situation from 1990 to 1999

• Healthy growth rate from 1990 to 1999
• Decline since 1999
• Lower margins

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7- Appendix
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Appendix 1
Evolution of Lebanons share of total advertising
expenditures in the Arab World
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Appendix 2
Monitored expenditures in the Arab World (2004 M)
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Appendix 3
The 15 regional advertising agency networks
75 Market Share 13 founded by Lebanese Admen

14 affiliated to global networks
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Appendix 4
Media represented by the Choueri Group
Lebanon Nahar Lorient le jour Safir Commerce
du Levant
Noun Interadio
Pan Arab TV LBC Sat MBC Al Arabia Jazira TV J
azira sports channel
Spacetoon ESC
GCC local media TIHAMA One TV Dubai TV Maz
zika TV
Melody TV
Q.M.S. Qatar Outdoor Arabian Outdoor (Mapies) UA
E
Al Arabia Outdoor (Mapies) KSA Al Bayan (UAE)
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Appendix 5
Evolution of real media advertising expenditures
in Lebanon (M)
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Appendix 6
Monitored and real advertising expenditures 2004
(Lebanon)
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Appendix 7
Estimated weight of the Lebanese advertising
industry
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Appendix 8
Summary results of LAA Survey
Advertising agencies (12) Billings below 2 M
6, 2 to 8 M 4, over 8 M 2 Breakdown of bill
ings Income
Film Production Agencies (5) Income Export 71,
Domestic Market 29
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8- Media Régies
Dominated by Lebanese companies
One group as a near monopoly over satellite TV a
dvertising sales and controls 60 of the Lebanese
media advertising market.
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9- TV commercials production houses
Beirut still the most important center for TVC
production in the region, but increased
competition from Dubai. Export represent 71 of
local companies revenues.
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10- SWOT analysis

• Weaknesses
• Narrow market
• Low margins
• High dependence on imported brands

• Strengths
• Competitive costs
• Skilled human resources
• Cultural environment

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11- SWOT analysis

• Threats
• Globalization
• Shift toward BTL activities

• Opportunities
• End of Syrian occupation
• Levant market

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12- Conclusion

• Challenge to export more services and less
  people
  
• Repositioning Lebanon as land of ideas

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