DUBAI // A day after the unveiling of Abu Dhabi's Formula One racetrack design, one of the world's most prominent global media companies has launched a division focusing on sports, entertainment and charitable sponsorships in the Middle East. Mediaedge:cia (MEC), part of a global media-buying network that represents about one third of the world's advertising space, officially unveiled the regional office of MEC Access in Dubai today, after a soft launch earlier this year. Among its first clients are Deyaar and Sony Electronics, which has hired the company to manage its football sponsorships in the region.
"The Middle East represents a hugely important growth market in a world where the US and Europe are going backwards at best," said Charles Courtier, the global chief executive of MEC. The new division represents both growth and diversification for the company, he said. MEC Access - the brand representing MEC's sport, entertainment and charitable sponsorship work - was created six years ago, beginning in the US and Europe, and today has 350 people in 30 locations worldwide.
The company was interested in opening a branch in the Middle East in part because of the many high-profile sport opportunities. "Sport is really the focus of our business - about 50 per cent of our revenues are in the sector - so with all the football, horse racing and Formula One, we know that there will be incredible opportunities for our business," said Melanie Varley, the chief executive for Europe, Middle East and Africa for MEC.
Mark Warne, who was transferred from the company's London headquarters last week to head the launch team in Dubai, pointed to the coming array of football events in the UAE as an example, including FIFA Beach Soccer in Dubai and Club World Cup in Abu Dhabi in 2009-10. "There's a number of major football tournaments coming to the Middle East," he said. MEC Access will look to capitalise on these opportunities for its client, Sony Ericsson, which has a sponsorship deal with FIFA.
"Globally, sponsorships are growing faster than traditional advertising, and this trend is becoming increasingly visible in the region," said Mohan Nambiar, the managing director of MEC Middle East. Part of the reason for this trend is the "massive fragmentation of audiences" caused by digital and mobile media, said Mr Courtier, a shift he called "the biggest change since the invention of television".
In the region, MEC is part of the WPP Group and The Holding Group, which is led by Joseph Ghossoub. Spurred by the region's booming economy, the Holding Group has witnessed double-digit growth in each of the past three years, he said. "Our Middle East is probably one of the most exciting places to work today," Mr Ghossoub said. But a few clouds may be on the horizon, even in those areas of the UAE where the horizon is mostly blocked by construction cranes.
Mr Courtier said he expected global advertising spending to decrease next year. Part of this slowdown will be caused by the global economic downturn, which he expects to worsen in the early part of next year, and part will be due to a simple a lack of the kind of blockbuster events, such as the Olympics and US election, that helped the advertising industry this year. "I think 2009 looks difficult overall, let's face it," he said. "I think adspend is going to struggle."
But the Middle East would be largely, if not entirely, protected, he said. "I think your growth will go from very fast to fast, and hopefully not for long." Mr Ghossoub said the advertising business in the region had weathered many a crisis in the past and it would weather this one, too. "I don't see gloom," Mr Ghossoub said. "I see a little bit of a slowdown, and then it will pick up again." khagey@thenational.ae
