Yes, it's true - local telecoms are spending a lot more on ads

If you're like me and you take interest in what kind of advertising has managed to buck the global recession, you can't help but notice that ads for cellphones or telecoms are blasted at you at every turn.

Well, it turns out there was some merit to my nonscientific observations. According to an analysis piece by Magna MENA in the Gulf Marketing Review (story linked via Zawya), telecoms such as Etisalat and du have aggressively increased their ad spending in the first quarter of the year.

From the report:

Etisalat had a reported $9.2 million media spend, a 91 per cent rise in Q1 09 vs Q1 08. Du increased its spend by almost six fold, with a monitored investment of $8.7 million, rising by 597 per cent in Q1 09 vs Q1 08.

The same trend continues across the rest of the GCC. In Saudi Arabia,

telecoms upped their ad spend by 3 per cent, driven largely in part by Mobily and STC.

This is not earth-shattering news by any stretch. In today's tumultuous economic times, telecoms are seen as safe investment vehicles as more people choose to throw away their antique landline phones and opt for shiny, new wireless devices.

What is fascinating about these figures is how close local upstart du is to matching Etisalat in ad spending. With Etisalat mainly showcasing their "hero" handsets - the iPhone and BlackBerry Storm - it is admirable to see du not standing still. A careful observer will notice that both operators are now pushing incentive-laden service plan offerings, a strategy that may carry weight during these rough times.

There's also further indication that telecoms - described as "Bargain Hunters" - aren't done spending on marketing just yet.

The "Bargain Hunters" continue to spend, driven by more attractive rates and discount schemes. With similar media investment as in 2008, advertisers will be able to buy more media inventory and ensure better efficiency. This category is led mostly by FMCG and telecoms brands.