Twitter Finally Expands Ad Products To The Arab World. Is It Preparing for an IPO?
Startups in the Middle East now have a new ad
channel on the world’s favorite micro-blogging platform. In an
event in Dubai yesterday, Twitter announced the debut of “Promoted
Products” in the Middle East in partnership with Cairo firm Connect
Ads.
Promoted Products, which have previously only been available in the
U.S., U.K., Japan, and Latin America, will allow clients to buy
Twitter’s three ad products- Promoted Tweets, Promoted Accounts,
and Promoted Trends- in the Arab region.
“MENA is one of Twitter’s fastest-growing regions, and we are
seeing significant interest from marketers there who want to use
our Promoted Products to build their businesses and connect with
consumers,” said Shailesh Rao, Twitter’s vice president of
international revenue.
Digital advertising is the fastest growing media platform in the
Arab region. Last year, digital ad spend exceeded $200 million, and
will grow 35% a year to reach $580 million by 2015, according to
Deloitte.
Connect Ads, the digital agency subsidiary of OTVentures, was
chosen as Twitter’s sales representative in Egypt, the United Arab
Emirates, Kuwait, and Saudi Arabia this past November. Since the
agency launched in 2002, it has open offices in regional markets,
including Morocco, Pakistan, and Qatar.
Not only will the agency handle sales of Twitter’s products with a
dedicated team; it will also launch a range of education and
training programs for agencies and large advertisers to help them
understand the products,
The Next Web reported in November.
Already, Pepsi, Saudi telecom company Mobily, Dubai’s Atlantis
Hotel, and Dubai Calendar have signed on as clients.
A Mobile Boost for Startups?
For startups in the Middle East, the launch offers another
opportunity for building revenues via mobile ads, as Promoted
Products also work on mobile and tablets platforms (and any device
that runs a Twitter client).
Twitter users exposed to retail tweets are more likely to make a
purchase or visit online retailers on desktop clients, Twitter
revealed in a
report released last November in partnership with Boston market
research firm Compete. Its mobile ad presence, however, often
outperforms its ad revenue on desktops, Twitter CEO Dick Costolo
said in June.
Last year, Twitter also released a feature that allows clients to
send promotional tweets directly to iPhone and Android users, which
comprise over 60% of its near 200 million users worldwide.
In the Arab world, Rao expects the number to be higher,
The National reports. This makes sense, as the UAE and Saudi
Arabia boast the world’s highest smartphone penetration rates, at
62% and 60% respectively, according to Google.
Mobile ads are likely to be effective in the region as well. In the
UAE, mobile ads are noticed by 93% of smartphone users and 39% of
users have made a purchase on their phones, says Google. In Egypt,
the number of smartphone users buying online reaches 41%, compared
to 35% of Americans.
Preparing for an IPO?
For Twitter, the Arab world is a logical next step in its quest to
prove it can effectively monetize the platform.
Arabic was also its fastest growing language in 2011 and is now its
sixth most tweeted. Saudi Arabia will surely be a large target, as
it holds most (38%) of the Arab world’s 2 million Twitter
users, according to a
report released by the Masdar Research and Development Center.
Kuwait is the next largest market at 10%.
The announcement also may be part of the social media company’s
preparation for an IPO. Two days ago, Twitter was valued $9 billion
after early employees sold $80 million in shares to a fund managed
by BlackRock. The move may have been designed to demonstrate the
value of Twitter’s assets to early shareholders while allowing
select investors to secure equity,
Bloomberg speculated.
In the meantime, entrepreneurs are focusing on the opportunities.
“I hope those promoted products Twitter is introducing today helps
them sustain their presence and expand—creatively,” @meetsamer
tweeted yesterday.
Photo originally from The Inquisitr.