Communicate Levant | June 2011 by MediaquestCorp.

Levant Edition • The marketing and advertising resource • June 2011 • Issue N°14 • communicatelevant.com.lb

Bank on it: RPR’s Mark Daou on the lessons to be learned from LCB’s Page 37 poor PR

MEDIA Arab Spring clean We take a look around the region to see what result the uprisings in the Middle East have had on the media, marketing and advertising business. Clients, agencies and consumers alike (Page 28) are affected.

B all you can B: Ramzi Barakat on what his Cristals win means for Page 34 the industry

Cheese and change: Nineteen84 on Zaatar w Zeit and reinventing Page 36 advertising

FLASH JORDAN How the kingdom hopes to become the region’s digital superhero

TELEVISION Now showing The Chimney Pot’s Henric Larsson explains how to get the most out of new technology for the best results on TVC shoots and post-production work. If you don’t know your Alexa from your Da Vinci from your Cine(Page 26) sync, all is explained.

DIGITAL App to scratch Worried about the lack of mobile apps in the region? We are. Or at least we were, until we heard about Nokia’s drive for a “developers’ ecosystem” in the Levant. We see how it is getting stakeholders to(Page 24) gether to get creative.

CAMPAIGN Knit picking

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INVENT AN APP WIN A NEW NOKIA PHONE SEE PAGE 13 MediaquestCorp Egypt................... E£ 10 Jordan ................... JD 4 Kuwait ................ KD 1.2

Lebanon ........L£ 5 000 Morocco ............DH 22 Oman ............... OR 1.5

Qatar ................... QR 15 Saudi Arabia ........ SR 15 Switzerland .......... SFR 8

Syria .................. S£ 100 Tunisia ................ TD 2.5 U.A.E ...................DH 15

LETTER FROM THE EDITOR | JUNE 2011

I am Legend, and so are you I

watched the movie Thor the other day on a huge screen, with great surround sound, 3D glasses and all that jazz. And I fell asleep. Had someone told me I would be that bored by the Scandinavian mythology I have been feeding on since I was seven, I wouldn’t have believed my ears. Come on! The all-powerful Odin barely able to stand on his feet? The evil Loki looking like Priscilla, queen of the desert? And the supposedly awe-inspiring mistress of the Valkyries Frigga turned into a cry-baby? Puh-leeeze… But I should have known. After all, true geeky, superhero movies didn’t even make it to our region (Scott Pilgrim vs the world anybody? Watchmen?) or, worse, were cancelled only a week after their release for lack of audience – sorry for this rant, but I still cannot stomach the fact that I was kept from watching such an amazing piece of work as Sucker Punch that way. And the masses rallied to go in flocks to see Chris Hemsworth (aka Thor) ham act in hicks country. I know several people who actually went twice, if not more. And then came the news that Superman doesn’t want to be American anymore. Did you hear about that? Superman wants to be an international super hero, with no specified nationality. Obviously, this

news was hailed, or mocked, by the many who dispute America’s so-called global supremacy. It’s not the first time that this announcement has been made (apparently Supes has a recurring identity crisis), but it’s the first time that it has made the headlines. Maybe it’s a sign of the times, or maybe it’s the Internet effect. Previous discussions on this topic were kept within geeks’ circles. But all of this has got me thinking. I cannot help but wonder why the Arab world seems to love American super heroes – the local success of blockbusters such as X-Men, Spiderman and others is proof enough – but has none of its own. Furthermore, I realized that the Arab world has no such mythology. All the Excaliburs, Asgards, Mjolnir, Maerlins and more recent Saurons, Wolverines and Clark Kents of the Western world have no equivalent here. Attempts to create such universes are failing miserably (those that have heard of Cairo-based AK Comics raise their hands) or are struggling to survive (The 99 by Kuwaiti Teshkeel Comics is on life-support, while Malaak, by Lebanese Joumana Medlej, is faring slightly better, thankfully). The lack of budgets and technical resources is no excuse. What about the imagination? What about the

pride, solidly entrenched in the unconscious mind of a society, that is born from common legends and magical heroes? Am I missing something here? All of the while, revolutions are happening (or trying to) around us; people are dying almost every day and being called anonymous heroes, without having anybody to look up to. The parallel may seem far-fetched, but it isn’t really. When a population is waking up, it needs an ideal to rally around, and common childhood visions can then turn into shared adult hopes for something – or someone – to believe in. But it’s never too late. As you will see in our cover story on page 16, Jordan is edging towards an ideal: becoming the digital – and, believe or not, gaming – hub of the region. And that may be just it: The Internet is where every single one of us can matter. The Internet is where revolutions can get started. And, just think of Mark Zuckerberg: The Internet is the realm where anyone can become something of a superhero. And if there’s one place in the region where superheroes would feel right at home, wouldn’t it be the land of Petra and Wadi Rum? Here’s to hoping. Nathalie Bontems, editor editor@communicatelevant.com

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JUNE 2011 | CONTENTS

Contents

COVER: The draw of Jordan 16

NEWS 6 8 10 11 12

Digital dreams: For more than 10 years Jordan has been quietly but surely pushing its digital communication and development industry. It may not be there yet, but regional events may help the kingdom become the next digital destination Up to the game: Becoming the region’s gaming hub is Jordan’s plan. An unusual idea maybe, but a good one nonetheless, rooted in an undeniable reality Advertising. The Lebanon chapter of the IAA elects its new committee, and plans its come-back to the local advertising scene Digital. Where the mysterious “Missing Zs” campaign is finally explained Advertising. Rizk Advertising is in top gear both in Lebanon and abroad Digital. Yahoo Middle East gets a new office, a new PR company, and a new marketing manager Media. Traditional channels trump new media as source of Bin Laden news

THE COMMUNICONTEST 13

Come up with a great mobile app idea and win a Nokia Smartphone

THE COMMUNIQUESTION 14

FEATURES 24

26 28

DEPARTMENTS 34 35 36

37 38 39

We ask the industry: Who is your professional hero?

Digital. Mass app-peal: Mobile phone brand Nokia is working on the creation and growth of a “developers’ ecosystem” to push mobile apps use in the region Television. The Chimney Pot’s Henric Larsson on how to make the best use of technical innovations in filming and post-production Media. What next? After the Arab Spring, we ask experts what lies ahead for the industry

Q&A. What’s in an award? Creative agency B,’s Ramzy Barakat on how the perception of alternative agencies is changing around the world Q&A. Creative all the way. The Berlin School’s president Michael Conrad on why creativity must be let into management Guest Opinion. Creative agency Nineteen84’s Said Francis and Adib Basbous say the recipe for their success lies in one small but all-important thing: the idea Guest Opinion. RPR’s Mark Daou says that the Lebanese Canadian Bank scandal should teach banks a lesson on how to be prepared to handle catastrophes Blogosphere. What the Web is saying Work. Selections from the regional and international creative scenes Drive-by. One blogger’s take on Beirut’s billboards

JUNE 2011 Medialeader SAL, Azar bldg, 5th floor, Dimitri Al Hayek st, Sin el Fil-Horsh Tabet, Beirut, Lebanon, Tel: (961) 1 492 801/2/3

CO-CEO Alexandre Hawari CO-CEO Julien Hawari MANAGING DIRECTOR Ayman Haydar CFO Abdul Rahman Siddiqui CREATIVE DIRECTOR Aziz Kamel ONLINE DIRECTOR Rony Nassour HEAD OF CIRCULATION Harish Raghavan, h.raghavan@mediaquestcorp.com MARKETING MANAGER Maya Kerbage, m.kerbage@mediaquestcorp.com COUNTRY MANAGERS Lebanon: Nathalie Bontems, nathalie@mediaquestcorp.com, (961) 1

492801/2/3 KSA: Walid Ramadan, walid@mediaquestcorp.com, Tel: (966) 1 4194061 North Africa: Adil Abdel Wahab, adel@medialeader.biz, Tel: (213) 661 562 660

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FOUNDER Yasser Hawari MANAGING DIRECTOR Julien Hawari EDITOR Nathalie Bontems MANAGING EDITOR Austyn Allison GROUP MANAGING EDITOR Siobhan Adams SENIOR SUB EDITOR Elizabeth McGlynn CONTRIBUTORS Ibrahim Nehme, Samer Zouehid CREATIVE DIRECTOR Aziz Kamel ART DIRECTOR Sheela Jeevan ART CONTRIBUTORS Aya Farhat, Jean Christophe Nys EXTERNAL AFFAIRS Manuel Dias, Maguy Panagga, Catherine Dobarro, Randa Khoury, Lila Schoepf, Laurent Bernard RESPONSIBLE DIRECTOR Denise Mechantaf PRINTERS Raidy Printing Group ADVERTISING The Gulf MEDIALEADER, PO Box 72184, Dubai Media City, Al Thuraya Tower 2, Office 2402, Dubai, Tel: (971) 4 391 0760, Fax: (971) 4 390 8737, sales@mediaquestcorp.com Lebanon Peggy El Zyr, peggy@mediaquestcorp. com, Tel: (961) 70 40 45 44 Kingdom of Saudi Arabia Tarek Abu Hamzy, tarekah@mediaquestcorp.com, Tel: (966) 1 419 40 61, Ghassan A. Rbeiz, ghassan@ mediaquestcorp.com, Fax: (966) 1 419 41 32, P.O.Box: 14303, Riyadh 11424, Europe S.C.C Arabies, 18, rue de Varize, 75016 Paris, France, Tel: (33) 01 47 664600, Fax: (33) 01 43 807362, Lebanon MEDIALEADER Beirut, Lebanon, Tel: (961) 1 202 369, Fax: (961) 1 202 369 WEBSITE www.communicatelevant.com.lb

JUNE 2011 | REGIONAL NEWS

IAA Lebanon Chapter elects new committee

Beirut. The Lebanese chapter of the International Advertising Association (IAA) elected its board for 2011 to 2013; the committee includes Naji Boulos (president), Naji Irani (vicepresident), Georges Slim (secretarygeneral) and Joe Ayache (treasurer), among others. “New blood has been injected in the IAA for the past two years and there’s a demand from the industry for the IAA to regain its place and play its role,” says Boulos. To celebrate its 50th anniversary this year, the IAA has several events in store, on top of the industry dinner and digital conference that have already been held. A Facebook competition

 I MARKETING Diageo searches for Lebanon’s best bartender Beirut. Since last November, Diageo Reserve (Diageo’s luxury spirits portfolio) has been conducting an “exclusive” program to determine

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for students will be launched in June and a beach party will be organized in July to reach out to the younger generation. A book – edited and published by Nadim Zahar’s National Media Services – will be released in November to chronicle the 50-year history of advertising in Lebanon. A gala dinner will be held at the end of 2011, reuniting all Lebanese advertising players. A multimedia campaign will be launched in September. “We want to reach out to all the public and grow the IAA’s notoriety. We now have 100 members; that’s a 20 percent increase in two years, and we look at another 20 percent by the end of 2012,” says Boulos.

Lebanon’s best bartender, who will participate in the “World Class” global competition. Through Diageo’s World Class series of preparation events, Reserve brand ambassador Joe Nazzal, has been training bartenders from Lebanon’s most hyped bars, before

Regarding the industry, the association plans to tackle three main issues that impair its development: the state of outdoor, the law prohibiting tobacco advertising, and the one prohibiting the advertising of pharmaceutical products. In the long run, the IAA will also study the relaunch of the Phenix awards, a competition for Lebanese TVCs broadcast live on LBCI, that was cancelled six years ago. “But this will take time, because the industry has evolved and it’s now impossible to define a ‘Lebanese’ TVC; so we want to come up with a modern, credible concept that will last,” says Boulos.

having them compete for the title of Lebanon’s Best Bartender. The winner will participate in the global competition that will host more than 36 countries in New Delhi, India, on July 11. It is the first time the international competition has come to Lebanon.

 I ADVERTISING Leo Burnett Beirut and Impact BBDO Beirut make it to the NYF International Advertising Awards New York. The Beirut operations of creative agencies Leo Burnett and Impact BBDO were both recognized at the fifth edition of the New York Festivals International Advertising Awards. Leo Burnett grabbed a Bronze award in the Radio category for its “Alfa the Hijack” stunt, and was one of the finalists in the PR category for its Exotica “Valentine” campaign. Impact BBDO was nominated in the Outdoor category for its Audi Q7 “All terrain” campaign. Bechara Mouzannar, CCO of Leo Burnett Middle East and North Africa, was part of the jury. The organization also announced the launch of its new industry award, “Advertising Agency of the Year – by Country.” To qualify, the agency must have earned at least two Golds, two Silvers and two Bronze trophies. Cairo Cristal Club organizes seminar in June Cairo. For the first time since the revolution, Egyptian advertising, media and production companies are getting together for the Cairo Cristal Club Seminar, scheduled for June 1 in Cairo. Topics will include “How the advertising industry and creativity can contribute to the development of the country” and “The impact of social media: the post-revolution learning for the advertising industry.” Hassan Kabani, CEO of Mobinil; Wael Fakharany, head of Egypt & North Africa for Google; Fernanda Romano, former global creative director of digital and experiential at Euro RSCG WorldWide; and Georges Mohammed-Cherif, founder, CEO and creative director of Buzzman, will be among the speakers.  I DIGITAL 3G to reach Lebanon in September Beirut. Mobile phone network Alpha (managed by Orascom) announced that high-speed mobile 3G (third generation) phone connection will be made available across 95 percent of Lebanon next September. Alfa’s CEO Marwan Hayek explained during a press conference that reasons for choosing mobile include lack

JUNE 2011 | REGIONAL NEWS

IAA Lebanon Chapter elects new committee

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 I ADVERTISING Leo Burnett Beirut and Impact BBDO Beirut make it to the NYF International Advertising Awards New York. The Beirut operations of creative agencies Leo Burnett and Impact BBDO were both recognized at the fifth edition of the New York Festivals International Advertising Awards. Leo Burnett grabbed a Bronze award in the Radio category for its “Alfa the Hijack” stunt, and was one of the finalists in the PR category for its Exotica “Valentine” campaign. Impact BBDO was nominated in the Outdoor category for its Audi Q7 “All terrain” campaign. Bechara Mouzannar, CCO of Leo Burnett Middle East and North Africa, was part of the jury. The organization also announced the launch of its new industry award, “Advertising Agency of the Year – by Country.” To qualify, the agency must have earned at least two Golds, two Silvers and two Bronze trophies. Cairo Cristal Club organizes seminar in June Cairo. For the first time since the revolution, Egyptian advertising, media and production companies are getting together for the Cairo Cristal Club Seminar, scheduled for June 1 in Cairo. Topics will include “How the advertising industry and creativity can contribute to the development of the country” and “The impact of social media: the post-revolution learning for the advertising industry.” Hassan Kabani, CEO of Mobinil; Wael Fakharany, head of Egypt & North Africa for Google; Fernanda Romano, former global creative director of digital and experiential at Euro RSCG WorldWide; and Georges Mohammed-Cherif, founder, CEO and creative director of Buzzman, will be among the speakers.  I ONLINE 3G to reach Lebanon in September Beirut. Mobile phone network Alpha (managed by Orascom) announced that high-speed mobile 3G (third generation) phone connection will be made available across 95 percent of Lebanon next September. Alfa’s CEO Marwan Hayek explained during a press conference that reasons for choosing mobile include lack

JUNE 2011 | REGIONAL NEWS

Rizk Advertising is on a roll

Beirut. Rizk Advertising Afghanistan teamed up with Lebanese production house Cherry Films to release a new campaign for telecommunications operator MTN Afghanistan, as part of their corporate brand-building strategy. MTN has been Rizk Advertising’s client for the past five years in Yemen and Sudan, and more recently Afghanistan. MTN Afghanistan has been communicating tactical campaigns about their products and services since October 2010, but a full corporate campaign – that includes a TVC, outdoor, radio and press – was just launched to cover the entire Afghanistan region.

Bacardi’s 2011 “True Original” created in Beirut

Beirut. The 2011 “True Original” Bacardi Superior Rum Legacy cocktail was created during a mix and match “head to head” lockdown held at the Horeca exhibition in Beirut. The region’s best bartenders tried assortments of mixtures using the best Bacardi flavors in the world, in the attempts to reach the ultimate cocktail. Constantinos Constantinides’s “Yelbow Superior” won the competition. It was the first time this event has been held in the Middle East. The shoot of the TVC took place in Beirut, under British film director and DOP Jean-Paul Seresin. On a separate note, RPR, the newlyestablished PR arm of Rizk Group (see “Rizk Group has new PR wing”, Communicate Levant, May 2011, page 10), recently brought in business from CNN, Philips, Bayer, Hakim Supply, and The Cupcakery. The agency has also gained a new account with social welfare NGO Ajialouna. In association with Ajialouna and in support of the Tomooh Scholarship Program by Pepsico, RPR’s first assignment has been to prepare a full country tour of public and private

educational institutions to spread the word about Tomooh. Giving partial scholarships from $500 up to $5,000, depending solely on the academic performance and financial needs of the applicants, the program has been ongoing for the past six years and more than 1,000 Lebanese students have benefited from it. In April, the agency helped organize three visits in Akkar, Jeb Jennine and Zahle, and secured various Parliament members’ endorsements. The number of student applicants to the scholarships this year doubled. In May, lectures were held in several universities.  I MARKETING LG Media Club holds first gathering for 2011 Beirut. LG Electronics organized a special “egg hunt” as part of the first LG Media Club activity for 2011. The gathering took place at Roccoco restaurant and gathered various Lebanese media players to announce the beginning of the Media Club, a platform for media personnel to take some time out and network with each other. The club’s evaluation scheme for 2011, which will be performed on a quarterly basis, was discussed.

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New eco fashion outlet launches in Beirut

Beirut. New eco fashion shop Green & Glam launched recently in Beirut, showcasing stylish but eco-friendly brands such as Valentine Gauthier, Edun, Les fées de Bengale, Kami Organic, LEAF, Featherstone & co. among others. The boutique features clothes, accessories, cosmetics and design, in a collection meeting strict criteria: All are organic, eco-friendly and fair trade items. Wishing to encourage craftsmen in emerging countries, G&G is calling on local designers and artisans within its pattern to showcase their work in its showroom. Three Lebanese brands are already featured, including Organic Leather and Massaha.

REGIONAL NEWS | JUNE 2011

Changes at Yahoo

Portal has a new PR agency, marketing manager and office

Dubai. Search giant Yahoo has awarded its regional PR account to Hill & Knowlton, Tala Toukan, PR and communications manager of Yahoo Middle East, confirms. The account was previously handled by Memac Ogilvy PR. Meanwhile, Yahoo Maktoob has extended its sales support operations to Morocco as it grows its offices across the MENA region. The new operations in Casablanca are set to service the advertising industry in the North Africa region and provide on-ground support to clients as they increasingly turn to online advertising. Ahmed Nassef, vice-president and managing director of Yahoo Middle East (pictured, above), says, “Today, we have expanded our regional footprint with offices in Dubai, Amman, Cairo, and while we continue to grow, it is important that we extend our  I AGENCIES Memac Ogilvy holds D&AD training days Dubai. Regional agency network Memac Ogilvy last month flew more than 80 of its creative staff from around the region to Dubai for a three-day training session with instructors from D&AD in London. Alexandra Taylor, a former creative director from Saatchi & Saatchi, and Jon Sayers, the founder of Boom, gave courses in art direction and copywriting. “By exposing our people to the latest trends in creative thinking and craft, from D&AD, the most admired and respected body, the objective is to raise the standard of creative excellence at Memac Ogilvy,” says the company in a statement.

presence to the Maghreb. The Moroccan market is very strategic for us, and we see traffic coming from there with users looking for content that is relevant to them.” “The advertising industry in Morocco is also looking at digital, and…we want to be able to provide brands here with the ability to connect with consumers through more relevant, measurable and personal online engagement,” he adds. “Today’s advertisers have budgets that are under much closer scrutiny; they need to ensure their campaigns are hitting exactly the right audiences every time, especially as online consumers are ever-more discerning about the relevance of the advertising content presented to them,” says Nassef. Yahoo’s regional office has also appointed Imad Sarrouf as its B2B marketing manager.

 I AGENCIES JCDecaux appoints two managing directors

Jeddah/Dubai. Philippe Infante, based in Jeddah, has been appointed managing director for JC Decaux Saudi Arabia. Meanwhile, Yoann El Jaouhari (pictured, above), based in Dubai, has been appointed managing director for JC Decaux Dubai and Northern Emirates. Both report to David Bourg, managing director for JC Decaux Middle East. Infante joined JC Decaux in Marseille as a sales representative in 2003 before being appointed account manager in JC Decaux’s corporate sales & development department in Paris in December 2005. In 2007 Infante became managing director of Q Media Decaux in Qatar, before being appointed deputy managing director of JC Decaux ATA (a joint venture between JC Decaux and Saudi partner ATA) in December 2010. El Jaouhari, meanwhile, joined JC Decaux in 2005 as an operational marketing manager and was appointed deputy operational marketing director in 2007. In 2009 he was made marketing director, responsible for the Gulf States. In addition to his responsibilities in marketing, he became sales director for Dubai and Sharjah in October 2009. New travel resource to take off with Omnicom Group agencies Dubai. A new travel resource for the region, Joob.com, currently in its beta version, has appointed a consortium of Omnicom Group agencies to handle its brand communications requirements. In addition to the digital team at Omnicom Media Group (OMG), who will lead the account and manage digital and social media, as well as search marketing, PHD and DDB will be handling traditional media and creative strategy and deployment respectively. OMG will also provide research and analytics services. The decision of awarding the account to the Omnicom agencies was made following a two-way pitch with another holding company.

“As a start-up, it is critical we get it right from the beginning,” says Mazen Abou Hatab, head of marketing at Joob.com. “We were not only looking for specialists who can support us individually, but also people who can work together as a group to ensure the whole is greater than the sum of its parts.” Reda Raad made COO of TBWA\Raad Dubai. TBWA\ Raad appointed Reda Raad to its newly created position of chief operating officer. In this role Raad, with the assistance of the regional management group, aims at pushing conventional boundaries, defining new growth strategies, and nurturing a creative environment unique to each of the 14 network agencies. Before this promotion, Raad was group managing director at TBWA\ Raad, overseeing day-to-day operations of the agency’s UAE hub. “Our culture is based on disruption; this creative culture that surrounds us is what brings the best out of us,” says Raad. “My ambition is to continue spreading disruption and media arts tools that encourage creativity across the region so we can always unlock untapped potential.” Raad was one of the original eight founding members of TBWA\Raad back in 2000. In 2003, he established TBWA\Raad\Saudi Arabia. He then returned to Dubai in 2005 and was entrusted with the management of the hub agency operation.  I DIGITAL Ricky Ghai appointed as CEO of Eros Digital Abu Dhabi. Eros International plc, an integrated Indian film studio, has announced the appointment of Ricky Ghai as chief executive officer of its digital and new media arm, Eros Digital, with effect from July 2011. Ghai, 50, will be based in Eros’ operating offices primarily in India, as well as the UAE, UK and US. Ghai joins Eros from Abu Dhabi Media (ADM), where he had led the digital group since its inception in 2007. He had initiated a wave of strategic international investments at ADM, establishing independent, vertical subsidiaries in gaming and digital marketing.

Communicate Levant I 11

JUNE 2011 | INTERNATIONAL NEWS

Traditional media outshines social over Bin Laden’s death

 I DIGITAL

US agencies get 28 percent of revenue from digital Digital services accounted for an estimated $8.5 billion (28 percent) of the $30.4 billion in 2010 US revenue generated by the 900-plus advertising and marketing-services agencies that Ad Age analyzed for its Agency Report 2011. Digital's share of agency revenue rose from 25.8 percent in 2009. In dollar terms, agencies' digital revenue jumped 16.9 percent in 2010. One point is clear: Digital has become a standard tool across every agency discipline. To be sure, six in 10 digital dollars – or $5.1 billion – last year went to digital-specialty agencies such as Publicis Groupe’s Digitas and Sapient Corp.’s SapientNitro. The second biggest portion – $2 billion – went to agencies whose core business is direct marketing or customer relationship management. Ad Age estimates direct-marketing/ CRM agencies generated 42 percent of US revenue from digital services in 2010.

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of May 1, as US President Barack Obama's speech averaged 56.5 million viewers over about nine minutes, Nielsen says. In TV, broadcast was the victor over cable news. Despite cable news channels’ seemingly perfect fit for the moment, more than 70 percent of the audience watched on broadcast channels, according to a TVB analysis of Nielsen data. The USA Today published 200,000 extra copies on May 2 and 100,000 extra on May 3. From May 2 to 4, its website experienced a 25 percent surge in page views and a 5 percent increase in unique visitors. Other newspapers had a similar experience.

Just before one of the biggest news stories in almost 10 years broke – the death of Osama bin Laden – signs of the news started emerging on Twitter. The platform went on to handle the most frantic activity of its five years in operation. But this was no media revolution. In fact, as the week went on, the news of bin Laden’s demise actually put old-school news operators at the forefront, far more than you might have expected after hearing so much about social media’s role in recent news events. Twitter averaged 3,000 posts per second during peak activity late Sunday, May 1 and into Monday, May 2, its highest sustained rate of Tweets ever. But TV won on the night

The remaining portion of revenue – roughly $1.4 billion – was spread across agencies focused on disciplines including advertising, promotion, health care and public relations. Facebook’s PR blunder opens trust gap Facebook joined the ranks of the Burson-Marsteller crisis club elite – a group that includes firms such as FoxConn, Blackwater, and AIG – when it hired the PR firm to generate press alleging privacy breaches in Google's Social Circle tool. And even though Facebook parted ways with Burson in the wake of the botched PR campaign, the implications of its relationship with this PR shop in particular are symbolic of the social network outgrowing its startup roots and, ironically, exhibiting increasingly buttoned-up, corporate behavior. Josh Bernoff, senior vice-president of idea development at Forrester Research, says working with a firm such as Burson is one way that “real companies that are not startups compete in a real world,”adding, “but secretly trying to get stories placed about competitors doesn't play well in Silicon Valley.” In the first week of May, USA Today published the pitch that recent Burson appointee Jim Goldman sent to privacy advocate and blogger Christopher Seghoian. A day later, the Daily Beast reported that the undisclosed client behind the campaign was in fact Facebook,

which has since parted ways with the firm. The agency responded by confirming the assignment and client: “The client requested that its name be withheld on the grounds that it was merely asking to bring publicly available information to light and such information could then be independently and easily replicated by any media.”

Facebook's response: “No ‘smear’ campaign was authorized or intended. “Instead, we wanted third parties to verify that people did not approve of the collection and use of information from their accounts on Facebook and other services for inclusion in Google Social Circles – just as Facebook did not approve of use or collection for this purpose.” The initial lack of disclosure also marks an ironic moment for the more than 500 million-strong social network, whose CEO Mark Zuckerberg once said, “The age of privacy is over.” The brouhaha comes as Facebook is preparing for an IPO and slated $4.05 billion in ad revenue, up from $1.86 billion last year, according to eMarketer. For Burson’s part, PR professionals say that the firm will move

on relatively unscathed. Rosanna Fiske, CEO of the Public Relations Society of America, tells Advertising Age, “[Facebook will] recover even though this whole PR story probably brought to light more of a regulation issue related to regulatory agencies, privacy, and data scraping.” As a result of unethical behavior and potentially tighter regulation, Bernoff says, “Facebook is going to have a difficult time trying to convince Congress they can be trusted with consumer data.” BETC Euro RSCG launches own network Havas is trying to parlay the creative reputation of its French flagship agency BETC Euro RSCG Paris on an international scale by backing a new BETC-branded micronetwork of five agencies, led by BETC founders Remi Babinet and Mercedes Erra. The breakaway micronetwork’s first shop outside of Paris opened in London last month. Other agencies are planned for Brazil, the US and Asia. David Jones, CEO of Havas Group, says, “With BETC we are looking at an amazing creative pedigree. We want to be able to do what they have done in Paris in four of five other cities around the world. “There is terrific talent in the industry – people who want to do entrepreneurial things – and this is a good opportunity for us to bring some of those people into the group. It will be a growth engine for Euro RSCG and for Havas overall.”

ADVERTORIAL | JUNE 2011

Communicontest

Find a great mobile app idea and win a Nokia Smartphone

n partnership with Communicate Levant, Nokia Levant is launching a competition across the summer. In line with its work on a “developers’ ecosystem” which aims at bringing together whoever might be involved in creating, developing and promoting mobile applications in the Levant region (see page 24), Nokia is inviting Communicate Levant’s readers to pitch in. What to do? The idea is simple: participants to the contest submit ideas for a mobile app to: nokia.levant@nokia.com The idea must be creative, original and practical. Just explain what it is and what would make it special in a few words, design or graphic. Deadline for submission is July 28, 2011. Winners will be announced, with explained details on how and why they were selected, in the September issue of Communicate Levant.

Who can participate? Everybody: • Students with a fresh idea they would like to use themselves. • Developers who wish to go into this field and see a need for their idea. • Marketers who aim to promote their brand in a fun, innovative and modern way. Advertisers who want to introduce new ways • to communicate to their customers. • Users who are simply interested in seeing good apps developed in Lebanon. What to win? Three prizes – all new Smartphones from Nokia – are up for grabs: • • •

The Nokia E7 The New Nokia X7 The New Nokia E6

See you in September and in the meantime, put on your thinking caps and join the competition.

Communicate Levant I 13

JUNE 2011 | OPINION

The Communiquestion

Someone else’s shoes We ask the industry: Who is your professional hero? OMAR SADEK Head of content, Impact BBDO Richard Branson. JOELLE JAMMAL Managing director, Leo Burnett Jordan There are many accomplished entrepreneurs that I admire, but out of them all, I would have to say Sir Richard Branson is in a class of his own. Not only is he a massively successful entrepreneur, starting his first venture at the age of 17, he has an irresistible charisma, a certain charm that you can’t help but think is one of the keys to his success. I admire his boundless energy and positive thinking that he seems to incorporate into all aspects of his business life. I respect the fact he ventures into projects that nurture his creativity, inspiration and passion. He seeks what he loves in life and turns them into successful business opportunities. One thing he said, which I believe in wholeheartedly and is fundamentally the way that we as a company

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aspire to be, is: “A business has to be involving, it has to be fun, and it has to exercise your creative instincts.” He is also impressive on a humanitarian level. His initiatives in protecting the environment and helping others less fortunate, while providing a long-term solution to these issues, is truly a source of inspiration. MARC DFOUNI CEO/managing partner, Eastline Marketing Daniel Georr, chief creative director at FP7, for the simple reason that he is always right (www.dgiar.com), although his wife doesn’t always agree… DIANA MAATOUK Head of communications, VIP FILMS Anyone who, after finding out what he wants, has pursued and made it, and is able to earn good money. CAROL ISABELLA HANNA Director, people & culture – Levant, Leo Burnett Maher Achi.

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JUNE 2011 | COVER STORY

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COVER STORY | JUNE 2011

Do Jordanians dream of electric sheep? How one country strives to stand out in the region's digital landscape by Samer Zouehid

he online future in the region may not be a new piece of software or a social network site, but a country. Something interesting has been happening in Jordan, and as a new generation of user-friendly Jordanians enter the work force, it might not be too long before we see them leading the digital market, like they used to 10 years ago. Figures on Jordan’s Internet penetration tell a story heard all over the region. The Internet penetration rate is still quite low – at 27 percent – but it has been growing steadily and rapidly, standing at 17 percent at the end of 2007 and then 20.5 percent at the end of the first half of 2008, according to the Jordanian Telecommunications Regulatory Commission. Plans are to reach 50 percent by the end of 2011, but things may move even faster as more people take to the streets and are followed not only by the security apparatus, but by an increasing number of people on Twitter. This growing movement of people using the Internet is bound to induce a shift in Jordanian consumer behavior. Jordanians' footprints are visible on a large number of regional campaigns and online brands that were developed in Jordan. The kingdom has quickly, and as early as 10 years ago, caught onto the fact that it has a new natural resource – its tech-savvy, vast digital natives community – so it is putting programs in place to turn this new

digital generation into the crowning glory of its workforce. And investment in youth’s digital potential is starting to pay off. Not only are public authorities heavily involved in supporting the digital industry, but the private sector is also doing its part and big regional companies are offering their expertise to nurture Jordanian talent. However, while the blueprints are in place, there is evidence that companies are slow to embrace the new power dynamic, and the foundations for a solid local digital market have yet to be laid. The industry is still waiting for planning permission from clients to build the sector. Below, we look at developments, trends, issues and changes that will shape Jordan’s digital future. ON WHY JORDAN’S DIGITAL INDUSTRY SHOULDN’T BE OVERLOOKED Dana Adhami, director digital, Mindshare “The whole digital scene in the region started in the early 2000s when the dot-coms began to boom, and Jordan was the first country in the region to start building its own infrastructure, with many online ventures establishing their hub there. In the past five years, Jordan was also the country from where some of the most innovative digital ventures came, in terms of content and communication; Maktoob, which was the first to offer e-mails in Arabic, or Jeeran, the first Arabic

blogging website. And Jordan was also the first market to introduce really localized online targeting; Jordanians are close to the region, they understand it well. One of the main reasons for this is the people. Jordan is a big students country, a high percentage of the population is made up of students, a lot of whom have a strong interest in IT, the Internet and digital technologies, and are tech-savvy. This talent and this eagerness to grow have paved the way for other players in the region.” Nicolas Geahchan, executive creative director, JWT “Jordan has all of the right ingredients to lead the region: it has one of the best and most affordable Internet services regionally, fair Internet penetration among the population, and the right talent and knowledge available in the market.” Wisam Suheimat, managing director, Memac Advize “The entire range of sophistication is there, from simple banners to viral campaigns, UGC and even CRM and loyalty programs using smart phones, location-based promotions, online advergaming and the full range of using social networking as a platform to promote and engage with brands. We also have numerous companies developing and launching smart phone apps for brands that have been pioneering and are quite sophisticated.”

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Wael Barghouti, head of business development, Insight Group Jordan “There is a framework to nurture vibrant yet internationally competitive professionals. According to Int@j, Jordan’s Information Technology Association, the National ICT strategy (2007-2011) was created to take advantage of new markets, enhancing business maturity, investing in research and development, capitalizing on regional demand, cultivating foreign investment and improving the ICT labor market. Annual sector growth has risen to an estimated 50 percent over the past few years, its generated income representing 12 percent of the country's GDP. There is an optimistic determination not only to position Jordan as the region's ICT hub, but to also service regional markets.”

Sinan Gharaibeh, creative director, Insight Group Jordan “I think it is a matter of time before Jordan reaches the peak of its digital creativity. Jordan was home to some unique successes such as Maktoob [the Amman-based portal and first Arabic/English e-mail provider, since purchased by Yahoo]. The country is proactive and adapts quickly to new technologies. We have creative talent supported by proper technical education and liberal culture. It is worth noting that Jordanian creativity has its flavor for sense of humor such as 3azizi and Emad Hajjaj [a famous Jordanian cartoonist], which are exported to regional markets.”

SINAN GHARAIBEH. Creative director, Insight Group Jordan

Joelle Jammal, managing director, Leo Burnett Jordan “Jordan is one of the top five with regards to Internet usage, while the UAE is leading the way in digital marketing. The driving force behind this is the large youth demographic found in Jordan and the Internet advanced services offered in the kingdom. Digital marketing in Jordan is driven by social networks. Jordan has influential bloggers who have blogs visited by thousands of people every day, covering subjects about different aspects of life, from news to society, business, fashion... This has become a successful tool to promote Jordan, its culture, tradition, values and, most importantly, its people.”

JOELLE JAMMAL. Managing director, Leo Burnett Jordan

ON THE IMPORTANCE OF GOVERNMENTAL SUPPORT Wisam Suheimat, managing director, Memac Advize “Jordan has dozens of IT universities and for the past 11 years, His Majesty King Abdullah has been very keen and active in developing a strong foundation for a digital economy. Unlike Dubai, where a vast majority of professionals working in the digital sphere are not Arabs and a large number of back-end development is outsourced to countries such as India and Eastern Europe, Jordan provides a bilingual focus and deep understanding of the Arab mindset.”

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Dana Adhami, director digital, Mindshare “The Jordanian government is building the infrastructure and is supportive, but to become a technological hub, being a good coder is not enough. A country also needs to have the right economy and attractive infrastructure. The support is there, but for some reason, it’s not picking up as it should; maybe because much talent moves to the GCC. If the official 27 percent Internet penetration rate is a reality, it contradicts what the government is doing and students’ aspirations. It shows that people in Jordan are not really adopting what the government is trying to do. Something is missing or maybe it’s just being delayed.” ON HOW ADVERTISING AGENCIES APPROACH DIGITAL IN JORDAN Joelle Jammal, managing director, Leo Burnett Jordan “All Burnetters have regular training in online digital marketing; moreover, all are encouraged to partake in social networking and micro blogging services such as Twitter, and we even have our own virtual Leo Burnett building in Second Life. Furthermore, we have access to Huddle and Notepad, a collaboration tool used across offices in the Middle East and North Africa. Extensive case studies and success stories on digital marketing are available from around the world. And this on its own is a wealth of information and a learning well. This is in addition to our LB MENA blog, where Burnetters share ideas, thoughts, get inspired by one another.” Nicolas Geahchan, executive creative director, JWT “It is our role as agencies to come to our clients with appropriate digital proposals. A way to do it is to answer the clients’ needs in ‘traditional media’ and unlock the power of the same idea ‘online’ through interactive content that champions the user’s experience – making the most out of the latest digital channels (social media, geo-location, augmented reality, Web and mobile applications, hardware innovation, etcetera).” Sinan Gharaibeh, creative director, Insight Group Jordan “There is a glitch in agencies’ structure. We have seen it before in some offerings and are now seeing it again when it comes to ‘do it all’. Advertising agencies tend to design and sell digital

COVER STORY | JUNE 2011

Dana Adhami, director digital, Mindshare “A lot of the online business has moved to Dubai and the GCC, with the increasing number of players entering the digital industry leading to a very fragmented market; so it has become harder for Jordanians to shine as media providers. “And as agencies, we have to pick the best of the best for our clients. If we have to compare, Lebanon, for example, seems far ahead of Jordan. Maybe their work is simply not exposed enough. Because Jordan is still doing very well, particularly on the programming and creative sides. When we work on websites, microsites and so on, Jordanian agencies usually come back with a lot of innovative ideas and a solid approach in terms of Web design and architecture. Jordanians are not only innovative on the media side of things, but also on the creative and technical ones.” ON CONSUMER BEHAVIOR SHIFT Wael Barghouti, head of business development, Insight Group Jordan “We are witnessing a major shift in consumer behaviors, Internet habits, content preferences and digital media buying strategies. It is similar to how puzzling Arab revolts are as social media platforms and their endless opportunities for business offerings are keeping companies and agencies puzzled on how to best utilize such opportunities. Jordan is witnessing a Web boom as per latest TGI [Target Group Index] surveys conducted by PARC. The Internet penetration stats are impressive across the region. Jordan’s Internet penetration stands at 2.3 million users in the first quarter of 2011. This is attributed to the increase of Internet penetration following the uprising and Arab revolutions in the first quarter. We saw thousands of regional individuals joining Twitter since the January 25 revolution took place. News websites have attracted more than 100 thousand followers on Twitter alone since January 25. Jordan’s share from Facebook penetration averages 0.22 percent from global audiences (1,473,080 as of May 3, 2011).” ON CLIENTS' CHANGE OF PERCEPTION OF THE DIGITAL REALM Joelle Jammal, managing director, Leo Burnett Jordan “We still experience much smaller percentages allocated to digital marketing in comparison to what is spent on ATL, BTL or relationship marketing. Clients still do not allocate enough funds for this; nevertheless, it is finally seeing a significant increase spend for ‘brand’ reasons rather than direct response to sales and other ‘hard’ metrics. The spend is focused increasingly on content, apps,

campaigns to clients. However, it shouldn’t be the case. There should be specialized digital agencies as it is totally different in strategies, tactics and execution. There should be a differentiation between conventional advertising agencies and specialized digital outlets. Some agencies survive on Web designs and sell themselves as digital agencies. This harms the market rather than support it.”

GETTING CONNECTED. Clients need to be present online, says Wael Barghouti social media and service rather than on bought media such as display advertising or paid search.” Dana Adhami, director of digital, Mindshare “On the clients’ side, the problem with Jordan is the same as with any other country in the region. Readiness is there, Jordan is being included in all big FMCG players’ plans, but there’s nothing specific to it yet. All of the big players are located in Dubai and they will target Jordan, but only as part of their regional mix. The next step would be a more localized approach, and it needs to take place, but that’s true for many countries in the region, not only Jordan. Besides, Jordan is a small market; there are no important local players to build a local industry on.” Wael Barghouti, head of business development, Insight Group Jordan “Clients need to understand that if they are not present online, be it through online buying or social media platforms, these are opportunities lost. Consumers are out there. Whether the company is present or not, they are talking about your services and products. We have seen the banking sector being the most resistant to enter the online platform. They fear that someone would write something and harm the bank’s reputation. Again, consumers are talking about whether you have good services and products or not. Such clients need to understand that it is not the new guerilla in space that cannot be controlled, it is the rising need to let go of classic schools of marketing and prepare to enter this rewarding ambience by adopting rigid internal communications and crisis management programs. This requires a cultural shift.”

NICOLAS GEAHCHAN. Executive creative director, JWT

WISAM SUHEIMAT. Managing director, Memac Advize

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DANA ADHAMI. Director digital, Mindshare

WAEL BARGHOUTI. Head of business development, Insight Group Jordan

RAMZY HALABY. Business development director and co-founder, The Online Project

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Ramzy Halaby, business development director and co-founder, The Online Project (a social network marketing company) “Towards the end of 2010, The Online Project noticed a more serious commitment from companies and brands to invest in social media ad spend and presence through engagement. We are currently working in partnership with Royal Jordanian, Zain, the Arab Bank and Mercedes on their social networking presence and channels. I find Jordan’s strength is in the talent it has – the advantage of its high quality talent at competitive rates. Jordan can be the region’s development and operation hub for digital companies and technology services companies. For us at The Online Project, we definitely see an advantage in building our operational hub in Jordan where capacity is scaled. We currently have a team of 40 in the Jordan office, such as community managers, content team, moderation team, developers and designers. Our Dubai and Riyadh offices are more business-development and client servicing focused.” Wisam Suheimat, managing director, Memac Advize “Jordan definitely has the infrastructure, the people, the desire. We just don't have the mega budgets that clients in the GCC might have. But a large number of very successful digital agencies and specialists have been serving the region for more than 15 years. The relative stability (social, political and economic) of Jordan has encouraged many companies to set up their regional headquarters in Jordan and this will go a long way to bolster the digital sector out of Jordan.” ON THE FUTURE OF ONLINE COMMUNICATION IN JORDAN Wael Barghouti, head of business development, Insight Group Jordan “I am confident that a number of projects will come to life within a few years. The potential of having

creative and sophisticated developers in town supported by creative and liberal culture, paves the way for Jordan to become one of the most promising digital hubs. The Web series Shankaboot winning the first International Digital Emmy Award for Lebanon for the category of digital program in fiction does not mean that Jordan cannot or does not compete in this area as well. There are a number of graduates from specialized film institutions that have embraced the Web series as part of their one-year program.” Ramzy Halaby, business development director and co-founder, The Online Project “We are expecting to have more than 100 million Arab users online by 2015. A third of the population in the Arab World is under 14, these guys are all going to consume digital content and use the Internet. These numbers are very strong indicators of where the digital industry is heading in the MENA region. ” Dana Adhami, director digital, Mindshare “I’m very curious to see what is going to happen following the revolutions in the region, what we call a ‘Tunisami’ effect, because it started in Tunis and acted as a tsunami. This all started with digital at its core. It’s still too early to tell; yes, the number of people going online is increasing, but how these people will interact with brands is still unclear. There will be a major change for sure, online users are going to get more involved, while up until now they mostly wanted to be entertained. Now they are learning to participate, so this will lead to more engagement and participation. This will be even stronger in Jordan because of its high student population. Every time we launch a digital campaign that includes Jordan, the highest response, the highest click rate already comes from there. At a 27 percent Internet penetration rate, Jordan still has not reached critical mass, but in a year’s time, it will probably be a huge player, as a content provider and as a technological provider.”

JUNE 2011 | COVER STORY

Ahead of the game Jordan aims to become the gaming hub of the Arab world, building on the regional Internet boom

by Ibrahim Nehme

he Arab world is emerging as a gaming destination, ripe with untapped opportunities, as the Internet and mobile penetration continue to grow and the demand for locally relevant games intensifies. The driving force behind this gaming world is Jordan. Building on its strong information and communication technologies sector, Jordan over the past decade has developed a capacity in online content and gaming solutions, offering an attractive business environment that absorbs knowledge-based industries: from top-tier talents and world-class infrastructure, to governmental backup and a strategic location, Jordan gave itself the means to become a gaming gateway for the Middle East and beyond. The kingdom has already attracted major game development companies such as Zynga (creators of Farmville and Mafia Wars, among other globally successful games) and Playdom (the social games product group of Disney Interactive Media Group); some have opened operations, others are using services or planning their market entry. Jordan was also one of the first countries in the region to establish a chapter for the International Gaming Development Association (IGDA, a renowned international organization for gaming industry leaders).

NOUR KHRAIS. Head of the Jordan Gaming Development Task Force

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GETTING ORGANIZED. In 2010, a Jordan Gaming Development Task Force (GDTF) was set up in collaboration between the Jordanian governmental sector, game developers, publishers and gaming service

companies working in the Jordanian gaming industry. It is backed by the King Abdullah II Fund for Development and operates under the umbrella of the Information and Communications Technology Association of Jordan. The task force brings together game developers and gaming services companies in the country such as Maysalward, Gate2Play, Taktek Games and Wizard Productions, with the objective to advance Jordan’s gaming development capacity to help propel the Jordanian gaming on an international scale. Nour Khrais is founder and general manager of Maysalward. (Founded in 2003 in Amman, it is the first mobile game developer in the Middle East and developed two of the region’s most famous games, Trix and Balot.) Khrais chairs the GDTF board. He says the demand for online and mobile games in the Middle East is very high and is set to increase; the number of Internet users has doubled since February. The launch of the task force could not have been at a better time. The GDTF board’s action plan is led by three priorities: lobbying for more lenient tax incentives in order to attract foreign investments; capacity building by working with universities and schools to introduce curriculums – even a masters degree – dedicated to gaming; and educating investors about the gaming market so they start financing gaming startups and/ or projects. In addition, the plan includes positioning Jordan as the gaming hub for the Middle East. Khrais says that a gaming lab – a place for gaming companies and individuals to gather and use the facilities put at their disposal – with state-of-the art equipment and software is being built in Jordan; it will act as a cluster for gaming companies from both Jordan and the wider Middle East region. FAIR GAME. Khrais believes that the country is moving – and growing – in the right direction, despite being disrupted by the unstable situation that hit the region following the Tunisian and Egyptian revolutions. “We were growing enormously, and then suddenly we witnessed a huge, scary drop during the past months,” he says. However, the future looks bright. “Countries that were not online are now online,” he says, referring to the people in the Arab countries who started using the Internet to send out political messages, such as in Egypt, where, according to him, the number of Facebook users has tripled since March. “These people are now busy sending political messages, but will soon reach a point of stability; by then, they would have been hooked to the Internet and need to be entertained.”

JUNE 2011 | DIGITAL

Getting app-ier

A “developers’ ecosystem” in the Levant will finally see mobile apps gaining momentum by Nathalie Bontems

NADINE KHOUKAZ. Solutions manager retail - Levant, Nokia

RALPH NADER. Solutions marketing manager - Levant, Nokia

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ast month, we were wondering why mobile applications – that are gaining momentum worldwide – were not picking up in Lebanon (see “What’s app-ening?,” page 26, Communicate Levant, May 2011). Well, apparently, this is about to change, and fast. On the impulse of mobile phone brand Nokia, a whole “developers’ ecosystem” is being built, both in Lebanon and Jordan, with plans to roll this into the Palestinian territories and Iraq soon. Launched 18 months ago, the initiative has already led to the creation of around 80 apps, with much more in store. “An ecosystem is a way to bring together several stakeholders to work in a win/win partnership: the developers, the brands which we call content providers – universities, banks, insurance companies, restaurants, etcetera; any corporation that has a product or a service that can be mobilized – the mobile operators, the communication industry and the consumers. Nokia links all of these stakeholders together to come up with the end result: a mobile app,” says Nadine Khoukaz, solutions manager retail for Nokia in the Levant. BRIDGING THE DIVIDE. The Finnish brand gets involved at several levels, recruiting developers, equipping them and training them, offering

insights on potential trends and connecting them to companies. “This is the most important point, because usually these developers do not have the bandwidth to meet a Nestlé, a P&G, an AnNahar… We are the bridge,” says Khoukaz. “We are also bridging them financially, supporting them by paying for the application development if the client doesn’t have the budget for it and we believe that the return on investment would be good for Nokia. For example, we would sponsor the development of an application for a magazine whose readership would potentially buy Nokia.” The concept of the app can be suggested by either party – client, developer or Nokia itself – and a pitch is organized between several developers for each app. Nokia also sponsored apps that are not related to any corporation, simply suggested by the developer or by the market’s needs. Moreover, depending on the investment required for the application’s development – from $5,000 to $25,000 – the manufacturer gets more or less involved in its promotion, usually through co-marketing or shouldering a full campaign, as is the case for the one Nokia launched this month, and that goes from print to retail material, digital, activation, outdoor, radio and TV. Such campaigns will probably launch on a quarterly basis, with new apps featured every time and one “hero app” being put to the forefront.

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In exchange, Nokia retains the exclusivity of the application on its Ovi store for a month, allowing the developer to then adapt it to other systems such as the iPhone or Android. “We are all for fair game, we understand that the developers need to work and that we are creating demand. It wouldn’t make sense and it would be unfair to keep [the apps] for us,” says Khoukaz. “And we get great exposure,” adds Ralph Nader, solutions marketing manager for Nokia in the Levant. “Today, from what we hear from developers’ communities and our focus groups, the Ovi store comes on top before the Apple store and BlackBerry.” The first batch of apps developed under this umbrella includes award-winning Web series Shankaboot, TV station Al Jazeera, hospitality website Beirut.com, news website Naharnet, and TV show Star Academy among others. And so far two teams of 10 developers have been rounded up in Lebanon and Jordan, recruited through social media mostly. “We know that there is much more; and the more developers you have, the more creative ideas you can get and the more healthy competition can be created, so we are always open to new joiners; anyone can come to us,” says Khoukaz. PROMISE LANDS. Nokia concentrates on Jordan and Lebanon for now, where the company has offices and can be close to the market in order to offer really localized apps; besides, it turned out that developers in these two countries can offer a great price to quality ratio compared to Western ones. Differences can be noticed between Jordan and Lebanon however: “The Lebanese developers are more into global ideas and come up with apps mostly in English, while Jordanians are very close to their market, they understand it very well and their ideas are very local; and whatever they do is very scalable and in Arabic,” says Khoukaz. A competition held a year ago in the whole Levant area allowed the brand to discover Palestinian, Syrian and Iraqi talent as well. The first prize went to a Palestinian developer, for an app called “Where are you?” allowing the user to pinpoint his or her location every time he or she moves. Trends are clearly emerging in terms of app contents: “The most downloaded apps are, of course, for social communities: Facebook, Linked In, etcetera, then games/entertainment and utilities,” says Khoukaz, who adds, “Developers are inclined to do stuff like that, but they are more into applications usable for brands. They ask daily questions every consumers asks, such as: Where do you get a phone number? Where do you want to eat out on a Saturday night? What’s the nearest real estate available to me? And so on. Consumers are still into entertainment, but we have to think outside the box: we are creating a need. The consumer will download what he has; if it’s games, he will download games; but if we create new concepts for banks, media and so on, we are pretty sure consumers would go for it.”

GREATER CONNECTION. Nokia’s “developer ecosystem” aims to grow the mobile app market For example, Nokia is currently working on an app that will allow the Lebanese user to pinpoint holes in the roads, always keeping in mind that the fun aspect of apps is important. Nokia aims to add around 250 more Levant apps to its portfolio by the end of the year and is increasingly trying to engage stakeholders by, among other things, conducting research on consumers’ needs and probing ad agencies. “We go to agencies to explain what an app is, how it works, what its added value is and how it will help grow their clients’ businesses,” says Nader. “In a year and a half we have noticed how businesses are increasingly aware of the need to get apps, but we also realized that awareness on apps is still low among ad agencies, particularly local ones; it’s a new channel for communication, and they usually use traditional media. So we are also here to encourage companies and ad agencies to realize that not only do they need this, but they can also advertise on apps,” he adds. “Considering the number of mobile phones in the region, imagine how many eyeballs would watch this ad, in how many hands it would actually be. Most apps are free, but this is where your revenue is,” adds Khoukaz. What’s in this for Nokia is simple: It’s a question of natural evolution. “It’s a matter of gaining more users, of course, but also of retaining the current ones. We need people to keep being hooked to their phone, to really like it because it’s close to them, it gives them what they really need in their everyday life,” says Khoukaz. “It’s not about the device any more; it’s about the user experience,” Nader adds.

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JUNE 2011 | PRODUCTION

Production Guide

Tech it further

The Chimney Pot’s Henric Larsson explains how to remain technically up to date

enric Larsson, CEO of Sweden-based postproduction house The Chimney Pot, shares some of his insights to boost your next project. After tackling the issue of quality, he explains in this last chapter of a three-fold guide how to make the best out of new trends and technology in post production.

HENRIC LARSSON. CEO, The Chimney Pot

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NEW DIGITAL CAMERAS. Digital cameras are here to stay. One look at what happened with still photography is proof enough of the evolution. Get used to it and learn how you can benefit from getting high-res movie files on set or with you on a disc when you leave the set. The Red [the first affordable digital movie camera, released in 2007] changed a lot of things; it killed the 16mm camera but not the 35mm. We have been using Canon and Nikon digital still cameras to shoot films. They offer great lenses and a big sensor, but record films in a very compressed quicktime format. But with the arrival of camera maker ARRI’s Alexa [last

year], we suddenly had a digital camera that can compete with film. Half of the films shot on our market are in digital, much less using the Red and mostly using Alexa. And next, Red’s new generation of cameras, Epic, may prove very interesting with a huge sensor that delivers a 28K resolution instead of today’s 4K. However, when shooting on digital instead of film, you miss one thing that you have when using actual film: the possibility to choose the type of film stock – such as Kodak, Fuji, tungsten, etcetera – that will allow you to create a certain look and feel on the material. Digital cameras have been trying to achieve the same effect by featuring Look Up Tables (LUTs); but this is, in fact, just a digital color correction done in camera. Many productions go for digital cameras to somehow prove to the clients that they have tried their best to squeeze the budget. But in real life, the savings are minimal. First, cost savings on shooting digital cannot be huge on a normal one-day shoot TVC.

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Besides, the Alexa’s camera body is not that much cheaper than that of a 35mm camera, and all the accessories are the same (lenses, light, etcetera). You will save on film stock, processing and telecine, but you might spend extra money on an on-set file-handling assistant called DIT instead. CHEAPER TECHNOLOGY. Both software and hardware are getting cheaper. A grading system used to cost $250,000 a couple of years ago, but today you can get a Mac-based Da Vinci [high-end postproduction color grading system] without panel for $15,000. The same goes for most other tools. The price you pay for a job is not just for using an expensive computer; you also pay for a nice office space for client presentations, network infrastructure to eliminate bottlenecks in production, render farms and project coordination, etcetera. In the future, you will pay less for each hour on the systems, but the budget will stay the same because you will get a bigger team for each project. Your production will benefit greatly from this in terms of quality as well as delivery time. GPU RENDERING OF 3D. 3D is increasingly used these days. Film producers know that post-production houses can create basically everything on their computers; so they simplify set builds and often include complicated special-effect scenes in their scripts. But photorealistic 3D takes a long time to render, which keeps us from doing as many tests as we would prefer to in order to make your final film look better. An interesting development is the use of graphics cards to render on for real-time visualisations. The processors in your computer are not doubling in speed every 18 months as they used to in the past. Graphics cards now have enormous processing power (check out the latest games on PS2 and Xbox), and it can be used to render 3D, even for film. With more or less realtime feedback, we will be able to screen changes to clients instantly and a 3D session can be close to a video-editing client screening in the future, where clients get to see their changes immediately. STEREOSCOPIC CINEMAS. There’s a strong belief in Hollywood in stereoscopic media (3D movies that you watch with special glasses). I have my doubts, since nobody enjoys those ugly glasses. Samsung declared that, in their opinion, it will take a minimum of 10 years until a glasses-free 3D TV is in the market. Until then, families will have to use 3D glasses at home, in their living room. However, one advantage of the sterescopic roll-out is that is has speeded up digitization of cinemas around the world. To be able to screen these 3D movies, cinemas need a file server plus a digital projector. So digital distribution got

CHEAP SHOT. The cost of hardware and software is coming down cheaper, which is good for the producer and the distributor. Post houses can also offer grading at their facility with a similar digital projector so you, as a client, really get a what-you-seeis-what-you-get grading session. The downside nobody talks about is that the sterescopic-ready screen in the cinema that helps create the polarized picture is optimized for stereo but not for normal, non-stereo movies. These will not look as good as they should, since the screen that you project the digital images against is not optimized for this. ONLINE COLLABORATION TOOLS. Fewer and fewer clients are ready to take their car and visit their post house, due to traffic and lack of time. But with access to a broadband Internet connection worldwide, there are some interesting ways of collaborating today. Software such as Cinesync have been around for a while; this application can be installed on your computer and will allow everybody to download the same movie files. Any of the attendees in the online meeting can then control the playback of the file on all other computers and stop on exact frames. Many Web-based tools today do not even need to be installed on your client’s computer. For example, I use Cozimo.com a lot; it has a nice function to add notes on movies or stills so not everybody has to attend at the same time.

What we all are waiting for is a way of doing real-time, high-quality video playback over the Internet. This is not easy, as we all know that even audio via Skype may not always be reliable. Videostreaming also demands high compression, which will induce a lack of quality and can hardly be used for final approval. A workaround can be the cheaper technology now available on the market. Let’s say you want to grade with a client sitting in another country. Why not just buy a Mac Pro and one more Da Vinci software license for $1,000? Make sure both systems have the source material on their discs, and then your local system can control the remote one while the clients sit and watch the grading session in full quality. NEW YOUNG TALENT. All young people want to work in the media industry. Who, at the age of 20, prefers to follow Daddy’s footsteps and become a lawer instead of going to school to learn how to create beautiful digital effects for movies? The number of students with a degree that teach compositing, 3D, animation, sound design and so on is growing. But the teachers are not always as skilled as they should be; if they were, they would get a job in the industry. So I believe it is each post house’s obligation to help train new talent, and by always having two or three interns in the team, you will also be able to offer a competitive price on the production.

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ÂŠ Getty Images

JUNE 2011 | DEAPRTMENTS

Signs of change

In the aftermath of the Arab Spring, we see if anyone can predict what comes next for the industry by Sidra Tariq

DANI RICHA. President, Impact BBDO MENA

ELIE KHOURI. CEO, Omnicom Media Group

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he year 2011 has been a rollercoaster ride for the Middle East. The speed at which things have changed in the past few months and the ups and downs in the markets have shaken the region. The political uprisings in countries such as Tunisia, Egypt, Syria, Bahrain, Yemen and Libya, plus the domino effect of toppling governments since December 2010, have not only had an impact on the regional advertising industry, but also the global ad scene. According to an Ad Age report, Publicis Groupeâ&#x20AC;&#x2122;s media agency ZenithOptimedia forecast a $2.4 billion loss in global ad expenditures this year due to the political turmoil in Egypt and the earthquake in Japan. In December 2010 the agency predicted the growth in global ad spend to be 4.6 percent in 2011. The worldwide ripple effect brought the expected growth down to 4.2 percent in its forecast this year. The aftermath of the Japan earthquake, which mainly had an effect on the automotive industry

and consumer electronics items, was just a blip on the radar compared to what the regional uprisings did to the Middle East ad market. Communicate speaks to the regional advertising industry to evaluate the five-month roller coaster ride and the nausea that has remained since. The analysis of the experts Communicate talked to differ to a certain degree. While some say that only markets with political turbulence suffered during the revolutions, others say that the whole region was affected. There was a disparity in the predicted advertising spend and growth as well. The only thing they all agreed on was the uncertainty that looms over the region. According to a Pan Arab Research Center (PARC) report, measured advertising spend in the region declined by 1 percent during the first quarter of 2011, compared to Q1, 2010. While in countries like Saudi Arabia and Qatar, measured spending accelerated by 11 percent and 7 percent respectively, it slowed down in markets such as Egypt (down 51 percent), Bahrain (down 21 percent) and Jordan

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(down 21 percent) during the quarter. However, the research only accounts for spending on TV, newspapers, magazines, radio, outdoor and cinema. “We need to divide the market in to two: markets where there are troubles – mainly Tunisia, Egypt and Bahrain – and the rest of the market,” says Samir Ayoub, CEO of media agency Mindshare MENA. “In [those three] markets, the situation for Mindshare is as bad as for everybody else in the market. The first four months’ results were very bad (of course I’m talking about minus figures here)… There is no sign of improvement yet, even in Tunisia, where the revolution started much earlier than in Egypt. There are no signs of recovery yet. We do expect that the situation will be bad, at least in the coming four to five months, i.e. until the beginning of Ramadan,” he says. “This is the result of at least an 80 percent drop in whatever was initially budgeted for 2011 in these markets. So we expect the markets overall to [drop] by at least 50 percent versus 2010.” Reda Raad, chief operating officer of ad network TBWA\Raad, expects the region overall to fare well: “Saudi Arabia is doing very well. Qatar is doing very well. Abu Dhabi is doing very well. Dubai is picking up. So overall the region looks promising. The big impact of that is what is happening in Egypt.” Raad says that he expects a 5 to 10 percent drop in advertising spend in the region when compared to 2010, primarily because of the effect on Egypt. “Egypt is one of the largest markets for our industry, especially in terms of the advertising spend.” According to media company GroupM’s forecasts, Egypt’s ad market was worth nearly $1 billion a year and media spending had seen a 17 percent growth in 2010, according to an Ad Age report. “The recent political situation in Egypt really brought the advertising sector and advertising spend in the first quarter to almost a standstill,” says Raad. “Bahrain, again, is not such a big market; not as big as Egypt. So I don’t think the effect of the Bahrain situation is as traumatic or as impactful as what Egypt has done to the rest of the region,” he adds. Elie Khouri, CEO of media network Omnicom Media Group (OMG) MENA, says that according to OMG’s October forecasts, the region was expected to have double-digit growth this year (around 15 percent), but now only 5 percent growth is expected. Alex Saber, chairman of communications group Vivaki, also puts the figure at 5 percent, with earlier predictions being 15 to 20 percent. On the other hand, Dani Richa, president of creative network Impact BBDO MENA, predicts a negative growth of 5 to 10 percent for the region when compared to 2010. Elie Aoun, CEO of research agency Ipsos, says, “Last year, the growth in advertising spend in the region was more than 25 percent. Now

I don’t see the growth at more than 5 percent (judging from rate card figures).” However, he adds that the rate card figures this year do not show a big drop in advertising spend. “It differs from one market to another, but we are talking a number that is 10 percent [down] maximum.” SECTORS. Aoun adds that decrease in ad spend was mainly by the telecommunications sector. It saw a “surprisingly” large drop in the first quarter of 2011 compared to 2010. Saudi Telecom Company (STC) had a more than 25 percent reduction in advertising spend, he says: “It used to be $48 million; it is now $33 million [in terms of rate card figures].” “Etisalat, for example, had more than a 50 percent drop. They spent in 2010 double what they are spending in 2011,” he adds. Aoun is not sure whether this is because of the unrest in the region or because it is a strategy the telcos are adopting. “Last year the region saw a 27 percent growth in ad spend and the telecommunications sector was leading it,” says Aoun. “Maybe [this year] it is a strategy for [the telcos] to spend more later on.” On the other hand, Mobily increased its budget for this year, he adds. “The banking sector is still the same,” he notes. “There is a drop in the real estate sector and also in [the automotive sector].” FMCGs, he says, are still spending: “For example, categories like shampoo is constant, chocolate is the same, and soft drinks is the same.” Meanwhile, Mindshare’s Ayoub says that during the unrest, while there are some sectors that were extremely affected and had pulled

RAJA TRAD. CEO of Leo Burnett

ALEX SABER. Chairman of Vivaki

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the plug on advertising, industry players such as telcos and FMCGs proceeded with “shy advertising.” Even then the advertising was very tactical – more towards promotions than branding or awareness, he says. Aside from that, it was mostly non-FMCG sectors that were cancelled by the revolution – the automotive industry, clothes and luxury items, services such as banking, and so on – he adds.

PHILLIP JABBOUR. CEO of SMG MENA

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EGYPT. Predictably, Egypt is one of the hardest hit markets in the region as a result of the revolution. The tourism sector in particular has suffered the hardest blow. But there are other sectors that have been affected too. Raad says that the public sector is one of them, and so is banking. Medhat Amin, managing director of Mindshare Egypt, says, “We handle HSBC here [Egypt]… Unfortunately due to the entire hit on the economy, because of the revolution and the amount of losses the economy has [had] and also the stock exchange, they have been directly [affected]. Hence, they put everything on hold a little bit and we’re still testing the waters.” He says the bank is looking more into digital now. “We also have a car manufacturer, which is Kia Motors, who have been quite badly hit because now people look at certain products as secondary or even tertiary. People who wanted to change their cars are not changing [them], people who were thinking about buying a new car aren’t buying one, and so on and so forth,” he adds. He says that many of the telecom companies in Egypt were completely stagnant during the past few months, but a lot of them are coming back with regular advertising now. It’s mainly local brands that are expected to struggle this year. “What we are seeing is

multinational brands seem to have assumed a quicker business-as-usual scenario,” says Raad. “The Henkels of this world, the Mars of this world, and Visa, have all picked up and now business is continuing.” One of the reasons is that the infrastructure of local brands had been hit, he adds. “For example, we had a supermarket brand… that was really hit. They couldn’t just pick up and start advertising. They had to fix their shop, make sure it is working before they advertise for it. So it is different for different clients.” Moreover, “multinational brands don’t have an overwhelming dependency on the one market,” he says. If one market gets hit, the others may compensate. “Whereas if you are a local Egyptian brand and your business is hit, then your business stops until you fix it,” Raad adds. Richa from Impact BBDO says, “The business community was very closely associated with [former president Hosni] Mubarak, and a lot of the business leaders are now either under house arrest or in jail or out of the country. The ones that are not closely associated are afraid of being active and doing things now because they would rather be under the radar. So anybody who is anybody is not doing anything,” says Richa. “Tarek Nour [president and CEO of Tarek Nour Communications] said it in a funny way: He said anybody with a big, black car is in trouble.” “Luckily for [BBDO], we have a lot of multinational businesses and less government business, so we haven’t suffered as much, but the industry as a whole has suffered,” he says. Mindshare’s Amin says that the agency’s Egypt office had a rough time during the revolution. “We suffered tremendously from campaigns being cancelled, from budgets being cut, from budgets

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being postponed to God knows when. We suffered like any other agency in the country, from clients being very skeptical about advertising. Today, at Mindshare, things are starting to look a little bit better because [clients] are starting to realize and we have been pushing a lot of our clients to advertise... We’ve convinced a few clients that this is the right time to advertise.” One trend that can be seen in the Egyptian market is patriotic communications – where brands are using patriotic messages in their campaigns. A restaurant, for instance, used messaging such as “Long live Egypt. Buy pizza,” says Amin. “It is as funny as that. But some campaigns have actually been more decent.” “One of my clients, Jotun Paints, had a campaign about painting the streets the new color of freedom,” he adds. TBWA\Raad did a CSR campaign in Egypt for homecare brand Henkel called “El Balad Baladna” (This place is our country, pictured, above), where volunteers would get together to clean the streets of Cairo, adds Raad. BAHRAIN. Another market that has been affected is Bahrain. Apart from the impact that the unrest had on regular business, the Formula 1 Bahrain Grand Prix, scheduled for March 2011, and the International Advertising Association (IAA) World Congress, set for Spring 2012, have been affected. However, Johnny Khazzoum, managing director of Mindshare Bahrain, says there are talks between the Federation Internationale de l’Automobile (FIA), the Formula One Management, CEO Bernie Ecclestone and the Bahrain government, about scheduling the cancelled race later in the year, around November. The final decision will be taken in June, he says. “For a period of time, clients [in Bahrain] had stopped advertising,” says Khazzoum. “However if you look at the past one month…we can see that the trend is moving up. Clients are advertising again, but not to the same level.” Nevertheless, he says that the tourism and entertainment sectors are still in bad shape. “There is no support because you cannot promote anything related to entertainment or concerts or any of that where you will be able to attract tourists.” Retail businesses are postponing campaigns, he says, and so are hotels and airlines. Telcos and FMCGs had stopped advertising for a while, but are getting back on track now, he adds. All in all, some recovery in Bahrain can be seen, says Khazzoum. “We expect that the full recovery will take a period of two more months. This is on the basis that things are going OK in the market. But you cannot predict what will happen in the future or the next day. Assessing [the current situation], there is confidence back in the clients and the people in Bahrain.” “It will all get resolved the minute the decision is taken on the F1 race for this season,” says Khazzoum. “Since [the race] was cancelled because of the situation, the minute it goes back on the calendar, it is proof that Bahrain is back to where it was before. This will further give boost and confidence to the rest of the clients and business in general.”

FOGGY FUTURE. In the first few months of this year, the Middle East has seen almost everything. While some campaigns have been cancelled or postponed, others are running as they normally do. “In Egypt, we are seeing a revision of budgets, because of the first quarter being so badly [affected]. But in terms of the rest of the pan-Arab budgets, we don’t see any major changes,” says Raad. And while some clients are cutting down on budgets, others are retaining their 2010 levels and a few are even increasing them. This makes the rest of 2011 rather unpredictable. And experts say the same. As the market slowly moves toward recovery, there are some factors that can give us clues about the future. Mindshare’s Ayoub says that the market situation and consumer behavior will determine clients’ next moves. “The clients are waiting,” he says. “They’re scared of starting the investment again. They are waiting for what’s going to happen in the market in terms of the political situation. And since the consumer effect was bad on their bottom line, they are now somewhere between the effect of the consumer and their future worry of restarting their investment on launching a new product or service. They need stability and peace of mind. If anybody is thinking about investment or spending they need [the assurance] that this will have a return on investment.” Vivaki’s Saber agrees that the rest of the year depends on what the political situation will turn out to be. “Uncertainty is the big statement, really,” he says. When Communicate spoke to him he said May would be a very important month, “because whatever happens in May will indicate what is

going to happen in June, and so far the May figures do not look very positive.” He adds that Ramadan and the last quarter (when plans are made for next year) will “make or break” the year. BBDO’s Richa also expects this year’s Ramadan to be the “acid test.” “The problem with Ramadan is you need programming. It represents about 50 percent of the total spend, and all the guys who develop and do the contents and events haven’t done it this year. So there aren’t enough programs to sponsor, to put ads in,” he says. Much of the region’s Ramadan programming is produced in Egypt, and was set back by the uprising. Amin expects Ramadan to be completely different this year in Egypt. “I foresee that there is going to be very minimal advertising. There is going to be very minimal content on TV or anywhere else. And people are going to start waiting, because right after Ramadan there are going to be the parliament elections, and then right after that there are going to be the presidential elections. So a lot of people are going to wait and see what’s going to happen. That’s why many clients – FMCGs in particular – have moved some of their budgets to below-the-line and on-the-ground activities.” While many expect 2011 to be a flat year, there may be chances of growth. Philip Jabbour, CEO of media agency SMG MENA, says, “If there’s growth, there [will be] slight growth, and that will be driven by non-traditional elements, because a lot of the organic growth is stagnant.” While these predictions and expectations give us a slight idea, the general consensus is that nobody can predict what the rest of 2011 has in store. The mantra seems to be: wait and see.

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Leo Burnett Raja Trad, says that 2011 looks challenging for the Middle East. He says that there is uncertainty surrounding the region as to what turn events will take. For example, the unrest in Syria will not only have an impact on the country, but also on Lebanon and Jordan, he says. Some of the questions that arise are “What is next?” and “How are things going to settle?” This uncertainty is making clients “nervous,” says Trad. “Not all the decisions taken today are based on concrete basis. They are based on some psychological fears.” Changes have to be analyzed on a marketto-market basis. “We did not feel change in Saudi Arabia. We do not have change here [UAE]. [In Egypt]… we are less affected. We are lucky that 90 percent of what we handle in Egypt is basically fast consumer products and telecom. Levant is, until further notice, doing extremely well.”

AGENCY OUTLOOK TBWA\Raad Reda Raad says that the first three months of 2011 have been challenging for TBWA\Raad. “Right now the indication from the team in Egypt is that things are picking up. It is not business as usual. Everybody is cautious. Everybody is saying that the long-term orientation is very positive. However, if you are looking at this as short-term, it’s [more] like ‘We’ll wait and see.’ Nobody is coming right out and saying we are going to be cancelling any budgets, but nobody is saying we are going to [make] massive investments. So short-term is caution, and long-term is optimism.” OMG Elie Khouri says that 2011 is a great year for OMG. After the revolution, Yemen, Libya and Syria may become interesting markets for the agency, he says. “I’m not able to predict the future, but from my own little modest assumptions, these are all massive markets that were not part of the MENA mix. So I see those as becoming big opportunities for us to really double the volume of what we do in the coming four years.” The markets have potential because of population as well. Syria boasts a population of around 22 million, Libya around 6 million, and Yemen around 24 million. “They will

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become real economies where you can go and conduct business, where you can have a distribution network, where you can have proper communication on media outlets that are not autocratic,” says Khouri. In October last year, OMG had forecast a double-digit growth for the agency in 2011, says Khouri. While he is not allowed to give exact figures, he says that around 15 percent was expected. “On a short-term basis, naturally we [had] hiccups in Cairo in the first quarter, but we’re catching up. In the Gulf, we had [a] blip in Bahrain, but on a general level the Gulf is going to be maintained this year versus last year. We’re optimistically looking at a 3 to 5 percent [growth] in the Gulf versus last year. So it’s really not bad,” he says. Khouri adds that prior to the revolution, the growth in Egypt was the highest – more than Saudi Arabia and the UAE. “Egypt is a very important market. [It] is the second most important market in this part of the world after Saudi Arabia, and before UAE. This is a reality today. For us it represents about 12 percent of our volumes in MENA. But it is the highest growing market and most promising market.” He expects Egypt to continue being a promising market, “because today I think we are seeing that there is a normalization of investment by clients. Clients are back. We have to catch up on the lost quarter, but I think the prospects are better than before.”

Vivaki Alex Saber says 2010 was one of the best years for Vivaki (which includes Starcom MediaVest Group [SMG] and Zenith Optimedia). “We enjoyed significant growth across the board, because we are an agency that [has] a long roster of multinational clients,” and 2010 was a good year for multinationals, he adds. “We enjoyed significant growth [in 2010], unlike other agencies. 2010 was a record year.” The group grew by around 25 percent in 2010, he says, but 2011 is a tricky year because of the political instability in the region. Instead of the 15 to 20 percent growth forecast at the beginning of the year, the group now predicts and hopes for a 10 percent growth, he says. Philip Jabbour, says, “I think we’ve gotten to a base that is almost hard to maintain double digits. But we’re not far away from it. It really depends on a number of factors. A few wins here and there, a few things…” Meanwhile, Saber says, “In January, we were very optimistic about 2011, but then the Egyptian issue came, and Egypt is a big market. So things went into a standstill from Jan 25 [beginning of the Egypt uprising] to the end of March. Things are slightly better in Egypt, but not too rosy because there is no clear direction of what’s happening. There [are] lots of gray areas.” He says that not more than 20 percent of Vivaki’s business is in Egypt. Vivaki’s situation in the country is not that bad because they mostly have multinational clients there too, and multinationals are doing well in comparison to local businesses, he adds. “It’s a different challenge, but an interesting challenge because unless the political regimes and external forces actually subdue, it’s actually the wish of the people that is happening, and our business is all about understanding those insights. So the more that this is allowed, I think the more we can play with it,” says Jabbour. – Additional reporting by Austyn Allison.

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Q&A

What’s in an award?

B,’s Ramzy Barakat tells Communicate Levant small can still be powerful by Nathalie Bontems

amzy Barakat, founder of B, the winner of this year’s Film Mena Cristal award, explains why he thinks his agency won, what it means to the industry, and why alternative agencies enjoy a change in perception. How was the campaign created? We were approached by Promofair [the event management arm of Choueiri Group] for a TVC promoting “La France au Liban” [a French-themed festival organized with the French embassy in Lebanon]. We worked on this insight that many French words are “Lebanized.” I discussed this with Jean-Pierre [Sikias, head of production house Laser Films] and we agreed to proceed very simply, conducting interviews on the street, just like vox pops. What made the concept funny was to get a French girl in the middle of it, trying to understand the language. Imagine yourself on your first day in a new country, hearing the three-quarters of a word you understand very well, but the last syllable doesn’t make any sense to you. The challenge was not to become vulgar or humiliating, so we were very careful at the writing and editing stages.

RAMZY BARAKAT. Founder of B,

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How did the public react to the campaign? Two days after the work was sent to the client, a friend of mine contacted me because the film was going viral on the Internet. We had not planned this at all; the film was supposed to go on TV, make people laugh, get them interested in the festival and that’s it. We had produced a fourth film presenting the event, but nobody paid attention to it. Each film got around 25,000 views, which is a lot for Lebanon, especially for a campaign in French. And many people attended the festival, which shows that the campaign gave a real push. It was a real campaign for a real client with a real result, not anything done specifically to win awards. That’s what I’m most proud of.

What does winning this award mean to you? I presented this campaign to the Mena Cristal awards because I’ve always been involved with the Cristal awards, being in the jury, the Cristal Club, etcetera. Besides, we’re new in the market; we have a film, so why not present it to a film competition? I was curious to see how it would fare. Winning the award was a surprise, but more importantly it was more proof that the campaign was really a success, particularly since its concept is so local; there are so many nuances in the language that are typically Lebanese, that it is really hard for a jury consisting mostly of foreigners to understand it. So many campaigns that are rarely, if ever, seen by the public win awards and are designed for this purpose. I honestly have no clue why we won. We worked with so little means that the film could look good on YouTube, but not really on a big screen, from a technical perspective. But I think the jury had a laugh. I was also surprised that a new agency would win; usually this award goes to the big players. Do you think this win signals a change within the industry? An award is an acknowledgement by your peers of the work accomplished; it’s nothing more. But everywhere around the world, independent agencies are grabbing awards. There is room for them, including in Lebanon. Alternative agencies are not competing with the networks; they complement them, they add to the dynamics. I couldn’t imagine any major agency venturing into such a campaign, for example. Alternative agencies are winning everywhere because they bring something new, and it is really great that it happens in this region as well. Such awards open new doors for us, for other agencies, for the clients. It shows that there’s a change in perception. There’s a need for new things, and who’s going to do that if not new agencies?

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Q&A

Creative all the way

The Berlin School’s Michael Conrad says it’s time to rethink leadership

ichael Conrad, former CCO Worldwide of Leo Burnett and the actual President of the Berlin School of Creative Leadership, tells Communicate Levant why the industry needs to let creative people into management. What do you mean by creative leadership? The school’s ambition is to see one day a creative CEO [a CEO from a creative background] in every company in the creative industry. The core of our teaching is to help great creative talents become great creative leaders in order to ensure that great ideas become realities. Managing is about getting things done, but a leader does much more than only implementation. He needs to understand the complexity of the industry these days, be inventive in creativity, and also have the skills to align around these ideas a strategy and carry about its implementation. [At the Berlin School] we do it as academics and as practitioners. You want to be there, this is how to get there. What kind of “students” do you have? Each MBA in creative leadership has around 25 people. This year, they’re coming from 15 different countries. Selection is very important; we look very closely at who should be in the class. And diversity is very important to us as well. We have people from advertising, media, entertainment, design, marketing, etcetera. Everyone works on a thesis idea, the point being that it should provoke change, an alteration in the way communication is dealt with; it should lead to new expertise, help reposition your company.

by Nathalie Bontems

How is creativity crucial in management today? People lament a lot, but many don’t have ideas. And there is more and more pressure. Look at TiVo. People don’t see the ads that go for their wallet anymore. More locally, how many Lebanese brands are going abroad with a Lebanese identity? Ideas are key to everything, and that’s even truer today. Creative people have great ideas, but they are not at the center of the decision-making process. Communication has been undervalued these days; clients want to pay by the hours spent on communication, so great work comes at the expense of employees who are forced to work every other night, while it is personal intensity that drives excellence. This problem hasn’t been solved because nobody has come up with the right ideas. The new thing coming up within ad agencies may be assisting startups, offering communication for free, for example, to show how communication is crucial to build a brand; agencies can then gain these clients’ loyalty. How receptive is the advertising community to this approach? Agencies that have a strong culture, such as DDB, BBDO, TBWA, and Leo Burnett, are more likely to have creative leaders. There are lots of creative themes; it’s all about owning something that’s competitive in your field, an expertise that others don’t have: It is the humankind experience for Leo Burnett, or the culture of disruption for TBWA… In fact, at Leo Burnett, three CEOs – in the Middle East, Argentina and Brazil – are creative people. And an increasing number of creative people from the Middle East, from JWT, MBC Group, TBWA Raad, are integrating the class, so it’s encouraging.

MICHAEL CONRAD. President of the Berlin School of Creative Leadership

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Guest Opinion

The power of ideas

Adib Basbous and Said Francis from creative agency Nineteen84, winner of the Pikasso d’Or for the best outdoor campaign for the World Cup Zaatar w Zeit series, explain why it is time to reinvent advertising

he magic is in the brand, in the product; you have to be inside the brand to find the magic. This is what happened with this campaign: we looked at what was extremely relevant to Zaatar w Zeit and what was relevant to the World Cup, and we realized that the best approach was to connect the menu to captions that the fans would be saying for each team. We just had to dig through the menu to find many coincidences that were magical: “Manakeesh liebe dich”, “Beckham and cheese”, etc. This is what created the spark to make it a creative campaign, and more importantly, a viral campaign. It went around the world without too much effort. The magic of the Zaatar w Zeit brand itself, added to the communication effort of Nineteen84, translated into the number of fans on Zaatar w Zeit’s Facebook fan club page reaching over 30,000, which for a country such as Lebanon is tremendous. Almost 10 percent of the 400,000 Internet users are fans of Zaatar w Zeit.

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But on top of the coincidences and of the brand itself, what is most important to explain this win is the simplicity. One of the recipes for outdoor advertising is to keep it simple, a quick read giving one single message, and then you move on. We knew that we had a good campaign, but we were quite happy with this award and we were reassured. After all, this campaign was created when we were only four months old. We are not bragging about it. It’s not about being falsely humble either, but rather respectful of the industry and of the brand, because it’s a partnership. We won’t take credit alone on ideas that were collaborative. We were trusted with a brand and with a campaign, and it won because there was a good idea that got approval at the right time. What matters is the idea, as the Zaatar w Zeit success showed; and this goes for every single brand and agency. Advertising is just a community of people talking to other people; the agency is only a physical place where they work. Be it a multinational in

London or an independent agency in Beirut, it doesn’t change anything. It’s the knowhow of people working on a brand, sitting in places with different names. The mindset and the vision are what matters. Things happen today much faster than they used to. Every project is a blank page, you cannot project anything; you need to reinvent everything every time. So it’s very important for agencies of all sizes to provide their teams with the right culture and the intellectual freedom to do what made them special in the industry in the first place. Nobody should convert staff into “public servants,” aiming only at getting their paycheck at the end of the month. There’s a real need to reinvent this industry, to go back to the reason why advertising was created. At Nineteen84, we are firm believers in the power of ideas. Ideas that touch, inspire and spread. Big ideas that engage and connect with people regardless of the channels used, be it outdoor, digital, print or audiovisual. Simply because ideas live longer than ads.

DEAPRTMENTS | JUNE 2011

Guest Opinion

Forewarned is forearmed

Mark Daou, managing partner of RPR, the PR arm of TBWA\Rizk, says Lebanese banks should learn from the Lebanese Canadian Bank’s misfortunes

ow to explain that when the Lebanese Canadian Bank (LCB) went down in flames last February [it was accused by the US Treasury of laundering profits from a drug-smuggling ring allegedly linked to Hezbollah] its officials merely issued a press release saying they would respond in… 60 days? Such communication mishandling – taking two months to react to serious, if not lethal accusations – not only exposed the bank’s lack of crisis communication plan, but demonstrated how the banking industry, a key sector of the Lebanese economy, has no plan or set procedure to communicate during a crisis either. It showed how important it is that banks address the necessity to communicate publicly with their depositors, the media and the public during a crisis. If banks invested in a PR strategy on how to handle a crisis, and did their due diligence to counter such catastrophic episodes, the impact on the depositors, the Lebanese banking sector, the bank owners and the hundreds of bank employees would be less harmful. In the case of the Lebanese Canadian Bank, its closure was imminent due to the influence of the entity that accused it, as well as the nature and seriousness of the accusations. But not all crises are this severe. Yet, if left unattended (or mismanaged), they might spin out of control and become terminally damaging. Banking contingencies might include negative financial rumors, recalling of a service or offer, bank theft, fraud, lawsuits, labor disputes, embezzlement, and more. Banks survive on good reputation, so a comprehensive PR strategy is indispensible for any bank’s survival. But what does such a strategy consist of? Any crisis management PR strategy begins by identifying early on the key decision makers within the organization who should deal with it. This usually includes the CEO, second in command, legal advisor, HR manager and the marketing/PR manager. In certain cases, experts are brought into the crisis committee to shed more light on a situation. The job of this core team is to assess the situation and its implications for the employees, business, and media, as well as agree on a plan of action and designate spokespersons. In the case of LCB, this entire function was left to be managed by the Central Bank, which had to bear the brunt of the media exposure on this issue. The members of this crisis team must be available for immediate contact and be provided with the required media training to deal with the journalists and respond immediately in a professional and timely manner. In addition, internal communicators (mainly HR) are critical in keeping all staff informed, as employees play an ambassadorial role among their

friends, acquaintances, customers and even media; in a case such as LCB with its hundreds of employees, staff could have played this role in a decisive manner. Besides, most companies can foresee what kind of crisis they could eventually face, if only because of the nature of their business – such as money laundry accusations for banks. Thus, beforehand, actual simulations can be held and the right communication material can be prepared for immediate deployment and circulation when needed. As in all crises, the media themselves play the most critical part in how any situation escalates or shrivels. It’s not once in full crisis mode that good media relations can be built; when the crisis hits, everyone runs away, only friends stick around. Therefore banks need to engage with the media early on. Enjoying proper and professional relations with one another will allow the media to have immediate access to key people in the bank who, in turn, will be able to provide specific information and represent the bank properly. Had LCB done that, it could have been on air ten minutes after the accusations went public, and issued its statement before more than a billion dollars had fled the bank. Other useful relationships can be established with specialized experts, for example, who can be instantly referred to for their opinions and feedback in support of the bank. One should remember that in the midst of a crisis, the golden rule is: Tell it all, tell it fast and tell the truth. If handled correctly, the damage can be minimized or contained as long as you are well prepared. Questions remain unanswered though: How many banks in Lebanon have such a plan in place to deal with a crisis? And following the LCB catastrophe, what more should happen to get banks to actively work on developing a crisis PR strategy?

MARK DAOU. Managing partner of RPR

Communicate Levant I 37

JUNE 2011 | DEPARTMENTS

Blogosphere L

ebanon’s blogosphere is probably one of the most vibrant digital scenes in the region. Lebanese bloggers are many, dedicated, and very, very outspoken. Agencies are now turning to social media and online communities, listening intently to this direct feedback on how they are perceived. Here is what increasingly influential Lebanese bloggers – inside and outside our borders – have to say about local work and news. THEY’RE LISTENING, AND WATCHING. They keep it going. Lebanese bloggers are getting so numerous and active that it is becoming hard to keep up. Don’t get me wrong, we’re not nagging. On the contrary. It seems that blogging is fast turning into a major trend, one that will decisively influence communication in Lebanon and in the region. Design, marketing, poetry, short stories, comments of diverse types and sizes… you name it, it’s all there. But let us remain focused on what bloggers are saying about advertising and marketing for now.

38 I Communicate Levant

Funky Ozzi is one of the many bloggers who joined the “Bras for a cause” campaign for breast cancer. The fact that the campaign is actually a competition, launched on May 19, generated a lot of curiosity and got the call to participate spreading on its own. http://blog.funkyozzi.com/2011/05/ design-bra-for-cause.html

Not only did Youmna revamp her “Marketing in Lebanon” blog (nice logo by the way), but one of her latest posts – completed by a number of useful comments – offers an interesting overview of the various Lebanese restaurants going on social media to reach the digital community. The pace is picking up. http://www.marketinginlebanon. com/2011/05/lebaneserestaurants-conquer-social.html

Talking about restaurants reaching out to consumers through social media, the latest Zaatar w Zeit campaign on the mysterious “missing Zs” keeps on giving (see page 8); and it keeps the blogosphere on edge, and involved, as Bechara explains on “Surviving Lebanon.” http://survivinglebanon.blogspot. com/2011/05/missing-zdomination-competition.html

The luxury fashion brand Fiordelli didn’t only attract the attention of Beirut Drive By (see page 42); bloggers unanimously hated it, earning it the “Lebanon’s shallowest ad” title. Nobody messes with Ivy. http://ivysays.com/2011/05/11/ the-art-of-attraction/

Jad Aoun is on a mission: sending “Looks like Beirut” certificates to people around the world – and we do mean around the world – comparing an ugly situation to the Lebanese capital. And since one American sheriff answered back saying that he stood corrected and would frame his certificate, Jad is on the roll. Just an example of how one blogger can do more for his country’s image than tourism offices. http://jadaoun.com

Joseph has become one of the experts on catching Lebanese advertising copycats. But that’s not why he provides a link to the Moat Ad Search, a search engine for online display ads that could be “a useful tool for Lebanese ad agencies to get inspired,” he says. That’s not why at all! Everybody say “Thank you, Joe.” http://www.joesbox.me/2011/05/ ad-search.html

DEPARTMENTS | JUNE 2011

Regional Work

We deliver it how it is. Advertising agency: Shem’s Publicité, Casablanca, Morocco Creative Director: Jean-François Fournon Art Directors: Anastasia Garraza, Sergio Alonso Copywriters: Sergio Alonso, Anastasia Garraza Photographer: David Meignan

No press freedom. No democracy.

WPF 8.indd 1

No press freedom. No democracy.

Unstoppable color. Advertising Agency: Saatchi & Saatchi, Dubai Executive Creative Director: Sion Scott-Wilson Copywriter: Bianca De Silva Account Supervisor: Heidi Afifi Art Director: Christopher Jones Photographer: Dave Kennedy These ads (and more) can be found at adsoftheworld.com

World press freedom day. Advertising Agency: Expression Director: Neil Williams Art Director: Amr Said Designer: Ramesh Vasudevan Account Handling: Scott Feasey 5/3/11 1:10 PM

WPF 8.indd 2

5/3/11 1:08 PM

Communicate Levant I 39

JUNE 2011 | DEPARTMENTS

Regional Work

Precision trimmer. Advertising Agency: Impact BBDO, Dubai Executive Creative Director: Fouad Abdel Malak Copywriter: Darren McCall Art Buyer: Mariam Moin Art Director: Mohamed Diaa, Mark Held, Andrej Arsenijevic Illustrator: Mladen Penev Photographer: Andreas Franke

All about the socks. Advertising Agency: Elephant Cairo, Egypt Creative Director/Copywriter: Ali Ali, Maged Nassar Art Director: Maged Nassar Typographer: Tariq Ali

Combat will send them to hell. Advertising Agency: TBWA/Raad, Dubai Creative Director: Malek Atassi Copywriter: Sandeep Fernandes Advertiserâ&#x20AC;&#x2122;s Supervisor: Amitabh Bose Account Manager: Amira Ibrahim Account Supervisor: Natalia Abboud Art Director: Daniel Djarmati Illustrator: Wesley Eggebrecht These ads (and more) can be found at adsoftheworld.com

40 I Communicate Levant

DEPARTMENTS | JUNE 2011

International Work

The mikrograph. Precise to 1/100th of a second. Advertising Agency: CLM BBDO, France Chief Creative Directors: Jean-FranĂ§ois Sacco, Gilles Fichteberg Creative Director: Fabien Mouillard 3D Production: Mecanique Generale 3D Designer: Baptiste Masse

Before itâ&#x20AC;&#x2122;s too late... Travel light. Advertising Agency: PublicisYorum, Istanbul, Advertising Agency: MossWarner, San Juan Capistrano, CA, USA Turkey Creative Director: Cevdet Kizilay Creative Director: Bill Harper Art Director: Jack Fearing Copywriter: Bob Smithers Art Director: Seher Kis Copywriter: Emrah Photographer / Retoucher: Dan Escobar, San Francisco Kural Illustrator: Murat Bayindir These ads (and more) can be found at adsoftheworld.com

Communicate Levant I 41

JUNE 2011 | DEPARTMENTS

Drive By One anonymous blogger critiques Beirut’s billboards. All of these examples, and more, can be found at beirutdriveby.com

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CALL BACK LATER I’m too busy.

ORAL AGREEMENT Whereby the party of the first part and the party of the second part, in an ongoing attempt to satisfy each party’s interest in personal satisfaction, determine that one another’s interpretation of luxury differs and therefore both parties come to an oral agreement detailing what is considered luxury to each part and agree to offer said luxury to one another without further delay.

FEET FIRST Longer days, green almonds and strawberries are great, but the best sign that summer is on the way is bare feet by the pool.

LEBANON BEACH REPORT The recent rainy weather and cloudy days delayed bronzage season. This is the season just before beach season. Who wants to show up at the beach looking like a ghost?

MIXED DRINKS Drinking and driving don’t mix but really think twice before you use the Multi-Functional end of the Torch when drinking. You could hurt yourself, but that flashlight might come in handy if things get a little blurry.

SPELL IT OUT AUBMCDEFGHIJKLMNOP