OSN Group, the leading pay-TV provider across 22 countries in MENA, is implementing an advanced TV advertising strategy, mirroring models seen in established markets like the UK. The group, which holds exclusivity for major studios, including a partnership with Warner Brothers, maintains a significant presence in the region’s pay-TV and premium SVOD streaming sectors.
The region is experiencing streaming trends similar to the rest of the world, although adoption is slower in some countries due to varying levels of internet broadband penetration. Despite the growth of streaming, OSN maintains a healthy base of pay-TV subscribers.
Hamid Davari, Director of Advertising | TV & CTV, noted in a interview, that the region should not be ‘viewed as a single market’, emphasizing significant differences between countries. ‘The price point for a product can vary significantly, with a product that is $80 in the UAE potentially costing $5 in Egypt’.
This disparity is also evident in advertising rates. Davari stated that core countries like the UAE and Saudi Arabia see CPMs (cost per mille) that are ‘higher than Europe, more in line with the US or can even go above the US CPMs’. ‘Conversely, other countries show a significant drop in ad rates. These are atributted to variances to factors including socio-economic conditions, purchasing power, and a lack of supply of premium connected television inventory’, he said.
Leapfrogging to programmatic addressable TV
OSN has launched its advanced TV proposition, enabling addressable advertising across its pay-TV platform. Davari highlighted the accelerated pace of their adoption: ‘We just launched a month ago and we’re already testing out programmatic, which is… actually unheard of’.
This strategy is considered a ‘massive game changer’ for the MENA market. Davari explained that traditional linear TV advertising spots in the region often have the lowest rates compared to any developed market globally, largely due to a lack of data and proper measurement. The new addressable system allows OSN to take advantage of high CPMs, which makes a big difference to the company’s business model. Davari confirmed that they are ‘definitely leapfrogging in some ways’ by moving quickly into programmatic testing.
