By: Mohammad Mahmoud, Head of Client Partnerships & Data MEAI Consumer Cloud Service Dept, Huawei

The ongoing global recession has had far-reaching effects on economies worldwide, leading to shifts in consumer behavior and challenging numerous industries. In this article, we will explore the broader impacts of the recession on the world economy and delve specifically into the media and advertising sectors. Furthermore, we will examine how connected TVs can play a pivotal role in expanding markets, particularly in China, following the easing of regulations on travel and real estate investment overseas, with a focus on Middle East countries like Egypt, UAE, and Saudi Arabia.

The Global Recession: A Universal Challenge

The current global recession has had a profound impact on countries across the globe. From reduced consumer spending to declining investments and increased unemployment rates, nations have grappled with economic uncertainty. As a result, consumer behavior has significantly changed, impacting various industries, including media and advertising.

The Impact on Media and Advertising

The recession has presented numerous challenges for the media and advertising industry. As businesses tighten their budgets, advertising expenditures have decreased, affecting traditional media channels such as television and print. As a result, reduced advertising revenues have forced media companies to reassess their strategies and adapt to changing consumer preferences.

Moreover, the rise of digital platforms and the surge in online media consumption have transformed the advertising landscape. Digital advertising has become increasingly favored due to its cost-effectiveness and the ability to target specific audiences. As a result, advertisers have shifted their focus to digital channels, leveraging metrics and analytics to optimize campaigns and improve return on investment.

Connected TVs: An Opportunity for Expansion

With the easing of regulations in key markets like China, new opportunities are emerging for media and advertising, mainly through connected TVs. Connected TVs are smart televisions with internet connectivity, enabling users to stream content, access online platforms, and engage with interactive advertising.

China Market Potential

With the World Travel and Tourism council predicting that mainland China will become the largest tourism market by 2032, the country’s tourism sector plays a critical role in addressing the sustainability challenge. According to McKinsey, tourism accounted for an estimated 6-8% of mainland China’s total carbon emissions in 2019. However, Chinese travelers today are concerned about climate change and are beginning to seek out sustainable alternatives. By making smarter decisions and taking advantage of travel provider incentives, travelers could reduce 10-20% of their environmental footprint on a typical trip. 

Relaxing travel regulations and international real estate investment overseas in China allow global advertisers to reach Chinese consumers through connected TVs. As Chinese tourists increasingly explore destinations like Egypt, UAE, and Saudi Arabia, advertisers can leverage connected TV advertising to target this affluent and mobile audience. In addition, advertisers can tailor their campaigns to resonate with Chinese travelers by partnering with local broadcasters or streaming platforms and promoting tourism experiences, real estate investments, and luxury goods.

Russia and Middle East Connections

Russia also presents an opportunity for expanding markets through well-established AdTech. With the Middle East, including Egypt, UAE, and Saudi Arabia, as potential travel destinations for Russians, advertisers can utilize their media budgets to engage this audience. In addition, advertisers can deliver targeted messages about travel experiences, hotel accommodations, and tourist attractions in the Middle East, encouraging Russian travelers to explore these destinations.

Conclusion

The current global recession has undoubtedly impacted the media and advertising industry, necessitating adaptability and innovation. As the world recovers, connected TVs offer an avenue for growth and market expansion. In markets like China, where travel regulations have eased, connected TV advertising can be vital in reaching audiences and promoting international tourism and real estate opportunities. By seizing the potential of connected TVs and tailoring campaigns to specific markets, advertisers can navigate the challenges of the recession and capitalize on emerging opportunities, fostering economic growth and resilience in the media and advertising industry.

Disclaimer: Views expressed are my own and not Huawei’s