SocialEyez Acquires Egyptian Social Media Ad Agency BSocial
SocialEyez, the Dubai-based social media agency, has acquired Cairo’s BSocial for an approximate value of 10 million Egyptian pounds (around $1.12 million) to boost its service offering in Egypt.
BSocial is a digital services and social media management agency founded in 2010, with a brand portfolio that includes General Electric, Mercedes Benz, Warner Bros, and 20th Century Fox, to name a few.
The Egyptian agency will be incorporated in SocialEyez’s local operations as SocialEyez Egypt. BSocail founder and CEO, Ehab Fares, will be the Managing Director of the new entity. The emerging social media hub will employ a team of over 120 digital media professionals catering to almost 30 million social media users on behalf of regional clients.
Leveraging Digital and Social Media Expertise
SocialEyez had acquired a minority stake in the company nearly two years ago. It will bring to the table competitive advantages through its partnerships with global leaders like Hootsuite and LinkedIn. Fadl El Tarzi, CEO of SocialEyez, also highlighted the importance of the transfer of digital knowledge from government authorities in the UAE to the Egyptian market.
This will allow BSocial to leverage its expertise in the local market more fully. According to Fares, social media penetration in Egypt is at an all-time high. A report compiled by the Arab Social Media Influencers Summit in 2015 showed that the country had the third highest rate of daily access to Facebook and Whatsapp among MENA countries (94% of social media users in each case), behind Syria and Lebanon.
These stats, combined with the size and relative stability of the country, naturally make Egypt the best choice for SocialEyez’s expansion. It also constitutes an ideal playground for Egyptian businesses to raise their brand awareness, market their products/services, gather customer feedback and data, recruit, etc.
Egypt: A High-Opportunity Market
SocialEyez is currently rebranding as a full-fledged digital engagement agency and reinforcing its position in new markets particularly Egypt.
The MENA online advertising market is set to hit $1 billion by 2017. In Egypt, online advertising expenditure doubled between 2014 and 2015 to reach around $68 million. This figure represents 7% of total advertising expenditure, and it is expected to exceed 10% in 2016, with an annual growth rate of 50%.
The acquisition of BSocial is only the latest chapter in a market attracting droves of investors. Most recently, the price comparison site Yaoota had secured a $2.7 million Series A investment from the UAE-based Khalifa bin Butti Bin Omeir (KBBO) private investment group.
Over the past year alone, the UAE, Kuwait, and Saudi Arabia have pledged $12 billion of investments and central bank deposits for Egypt. The UAE’s share of that total is in the vicinity of $5 billion.