The recent uplifting of economic sanctions on Iran ended a 10-year exile for one of the largest countries in the MENA region. Although the news was met with mixed emotions throughout the world, the Iranian President Hassan Rouhani described the day the sanctions were lifted as a ‘golden page’ in his country’s history and something that could transform its economy. Along with being one of a major player in oil exports, Iran is also viewed as one of the largest open market for digital and media agencies.
Even before the sanctions were uplifted, many had started to conjecture what this will mean for the media and marketing agencies in Iran. Sir Martin Sorrell, CEO, WPP had commented on this situation in the middle of 2015 emphasizing that Iran might in fact be the ‘last great untapped market’ for his business. Publicis Groupe had also eyed Iran as an interesting opportunity for global investors.
Some agencies have already started their work in Iran. Dentsu Aegis had formed a partnership with the International Communications Agency in 2015. Havas Worldwide also worked with clients in Iran from their Dubai offices before the uplifting of sanctions.
From a global holding company standpoint, there is no doubt that the presence of ‘early birds’ in the region, and the restrictions of some of the US-based agencies such as Omnicom and Interpublic to operate in the region, might have a lasting effect on the agencies that might dominate in this region. However, Iran might not only be an untapped industry, it might also offer an excellent challenge to the marketing agencies to delve into.
With its different set of restrictions and perhaps with different needs, the adaptability and evolvabiltiy of marketing agencies may be key quality that will determine their success in this market. As experts have pointed out, one of the major points to keep in mind for agencies will be the distinction between the Arabic and Persian cultures, and understanding the requirements of the latter. In this struggle between the different marketing agencies, early impression will be critical for success.
However, besides the need to better understand the market, the agencies will also have to move with caution, given how the stability in the Middle East region is still elusive. This would imply that most agencies would reduce their risk factor by perhaps taking small first steps, which in turn would limit their marketing options.
With these obvious obstacles for marketing and digital agencies, one thing that would work in their favor is the presence of a large youthful population that is well-educated and tech savvy. This would mean that properly implemented ideas would be embraced more openly. Whatever lies ahead for these marketing agencies, it is clear that the marketing in Iran tale will be engaging enough in 2016.
