Whitepaper: state of advertising in the Middle East
The Middle East is set to lead the world in terms of growth rates over the next 5 years. This is a statistic mirrored by the predicted Market Media spend in that same period. Saudi Arabia will be leading the charge with a Reuters poll of economists forecasting that Saudi Arabia's economy will expand by 4.4% in 2025, which would be the fastest growth in three years.
Global Growth Rates from the Media Spend Perspective:
The US is set to account for just under a third (31.3%) of global spend, with a forecast rise of 2.2% this year and a further 7.6% in 2024 to reach $326.7bn. Although the Middle East is among the smallest regions (just 0.7% of global spend) but is anticipated to be the fastest-growing over the forecast period, with spend up 10% in 2023 and 6.2% in 2024. South Asia is also growing rapidly (+8.9% this year, +12.1% next year), buoyed by a strong Indian market. Ad spend in India is forecast to grow by double digits over the next 18 months to reach a total of $13.7bn in 2024. Advertising spend in Europe is set to rise just 0.6% this year, before the rate of growth increases to 3.6% in 2024 as economic headwinds ease. The UK – the largest single ad market in the region with a 4.6% share – is set to see a dip of 1% this year. Africa is enduring a difficult year, with spend set to be down 11.6%. Growth should return in 2024, however, buoyed by a 6.1% rise in South Africa next year.
Out of home advertising:
With an influx of foreign investment in the form of events & increased tourism, spending on digital out-of-home advertising has increased significantly in Saudi Arabia since 2017, while spending on traditional out-of-home advertising has decreased by an estimated 25%. This reflects how KSA is adopting the latest, most contemporary advertising techniques.
Multi-channel Marketing:
Echoing the strategic nature of business in KSA, businesses are meeting customers where they are by using multiple channels, such as social media, websites, mobile apps, email, chatbots, and voice assistants
Influencer marketing has become extremely popular in Saudi Arabia, as businesses collaborate with social media influencers to market their products and services. Digital marketing agencies in Saudi Arabia are focusing on Influencers with sizable followings on platforms like Instagram, TikTok, and YouTube to tap into this market since they are becoming more and more popular in the area. Brands can boost their online presence and reach a larger, highly engaged audience by collaborating with these influencers.
Ecommerce Boom:
The Saudi online market is expanding rapidly. This makes Saudi Arabia one of the most promising markets for online retailers. e-commerce and digital marketing tactics go hand in hand. Companies utilise focused campaigns to increase traffic to their online platforms, improve user experience, and boost conversions.
For brands aiming to connect with Saudi consumers, e-commerce offers a substantial chance. In the e-commerce industry, having a robust online presence and competitive pricing are essential for a brand to thrive. They also need to provide convenient delivery options and excellent customer service. Because of this, one of the most potential markets for internet retailers is Saudi Arabia. E-com brands are rapidly scaling their Marketing efforts to capture the market demands.
Personalisation:
Personalisation has emerged as an important aspect of digital marketing. Customers today expect personalised offers and content to meet their specific needs and interests. Businesses can provide customised relevant content and boost client satisfaction and retention by reviewing customer data. Tailoring Content for Individual Customers is a crucial point for Marketing strategies in the Middle East. This is a strategy seen through seasonal-based promotions.
Conclusion:
Marketing spend and growth strategies are in full force in the Middle East & Saudi Arabia. The strategies are unique to the region and require a deep knowledge of the ecosystem. Companies need the data to support these aggressive growth strategies - that’s why Day1Data is supporting businesses in KSA to scale their Marketing activities in the most effective way possible.
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