Dublin, June 05, 2024 (GLOBE NEWSWIRE) -- The "MENA Advertising Market: Analysis By Channel, By Region Size & Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.
The MENA advertising market value stood at US$8.11 billion in 2023, and is expected to reach US$17.36 billion by 2029.The market is expected to grow at a CAGR of 13.39% over the projected period of 2024-2029.
The MENA advertising market is growing due to the significant increase in the use of smartphones. As a high rate of mobile penetration and a population that is familiar with using apps, this offers a great opportunity for advertisers to connect with their desired audience. Mobile ads currently make up the largest portion of the digital advertising market in the MENA region. Moreover, advertisers are more and more turning to programmatic advertising, a strategy that utilizes data and technology to serve personalized ads.
Additionally, an increasing number of individuals in the MENA region are gaining internet connectivity, allowing them to be exposed to online marketing, including the widely popular social media platforms in the area. Overall, increased media consumption, new media channels and new advertising formats that can not only support brands, but also drive performance-based actions and outcomes - and increased advertiser demand, driven by new products, increased competition and the broader shift to the digital economy are the significant factors that would boost the MENA advertising market growth.
Market Segmentation Analysis:
By Channel: Digital advertising segment is both the largest and fastest growing segment of MENA advertising market. Social media and video advertising are driving the growth of the digital advertising market in the MENA region. Major players like Facebook and Google are dominating a large portion of digital advertising spending, with a focus on the Facebook Advertising Network and Google's YouTube Video Advertising. Paid social media advertising is the biggest segment of digital advertising spending in the region, showcasing a move towards more interactive and visually attractive ad formats. Additionally, the GCC region is increasingly moving towards performance-based advertising, showing a strategic shift towards more efficient and trackable advertising strategies.
By Region: Saudi Arabia is the largest region of the MENA advertising market. Saudi Arabia's advertising market is increasing as the region boasts a sizable youth population, with a significant number of individuals aged below 30. The younger demographic shows a greater openness towards advertising, especially through online platforms. Advertisers are eager to capitalize on the purchasing power and impact of this demographic, leading to a rise in investments in advertising campaigns that cater to their preferences and behaviors. Moreover, Saudi Arabia is currently undergoing fast urbanization as more individuals are relocating to cities in hopes of finding improved prospects. Major urban areas including Riyadh, Jeddah, and Dammam are evolving into bustling centers of economic activity, drawing in companies seeking to broaden their influence.
UAE's advertising market is surging because the UAE has one of the highest per capita incomes in the world due to its strong economy and policies that support businesses. The wealthy population in the country has a high level of purchasing power and a preference for luxury items, top-notch services, and exclusive experiences. Marketers take advantage of this by showcasing high-end products and personalized services to attract the affluent consumer group. Moreover, events such as Dubai Expo, Formula 1 Grand Prix, and various cultural festivals attract millions of visitors annually, presenting opportunities for advertisers to promote tourism-related services, hospitality, retail, and entertainment offerings.
The report also provides the analysis of MENA digital advertising market based on regions namely, Saudi Arabia, UAE, Egypt, Kuwait, Qatar and Rest of MENA. South Arabia held the highest share of the MENA digital advertising market, whereas Egypt is expected to be the fastest growing region in the forthcoming years.
Market Dynamics:
Growth Drivers: The MENA advertising market has been rapidly growing over the past few years, due to factors such as economic growth and market expansion, growing young and tech-savvy population, rising mobile subscription, augmenting social media users, expansion of marketing agencies, government support, e-commerce expansion, etc. Economic growh and market expansion in key MENA markets like Saudi Arabia, the UAE, and Egypt play a crucial role in driving advertising expenditures in the region. As countries within the region experience economic expansion and rising per capita income levels, consumer purchasing power increases. This leads to higher levels of discretionary spending, including investments in goods and services promoted through advertising. Additionally, the growth in population size and tech-savviness presents opportunities for advertisers to innovate and create personalized, interactive advertising campaigns that resonate with the preferences and lifestyles of the younger generation. Moreover, As digital advertising continues to evolve with advancements in technology and data analytics, it is expected to drive further market growth in the MENA region by offering advertisers innovative ways to engage with consumers and drive business outcomes.
Challenges: However, the MEA advertising market growth would be negatively impacted by various challenges such as, infrastructure gaps, diverse market dynamics, etc. Infrastructure gaps significantly hinder the growth of the MENA advertising market by limiting the reach and effectiveness of digital campaigns. In many parts of the region, there is still inadequate internet penetration and access to high-speed connectivity, particularly in rural and less developed areas. This disparity restricts the potential audience for digital advertisements, compelling advertisers to rely on traditional media channels, which may not offer the same level of engagement and measurability as digital platforms.
Trends: The MENA advertising market is projected to grow at a fast pace during the forecasted period, due to rise in augmented reality (AR) and virtual reality (VR), influencer marketing in MENA, rise of digital out-of-home advertising, integration of AI in MENA advertising, programmatic advertising, rise of localized content, video content dominance, sustainability and social responsibility, etc. The rise of Digital Out-of-Home (DOOH) advertising is a notable trend in the MENA advertising market, reflecting the region's increasing embrace of digital technology in advertising strategies. DOOH offers advertisers the ability to deliver dynamic and interactive content to consumers in outdoor settings, such as malls, airports, and transit stations. In addition, as AI continues to evolve and become more sophisticated, its integration into MENA advertising will likely accelerate. Advertisers who harness the power of AI will gain a competitive edge in the market by delivering more relevant, personalized, and impactful advertising experiences to their target audience. Consequently, AI-driven advertising solutions are expected to contribute significantly to overall market growth in the MENA region.
The MENA advertising market is highly fragmented, involving a range of players from different sectors and countries in the area. The key players of the market are:
- Omnicom Group Inc. (TBWA\RAAD)
- Multiply Group PJSC (BackLite Media LLC)
- Tonic International
- Dooha Media
- Mars Media
- Bates Pan Gulf (BPG Group)
- 3Points Advertising
- Maat Marcom Agency
- Advertising Ways
MBC is the biggest producer of premium Arabic television content globally, which allows it to control around 45% share of the TV advertising market in MENA and develop MENA's largest OTT platform. MBC Group is the broadcaster in the MENA region with the largest TV audience share in Saudi Arabia, Egypt, Iraq and Morocco.
There are only two listed companies within the Saudi Media space, the outdoor advertising company ACSC (Al Arabia) and digital print advertising company SRMG (not covered by the Street). MBC Group owns a 20% stake in Saudi Arabia's largest outdoor advertising company Al Arabia.
Moreover, Arabian Contracting Services Company (ACSC or Al Arabia) is the largest outdoor advertising company in Saudi Arabia, accounting for more than half of the share of the Saudi out-of-home advertising market. Al Arabia offers a full cycle of outdoor advertising services, including the construction of billboards, sale of advertising inventories, design of marketing campaigns, ads printing and billboard maintenance.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 98 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $9.26 Billion |
| Forecasted Market Value (USD) by 2029 | $17.36 Billion |
| Compound Annual Growth Rate | 13.3% |
| Regions Covered | Africa, Middle East |
Key Topics Covered:
MENA Market Analysis
- MENA Advertising Market Analysis
- MENA Advertising Market Channel Analysis
Regional Market Analysis
- Saudi Arabia Advertising Market Analysis
- UAE Advertising Market Analysis
- Egypt Advertising Market Analysis
- Kuwait Advertising Market Analysis
- Qatar Advertising Market Analysis
- Rest of MENA Advertising Market Analysis
Market Dynamics
Growth Drivers
- Economic Growth and Market Expansion
- Growing Young and Tech-savvy Population
- Rising Mobile Subscription
- Augmenting Social Media Users
- Expansion of Marketing Agencies
- Government Support
- E-commerce Expansion
Challenges
- Infrastructure Gaps
- Diverse Market Dynamics
Market Trends
- Rise in Augmented Reality (AR) and Virtual Reality (VR)
- Influencer Marketing
- Rise of Digital Out-of-Home Advertising
- Integration of AI in MENA Advertising
- Programmatic Advertising
- Rise of Localized Content
- Video Content Dominance
- Sustainability and Social Responsibility
Competitive Landscape
- MENA Advertising Market Players: Competitive Landscape
For more information about this report visit https://www.researchandmarkets.com/r/et441l
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