GCC Digital Advertising Market Research Report: Forecast (2024-2030)

Market Definition

Digital advertising encompasses marketing efforts conducted through various online channels, including websites, streaming platforms, and other digital mediums. These advertisements utilize diverse media formats, such as text, images, audio, and video. They serve a multitude of business objectives across the marketing spectrum, from enhancing brand visibility and engaging with customers to introducing new products and fostering repeat purchases.

Market Insights & Analysis: GCC Digital Advertising Market (2024-30):

The GCC Digital Advertising Market is estimated to grow at a CAGR of around 9.42% during the forecast period, i.e., 2024-30. In recent years, digital advertising has experienced significant growth in the GCC region. In addition, the significant budgets dedicated to digital transformation indicate a strong commitment from both the UAE and Saudi Arabian governments toward developing robust digital infrastructure. This includes investments in high-speed internet connectivity, data centers, and digital platforms, all of which are essential for supporting the growth of digital advertising in the region.

According to Internal Data Corp., the digital transformation dedicated budget in the UAE in 2021 was around USD 11 billion, while in Saudi Arabia it was nearly USD 8 billion. Hence, the sizable budgets earmarked for digital transformation suggest a growing demand for digital services and solutions across various sectors in the GCC region in the upcoming years. As businesses and government agencies increasingly embrace digital technologies, there is a corresponding increase in the demand for digital advertising services to reach and engage with target audiences effectively, which is anticipated to escalate the GCC Digital Advertising Market during 2024–2030.

Furthermore, Dubai, in particular, has witnessed a surge in programmatic advertising, driven by the high demand from multinational corporations based in the city, which serves as the primary hub for headquarters in the broader Arabic region. Internet giants and digital agencies view Dubai as a strategic gateway to access the region's advertising market, attracting substantial investment in digital advertising initiatives by the Dubai Chamber of Digital Economy. In 2023, they announced the launch of the 'Business in Dubai' platform, the Emirati Training Academy, under the ‘Create Apps’ in Dubai initiative. In addition, the chamber participated in several international roadshows and hosted the 'Expand North Star' exhibition, which attracted more than 1,800 startups from 100 countries across the globe. Thus, the influx of investment further fuels the expansion of the Digital Advertising Market across the GCC region and contributes to its overall growth and development in the coming years.

GCC Digital Advertising Market Driver:

Growing Internet Penetration Across the GCC Region – During the historical years, increasing investments in digital infrastructure, including broadband networks and data connectivity, have enhanced internet accessibility and reliability across the GCC countries. The expansion of high-speed internet infrastructure enables more individuals and businesses to access online content and services, facilitating a broader reach for digital advertising campaigns, which resulted in the growth of the GCC Digital Advertising Market. For instance,

• According to the International Trade Organization, in 2022, GCC countries had strengthened their leading position at both regional and international levels, with an increase of more than 98% of internet users in 2021 and regional mobile subscribers now accounting for around 137.66% of their total population.

In addition, the widespread adoption of smartphones has played a pivotal role in driving internet penetration in the GCC region. With smartphones becoming increasingly affordable and accessible, a growing number of consumers use their mobile devices to access the internet, browse websites, and engage with digital content. This shift toward mobile internet usage creates new opportunities for advertisers to target consumers through mobile-responsive websites, apps, and mobile advertising formats, which had a positive impact on the market size and its growth over the past few years and is anticipated to be in a similar trend during the forecast period.

GCC Digital Advertising Market Opportunity:

Adoption of Data-driven Digital Advertising Presenting Profitable Opportunities – The availability of vast amounts of data generated by digital interactions presents an opportunity for advertisers to implement data-driven advertising strategies. By leveraging data analytics, artificial intelligence, and machine learning technologies, advertisers gain insights into consumer behavior, preferences, and intent, allowing them to deliver highly targeted and personalized advertising campaigns.

Data-driven advertising enables advertisers to optimize their ad spend, maximize ROI, and enhance the effectiveness of their digital advertising efforts. This personalized approach increases the relevance of ads for individual consumers, resulting in higher engagement rates and improved conversion rates. Therefore, data-driven digital advertising is anticipated to provide flourishing opportunities for the market players in the GCC Digital Advertising Market during the forecast period.

GCC Digital Advertising Market Challenge:

High Competition from Traditional Media to Impede Market Growth – Traditional advertising channels, such as television, radio, and print media, still command a significant share of advertising budgets in the GCC region, which poses a significant challenge to the growth & expansion of the GCC Digital Advertising Market. Advertisers struggle to allocate resources effectively between traditional and digital channels to maximize reach and impact across the region. In addition, despite increasing internet penetration, access to digital infrastructure remains uneven across the GCC region, particularly in rural and remote areas. This limited access to digital platforms might hinder the reach and effectiveness of digital advertising campaigns, prompting advertisers to rely on traditional media channels to reach a broader audience.

Moreover, strict data privacy regulations, such as the General Data Protection Regulation (GDPR), and consumer privacy concerns present challenges for data-driven advertising strategies across the region, which is further anticipated to hamper the expansion of the GCC Digital Advertising Market in the forthcoming years.

GCC Digital Advertising Market Trend:

Increasing Acceptance of Voice Search & Voice Advertising – With the growing adoption of voice-enabled devices and virtual assistants like Siri, Alexa, and Google Assistant, voice search and voice advertising are emerging trends in the GCC Digital Advertising Market. Advertisers are exploring voice-activated ad formats and voice-based search optimization strategies to capitalize on the rising popularity of voice technology among GCC consumers. In addition, voice advertising provides possibilities for new ad formats that are specifically designed for voice-enabled devices. These include audio ads, interactive voice ads, and sponsored voice search results. Hence, advertisers experiment with these formats to capture the attention of users in a voice-first environment, which is further anticipated to propel the GCC Digital Advertising Market in the coming years.

GCC Digital Advertising Market (2024-30): Segmentation Analysis

The GCC Digital Advertising Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the regional level. According to the analysis, the market has been further classified as:

Based on Trading Platform:

• Real-Time Bidding (RTB)
• Private Marketplace Guaranteed
• Automated Guaranteed
• Unreserved Fixed-rate

The real-time bidding (RTB) segment holds a major share of the GCC Digital Advertising Market. Real-time bidding (RTB) platforms provide advertisers with greater flexibility and control over their ad campaigns, allowing them to adjust bidding strategies, targeting parameters, and budget allocations in real-time. This agility enables advertisers to optimize their campaigns based on performance metrics and market dynamics, ensuring maximum ROI. RTB platforms generate valuable data and analytics insights that are useful to advertisers to optimize their ad campaigns. In addition, by analyzing real-time bidding data, advertisers gain insights into audience behavior, ad performance, and campaign effectiveness, allowing them to make data-driven decisions and refine their targeting strategies. Based on all these factors, this segment is anticipated to grasp a significant market share during the forecast period.

Based on Enterprise Size:

• Small and Medium Enterprises (SMEs)
• Large Enterprises

Out of these, the Small & Medium Enterprises (SMEs) are expected to dominate the GCC Digital Advertising Market during the forecast years. The number of SMEs across countries like the UAE, Saudi Arabia, Bahrain, etc. has showcased tremendous proliferation due to the healthy entrepreneurial ecosystem and supportive government measures. Countries such as the UAE, Qatar, etc. assisted in the form of business counseling, financial support & advice, technical support & guidance, etc., which led to the development of new SMEs across the region. With the proliferation of digital channels such as social media, search engines, and mobile apps, SMEs have embraced digital advertising as a cost-effective way to promote their products and services and expand their market reach. For instance,

• In 2022, according to Monsha’at, the General Authority for Small and Medium Enterprises, the number of SMEs in Saudi Arabia jumped by 9.3% in the third quarter of 2022 and reached approximately 1 million, up from 892,063 in the second quarter.

GCC Digital Advertising Market (2024-30): Regional Projections

Geographically, the GCC Digital Advertising Market expands across:

• The UAE
• Saudi Arabia
• Qatar
• Oman
• Bahrain
• Kuwait

The Saudi government has launched various initiatives to promote digital transformation and innovation in the country, including Vision 2030 and the National Transformation Program (NTP). These initiatives aim to diversify the economy, attract foreign investment, and create a knowledge-based society, driving the adoption of digital technologies and advertising practices in the country. In addition, the expansion of global digital advertising players in the country, owing to the burgeoning digital landscape and increasing internet penetration rates, signifies the growing importance of Saudi Arabia as a key market for digital advertising. For instance,

• In 2023, iCubesWire, a global Ad Tech audience platform, announced its expansion into the Saudi Arabia market with a new office in Riyadh. This strategic expansion aims to strengthen the company’s commitment to creating a strong base within the MENA region’s thriving digital advertising sector, which is projected to surpass USD 9 billion by 2025.

Thus, the influx of global players will foster competition in the Saudi Arabia Digital Advertising Market in the coming years and bring advanced technologies and innovative solutions to cater to the evolving needs of advertisers and brands in the Saudi Arabian Market in the forthcoming years.

Gain a Competitive Edge with Our GCC Digital Advertising Market Report

1. GCC Digital Advertising Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. GCC Digital Advertising Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.