Direct Messaging Advertising - GCC

Ad spending in the Direct Messaging Advertising market in the GCC is forecasted to reach US$702.20m in 2024.
The market is anticipated to experience an annual growth rate (CAGR 2024-2030) of 1.45%, leading to a projected market volume of US$765.60m by 2030.
Direct Mail Advertising represents the largest market with a volume of US$492.60m in 2024.
When compared globally, the United States leads in ad spending, reaching US$29.98bn in 2024.
The average ad spending per capita in the Direct Messaging Advertising market is expected to be US$11.63 in 2024.
Direct Messaging Advertising in the GCC is witnessing a surge in personalized content to engage consumers effectively in the region's competitive market landscape.

Definition:

Direct Messaging Advertising refers to a type of advertising format that involves sending advertisement messages directly to individual audiences or specific target groups through private communication channels. Direct Messaging Advertising includes both traditional and digital advertising methods, such as direct mail, e-mail, SMS, web push, instant messaging, and telemarketing. This form of advertising aims to establish a personalized and direct connection with potential customers.

Structure:

Direct Messaging Advertising typically refers to advertising formats used within various messaging platforms or direct messaging channels. These formats are designed to deliver targeted advertisements directly via private communication channels such as e-mail, SMS, direct mail, web push, telemarketing, and instant messaging.

Additional information:

Direct Messaging Advertising comprises advertising spending and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

SMS advertising
Direct mail advertising
Web push advertising
Telemarketing
Instant messaging advertising
Traditional direct messaging
Digital direct messaging

Service agencies
Consultant fees
Production costs
Design services

The Direct Messaging Advertising market in GCC is experiencing significant growth and development.

Customer preferences: Customers in the GCC region are increasingly turning to direct messaging as a preferred method of communication. With the rise of social media platforms and messaging apps, people are spending more time on these platforms and are more likely to engage with brands through direct messaging. This preference for direct messaging is driven by the convenience and personalization it offers. Customers appreciate the ability to have one-on-one conversations with brands, receive personalized recommendations, and get quick responses to their queries.

Trends in the market: One of the key trends in the Direct Messaging Advertising market in the GCC is the increasing use of chatbots. Chatbots are AI-powered virtual assistants that can interact with customers in a conversational manner. They can provide instant responses to customer queries, offer product recommendations, and even complete transactions. Chatbots are becoming increasingly sophisticated and are being used by brands to enhance customer engagement and streamline the sales process. Another trend in the market is the integration of direct messaging with e-commerce platforms. Many brands in the GCC region are leveraging direct messaging to drive sales and increase conversions. They are using direct messaging platforms to showcase their products, offer exclusive deals and discounts, and provide personalized shopping experiences. By integrating direct messaging with e-commerce platforms, brands are able to create a seamless shopping experience for their customers.

Local special circumstances: The GCC region has a high smartphone penetration rate, with a large percentage of the population using smartphones to access the internet and engage with social media platforms. This high smartphone adoption rate has contributed to the growth of the Direct Messaging Advertising market in the region. Brands are able to reach a large and engaged audience through direct messaging on mobile devices.

Underlying macroeconomic factors: The GCC region has a strong and growing economy, with high levels of disposable income. This has created a favorable environment for the Direct Messaging Advertising market to thrive. With a large and affluent consumer base, brands are investing in direct messaging advertising to capture the attention and purchasing power of GCC consumers. In conclusion, the Direct Messaging Advertising market in the GCC is experiencing growth and development due to customer preferences for direct messaging, the use of chatbots, integration with e-commerce platforms, high smartphone adoption rates, and a strong economy. Brands in the GCC region are leveraging these trends and circumstances to enhance customer engagement, drive sales, and increase brand loyalty.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses via e-mail, SMS, direct mail, messengers, web push, telemarketing, and instant messaging.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, number of smartphone users, internet coverage, and number of urban households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.