Instant Messaging Advertising - GCC

GCC

Highlights

Ad spending in the Instant Messaging Advertising market in GCC is forecasted to reach US$1.47m in 2024.
The market is anticipated to exhibit an annual growth rate (CAGR 2024-2030) of 3.36%, leading to a projected market volume of US$1.79m by 2030.
When compared globally, the United States is expected to generate the highest ad spending (US$74.28m in 2024).
The average ad spending per internet user in the Instant Messaging Advertising market is projected to be US$0.03 in 2024.
In the GCC, Instant Messaging Advertising is rapidly growing as companies leverage the region's high smartphone penetration for targeted brand promotions.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Instant Messaging Advertising market in GCC is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in the GCC region have shown a strong preference for instant messaging platforms as their primary mode of communication. This is due to the convenience and ease of use offered by these platforms, allowing users to send messages, make voice and video calls, and share media files with just a few taps. As a result, instant messaging apps have become an integral part of people's daily lives in the region.

Trends in the market: One of the key trends in the Instant Messaging Advertising market in GCC is the increasing adoption of mobile devices. With a high smartphone penetration rate in the region, more and more people are using instant messaging apps on their mobile devices. This presents a huge opportunity for advertisers to reach a large audience through targeted advertising on these platforms. Another trend in the market is the rise of mobile commerce. Many instant messaging apps in the GCC region have integrated e-commerce functionalities, allowing users to shop and make payments within the app. This has opened up new avenues for advertisers to promote their products and services directly to consumers through in-app advertising.

Local special circumstances: One of the unique aspects of the Instant Messaging Advertising market in GCC is the cultural diversity of the region. The GCC consists of several countries with different languages, cultures, and consumer preferences. Advertisers need to take these cultural nuances into consideration when creating their advertising campaigns to ensure they resonate with the target audience. Additionally, the GCC region has a high expatriate population, with people from different countries living and working in the region. This presents a challenge for advertisers in terms of targeting their ads effectively. Advertisers need to understand the demographics and preferences of the expatriate population in order to create relevant and engaging ads.

Underlying macroeconomic factors: The GCC region has a strong and growing economy, driven by sectors such as oil and gas, construction, tourism, and finance. This has led to an increase in disposable income and consumer spending in the region. Advertisers can leverage this economic growth by targeting consumers through instant messaging advertising and promoting their products and services. Furthermore, the GCC region has a young and tech-savvy population, which is highly active on instant messaging platforms. This demographic is more receptive to digital advertising and is more likely to engage with ads on these platforms. Advertisers can tap into this demographic by creating compelling and interactive ads that capture their attention and drive them to take action. In conclusion, the Instant Messaging Advertising market in GCC is witnessing significant growth and development due to customer preferences for instant messaging platforms, the increasing adoption of mobile devices, the rise of mobile commerce, cultural diversity, and the underlying macroeconomic factors in the region. Advertisers in the GCC region have a unique opportunity to reach a large and engaged audience through targeted advertising on instant messaging platforms.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Instant Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for distributing instant messaging advertisements.

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, and internet coverage. 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 internet users.

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.