Advertising - GCC | Statista Market Forecast

Ad spending in the Advertising market in GCC is forecasted to reach US$6.59bn in 2024.
The largest market within the GCC is Search Advertising with a market volume of US$1.96bn in 2024.
When looking at global comparisons, the United States is expected to lead in ad spending with US$425.90bn in 2024.
Within the Advertising market in GCC, 85% of total ad spending is projected to come from digital sources in 2030.
The average ad spending per capita in the Search Advertising market is estimated to be US$32.45 in 2024.
Furthermore, within the Advertising market in GCC, Advertising market of the 80% revenue will be generated through programmatic advertising in 2030.
In the GCC, the Advertising market is experiencing a shift towards digital platforms to reach the tech-savvy consumer base.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in GCC has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the GCC region have been shifting towards digital advertising, as consumers increasingly spend more time online and on mobile devices. This has led to a surge in demand for digital advertising services, including social media advertising, search engine marketing, and programmatic advertising. Additionally, customers in the GCC are becoming more discerning and selective in their advertising choices, seeking personalized and targeted messages that resonate with their interests and values. Trends in the market indicate a growing focus on influencer marketing in the GCC region. Influencer marketing has become a popular strategy for brands to reach their target audience, as influencers have a strong following and can effectively promote products and services. This trend is driven by the rise of social media platforms, where influencers are able to engage with their followers and establish a sense of trust and credibility. In addition, the GCC region has a high smartphone penetration rate, making it an ideal market for influencer marketing campaigns. Local special circumstances in the GCC region have also contributed to the development of the Advertising market. The region has a young and affluent population, with a high disposable income and a strong appetite for luxury and lifestyle products. This presents a lucrative opportunity for advertisers to target this consumer segment through creative and innovative advertising campaigns. Furthermore, the GCC countries have been investing heavily in infrastructure development and hosting major events, such as the Dubai Expo 2020 and the FIFA World Cup 2022 in Qatar. These events attract a global audience and provide a platform for advertisers to showcase their brands on a large scale. Underlying macroeconomic factors, such as the diversification of the GCC economies and the growth of the tourism industry, have also contributed to the development of the Advertising market. The GCC countries have been actively working towards reducing their dependence on oil and gas revenues, and have been investing in sectors such as tourism, hospitality, real estate, and entertainment. This has created a demand for advertising services to promote these industries and attract both domestic and international visitors. Additionally, the growth of the tourism industry has led to an increase in the number of hotels, resorts, and entertainment venues, which require advertising to attract customers and differentiate themselves in a competitive market. In conclusion, the Advertising market in GCC is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers in the region are increasingly focusing on digital advertising and influencer marketing to reach their target audience, while leveraging the young and affluent population, major events, and the growth of the tourism industry. These factors are expected to continue driving the growth of the Advertising market in the GCC region in the coming years.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. 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 particular 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per 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).

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.