Influencer Advertising - GCC | Statista Market Forecast

Ad spending in the Influencer Advertising market in GCC is forecasted to reach US$246.60m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 8.55%, leading to a projected market volume of US$403.40m by 2030.
The average ad spending per internet user in the Influencer Advertising market is estimated to be US$5.14 in 2024.
In a global context, China is anticipated to lead in ad spending with US$19.16bn in 2024.
Influencer Advertising in the GCC is booming, with brands leveraging local social media personalities to reach targeted audiences effectively.

Definition:
Influencer Advertising refers to advertising that allows marketers to promote products or services by collaborating with influencers on social media. Influencer Advertising allows marketers to reach targeted audiences based on the influencer’s performance and their follower profiles; they also have the ability to measure the performance of campaigns. Influencer Advertising refers to all advertising fees paid directly to influencers (or to their person of trust or representative) for posting or streaming sponsored content (e.g., posts, videos, and/or stories) on social media to promote products or services to their followers. This sponsored content typically includes images, videos, live streams, and/or text.

Additional information:
Influencer Advertising comprises advertising spending, users, 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.

Advertising spending paid directly to influencers to post sponsored content

The values of giveaway products as well as services that influencers receive in exchange for reviews, mentions, or giveaways for their followers
Advertising spending allocated to paid social media campaigns to boost content
Affiliate commissions, i.e., the commissions that are paid to influencers when someone makes a purchase based on their content or links
Gross merchandise volume (GMV) of transactions from sponsored posts or live streams

The Influencer Advertising market in GCC is experiencing significant growth due to changing customer preferences and the rise of social media platforms. Influencer Advertising has become a popular marketing strategy for businesses in the region, as it allows them to reach their target audience in a more authentic and engaging way.

Customer preferences: Customers in the GCC region are increasingly turning to social media platforms for entertainment, information, and inspiration. They are more likely to trust recommendations and endorsements from influencers who they perceive as relatable and trustworthy. As a result, businesses are investing more in influencer advertising to tap into this trend and connect with their target customers.

Trends in the market: One of the key trends in the Influencer Advertising market in GCC is the shift towards micro-influencers. Micro-influencers are individuals with a smaller but highly engaged following on social media platforms. They are seen as more authentic and relatable by their followers, making them an attractive option for businesses looking to reach niche markets. This trend is driven by the desire for more targeted and personalized marketing campaigns. Another trend in the market is the growing use of video content. Video content has become increasingly popular on social media platforms, with platforms like Instagram and TikTok seeing a surge in video consumption. Businesses are leveraging this trend by partnering with influencers who create engaging and entertaining video content that resonates with their target audience.

Local special circumstances: The Influencer Advertising market in GCC is influenced by the cultural and religious norms of the region. Businesses need to be mindful of these norms and ensure that their influencer campaigns are culturally sensitive and aligned with local values. This may involve working with influencers who have a strong understanding of the local culture and can create content that resonates with the target audience.

Underlying macroeconomic factors: The GCC region has a young and tech-savvy population, with high internet and smartphone penetration rates. This provides a fertile ground for the growth of influencer advertising, as consumers are readily accessible through social media platforms. Additionally, the region has a thriving e-commerce sector, which further fuels the demand for influencer advertising as businesses look for effective ways to promote their products and services online. In conclusion, the Influencer Advertising market in GCC is witnessing significant growth due to changing customer preferences and the rise of social media platforms. Businesses are increasingly investing in influencer advertising to tap into the trust and engagement that influencers have with their followers. The shift towards micro-influencers and the use of video content are key trends in the market. However, businesses need to be mindful of the cultural and religious norms of the region and ensure that their influencer campaigns are culturally sensitive. The underlying macroeconomic factors, such as the young and tech-savvy population and the thriving e-commerce sector, contribute to the growth of the market in the GCC region.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.

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

Influencer marketing has become one of the most popular and effective forms of online marketing. With millions of internet users browsing social media platforms for entertainment, inspiration, and product recommendations daily, it is no surprise that marketers are harnessing the power of social media’s most recognizable faces for promotion. The global influencer marketing market value stood at 21.1 billion U.S. dollars as of 2023, having more than tripled since 2019. As influencer endorsement continues to mature as an industry, the size and value of influencer marketing platforms also continue to expand every year, making collaborations between brands and creators more profitable than ever.