Influencer Advertising - Saudi Arabia

Ad spending in the Influencer Advertising market in Saudi Arabia is forecasted to reach US$85.09m by 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 9.91%, leading to a projected market volume of US$150.00m by 2030.
The average ad spending per internet user in the Influencer Advertising market is estimated to be US$3.33 in 2024.
When compared globally, China is anticipated to have the highest ad spending, reaching US$19.16bn in 2024.
In Saudi Arabia, Influencer Advertising is rapidly growing, with brands leveraging local influencers to reach a highly engaged audience in the region.

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 Saudi Arabia is experiencing significant growth and development.

Customer preferences: In Saudi Arabia, customers are increasingly turning to social media platforms and influencers for product recommendations and reviews. Influencers are seen as trusted sources of information and their endorsements carry weight with consumers. As a result, brands are investing more in influencer advertising to reach their target audience and increase brand awareness.

Trends in the market: One of the key trends in the Influencer Advertising market in Saudi Arabia is the rise of micro-influencers. These are individuals who have a smaller but highly engaged following on social media. Brands are recognizing the value of working with micro-influencers as they often have a more niche and loyal audience. This allows brands to target specific demographics and increase the effectiveness of their campaigns. Another trend in the market is the increasing use of video content. Saudi Arabia has one of the highest rates of video consumption in the world, with YouTube being a popular platform. Influencers are leveraging this trend by creating engaging video content that showcases products and services. Brands are capitalizing on this by partnering with influencers to create sponsored videos that reach a wide audience.

Local special circumstances: Saudi Arabia has a young and tech-savvy population, with a high percentage of internet users. This demographic is highly active on social media platforms, making influencer advertising an effective way to reach them. Additionally, the country has a strong culture of word-of-mouth recommendations, and influencer advertising taps into this tradition in a modern way.

Underlying macroeconomic factors: The Influencer Advertising market in Saudi Arabia is also benefiting from the overall growth of the digital advertising industry in the country. With the increasing internet penetration and smartphone usage, brands are shifting their advertising budgets towards digital channels. Influencer advertising is a cost-effective and targeted way for brands to connect with their audience and drive sales. In conclusion, the Influencer Advertising market in Saudi Arabia is growing rapidly due to customer preferences for social media endorsements, trends such as the rise of micro-influencers and video content, local special circumstances such as a young and tech-savvy population, and underlying macroeconomic factors such as the growth of the digital advertising industry. Brands are recognizing the value of influencer advertising in reaching their target audience and are investing more in this marketing strategy.

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.