Market Insights Advertising & Media Advertising Out-of-Home Advertising

Digital Out-of-Home Advertising - Saudi Arabia

Saudi Arabia

Ad spending in the Digital Out-of-Home Advertising market in Saudi Arabia is forecasted to reach US$94.93m in 2024.
The expected annual growth rate (CAGR 2024-2029) is 9.23%, leading to a projected market volume of US$147.60m by 2029.
In 2024, the projected market volume is US$4,366.00m, with China being the main contributor to ad spending.
The average ad spending per capita in the Digital Out-of-Home Advertising market is estimated to be US$2.53 in 2024.
Saudi Arabia is experiencing a surge in Digital Out-of-Home Advertising investments, leveraging advanced technology to reach a tech-savvy consumer base.

Key regions: India, France, United States, United Kingdom, China

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Analyst Opinion

The Digital Out-of-Home Advertising market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Saudi Arabia has a young and tech-savvy population, with a high smartphone penetration rate. This has led to a shift in customer preferences towards digital advertising platforms. Consumers are increasingly drawn to interactive and engaging advertisements that can be accessed through their mobile devices. As a result, digital out-of-home advertising has become a popular choice for advertisers looking to reach this target audience.

Trends in the market: One of the key trends in the digital out-of-home advertising market in Saudi Arabia is the increasing use of digital billboards and screens in prime locations. These digital displays offer dynamic and eye-catching content that can be easily updated and tailored to specific audiences. Advertisers are also leveraging technologies such as augmented reality and facial recognition to create personalized and immersive experiences for consumers. Another trend in the market is the integration of digital out-of-home advertising with social media platforms. Advertisers are using hashtags and other social media features to encourage consumers to engage with their campaigns online. This not only extends the reach of the advertisements but also allows for real-time interaction and feedback from the target audience.

Local special circumstances: Saudi Arabia has a strong outdoor advertising culture, with billboards and signage being a common sight across cities. The government has also recognized the potential of digital out-of-home advertising and has been supportive of its growth. This has led to the establishment of regulations and guidelines that ensure the safety and effectiveness of these advertising platforms.

Underlying macroeconomic factors: The digital out-of-home advertising market in Saudi Arabia is benefiting from the country's economic diversification efforts. The government's Vision 2030 plan, which aims to reduce the country's dependence on oil and promote innovation and technology, has created new opportunities for advertisers. As the country invests in infrastructure development and urbanization projects, there is an increased demand for digital advertising solutions to reach the growing urban population. Additionally, Saudi Arabia's strong consumer spending power and high disposable income levels are driving the growth of the digital out-of-home advertising market. Advertisers are keen to tap into this lucrative market and are investing in innovative and impactful campaigns to capture the attention of Saudi consumers. In conclusion, the Digital Out-of-Home Advertising market in Saudi Arabia is witnessing rapid growth and development. Customer preferences for interactive and engaging advertisements, along with the integration of digital platforms with social media, are driving this trend. The local special circumstances, such as the government's support and regulations, further contribute to the market's growth. The underlying macroeconomic factors, including the country's economic diversification efforts and strong consumer spending power, provide a favorable environment for the digital out-of-home advertising market to thrive in Saudi Arabia.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers internet-connected out-of-home advertisements such as digital billboards, digital street furniture, digital transit and transportation, and digital place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. 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) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

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.