Search Advertising - GCC

GCC

Highlights

Ad spending in the Search Advertising market in GCC is forecasted to reach US$1.96bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 10.36%, leading to a projected market volume of US$3.54bn by 2030.
When compared globally, the United States is expected to generate the highest ad spending (US$137.00bn in 2024).
Within the Search Advertising market in GCC, 36% of the total ad spending is estimated to come from mobile devices in 2030.
The average ad spending per internet user in the Search Advertising market is projected to be US$40.83 in 2024.
In the GCC, Search Advertising is rapidly growing as digital transformation accelerates across industries in the region.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Search Advertising market in GCC is experiencing significant growth and development. Customer preferences, local special circumstances, and underlying macroeconomic factors are all contributing to this trend. Customer preferences in the GCC region are shifting towards online platforms and digital advertising. With a high internet penetration rate and a young population that is increasingly tech-savvy, consumers are spending more time online and relying on search engines for information and product research. This has created a demand for search advertising, as businesses recognize the importance of being visible and easily accessible to their target audience. Trends in the market show that businesses in the GCC are investing more in search advertising to reach their customers effectively. They are adopting strategies such as search engine optimization (SEO) and pay-per-click (PPC) advertising to improve their online visibility and drive targeted traffic to their websites. This trend is driven by the increasing competition in the market, as businesses strive to differentiate themselves and stay ahead of their competitors. Local special circumstances in the GCC region also contribute to the growth of the Search Advertising market. The region has a diverse and multicultural population, with residents and expatriates from various countries. This diversity creates a unique market environment where businesses need to tailor their advertising strategies to cater to different languages, cultures, and preferences. Search advertising allows businesses to target specific demographics and tailor their messages accordingly, making it an effective marketing tool in this context. Underlying macroeconomic factors further support the development of the Search Advertising market in the GCC. The region has a strong and growing economy, with countries like Saudi Arabia and the United Arab Emirates leading the way. This economic growth has resulted in increased consumer spending and a higher demand for goods and services. To tap into this growing market, businesses are turning to search advertising to capture the attention of potential customers and drive sales. In conclusion, the Search Advertising market in the GCC is experiencing growth and development due to customer preferences, local special circumstances, and underlying macroeconomic factors. Businesses are recognizing the importance of online visibility and are investing in search advertising to reach their target audience effectively. With the region's strong economy and diverse population, search advertising is becoming an essential tool for businesses to stay competitive and drive growth.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

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.