Search Advertising - MENA

MENA

Highlights

Ad spending in the Search Advertising market in MENA is forecasted to reach US$4.82bn in 2024.
The anticipated annual growth rate (CAGR 2024-2030) is 9.95%, leading to a projected market volume of US$8.52bn by 2030.
When compared globally, the United States is expected to lead in ad spending with US$137.00bn in 2024.
By 2030, 37% of total ad spending in the Search Advertising market in MENA will be generated through mobile.
The average ad spending per internet user in the Search Advertising market is estimated to be US$10.30 in 2024.
In the MENA region, Search Advertising is experiencing a surge in demand, with companies in Saudi Arabia leading the way in digital marketing investments.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Over the past few years, the Search Advertising market in the MENA region has been experiencing significant growth and development.

Customer preferences: Customers in the MENA region are increasingly turning to online platforms to search for products and services, driving the demand for Search Advertising. With a growing young population that is tech-savvy and digitally connected, businesses are focusing more on online advertising to reach their target audience effectively.

Trends in the market: In Saudi Arabia, there has been a notable trend towards mobile advertising, as smartphone penetration in the country is among the highest globally. This has led to a shift in advertising strategies towards mobile-friendly ads and targeted mobile campaigns to capture the attention of consumers on the go.

Local special circumstances: In the United Arab Emirates, the competitive landscape of the Search Advertising market is shaped by the presence of multinational companies and local players. This has resulted in a dynamic market environment where businesses need to constantly innovate and adapt their advertising strategies to stand out among competitors.

Underlying macroeconomic factors: The overall economic growth and increasing internet penetration rates in the MENA region are key macroeconomic factors driving the growth of the Search Advertising market. As more businesses allocate budgets towards online advertising and e-commerce activities, the market is expected to continue its upward trajectory in the coming years.

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.