Market Insights Advertising & Media Advertising

Social Media Advertising - GCC

In the GCC region, ad spending in the Social Media Advertising market is projected to reach US$1.50bn in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 10.58%, which will result in a projected market volume of US$2.48bn by 2029.
When compared globally, the majority of ad spending will be generated China, with an estimated US$84,650.00m in 2024.
Within the Social Media Advertising market, it is anticipated that 74% of total ad spending will be generated through mobile by 2029.
Furthermore, the number of users in the Social Media Advertising market in the GCC is expected to reach 52.0m users by 2029.
In the GCC, social media advertising is increasingly becoming a pivotal strategy for brands to engage the youthful, tech-savvy population and enhance brand visibility.

Key regions: United States, France, Japan, Europe, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Social Media Advertising market in GCC has been experiencing significant growth in recent years. This can be attributed to the increasing popularity of social media platforms and the growing digitalization of the region.

Customer preferences: Customers in the GCC region have shown a strong preference for social media advertising. This is due to the high internet penetration rate and the widespread use of smartphones. Social media platforms such as Facebook, Instagram, and Twitter are popular among the younger population, who are the primary target audience for many advertisers. Additionally, customers in the GCC region are increasingly relying on social media for information and entertainment, making it an effective platform for advertising campaigns.

Trends in the market: One of the key trends in the Social Media Advertising market in GCC is the shift towards video content. Video advertising has become increasingly popular as it allows advertisers to engage with their audience in a more interactive and immersive way. This trend is driven by the increasing availability of high-speed internet and the growing popularity of video-sharing platforms such as YouTube and TikTok. Advertisers are leveraging these platforms to create engaging video content that captures the attention of their target audience. Another trend in the market is the rise of influencer marketing. Influencers, who are individuals with a large following on social media platforms, have become powerful marketing tools for brands. Customers in the GCC region are highly influenced by the opinions and recommendations of influencers, making it an effective strategy for advertisers to collaborate with them. This trend is driven by the trust and authenticity that influencers bring to brand partnerships.

Local special circumstances: The Social Media Advertising market in GCC is shaped by the unique cultural and social norms of the region. Advertisers need to be mindful of these factors when designing their campaigns. For example, the GCC region has a conservative culture, and advertisers need to ensure that their content is culturally sensitive and respects local traditions. Additionally, the region has a diverse population, with a mix of nationalities and languages. Advertisers need to consider these factors when targeting their audience and tailor their campaigns accordingly.

Underlying macroeconomic factors: The growth of the Social Media Advertising market in GCC is also influenced by macroeconomic factors. The GCC region has a strong economy and high disposable income, which allows customers to spend more on products and services. This provides advertisers with a lucrative market to target. Additionally, the region has a young and tech-savvy population, which is more likely to engage with social media platforms and respond to social media advertising. The government of the GCC countries is also actively promoting digitalization and innovation, which further supports the growth of the Social Media Advertising market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). 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, social media 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.