The Digital Video Advertising market in MENA is experiencing rapid growth and evolution driven by changing customer preferences and local special circumstances.
Customer preferences: Customers in the MENA region are increasingly turning to digital video advertising due to its engaging and interactive nature. With the rise of social media platforms and streaming services, consumers are spending more time online, creating a lucrative opportunity for advertisers to reach their target audience through digital video content.
Trends in the market: In the UAE, digital video advertising is seeing a surge in popularity as the country boasts one of the highest internet penetration rates in the region. Advertisers are leveraging this trend by investing in high-quality video content tailored to the preferences of tech-savvy consumers. Additionally, the use of data analytics and targeting tools is enabling advertisers to deliver personalized video ads, further enhancing engagement and conversion rates.
Local special circumstances: Saudi Arabia presents a unique opportunity for digital video advertising due to its young population with a high smartphone penetration rate. Advertisers in the country are capitalizing on this demographic dividend by creating culturally relevant video content that resonates with the local audience. Moreover, the recent regulatory reforms aimed at boosting the digital economy have created a conducive environment for the growth of video advertising in the kingdom.
Underlying macroeconomic factors: The economic diversification efforts in the MENA region, coupled with the increasing digitalization of industries, are driving the growth of the digital video advertising market. As businesses shift towards online platforms to reach consumers, the demand for video advertising is expected to continue growing. Additionally, the region's favorable demographic profile, with a large youth population that is highly active online, further fuels the expansion of the digital advertising sector.
Data coverage:
Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).Modeling approach:
Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. 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, internet users, and digital consumer spending.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.
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