Advertising - United Arab Emirates

Ad spending in the Advertising market in the United Arab Emirates is forecasted to reach US$1.60bn in 2024.
The largest market is Digital Banner Advertising with a market volume of US$429.80m in 2024.
When compared globally, the United States is expected to lead in ad spending with US$425.90bn in 2024.
Within the Advertising market, 83% of total ad spending will come from digital sources by 2030.
The average ad spending per capita in the Digital Banner Advertising market is estimated to be US$44.81 in 2024.
Additionally, Advertising market of the 77% revenue is projected to be generated through programmatic advertising in 2030.
In the United Arab Emirates, digital advertising is rapidly growing, with a focus on personalized and interactive campaigns to engage the tech-savvy population.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in United Arab Emirates is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Advertising market in United Arab Emirates are changing as consumers increasingly seek personalized and targeted advertising. With the rise of digital platforms and social media, consumers are demanding more relevant and engaging advertisements that cater to their specific interests and needs. This has led to a shift in advertising strategies, with companies investing more in data-driven advertising techniques to reach their target audience effectively. Trends in the market are also contributing to the development of the Advertising market in United Arab Emirates. One notable trend is the increasing adoption of mobile advertising. With a high smartphone penetration rate in the country, advertisers are leveraging mobile platforms to reach consumers on-the-go. Mobile advertising offers the advantage of reaching a large and diverse audience, as well as the ability to track and measure the effectiveness of campaigns in real-time. Another trend in the Advertising market in United Arab Emirates is the growing importance of influencer marketing. Influencers, particularly in the beauty, fashion, and lifestyle sectors, have gained significant popularity and influence among consumers. Brands are partnering with influencers to promote their products and services, leveraging their large and engaged social media following to reach a wider audience. This trend is driven by the desire for authentic and relatable content, as consumers are more likely to trust recommendations from influencers they follow. Local special circumstances also play a role in the development of the Advertising market in United Arab Emirates. The country has a diverse population with a high expatriate presence, which presents unique challenges and opportunities for advertisers. Companies need to consider cultural sensitivities and tailor their advertising campaigns to resonate with the local population. Additionally, the government has been actively promoting the country as a business and tourism hub, attracting international companies and tourists. This has created a competitive advertising landscape, with companies vying for the attention of both local and international audiences. Underlying macroeconomic factors further contribute to the growth of the Advertising market in United Arab Emirates. The country has a strong and stable economy, driven by industries such as oil and gas, tourism, and finance. This provides companies with the financial resources to invest in advertising and marketing activities. Additionally, the government has implemented various economic diversification initiatives, aiming to reduce reliance on oil and promote non-oil sectors. This has led to increased investment in industries such as technology, healthcare, and retail, creating new opportunities for advertisers. In conclusion, the Advertising market in United Arab Emirates is developing rapidly, driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Companies in the country are adapting their advertising strategies to meet the demands of consumers, leveraging digital platforms, mobile advertising, and influencer marketing. With a diverse population and a strong economy, United Arab Emirates offers a vibrant and competitive advertising market for both local and international companies.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, 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). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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 some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.