VR Advertising - GCC

GCC

Highlights

In the GCC, revenue in the VR Advertising market market is projected to reach US$1.6m in 2024.
The revenue in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 1.47%, leading to a projected market volume of US$1.8m by 2029.
While the GCC market is growing, it is noteworthy that most revenue is generated the United States, which is projected to have a market volume of US$47.4m in 2024.
The GCC region is witnessing a surge in VR advertising adoption as businesses increasingly leverage immersive experiences to enhance customer engagement and brand loyalty.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The VR Advertising market in GCC is experiencing significant growth and development, driven by customer preferences for immersive and engaging advertising experiences.

Customer preferences: Customers in the GCC region are increasingly seeking unique and interactive experiences, and VR advertising provides an innovative way for brands to capture their attention. VR technology allows consumers to fully immerse themselves in a virtual environment, enabling them to experience products and services in a more engaging and memorable way. This appeals to customers who are looking for a more immersive and interactive advertising experience, as traditional forms of advertising may not be as effective in capturing their attention.

Trends in the market: One of the key trends in the VR Advertising market in GCC is the increasing adoption of VR headsets and devices. As the technology becomes more accessible and affordable, more consumers in the region are investing in VR devices, creating a larger audience for VR advertising. This trend is further supported by the growing popularity of VR gaming, as gamers are often early adopters of VR technology. As a result, advertisers are increasingly leveraging VR platforms and gaming experiences to reach their target audience. Another trend in the market is the integration of VR technology into various industries, such as real estate and tourism. VR allows potential buyers or tourists to virtually explore properties or destinations, providing a more immersive and realistic experience. This not only enhances the customer's engagement but also saves time and resources for businesses. As a result, more companies in the GCC region are incorporating VR advertising into their marketing strategies to stand out from their competitors and provide a unique experience to their customers.

Local special circumstances: The GCC region is known for its high disposable income and tech-savvy population, making it an ideal market for VR advertising. Customers in the region are willing to invest in high-tech gadgets and experiences, and VR advertising aligns with their preferences for cutting-edge technology and immersive experiences. Additionally, the region's growing tourism industry presents opportunities for VR advertising, as tourists are often looking for unique and memorable experiences during their visits.

Underlying macroeconomic factors: The growth of the VR Advertising market in GCC is also influenced by underlying macroeconomic factors. The region's strong economic growth and favorable business environment have attracted multinational companies and investors, leading to increased advertising and marketing activities. This creates a demand for innovative advertising solutions like VR to capture the attention of consumers in a competitive market. Furthermore, the GCC governments have been supportive of technology and innovation, investing in infrastructure and initiatives to promote the adoption of emerging technologies. This support creates an enabling environment for the development of the VR Advertising market in the region. In conclusion, the VR Advertising market in GCC is experiencing growth and development due to customer preferences for immersive and engaging advertising experiences. The increasing adoption of VR technology, integration into various industries, and the region's favorable economic and business environment contribute to the growth of the market. As customer demand for unique and interactive experiences continues to rise, the VR Advertising market in GCC is expected to further expand in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. 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).