Cinema Advertising - Saudi Arabia

Saudi Arabia

Highlights

In Saudi Arabia, ad spending in the Cinema Advertising market market is projected to reach US$25.96m in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2029) of 7.00%, leading to a projected market volume of US$36.41m by 2029.
While most revenue in the Cinema Advertising market market will be generated the United States, Saudi Arabia's market is also poised for growth.
The number of viewers in the Cinema Advertising market market in Saudi Arabia is expected to reach 7.0m users by 2029.
Furthermore, the average ad spending per viewer in the Cinema Advertising market market in Saudi Arabia is projected to amount to US$4.58 in 2024.
Cinema advertising in Saudi Arabia is witnessing a notable shift as brands increasingly leverage the growing popularity of film culture to engage younger audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Cinema Advertising market in Saudi Arabia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances.

Customer preferences: Saudi Arabia has a young and tech-savvy population, with a high percentage of smartphone users and active social media engagement. This has led to a shift in customer preferences towards digital advertising platforms, including cinema advertising. Younger audiences are increasingly seeking immersive and interactive experiences, and cinema advertising provides a unique opportunity to engage with them in a captivating environment.

Trends in the market: One of the key trends in the cinema advertising market in Saudi Arabia is the increasing number of movie theaters and screens across the country. With the recent lifting of the ban on cinemas in 2018, international cinema chains have been entering the Saudi market, leading to a rapid expansion of the cinema infrastructure. This has created new opportunities for advertisers to reach a wider audience through cinema advertising. Another trend is the integration of technology in cinema advertising. Advertisers are leveraging advancements in digital projection and interactive technologies to create more engaging and memorable experiences for moviegoers. This includes the use of augmented reality (AR) and virtual reality (VR) to enhance the impact of advertisements on the big screen.

Local special circumstances: The Saudi Vision 2030 initiative, launched by the government, aims to diversify the economy and reduce its dependence on oil. As part of this initiative, the entertainment sector, including cinema, has been identified as a key area for growth. The government has been actively promoting the development of the cinema industry, which has created a favorable environment for cinema advertising to thrive.

Underlying macroeconomic factors: The strong economic growth in Saudi Arabia has contributed to the expansion of the cinema advertising market. With a growing middle class and increasing disposable income, consumers have more purchasing power, leading to higher demand for products and services. Advertisers are capitalizing on this opportunity by using cinema advertising to target consumers in a captive setting. In conclusion, the Cinema Advertising market in Saudi Arabia is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The growth of the cinema infrastructure, integration of technology, government support, and strong economic growth are all contributing to the expansion of the market. Advertisers are recognizing the potential of cinema advertising to engage with a young and tech-savvy audience, and are leveraging this medium to create immersive and interactive experiences. As the cinema industry continues to grow and evolve, the cinema advertising market in Saudi Arabia is expected to further flourish.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the Cinema Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising both on and off screen in cinemas, including ads shown before a movie and those displayed inside a cinema.

Modeling approach / market size:

Market size is determined by a combined top-down and bottom-up approach. 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) to analyze the markets.as well as performance factors (e.g., user penetration, price per product, usage) 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 various macroeconomic indicators, historical developments, current trends, reported performance indicators of key market players as well as performance factors (e.g., user penetration and usage) to analyze the markets.

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 GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a 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). Consumer Insights data is reweighted for representativeness.