In-game Advertising - Saudi Arabia

Saudi Arabia

Highlights

In Saudi Arabia, revenue in the In-game Advertising market market is projected to reach US$108.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 12.62%, resulting in a projected market volume of US$196.30m by 2029.
The average revenue per user (ARPU) in Saudi Arabia is expected to amount to US$15.87.
In global comparison, most revenue will be generated China, which is anticipated to reach US$46.61bn in 2024.
In Saudi Arabia, the burgeoning gaming culture is driving a significant rise in in-game advertising, reflecting the nation's youthful demographic's engagement with digital media.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-game Advertising market in Saudi Arabia is experiencing steady growth and development, driven by several key factors.

Customer preferences: Saudi Arabia has a large and growing gaming population, with a strong preference for mobile gaming. This preference is driven by the widespread availability of smartphones and the convenience they offer. As a result, in-game advertising in mobile games has become increasingly popular among advertisers looking to reach this audience. Saudi gamers also appreciate localized content and advertisements that are relevant to their interests and culture.

Trends in the market: One of the major trends in the In-game Advertising market in Saudi Arabia is the increasing use of programmatic advertising. Programmatic advertising allows for more targeted and efficient ad placement, ensuring that ads are shown to the right audience at the right time. This trend is driven by the growing adoption of data-driven advertising strategies and the desire for advertisers to maximize their return on investment. Another trend in the market is the integration of native advertising within games. Native ads seamlessly blend into the gaming experience, making them less intrusive and more engaging for players. This approach is preferred by both advertisers and gamers, as it provides a more organic and immersive advertising experience.

Local special circumstances: Saudi Arabia has a unique cultural and regulatory environment that impacts the In-game Advertising market. The country has strict regulations regarding the content of advertisements, particularly when it comes to religious and cultural sensitivities. Advertisers must ensure that their ads comply with these regulations to avoid any potential backlash or legal issues. Additionally, Saudi Arabia has a strong preference for Arabic language content, making it important for advertisers to localize their ads to effectively reach the target audience.

Underlying macroeconomic factors: The In-game Advertising market in Saudi Arabia is also influenced by underlying macroeconomic factors. The country has a strong and growing economy, which has led to an increase in disposable income and consumer spending. This provides advertisers with a larger pool of potential customers and opportunities for growth. Additionally, the government has been actively promoting the development of the gaming industry as part of its Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil. This support from the government has created a favorable environment for the In-game Advertising market to thrive. In conclusion, the In-game Advertising market in Saudi Arabia is developing and growing due to customer preferences for mobile gaming, trends such as programmatic advertising and native ads, local special circumstances including cultural and regulatory considerations, and underlying macroeconomic factors such as a strong economy and government support.

Data coverage:

The data encompasses B2C revenues. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach / Market size:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., Consumer Insights), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. 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, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

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.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.