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Music Streaming Advertising - Saudi Arabia

Saudi Arabia

The Music Streaming Advertising market in Saudi Arabia is forecasted to achieve a revenue of US$7.41m in 2024.
This revenue is expected to exhibit a compound annual growth rate (CAGR 2024-2027) of 4.35%, resulting in a projected market volume of US$8.42m by 2027.
Furthermore, the number of users in the Music Streaming Advertising market is anticipated to reach 3.7m users by 2027.
The user penetration is projected to be 9.5% in 2024, and it is expected to rise to 9.8% by 2027.
When compared globally, United States is anticipated to generate the highest revenue, amounting to US$2,954.00m in 2024.
Lastly, the average revenue per user (ARPU) in the Music Streaming Advertising market is projected to be US$2.13 in 2024.
Saudi Arabia's music streaming advertising market is rapidly growing, driven by the increasing popularity of digital music consumption among the country's young and tech-savvy population.

Key regions: Asia, United Kingdom, France, United States, South Korea

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Analyst Opinion

Music streaming services have become a popular platform for advertisers to reach consumers, and several trends are emerging that are shaping the industry. One of the most notable trends is the increasing use of personalized ads, which use data analytics to deliver ads that are tailored to the listener's preferences and interests. This has made music streaming advertising more effective and engaging, as listeners are more likely to respond positively to ads that resonate with their tastes.

Music streaming advertising has seen strong growth in recent years, driven by several factors. One key factor is the rapid growth of music streaming services themselves, with platforms like Spotify and Apple Music attracting millions of users worldwide. This has created a large and diverse audience for advertisers to reach, including both free and paid subscribers. Additionally, music streaming advertising offers several advantages over traditional forms of advertising, such as radio and TV. Music streamers are often highly engaged with the platform, spending hours listening to music each day, which provides ample opportunities for advertisers to target them with personalized ads.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on music streaming advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers streaming audio ads.

Modeling approach:

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, web traffic, and survey results from our primary research (e.g., Statista Global Consumer Survey) 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 GDP, internet users, consumer spending, 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.