Market Trends of GCC OOH And DOOH Industry
Ongoing Shift toward Digital Advertising is expected to boost the Market Growth
- The rise of digitalization and the embrace of programmatic technologies have transformed outdoor media, providing advanced targeting and measurement tools that were once out of reach. Digital out-of-home (OOH) advertisements seamlessly integrate into consumers' daily lives, giving brands a distinctive chance to engage with their target demographics subtly.
- The increasing urbanization is leading to a major market’s growth. Previously, Out-of-Home (OOH) advertising depended on real estate, requiring marketers to guess where their audience may be. Today, technology provides precise geolocation data. Digital Out-of-Home (DOOH) combines the visibility of traditional OOH with the flexibility, analytics, and ease of digital campaigns. With the right tools and attention to detail, DOOH offers brands a significant opportunity to boost visibility and increase foot traffic.
- Businesses in GCC countries are increasingly turning to digital platforms, acknowledging their central role in the region's advertising landscape. Sectors such as travel, tourism, and hospitality are taking the lead in efforts to rekindle consumer interest in travel. Tourism authorities in GCC countries have taken a bold step by launching a global campaign highlighting the region's diverse tourism attractions.
- Moreover, the government is bolstering the GCC's digital capabilities, with the UAE's Digital Government Strategy 2025 spearheading the swift adoption of digital services in all seven Emirates. This push is a direct response to the heightened emphasis on digital inclusion and the imperative to bolster societal resilience, a lesson underscored by the challenges posed by the COVID-19 pandemic.
Saudi Arabia to Witness Major Growth
- Although alternative media like TV and the Internet are available, outdoor advertising remains crucial for firms and organizations in Saudi Arabia aiming to promote their products. When other channels are not viable, outdoor ads serve as the most effective medium. They provide a comprehensive set of interactive digital solutions and reach a vast audience quickly. Vision 2030 has spurred significant changes globally, and Saudi Arabia, experiencing economic and social growth, has witnessed substantial transformations.
- In October 2023, AlArabia Outdoor Advertising, a prominent OOH firm in Saudi Arabia, secured a significant project. The company will be responsible for setting up, managing, and upkeeping outdoor advertising billboards in Riyadh. The initiative was put forth by Remat Al-Riyadh Development company, aiming to elevate Riyadh into a digital, intelligent, and sustainable metropolis, aspiring to be recognized among the world's top 10 cities.
- Moreover, airports are optimal locations for OOH and DOOH advertising due to the high concentration of travelers. While waiting to board or navigate terminals, passengers are a captive audience receptive to engaging visuals and messaging. According to the General Authority for Statistics (Saudi Arabia), the country has witnessed a significant increase from 37.4 million annual air passengers in 2020 to 111.7 million annual air passengers in 2023.
- According to the World Bank, in 2022, Saudi Arabia saw a notable uptick in its annual urban population growth, rising by 1.4 percentage points, a substantial increase of 1076.92% from 2021. This surge signifies a remarkable shift in the nation's urban population dynamics, thus increasing the demand for the deployment of DOOH in the country.
- Furthermore, Saudi Arabia's robust economy has fostered the growth of the private sector, driven by the entry of new companies and increased competition. Official agencies have also enhanced their communication efforts. Additionally, outdoor spending has risen compared to previous years, thanks to heightened awareness and promotion of new social activities, regional events, and destination tourism.