Middle East Marketing And Advertising Agency Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.81 Billion |
| Market Size (2030) | USD 9.83 Billion |
| CAGR (2024 - 2030) | 4.71 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Middle East Marketing And Advertising Agency Market Analysis
The Middle East Marketing And Advertising Agency Market size is estimated at USD 7.81 billion in 2024, and is expected to reach USD 9.83 billion by 2030, growing at a CAGR of 4.71% during the forecast period (2024-2030).
The Middle East has experienced a swift digital shift characterized by a rise in smartphone and Internet usage. Consumer behavior has been significantly impacted by this change, which has prompted businesses to concentrate more on digital marketing tactics due to the widespread use of social media sites like Facebook, Instagram, and X (formerly Twitter). Marketing agencies are changing to fit in this new digital environment.
- The Middle East has one of the highest rates of mobile penetration. Campaigns now cannot function without mobile advertising, which includes SMS marketing and in-app advertisements. In order to reach customers on their chosen devices, agencies are investing more and more in mobile-centric campaigns. Good marketing strategies frequently require a thorough comprehension of regional dialects and cultural quirks. Effective location techniques help agencies connect with their target audience more deeply. Ramadan promotions are a common example of how the month is significant in the region where Muslims predominate.
- Consumers in the Middle East are quick to accept new technologies. In order to create immersive and captivating brand experiences, augmented reality (AR) and virtual reality (VR) experiences are increasingly being included in marketing campaigns. One instance of technological integration is the virtual reality showroom that IKEA has set up in several Middle Eastern nations. Before making a purchase, shoppers may virtually explore and engage with IKEA products due to the VR experience. This creative marketing strategy appeals to tech-savvy Middle Eastern customers who value modern and immersive retail environments.
- Building a competent workforce is a priority in order to satisfy the industry’s changing demands. To ensure that its talent pool has the newest capabilities in digital marketing, data analytics, and creative content creation, marketing agencies in the Middle East are investing in training programs and forming collaborations with educational institutions. An illustration of industry efforts in talent development is the Dubai-based creative lab. With resources, training, and coaching to help them thrive in the advertising profession, it acts as an incubator for upcoming creatives. These kinds of programs support the development of a trained labor force and creativity in the quickly changing field of marketing and communication.
- The Middle East is undergoing a swift digital revolution as a growing proportion of its consumers depend on Internet channels. Digital platforms such as social media search engine marketing and online display advertising receive a large share of organizations’ advertising spending. The population in the Middle East is growing, giving firms access to a wider consumer base. Organizations are spending on aggressive advertising strategies to increase brand awareness and market share to enter into this market.
- Although the Middle Eastern market for marketing and advertising agencies has a lot of room to grow, there are several obstacles in the way, chief among them being financial limitations and the low uptake of marketing and advertising services by smaller businesses. Enterprises in the Middle East frequently face tighter budgets as a result of periodic economic downturns brought on by variables, including shifting oil prices, geopolitical unrest, and general global economic conditions. One of the first things to be examined and reduced during one of these downturns is marketing and advertising spending.
Middle East Marketing And Advertising Agency Market Trends
Small and Medium Enterprises to Witness Significant Growth
- SMEs are enterprises that have an employee size of less than 250 employees and annual revenue of less than SAR 200 million (~USD 53.31 million). Increased advertisement spending across end-use industry verticals is expected to drive the demand for the marketing and advertising agencies market in Saudi Arabia. An increase in ad investment owing to the rising trends of video and mobile ads is a significant contributor to the development of marketing and advertising agencies in Saudi Arabia.
- The rise in social media platforms is essential in shaping consumer behavior in the country. Consumers engage with brands and influencers across social media platforms for product research, reviews, and recommendations. As a result, adapting to evolving consumer preferences is essential for market players to gain a competitive edge and meet customers' changing needs.
- Small- and medium-sized enterprises (SMEs) in Saudi Arabia are embracing digital transformation and innovative technology. Emerging technologies such as AI, blockchain, and the Internet of Things (IoT) enhance the SME's business operations. Further, digital technologies have revolutionized the advertising landscape in the country.
- According to the Small and Medium Enterprises General Authority (Monsha'at) report, Small- and medium-sized enterprises in the Kingdom of Saudi Arabia reflected a 4.8% surge in 2023 compared to the final quarter of 2022. The report further revealed that 88,858 new businesses were launched across the country in the first quarter of 2023. Riyadh was home to 41.4%, followed by Makkah at 18.1%, the Eastern Province at 11.1%, and the other cities for 28.6% of the total SMEs in Saudi Arabia. This is anticipated to spur new growth across critical sectors such as tourism, e-commerce, retail, food and beverage, and fintech. The growing e-commerce sales are expected to boost the market studied.
- The SME sector aims to contribute 35% of the gross domestic product by 2030 as part of the Vision 2030 goals. Vision 2030 elevates the country's advertising sector, making it a vital component of the cultural, economic, and social transformation through a unique partnership between public and private investments and agencies. The advertising sector in Saudi Arabia is witnessing an exponential rise in growth and demand within both local and global agencies to converge and invest in expanding their capacity. This surge has also led to the emergence of numerous independent marketing and advertising agencies in the country.
- Vision 2030 also aims to reduce Saudi Arabia's over-dependence on oil as the main economic driver. As a result of these reforms, Saudi Arabia boasts the highest annual economic growth rate and possesses a young demographic that prefers digital technology and social media. Therefore, marketing and advertising enterprises and startups have access to limitless opportunities and growth potential. Additionally, to boost entrepreneurship, the Saudi Arabian Ministry of Commerce issued 314,500 commercial registrations for firms and establishments in 2022. Riyadh led the most commercial registrations, making it the city with the most emerging entrepreneurs in the business landscape, most of whom operate within the advertising sector.
Riyadh to Witness Major Growth
- Saudi Arabia's capital and largest city, Riyadh, is leading the nation's digital revolution. The marketing and advertising industry will be greatly impacted by Crown Prince Mohammed bin Salman's Saudi Vision 2030 plan, which intends to diversify the economy.
- Moreover, Saudi Arabia, which includes Riyadh, has one of the highest rates of social media adoption worldwide. Because of their enormous popularity, platforms like Snapchat, Instagram, Twitter, and YouTube are essential for marketing campaigns.
- In Riyadh, influencers have a big impact on customer preferences, making influencer marketing quite successful. Influencers from a variety of industries, including fashion, tourism, technology, and lifestyle, may be found in Riyadh. These influencers are used by brands to establish a connection with particular target markets. For instance, influencers such as Abdulaziz Baz have become quite well-known in Riyadh. Brands work with him on promotional initiatives, particularly in the fashion and lifestyle domains. For example, a fashion firm with headquarters in Riyadh elaborates with Abdulaziz Baz to present its most recent collection, which would reach a large number of prospective buyers.
- Due to the diverse population in Riyadh, marketing agencies must take cultural sensitivity into account while creating campaigns. In order to connect with the intended audience, advertisements frequently incorporate regional traditions, values, and rituals. Companies that are cognizant of in respectful of Saudi culture have a greater chance of establishing a strong rapport with Riyadh consumers. For instance, UNDP indicate that by 2030, the population of Riyadh will reach 7.9 million residents.
Middle East Marketing And Advertising Agency Industry Overview
There is a notable presence of major international advertising firms in the area, including Impact Creative Waves, Extend The Ad Network, Creative Habbar, and Advertising Ways Company. Although the market is consolidated, agencies are fighting it out for big accounts in various sectors like retail, technology, and finance. Influencer marketing has been more popular in recent years, and the Middle East has a thriving influencer culture. The e-commerce industry, in particular, is seeing a surge in demand for digital marketing services due to the growth of online purchasing.
- October 2023: Saudi Arabia's one of the leading out-of-home advertising firms, AlArabia Outdoor Advertising, won a project proposed by Remat Al-Riyadh Development company to establish, operate, and maintain outdoor advertising billboards in Riyadh. The city will be transformed into a digital, innovative, and sustainable region, achieved through an alliance with the Saudi Artificial Intelligence Company (SCAI), one of the Public Investment Fund companies, as a part of the project.
- June 2023: AstroLabs, a digital capability-building company, and TikTok concluded their flagship partner program supporting small- and medium-sized businesses in Saudi Arabia. TikTok partnered with AstroLabs to effectively equip small and medium enterprises with the knowledge and tools to advertise and thrive in the digital era. AstroLabs' partnership with TikTok will support the digital transformation efforts of SME businesses, bringing cutting-edge advertising tools to the fingertips of local SMBs.
Middle East Marketing And Advertising Agency Market Leaders
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CREATIVE WAVES
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Extend The Ad Network
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Creative Habbar
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Advertising Ways Company
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AstroLabs
*Disclaimer: Major Players sorted in no particular order
Middle East Marketing And Advertising Agency Market News
- November 2023: iCubesWire, a leading global Ad Tech audience platform with content production studio and influencer marketing capabilities, expanded its footprint into Saudi Arabia by setting up its new office in Riyadh. The company is strategically expanding its global presence across diverse markets. iCubesWire has showcased its commitment to creating a solid foothold within the MENA region’s thriving digital advertising sector and is heavily investing in local talent. The new Riyadh office will be a hub for the company’s dynamic digital strategies, shaping influential partnerships and delivering exceptional customer experiences.
- June 2023: Google announced new consumer insights regarding the future of artificial intelligence in the advertising and marketing sector during its advertising and commerce event in Saudi Arabia. The company showcased its latest advertising features on Google Search and a range of solutions, such as PerformanceMax, Automatically Created Assets, and Merchant Center Next, enabling advertisers in Saudi Arabia to access Google Ads inventory from a single campaign. Advertisers can leverage generative media and language learning techniques to generate professional-grade creatives across YouTube, Display, and Search with limited information.
Middle East Marketing And Advertising AgencyMarket Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Market Size Estimates and Forecasts
4.3 Industry Value Chain Analysis
4.4 Key Trends Analysis
4.5 Key Base Indicator Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Advertisement Spending of Organizations Leading to Outsourcing to Advertising Agency
5.1.2 Increased Integration of Marketing Strategies as Part of Growth Strategies in Key Middle East Countries
5.2 Market Challenges
5.2.1 Budgetary Constraints and Lack of Penetration Amongst Smaller Companies Act as a Barrier
5.3 Key Technological Innovations and Initiatives in the Middle East
6. MARKET SEGMENTATION
6.1 By Organization Size
6.1.1 Small and Medium-sized Enterprises
6.1.2 Large Enterprises
6.2 By Coverage
6.2.1 Full-Service
6.2.2 Specialized Capabilities
6.3 By End-user Sector
6.3.1 Public and Institutional
6.3.2 Private Enterprises
6.4 By Region - Saudi Arabia
6.4.1 Riyadh
6.4.2 Jeddah
6.4.3 Dammam
6.5 By End-user Industry
6.5.1 Technology and Telecom
6.5.2 Healthcare
6.5.3 Consumer Goods
6.5.4 Financial Services
6.5.5 Education
6.5.6 Retail and E-commerce
6.5.7 Manufacturing
6.5.8 Media and Entertainment
6.5.9 Government
6.5.10 Automotive
6.5.11 Travel
6.5.12 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Creative Waves
7.1.2 Extend The Ad Network
7.1.3 Creative Habbar
7.1.4 Advertising Ways Company
7.1.5 The Interpublic Group of Companies Inc.
7.1.6 Publicis Groupe
7.1.7 WPP Plc
7.1.8 Omnicom Group Inc.
7.1.9 Accenture Song (Accenture PLC)
7.1.10 Havas Saudi Arabia (Vivendi)
7.1.11 Dentsu KSA (Dentsu Group Inc.)
8. FUTURE OUTLOOK OF THE MARKET
Middle East Marketing And Advertising Agency Industry Segmentation
Advertising agencies are specialized in the field of communication, including advertising and indirect marketing. In order to assist with the development of a marketing strategy, marketing agents offer a broader and consultative approach. Depending on their own resources, some of them also make recommendations for marketing techniques and offer communication services.
The Middle Eastern marketing and advertising agency market is segmented by organization size (small and medium-sized enterprises and large enterprises), coverage (full-service and specialized capabilities), end-user sector (public and institutional and private enterprises), region (Riyadh, Jeddah, Dammam, and rest of KSA), end-user industry (technology and telecom, healthcare, consumer goods, financial services, education, retail and e-commerce, manufacturing, media and entertainment, government, automotive, and travel). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Organization Size | |
| Small and Medium-sized Enterprises | |
| Large Enterprises |
| By Coverage | |
| Full-Service | |
| Specialized Capabilities |
| By End-user Sector | |
| Public and Institutional | |
| Private Enterprises |
| By Region - Saudi Arabia | |
| Riyadh | |
| Jeddah | |
| Dammam |
| By End-user Industry | |
| Technology and Telecom | |
| Healthcare | |
| Consumer Goods | |
| Financial Services | |
| Education | |
| Retail and E-commerce | |
| Manufacturing | |
| Media and Entertainment | |
| Government | |
| Automotive | |
| Travel | |
| Other End-user Industries |
Middle East Marketing And Advertising AgencyMarket Research FAQs
How big is the Middle East Marketing And Advertising Agency Market?
The Middle East Marketing And Advertising Agency Market size is expected to reach USD 7.81 billion in 2024 and grow at a CAGR of 4.71% to reach USD 9.83 billion by 2030.
What is the current Middle East Marketing And Advertising Agency Market size?
In 2024, the Middle East Marketing And Advertising Agency Market size is expected to reach USD 7.81 billion.
Who are the key players in Middle East Marketing And Advertising Agency Market?
CREATIVE WAVES, Extend The Ad Network, Creative Habbar, Advertising Ways Company and AstroLabs are the major companies operating in the Middle East Marketing And Advertising Agency Market.
What years does this Middle East Marketing And Advertising Agency Market cover, and what was the market size in 2023?
In 2023, the Middle East Marketing And Advertising Agency Market size was estimated at USD 7.44 billion. The report covers the Middle East Marketing And Advertising Agency Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle East Marketing And Advertising Agency Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Middle East Marketing And Advertising AgencyIndustry Report
Statistics for the 2024 Middle East ing And Advertising Agency market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East ing And Advertising Agency analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Middle East Marketing And Advertising Agency Market Report Snapshots
