Market Trends of Saudi Arabia Industrying And Advertising Agency Market
Consumer Goods to be the Largest End-user Industry
- As the consumer goods sector expands, competition among brands intensifies. Companies in sectors like FMCG (Fast-moving Consumer Goods), retail, and e-commerce need to differentiate themselves and capture market share. Marketing and advertising agencies are crucial in helping brands develop effective strategies to stand out in a crowded marketplace.
- Full-service marketing involves services like forming a marketing strategy. Strategies often involve digital marketing to reach a border audience; consumer goods companies can utilize social media platforms, influencer marketing, and targeted online advertising to create brand awareness, drive engagement, and generate online and offline sales. Utilizing localized content and collaborating with popular local influencers can enhance the effectiveness of activations in the Kingdom of Saudi Arabia.
- In addition, the Center of Digital Entrepreneurship (CODE) plays a crucial role in fostering digital entrepreneurship and knowledge development. Over the past decade, startups in Saudi Arabia have experienced significant growth, attracting USD 3.3 billion in venture capital funding, as reported by MAGNiTT. Furthermore, there's observable growth in the FMCG and clothing brands sector, driven by the expanding consumer goods market. For example, according to Inditex, the number of outlets for the clothing brand Zara has grown from 30 in 2016 to 51 in 2024.
- As Saudi Arabia moves toward a more diversified economy, the influx of other businesses will increase consumerism in the region. As new stores and brands emerge in the region, marketing and advertising efforts will be essential for promotion and consumer acquisition, indicating that the growing consumer goods sector will propel the studied market in the region.
Understand The Key Trends Shaping This Market
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Riyadh to Witness Major Growth
- Riyadh, influencers significantly impact customer preferences, making influencer marketing successful. Influencers from various industries, including fashion, tourism, technology, and lifestyle, are in Riyadh. Brands use these influencers to connect with target markets.
- Moreover, the Technology and Telecom sector has witnessed a growing demand for a full-service marketing and advertising agency by the end-user industry as the technology and telecom sector is experiencing rapid growth, fueled by digital transformation, increasing internet penetration, and the increasing importance of brand identity and customer engagement.
- Again, in November 2023, the international Ad Tech audience platform iCubesWire announced that it is entering the Saudi Arabian market and has opened a new office in Riyadh. The platform announced in a new statement that the company, which has six locations worldwide, more than 350 digital specialists on staff, and partnerships with over 500 companies, is poised to expand its global footprint in various sectors.
- Moreover, by organization size, the demand for marketing and advertising agencies competitiveness, and expanding their market share, they increasingly recognize the critical role that marketing and advertising play in achieving their business objectives. Marketing and advertising agencies bring experience and knowledge in such strategies, helping large enterprises develop comprehensive strategies tailored to their unique needs and objectives.
- Furthermore, the country's advertising and marketing agency market witnessed a significant shift in the past few years, primarily characterized by smartphone and internet usage growth. For instance, according to the data from The Communications Space and Technology Commission's Saudi Internet Report 2023, the internet penetration in Saudi Arabia reached 99% in 2023. According to the report, the internet penetration rate in Saudi Arabia increased from 97.1% in 2020 to 99% in 2023.
