Market Insights Advertising & Media Advertising

Audio Advertising - Saudi Arabia

Saudi Arabia

Ad spending in the Audio Advertising market in Saudi Arabia is forecasted to reach US$29.61m in 2024.
The largest market is Traditional Radio Advertising with a market volume of US$20.21m in 2024.
When compared globally, the United States is expected to lead in ad spending with US$19,560.00m in 2024.
The average ad spending per listener in the Traditional Radio Advertising market is projected to be US$2.39 in 2024.
Saudi Arabia's Audio Advertising market is rapidly expanding due to increased digital media consumption and a growing interest in targeted marketing strategies.

Key regions: China, France, United States, Asia, United Kingdom

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Analyst Opinion

The Audio Advertising market in Saudi Arabia is experiencing significant growth and development, driven by various factors such as changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Saudi Arabia are shifting towards audio advertising due to its convenience and effectiveness. With the rise of digital platforms and streaming services, consumers are increasingly accessing audio content on their mobile devices, making it an ideal medium for advertisers to reach their target audience. Additionally, the popularity of podcasts and audio streaming services has created new opportunities for brands to engage with consumers through audio advertisements. Trends in the market indicate a growing demand for personalized and targeted audio advertising in Saudi Arabia. Advertisers are leveraging advanced technologies and data analytics to deliver tailored audio messages to specific demographics, ensuring maximum impact and engagement. Furthermore, the integration of voice-activated devices and smart speakers in households is driving the adoption of audio advertising, as brands seek to capitalize on the growing popularity of voice search and voice-activated commands. Local special circumstances in Saudi Arabia, such as the high smartphone penetration rate and the young demographic profile, contribute to the growth of the audio advertising market. Saudi Arabia has one of the highest smartphone penetration rates in the world, with a significant portion of the population relying on their mobile devices for entertainment and information. This presents advertisers with a unique opportunity to target consumers through audio advertisements on mobile platforms. Moreover, the young demographic profile of Saudi Arabia, with a large population under the age of 30, is a key factor in the development of the audio advertising market. Younger consumers are more likely to engage with audio content and are receptive to audio advertisements, making them an attractive target audience for brands. Underlying macroeconomic factors, such as the increasing GDP and favorable business environment in Saudi Arabia, also contribute to the growth of the audio advertising market. The country's economy is diversifying, with a focus on sectors such as technology and entertainment, which align with the audio advertising industry. Additionally, the government's initiatives to promote entrepreneurship and innovation further support the growth of the advertising sector, including audio advertising. In conclusion, the Audio Advertising market in Saudi Arabia is experiencing significant growth and development, driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers are capitalizing on the convenience and effectiveness of audio advertising, leveraging personalized and targeted strategies to engage with consumers. With the rise of digital platforms and the integration of voice-activated devices, the audio advertising market in Saudi Arabia is poised for further expansion in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on audio advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional radio advertising (broadcasting programs on terrestrial radio stations or networks) and digital audio advertising (pre- and in-stream audio ads and podcast streaming 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., Consumer Insights) 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.