Market Insights Advertising & Media Advertising Out-of-Home Advertising

Traditional Out-of-Home Advertising - Saudi Arabia

Saudi Arabia

In Saudi Arabia, ad spending in the Traditional Out-of-Home Advertising market is forecasted to reach US$64.77m by 2024.
The sector is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.15%, leading to a projected market volume of US$65.26m by 2029.
The average ad spending per capita in the Traditional Out-of-Home Advertising market is estimated to be US$1.73 in 2024.
Traditional Out-of-Home Advertising in Saudi Arabia is experiencing a resurgence, leveraging cultural values and digital integration for impactful campaigns in the market.

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

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Analyst Opinion

Saudi Arabia is experiencing significant growth in the Traditional Out-of-Home Advertising market.

Customer preferences: In Saudi Arabia, customers still value traditional forms of advertising such as billboards, posters, and signage. This preference for traditional out-of-home advertising can be attributed to the cultural and religious norms in the country, which place a strong emphasis on physical presence and visibility. Additionally, the large expatriate population in Saudi Arabia, with diverse backgrounds and varying levels of digital literacy, also contributes to the continued demand for traditional advertising methods.

Trends in the market: One of the key trends in the Traditional Out-of-Home Advertising market in Saudi Arabia is the increasing use of digital technologies to enhance the impact of traditional advertising. Digital billboards and interactive displays are becoming more common, allowing advertisers to engage with consumers in a more dynamic and immersive way. This integration of digital elements into traditional advertising methods helps to capture the attention of the target audience and create a memorable brand experience. Another trend in the market is the growing focus on targeted advertising. Advertisers are increasingly using data analytics and consumer insights to identify specific locations and demographics that are most likely to respond to their messaging. By tailoring their advertising campaigns to specific target groups, advertisers can maximize the effectiveness of their out-of-home advertising efforts and improve their return on investment.

Local special circumstances: Saudi Arabia's unique cultural and regulatory environment also plays a role in the development of the Traditional Out-of-Home Advertising market. The country has strict regulations governing the content and placement of outdoor advertising, particularly in sensitive areas such as religious sites. Advertisers must navigate these regulations and ensure that their messaging is in line with local sensitivities and customs.

Underlying macroeconomic factors: The growth of the Traditional Out-of-Home Advertising market in Saudi Arabia can also be attributed to the country's strong economic performance and increasing consumer spending. As the economy continues to diversify and expand, businesses are investing more in advertising to capture the attention of the growing consumer base. Additionally, Saudi Arabia's Vision 2030 initiative, which aims to transform the country's economy and reduce its reliance on oil, has also created opportunities for advertisers to promote new industries and attract foreign investment. In conclusion, the Traditional Out-of-Home Advertising market in Saudi Arabia is developing due to customer preferences for traditional advertising methods, the integration of digital technologies, the focus on targeted advertising, the unique cultural and regulatory environment, and the underlying macroeconomic factors driving economic growth.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and place-based media.

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, 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, population, urban population, and internet infrastructure.

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.