Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Saudi Arabia

Saudi Arabia

Ad spending in the Traditional TV Advertising market in Saudi Arabia is forecasted to reach US$11.27m in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.96%, leading to a projected market volume of US$11.82m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$0.49 in 2024.
In the Traditional TV Advertising market in Saudi Arabia, the number of users is expected to reach 24.91m users by 2029.
Traditional TV Advertising in Saudi Arabia is experiencing a resurgence, as companies capitalize on the high viewership rates to reach a wide audience effectively.

Key regions: India, United States, France, Australia, China

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Currency

Analyst Opinion

The Traditional TV Advertising market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Saudi Arabia has a large population with a high demand for television content. TV remains a popular form of entertainment in the country, with a wide range of channels and programs catering to different interests. Saudi Arabian viewers are known to have a preference for local content, including news, dramas, and sports. This has created a strong demand for advertising slots on traditional TV channels.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Saudi Arabia is the increasing investment from local businesses. As the economy continues to grow, more companies are looking to promote their products and services through television advertisements. This has led to a rise in the number of advertising campaigns and an increase in spending on TV advertising. Another trend in the market is the shift towards targeted advertising. Advertisers are increasingly looking for ways to reach specific audiences and maximize the impact of their campaigns. This has led to the introduction of new technologies and techniques that allow for more precise targeting of TV advertisements. Advertisers are now able to tailor their messages to specific demographics, interests, and viewing habits, resulting in more effective and efficient advertising campaigns.

Local special circumstances: Saudi Arabia has a unique cultural and regulatory environment that impacts the Traditional TV Advertising market. The country follows strict guidelines when it comes to content and advertising, with a focus on preserving cultural values and traditions. Advertisements are required to adhere to certain standards and must be approved by the relevant authorities before they can be aired. This ensures that advertisements are in line with local sensitivities and do not offend the audience.

Underlying macroeconomic factors: The growth and development of the Traditional TV Advertising market in Saudi Arabia can be attributed to several macroeconomic factors. The country has a strong and stable economy, driven by its oil reserves and diversification efforts. This has created a favorable business environment, attracting both local and international companies to invest in advertising. Additionally, the government has been actively promoting the media and entertainment sector as part of its Vision 2030 plan, which aims to diversify the economy and reduce reliance on oil. This has resulted in increased investment in the TV advertising industry and the development of new channels and programs.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

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, media consumption, number of households with television, and 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.