5 trends that will shape the region’s advertising industry in 2024
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The Middle East advertising market is expected to experience sustained growth in 2024 following strong growth last year. Amid the 2020 pandemic, the sector experienced a notable drop in advertising investment. However, this year looks promising.
According to a report by the marketing consultancy means of warThe regional advertising market is forecast to grow by 6.2 percent in 2024, reaching a value of $6.9 billion.
Over the next two years, the Middle East is poised to become the world’s fastest-expanding advertising market. The growth is driven by Saudi Arabia’s focus on promoting itself globally in line with the Vision 2030 project to diversify the kingdom’s economy and the UAE’s thriving real estate sector and ongoing infrastructure projects, in addition to its status as a hub. luxury and tourism.
Advertising in the region is undergoing significant changes, driven by changes in consumer behavior and preferences.
The UAE’s status as a leading global retail destination is rapidly expanding, making advertising in the country’s shopping malls a vital channel for brands to connect with their target audiences. Additionally, digital out-of-home (DOOH) advertising is experiencing substantial growth, due to the price competitiveness of digital displays.
The growth of retail, especially shopping malls, in the UAE is also creating new opportunities for DOOH advertising.
Meanwhile, the growing popularity of connected television (CTV) and satellite streaming (OTT) is quite evident. The Middle East is the largest OTT consumer market, with the United Arab Emirates leading the way. Considering the growing migration of audiences from linear television to smart devices and the proliferation of OTT devices, brands now have a new medium to add to their advertising mix. The regional market also offers a huge opportunity for widespread adoption of augmented reality (AR) and virtual reality (VR).
As tech-savvy customers in the Middle East value immersive brand experiences, we will see a rise in the use of AR and VR in advertising campaigns.
As new technologies and advertising media evolve, presenting new opportunities for brands to promote their products, the following trends are expected to shape the advertising industry in the region in 2024:
Leveraging location data for DOOH
The Middle East and Africa DOOH advertising market is projected to grow at a rate of 23 percent between 2023 and 2028, according to a report by MarkNtel Advisors. Although at an early stage in the GCC, DOOH is showing notable growth in Saudi Arabia, the UAE, and Qatar.
Retailers, property brands, tourism boards and governments are using it to reach consumers.
The return on investment achieved through the price competitiveness of digital displays compared to other media, its potential for deeper engagement with customers and the ability to combine location data are what make DOOH an attractive proposition for advertisers.
Brands are leveraging location data to improve their campaigns. Messages are tailored to specific audiences based on their location in real time, resulting in higher engagement and conversion rates. Location data is a powerful tool.
By combining the attention-grabbing power of large physical DOOH ad formats with targeted capabilities that use location data, brands can deliver more personalized and relevant messages.
Advertising in shopping centers, a rising star
Mall advertising, a high-impact form of outdoor advertising, is becoming one of the best ways to communicate with your customers in the region. With it predicted to continue to grow due to the expansion of the retail market, a large influx of tourists and an increasing number of people visiting shopping malls, brands see it as a great way to connect with their target audience.
With shopping, entertainment and dining options in one place, shopping malls provide an excellent opportunity for brands to showcase their products directly to their potential customers.
Take the example of Dubai Mall, which attracts more than 100 million visitors annually in search of unique products and offers. You can imagine what a great opportunity it is to show your product to these visitors while they shop.
CTV and OTT emerge as strong contenders
While Netflix has been experimenting with its ad formats for over a year, Amazon Prime is set to include ads starting this month, opening up a whole new world of opportunities for advertisers.
As more and more viewers migrate from linear TV to smart TVs and start using OTT devices, CTV and OTT advertising is something brands can’t afford to ignore anymore. The highlight of this form of advertising is that ads offer the opportunity to measure results such as viewability, CTR, engagement, and more.
With viewership set to increase in the coming years, this trend won’t go away anytime soon.
Integration of augmented reality and virtual reality
Augmented Reality (AR) and Virtual Reality (VR) are set to revolutionize the advertising industry. Brands will be able to create immersive brand experiences like never before. These advancements not only allow advertisers to offer in-person experiences to their customers, such as offering a virtual tour of a car or home before purchasing, but also to develop interactive product demos, virtual showrooms, and gamified experiences to encourage engagement. and a deeper connection. with consumers.
As virtual reality and augmented reality tools become easier to integrate, more brands will begin to use them in their ads.
Sustainable advertising
Sustainability has become a priority. According to a recent Nielsen study, there is a significant increase in sustainability-themed advertising across various industries. In the past, these ads were limited to certain sectors such as energy and transportation, but there is now a widespread commitment across all industries to incorporate sustainability into advertising.
In 2024, ads that prioritize the promotion of sustainable products, highlight the consumer benefits of sustainable actions and underline the company’s commitment to sustainability will gain strength.
News source: Gulf Business
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