Market Trends of KSA OOH And DOOH Industry
Retail and Consumer Goods Segment Holds the Largest Market Share
- The retail and consumer goods segment is experiencing good demand due to the opportunities that DOOH screens offer to consumers for interactive and engaging content. Content in this industrial segment could include virtual try-ons, product demonstrations, and interactive games, which help enhance the shopping experience. Moreover, retailers promote seasonal sales, new product launches, and promotional events through OOH and DOOH channels. Dynamic content and real-time updates help retailers keep their messaging relevant and timely.
- Major cities like Riyadh, Jeddah, and Dammam are undergoing rapid urbanization, leading to increased foot traffic and visibility for OOH and DOOH advertising. DOOH is becoming increasingly popular, with digital billboards and interactive screens offering dynamic content that can be updated on a real-time basis. Moreover, advertisers are leveraging big data and analytics to tailor their messages to specific demographics, improving engagement and conversion rates.
- Digital video walls excel at captivating audiences with interactive visuals, facilitating attention even from a distance that marketers use to expand the reach of product offerings. The vibrant colors and high resolutions in graphics make them ideal for showcasing products or services. Additionally, these displays enable remarkable content flexibility, seamlessly handling a variety of media formats, from videos and images to text.
- Companies operating in the space, like Alan Median and Advertising, install interactive digital displays in locations such as malls, transit hubs, and public squares. These screens facilitate touch interfaces that allow consumers to engage with content directly. According to The Middle East Council of Shopping Centres and Retailers, Riyadh's modern format retail Gross Leasable Area (GLA) is projected to grow from approximately 2.3 million sq. m in 2022 to 3.8 million sq. m by 2027. This growth is expected to be driven by a rise of super-regional malls, such as Mall of Saudi, The Avenues, Jawharat Arriyadh, and Al Wedyan, which will drive the OOH and DOOH market.
- According to the International Real Estate Federation (FIABI), malls are increasingly pivoting toward offering a broader spectrum of entertainment options to draw customers' attention in Saudi Arabia. Approximately 50% of the upcoming retail space in the country will be dedicated to entertainment offerings, which will propel the growth of DOOH advertising.
Understand The Key Trends Shaping This Market
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Digital OOH Expected to Register Major Growth
- Digital OOH advertising is expected to experience market growth during the forecast period since Saudi Arabia is set to host a series of prominent global events, such as Expo 2030, the Winter Games, the AFC Asian Cup 2027, and the FIFA World Cup 2034 in the upcoming years. Such strategic events will emphasize the imperative of domestic and international collaborations to create a universally appealing image. Additionally, Saudi Arabia is actively adopting advanced advertising technologies and investing in digital OOH advertising.
- In December 2023, Diriyah, Saudi Arabia, became the launch partner for The United, a transatlantic digital out-of-home (DOOH) broadcast network. Developed by Ocean Outdoor and Branded Cities, this pioneering initiative showcased Diriyah's evolution into a premier global tourism destination with the title of ‘The City of Earth.'
- With a growing number of people commuting and spending time outside their homes, digital OOH advertising can effectively reach a mobile audience, including commuters, tourists, and shoppers. Programmatic display advertising is being increasingly adopted by firms, advertisers, and marketers seeking more potent digital marketing tools to engage their consumers with the products and services that are offered. Companies are investing in social media ad strategies to boost conversions, paving the way for substantial revenue streams for social platforms leveraging programmatic display advertising.
- The Saudi Arabian government supports the advertising industry through regulations and initiatives that promote innovation and investment, thus creating a conducive environment for the growth of digital OOH advertising. Aligned with the country’s Vision 2030, the digital content market plans to enhance domestic production and job creation. This growth strategy targets amplifying local content shares and revenues across key verticals such as video, audio, electronic games, and digital advertising.
- Many players tailor content to local cultures, languages, and preferences, which is crucial to cater to the diverse Saudi Arabian market. Customized and localized digital OOH campaigns are more effective in resonating with the target audience and driving more conversions. For instance, as per data by Zenith, the value of outdoor advertisement expenditure in the MENA region is expected to reach USD 1,536 million in 2024, thus propelling market investments in Saudi Arabia.
