Saudi Arabia Marketing And Advertising Agency Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.26 Billion |
| Market Size (2029) | USD 3.18 Billion |
| CAGR (2024 - 2029) | 5.61 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Marketing And Advertising Agency Market Analysis
The Saudi Arabia Marketing And Advertising Agency Market size is estimated at USD 2.26 billion in 2024, and is expected to reach USD 3.18 billion by 2029, growing at a CAGR of 5.61% during the forecast period (2024-2029).
- The advertising and marketing agency landscape in Saudi Arabia has evolved rapidly in the past few years, characterized mainly by the government's digital transformation initiatives, the country's young and tech-savvy population, and increasing advertising spending among businesses. The Saudi Vision 2030 initiative propels KSA toward using innovative marketing and communication strategies. Moreover, this approach creates a demand for specialized and diverse advertising and marketing services.
- In addition, the diversification of the country's economy in line with Saudi Vision 2030 coupled with growth in digitization activities across business sectors to concentrate more on digital marketing tactics, thus positively impacting the market's growth. In addition, the country's government frequently spends money on marketing to encourage investment, trade, and tourism.
- For instance, Saudi Arabia's Vision 2030 has spurred a boom in marketing and advertising initiatives to attract foreign companies. Advertising and marketing firms must adapt their campaigns to the needs and traditions of the local community while being culturally aware. Effective advertising efforts typically speak to the target audience's cultural values.
- However, a lack of awareness of the possible advantages of outsourcing marketing and advertising to agencies to handle their marketing and promotion in smaller companies challenges the market's growth. This inadequate understanding and lack of awareness contribute to under-investment in promotional activities, hampering the growth of the marketing and advertising agency market in the Kingdom of Saudi Arabia.
- Moreover, the Kingdom has one of the most significant economies in the Middle East and a technologically-educated society shifting toward digitalization. A growing number of businesses in the country are implementing digital marketing and advertising tactics, resulting in a swift digital transition.
- Furthermore, the digital transformation in industries across the Kingdom has driven the demand for marketing agencies to help businesses reach customers across multiple channels and devices, such as social media, websites, mobile apps, email, chatbots, voice assistants, and more.
Saudi Arabia Marketing And Advertising Agency Market Trends
Consumer Goods to be the Largest End-user Industry
- As the consumer goods sector expands, competition among brands intensifies. Companies in sectors like FMCG (Fast-moving Consumer Goods), retail, and e-commerce need to differentiate themselves and capture market share. Marketing and advertising agencies are crucial in helping brands develop effective strategies to stand out in a crowded marketplace.
- Full-service marketing involves services like forming a marketing strategy. Strategies often involve digital marketing to reach a border audience; consumer goods companies can utilize social media platforms, influencer marketing, and targeted online advertising to create brand awareness, drive engagement, and generate online and offline sales. Utilizing localized content and collaborating with popular local influencers can enhance the effectiveness of activations in the Kingdom of Saudi Arabia.
- In addition, the Center of Digital Entrepreneurship (CODE) plays a crucial role in fostering digital entrepreneurship and knowledge development. Over the past decade, startups in Saudi Arabia have experienced significant growth, attracting USD 3.3 billion in venture capital funding, as reported by MAGNiTT. Furthermore, there's observable growth in the FMCG and clothing brands sector, driven by the expanding consumer goods market. For example, according to Inditex, the number of outlets for the clothing brand Zara has grown from 30 in 2016 to 51 in 2024.
- As Saudi Arabia moves toward a more diversified economy, the influx of other businesses will increase consumerism in the region. As new stores and brands emerge in the region, marketing and advertising efforts will be essential for promotion and consumer acquisition, indicating that the growing consumer goods sector will propel the studied market in the region.
Riyadh to Witness Major Growth
- Riyadh, influencers significantly impact customer preferences, making influencer marketing successful. Influencers from various industries, including fashion, tourism, technology, and lifestyle, are in Riyadh. Brands use these influencers to connect with target markets.
- Moreover, the Technology and Telecom sector has witnessed a growing demand for a full-service marketing and advertising agency by the end-user industry as the technology and telecom sector is experiencing rapid growth, fueled by digital transformation, increasing internet penetration, and the increasing importance of brand identity and customer engagement.
- Again, in November 2023, the international Ad Tech audience platform iCubesWire announced that it is entering the Saudi Arabian market and has opened a new office in Riyadh. The platform announced in a new statement that the company, which has six locations worldwide, more than 350 digital specialists on staff, and partnerships with over 500 companies, is poised to expand its global footprint in various sectors.
- Moreover, by organization size, the demand for marketing and advertising agencies competitiveness, and expanding their market share, they increasingly recognize the critical role that marketing and advertising play in achieving their business objectives. Marketing and advertising agencies bring experience and knowledge in such strategies, helping large enterprises develop comprehensive strategies tailored to their unique needs and objectives.
- Furthermore, the country's advertising and marketing agency market witnessed a significant shift in the past few years, primarily characterized by smartphone and internet usage growth. For instance, according to the data from The Communications Space and Technology Commission's Saudi Internet Report 2023, the internet penetration in Saudi Arabia reached 99% in 2023. According to the report, the internet penetration rate in Saudi Arabia increased from 97.1% in 2020 to 99% in 2023.
Saudi Arabia Marketing And Advertising Agency Industry Overview
The Saudi Arabia Marketing and Advertising Agency Market is fragmented, comprising small and major players. Some include Creative Waves, Extend the Ad Network, WOW Marketing Agency, Advertising Ways Company, and The Interpublic Group of Companies Inc.
• February 2024 - Accenture Song collaborated with Droga5 to launch a global brand platform and campaign called ‘Play Life’ in Saudi Arabia. The campaign’s executions are a marked break from gigacity marketing and communications convention, which typically favor glossy ads and CGI. In contrast, ‘Play Life’ sets out to be human, relatable, and fun.
• October 2023 - VMLY&R merged with Wunderman Thompson; the combined entity is VML, a creative company. The company is equipped to support clients on creative brand growth strategies and transformation initiatives.
Saudi Arabia Marketing And Advertising Agency Market Leaders
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Creative Waves
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Extend The Ad Network
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WOW Marketing Agency
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Advertising Ways Company
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The Interpublic Group of Companies Inc.
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Marketing And Advertising Agency Market News
- November 2023 - iCubesWire, a leading global Ad Tech audience platform with content production studio and influencer marketing capabilities, expanded its footprint into Saudi Arabia by setting up its new office in Riyadh. The company is strategically expanding its global presence across diverse markets. iCubesWire has showcased its commitment to creating a solid foothold within the MENA region’s thriving digital advertising sector and is heavily investing in local talent. The new Riyadh office will be a hub for the company’s dynamic digital strategies, shaping influential partnerships and delivering exceptional customer experiences.
- October 2023 - AlArabia Outdoor Advertising, a Saudi-based out-of-home advertising firm, won a project proposed by Remat Al-Riyadh Development company to establish, operate, and maintain outdoor advertising billboards in Riyadh. The city will be transformed into a digital, innovative, and sustainable region, achieved through an alliance with the Saudi Artificial Intelligence Company (SCAI) as a part of the project.
Saudi Arabia Marketing And Advertising Agency Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Market Size Estimates and Forecasts (in SAR Million)
- 4.3 Industry Value Chain Analysis
- 4.4 Key Trends Analysis
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4.5 Key Base Indicator Analysis
- 4.5.1 Advertisement Spending Analysis
- 4.5.2 Traditional vs Digital Advertisement Preferences
- 4.5.3 Saudi Arabia Position in Middle East
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increased Advertisement Spending of Organizations Leading to Outsourcing to Advertising Agency
- 5.1.2 Increased Integration of Marketing Strategies as Part of Growth Strategies
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5.2 Market Challenges
- 5.2.1 Budgetary Constraints and Lack of Penetration Among Smaller Companies act as a Barrier
- 5.3 Key Technological Innovations and Initiatives
6. MARKET SEGMENTATION
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6.1 By Organization Size
- 6.1.1 Small and Medium-sized Enterprises
- 6.1.2 Large Enterprises
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6.2 By Coverage
- 6.2.1 Full-service
- 6.2.2 Specialized Capabilities
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6.3 By Region
- 6.3.1 Riyadh
- 6.3.2 Jeddah
- 6.3.3 Dammam
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6.4 By End-user Industry
- 6.4.1 Technology and Telecom
- 6.4.2 Healthcare
- 6.4.3 Consumer goods
- 6.4.4 Financial services
- 6.4.5 Education
- 6.4.6 Retail and e-commerce
- 6.4.7 Manufacturing
- 6.4.8 Media and Entertainment
- 6.4.9 Government
- 6.4.10 Automotive
- 6.4.11 Travel
- 6.4.12 Others
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Creative Waves
- 7.1.2 Extend The Ad Network
- 7.1.3 WOW Marketing Agency
- 7.1.4 Advertising Ways Company
- 7.1.5 The Interpublic Group of Companies Inc.
- 7.1.6 Publicis Groupe
- 7.1.7 WPP PLC
- 7.1.8 Omnicom Group Inc.
- 7.1.9 Accenture Song (Accenture PLC)
- 7.1.10 Havas Saudi Arabia (Vivendi)
- 7.1.11 Dentsu KSA (Dentsu Group Inc.)
8. FUTURE OUTLOOK OF THE MARKET
Saudi Arabia Marketing And Advertising Agency Industry Segmentation
The Saudi Arabia marketing and advertising agency market is defined based on the revenues generated by marketing and advertising agencies operational in the KSA. The analysis is based on the market insights captured through secondary and primary research. The market also covers the major factors impacting the market's growth in terms of drivers and restraints.
The Saudi Arabia marketing and advertising agency market is segmented by organization size (small and medium-sized enterprises and large enterprises), coverage (full-service and specialized capabilities), region (Riyadh, Jeddah Dammam, and Rest of KSA), end-user industry (technology and telecom, healthcare, consumer goods, financial services, education, retail and e-commerce, manufacturing, media and entertainment, government, automotive, travel, and other end-user industries). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Organization Size | Small and Medium-sized Enterprises |
| Large Enterprises | |
| By Coverage | Full-service |
| Specialized Capabilities | |
| By Region | Riyadh |
| Jeddah | |
| Dammam | |
| By End-user Industry | Technology and Telecom |
| Healthcare | |
| Consumer goods | |
| Financial services | |
| Education | |
| Retail and e-commerce | |
| Manufacturing | |
| Media and Entertainment | |
| Government | |
| Automotive | |
| Travel | |
| Others |
Saudi Arabia Marketing And Advertising Agency Market Research FAQs
How big is the Saudi Arabia Marketing And Advertising Agency Market?
The Saudi Arabia Marketing And Advertising Agency Market size is expected to reach USD 2.26 billion in 2024 and grow at a CAGR of 5.61% to reach USD 3.18 billion by 2029.
What is the current Saudi Arabia Marketing And Advertising Agency Market size?
In 2024, the Saudi Arabia Marketing And Advertising Agency Market size is expected to reach USD 2.26 billion.
Who are the key players in Saudi Arabia Marketing And Advertising Agency Market?
Creative Waves, Extend The Ad Network, WOW Marketing Agency, Advertising Ways Company and The Interpublic Group of Companies Inc. are the major companies operating in the Saudi Arabia Marketing And Advertising Agency Market.
What years does this Saudi Arabia Marketing And Advertising Agency Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Marketing And Advertising Agency Market size was estimated at USD 2.13 billion. The report covers the Saudi Arabia Marketing And Advertising Agency Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Marketing And Advertising Agency Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Marketing And Advertising Agency Industry Report
Statistics for the 2024 Saudi Arabia ing And Advertising Agency market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia ing And Advertising Agency analysis includes a market forecast outlook for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
