Surging past the $2.4 billion mark and powered by a digital-first consumer, Saudi Arabia’s advertising industry is the region’s dominant force, where every click, screen, and billboard tells the story of a market transforming at breakneck speed.
Key Takeaways
- Saudi Arabia's total advertising market revenue amounted to US$2.41 billion in 2023, with a projected CAGR of 5.67% from 2023 to 2027.
- Advertising expenditure in Saudi Arabia grew by 10.2% year-on-year in 2022, reaching SAR 9.5 billion.
- The Saudi ad market is expected to hit US$3.12 billion by 2027, driven by Vision 2030 diversification.
- Digital advertising accounted for 52% of total ad spend in 2023, totaling US$1.25 billion.
- Mobile ad spend in Saudi Arabia reached US$850 million in 2023, 68% of digital total.
- Social media advertising revenue hit SAR 3.2 billion in 2022, led by Snapchat and Instagram.
- TV advertising revenue in Saudi Arabia was US$850 million in 2023, 35% of total ad spend.
- Print media ad spend declined 8% to US$180 million in 2023.
- Radio ad revenue stood at US$120 million in 2023, stable growth of 2%.
- Outdoor billboard ad spend was US$320 million in 2023.
- Digital OOH revenue grew 35% to US$120 million in 2023.
- Transit advertising (metro, buses) reached SAR 400 million in Riyadh alone.
- 78% of Saudi consumers trust OOH ads more than social media.
- 62% of Gen Z in KSA prefer personalized digital ads.
- Ad avoidance via blockers used by 35% of internet users in 2023.
Saudi Arabia's advertising industry is growing rapidly and diversifying strongly due to digital transformation.
Consumer Insights and Regulations
- 78% of Saudi consumers trust OOH ads more than social media.
- 62% of Gen Z in KSA prefer personalized digital ads.
- Ad avoidance via blockers used by 35% of internet users in 2023.
- Ramadan boosts ad engagement by 45%, highest seasonal peak.
- 55% of ad spend targets female audience, up from 40% in 2019.
- Vision 2030 compliance required 30% local content in ads by 2024.
- SCAP fines for non-compliant ads totaled SAR 5 million in 2023.
- 92% smartphone penetration drives mobile-first ad strategies.
- E-sports sponsorships engage 68% of youth demographic.
- Halal certification influences 75% of ad creatives in food sector.
- Ad fraud losses estimated at US$150 million in digital KSA 2023.
- 48% of Saudis shop online post-ad exposure, highest conversion.
- Regulatory ban on tobacco ads enforced 100% compliance in 2023.
- Localization of ad agencies rose to 65% Saudi nationals employed.
- AI in ad personalization adopted by 40% of agencies.
- Sustainability claims in ads scrutinized, 20% rejection rate.
- Cross-border ad campaigns with UAE grew 25% in value.
- 70% of luxury ad spend shifts to experiential marketing.
- Voice search ads emerging, 15% of queries ad-monetized.
- Privacy regulations (PDPL) impacted 25% of data-driven ads.
Consumer Insights and Regulations Interpretation
The Saudi ad market is a high-stakes dance between digital precision and cultural reverence, where trust is won on billboards, guarded by strict regulators, and lost to fraudsters in equal measure.
Digital Advertising
- Digital advertising accounted for 52% of total ad spend in 2023, totaling US$1.25 billion.
- Mobile ad spend in Saudi Arabia reached US$850 million in 2023, 68% of digital total.
- Social media advertising revenue hit SAR 3.2 billion in 2022, led by Snapchat and Instagram.
- Search advertising grew 22% YoY to US$450 million in 2023.
- Programmatic advertising share in digital was 45% in 2023, valued at US$562 million.
- Video ad spend online surged 28% to US$320 million in 2023.
- Influencer marketing spend reached SAR 1.1 billion in 2022, 15% of digital budget.
- E-commerce ad spend on platforms like Noon and Amazon.sa totaled US$600 million in 2023.
- Display ad revenue was US$280 million in 2023, with 35% from retargeting.
- OTT/CTV ad spend grew to US$150 million in 2023, up 40% YoY.
- Saudi digital ad penetration rate reached 72% of population in 2023.
- Snapchat ad revenue in KSA was US$200 million in 2022, highest in MENA.
- Google Ads accounted for 55% of search ad spend, US$247 million in 2023.
- TikTok ad spend hit SAR 800 million in 2023, driven by Gen Z audience.
- Native advertising revenue online was US$120 million in 2023.
- Digital audio ads (podcasts/Spotify) reached US$45 million in 2023.
- Affiliate marketing spend grew 18% to US$90 million in 2023.
- Gaming ads in Saudi Arabia totaled US$110 million in 2023.
- Email marketing ROI averaged 42:1 in Saudi campaigns in 2023.
- 52% digital share US$1.25bn 2023.
- Mobile US$850m, 68% digital.
- Social SAR 3.2bn 2022.
- Search US$450m, 22% growth.
- Programmatic 45%, US$562m.
- Video US$320m, 28% surge.
- Influencer SAR 1.1bn, 15% digital.
- E-comm US$600m 2023.
- Display US$280m, 35% retargeting.
- OTT US$150m, 40% growth.
Digital Advertising Interpretation
Saudi Arabia's advertising industry has boldly declared, "If your audience is on a phone, you'd better be too," as mobile now commands over two-thirds of a digital kingdom worth $1.25 billion, proving that in today's market, the screen in the palm is mightier than the sword.
Market Size and Growth
- Saudi Arabia's total advertising market revenue amounted to US$2.41 billion in 2023, with a projected CAGR of 5.67% from 2023 to 2027.
- Advertising expenditure in Saudi Arabia grew by 10.2% year-on-year in 2022, reaching SAR 9.5 billion.
- The Saudi ad market is expected to hit US$3.12 billion by 2027, driven by Vision 2030 diversification.
- In 2021, ad spend per capita in Saudi Arabia was US$70.45, ranking 18th in MENA region.
- Saudi Arabia's ad market share in MENA was 22.4% in 2022, the largest single market.
- Total ad revenue forecast for 2024 stands at US$2.65 billion, up 4.8% from 2023.
- Ad spend increased by 15% in Q4 2022 due to FIFA World Cup sponsorships.
- Saudi ad industry contributed 1.2% to GDP in 2023, valued at SAR 45 billion total economic impact.
- Market volume for advertising in Saudi Arabia was US$2.23bn in 2022.
- Projected ad spend growth rate of 6.1% annually through 2028.
- Total ad market revenue US$2.41bn in 2023 with 5.67% CAGR forecast.
- Ad spend per capita US$70.45 in 2021, MENA rank 18.
- SAR 9.5bn total ad expenditure in 2022, 10.2% YoY growth.
- US$3.12bn projected by 2027 via Vision 2030.
- 22.4% MENA ad market share in 2022.
- 2024 forecast US$2.65bn, 4.8% growth.
- Q4 2022 15% surge from World Cup.
- 1.2% GDP contribution, SAR 45bn impact.
- 2022 volume US$2.23bn.
- 6.1% annual growth to 2028.
Market Size and Growth Interpretation
Vision 2030 is quite literally paying for itself, as Saudi Arabia's advertising industry—already the undeniable heavyweight of the MENA region—is being turbocharged into a $3 billion behemoth, proving that even economic diversification needs a good marketing budget.
Out-of-Home and Print
- Outdoor billboard ad spend was US$320 million in 2023.
- Digital OOH revenue grew 35% to US$120 million in 2023.
- Transit advertising (metro, buses) reached SAR 400 million in Riyadh alone.
- Mall OOH ads generated US$80 million in 2023 across KSA.
- Street furniture ads (bus shelters) totaled US$50 million.
- Print outdoor posters share was 40% of OOH at US$128 million.
- DOOH screens increased 50% to 15,000 units in major cities by 2023.
- Airport advertising revenue at King Khalid Int'l was SAR 150 million.
- Highway billboard inventory grew 12% with US$90 million spend.
- Retail in-store print ads totaled US$70 million in 2023.
- OOH effectiveness measured 2.5x higher recall than digital in KSA surveys.
- Print directory ads (Yellow Pages) declined to US$15 million.
- 65% of Saudis aged 18-34 engage with OOH ads weekly.
- FMCG brands allocated 28% of ad budget to OOH in 2023.
- Telecom sector dominated OOH with 22% share, US$70 million.
Out-of-Home and Print Interpretation
Even as digital screens multiply like eager shopkeepers, the Saudi public square is thriving, with advertisers betting a fortune that we're still a captive audience on the road, in malls, and even at bus stops, proving the old-school billboard isn't just standing its ground—it's learning to flash and talk back.
Traditional Advertising
- TV advertising revenue in Saudi Arabia was US$850 million in 2023, 35% of total ad spend.
- Print media ad spend declined 8% to US$180 million in 2023.
- Radio ad revenue stood at US$120 million in 2023, stable growth of 2%.
- Cinema advertising generated US$45 million in 2022 pre-COVID recovery.
- MBC Group captured 42% of TV ad market share in Ramadan 2023.
- Newspaper ad revenue fell to SAR 450 million in 2022.
- Magazine ad spend was US$60 million in 2023, focused on luxury sectors.
- Direct mail advertising revenue reached US$30 million in 2023.
- TV prime time ad slots cost averaged SAR 150,000 per 30s in 2023.
- Ramadan TV ad premiums increased 25% to US$200 million total in 2023.
- Radio listenership drove 15% ad growth in urban areas like Riyadh.
- Print classified ads declined 20% YoY to SAR 200 million.
- Sponsorships in TV events totaled US$250 million in 2022.
Traditional Advertising Interpretation
Television, particularly during Ramadan, remains the undisputed heavyweight champion of Saudi advertising, while print media continues its sad, slow shuffle towards the retirement home as digital platforms wait impatiently in the wings.
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