Economic View

On how social media and AI are reshaping advertising and marketing

In which key ways is Saudi Arabia’s advertising segment evolving, and what standout opportunities does this present?

ELDA CHOUCAIR: Media agencies have reinforced their presence in Saudi Arabia since 2020, investing in regional headquarters, new offices and upskilling programmes. The most prominent growth opportunities are in the digital segment, driven by the Kingdom’s large-scale social media consumption. Snapchat and TikTok register some of the highest usage statistics globally, leading to a ‘social-first’ approach in advertising planning and buying. The industry is becoming more sophisticated, utilising tools to link advertiser spend to return on investment (ROI). For international players, opportunity lies in leveraging this digital-first consumer behaviour and the Kingdom’s commitment to growth. Traditional channels and live sports remain a powerful vehicle, offering a localised solution – including outdoor media, which is expanding and increasingly digitalised – to Saudi businesses.

How are emerging technologies reshaping advertising, and which strategic challenges remain in the Saudi market?

CHOUCAIR: Technology, namely artificial intelligence (AI), is fundamentally changing our industry. As media agencies manage advertisers’ budgets, we must constantly evolve our skill sets to navigate shifting platforms. There is a clear shift in the DNA of advertising towards technology and data, where understanding the science is as crucial as the art. AI is democratising content creation, making it more accessible for creative talent. However, challenges persist. There remains a lack of Arabic content within the GCC, requiring considerable long-term investment that may not yield immediate ROI. Lastly, a mindset shift is required to view marketing as a long-term investment in brand equity, rather than just a cost. Any brand that stops investing will risk regression.

This piece is part of a wider study, produced in partnership with Gmedia, on the sector trends and investment opportunities in Saudi Arabia’s media landscape, which you can read in full here.