Saudi Arabia’s Digital Revolution: Impact on the Digital Out-Of-Home (DOOH) Market
Introduction:
Saudi Arabia, a country known for its rich cultural heritage and oil reserves, has recently been making waves in the digital world with its rapid technological advancements. This digital revolution has not only transformed the way people live and work in the country, but it has also significantly impacted the Digital Out-of-Home (DOOH) market. With the increasing use of smartphones, tablets, and other digital devices, Saudi Arabia has seen a significant shift in its advertising and marketing strategies, leading to a booming digital out-of-home market.
The DOOH market refers to the use of digital screens and displays for advertising and marketing purposes, replacing traditional static billboards and posters. This includes digital signage, digital billboards, and digital kiosks, among others. With the rise of digital media consumption and the growing number of internet users in Saudi Arabia, the DOOH market has become a highly lucrative industry, offering endless possibilities for businesses to reach their target audience.
One of the key factors driving the growth of the DOOH market in Saudi Arabia is the country’s high smartphone penetration rate. With a large number of people constantly glued to their smartphones, the DOOH market offers an excellent opportunity for businesses to target consumers effectively. Digital screens strategically placed in high-traffic areas such as malls, airports, and public transportation have proven to be an effective way to capture the attention of consumers. For instance, The National Transformation Program (NTP) and Vision 2030, launched by the government, aim to diversify the country’s economy and reduce its dependence on oil.
The National Transformation Program (NTP) 2020, has set a goal to increase the contribution of the digital economy to the country’s GDP to 50% by 2030.
In 2018, Clear Channel, a global leader in outdoor advertising, entered into a partnership with Dawiyat Integrated Telecommunications and Information Technology Company to launch digital billboards in the country. This partnership is expected to bring in advanced digital advertising solutions and further drive the growth of the DOOH market in Saudi Arabia.
The shift towards digital out-of-home advertising has been driven by a number of factors, which have all contributed to the success and growth of this market in the Middle East. The various driving factors that have led to the rise of the Middle East DOOH market and how they have impacted the region are:
- Increasing Digitalization: With the rise of digital media, there has been a significant increase in the use of digital screens for advertising purposes. This has led to the growth of the DOOH market in the Middle East, as businesses and organizations look for new and innovative ways to reach their target audience. The Middle East has seen a significant increase in advertising spending in recent years, with businesses looking for new and effective ways to promote their products and services. This has led to a rise in demand for DOOH advertising solutions. With an effective digital ads; companies can easily engage their targeted audience to their product and services. It will also help them in boosting up their brand recall and overall image. Saudi consumers are increasingly spending time in digital environments, making DOOH an ideal channel for reaching them. Interactive advertising in Saudi Arabia helps companies to make their message more insightful and memorable in their targeted audience mind. Several notable developments in the Saudi DOOH market have occurred since 2020:
- Launch of 5G Network: The rollout of 5G networks has significantly improved connectivity and data speeds, paving the way for advanced DOOH applications and experiences.
- Investment in Smart Cities: Saudi Arabia’s investment in smart cities has created new opportunities for DOOH deployments. Smart city infrastructure, such as sensors and cameras, can be integrated with DOOH platforms to enhance audience measurement and content delivery.
- Cost-Effective: DOOH advertising is a cost-effective solution for businesses, as it eliminates the costs associated with traditional print advertising. This makes it an attractive option for businesses of all sizes, including small and medium enterprises.
- High Return on Investment (ROI): With the advancements in technology and the ability to target specific audiences, DOOH has a higher ROI compared to traditional advertising methods. This has made it a preferred choice for businesses looking for effective and efficient advertising solutions. DOOH provides advertisers with a high return on investment (ROI) due to several factors:
- Precision Targeting: Precise targeting capabilities ensure that ads reach the right audience, reducing wasted impressions and increasing campaign effectiveness.
- Immersive Experiences: Captivating and immersive experiences create a strong and memorable brand connection, leading to higher recall and purchase intent.
- Real-Time Optimization: Data analytics and real-time optimization allow advertisers to adjust their campaigns based on performance metrics, maximizing ROI.
- In 2023: Dubai Holding launches a new DOOH network in Saudi Arabia, expanding its reach into the region.
- In 2022: Saudi Telecom Company (STC) signs a partnership with Outbrain to enhance its DOOH capabilities and deliver targeted advertising solutions.
- Flexibility and Customization: DOOH advertising offers businesses the flexibility to change and update their content as needed, allowing for real-time promotions and targeted campaigns. This level of customization has made DOOH an effective marketing tool for businesses in the Middle East.
- Creative and Dynamic Content: With DOOH, businesses have the ability to create dynamic and eye-catching content, making their ads more memorable and impactful. This has helped businesses in the Middle East to stand out in a crowded market and increase brand awareness.
- Rise of Programmatic Advertising: Programmatic advertising, which uses algorithms to automate the buying and selling of ad space, has become increasingly popular in the Middle East. This has led to a rise in demand for DOOH solutions that can be easily integrated with programmatic advertising platforms
- Technological Advancements: One of the key driving factors behind the growth of the Middle East DOOH market is the rapid advancements in technology. This includes the development of high-resolution displays, interactive touch screens, and advanced software that allows for targeted and personalized advertising.
- Government Initiatives: The governments in the Middle East have been investing in the development of smart cities and digital infrastructure, which has created a favorable environment for the growth of the DOOH market. This has also led to the adoption of DOOH in government-led advertising campaigns. Government of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said that all indicators point to the success of Dubai’s plans and programmes in smart transformation and validate the steady progress the Dubai government has made in achieving the vision and directives of Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum in making Dubai the smartest city globally.
Conclusion:
One of the most significant impacts of Saudi Arabia’s digital revolution on the DOOH market is the availability of new and advanced technologies. With the increase in internet penetration and the widespread use of smartphones, there has been a rise in the demand for digital advertising. This has led to the development of innovative technologies such as digital billboards, interactive displays, and augmented reality (AR) advertising, which have transformed the way outdoor advertising is perceived and consumed.
Moreover, the digital revolution has also brought about a change in consumer behavior. People are now more connected than ever, and their attention span has become shorter. This has led to a shift in the way advertisements are delivered, with a focus on creating immersive and engaging content. DOOH advertising has become more dynamic and personalized, with the ability to target specific demographics and locations, resulting in a higher return on investment for advertisers. In conclusion, Saudi Arabia’s digital revolution has had a significant impact on the DOOH market, bringing about new opportunities and challenges. The availability of new technologies, changes in consumer behavior, and the government’s support have all contributed to the growth of this market. As the country continues to embrace digitalization, the DOOH market is expected to witness further growth and innovation, making it an exciting time for advertisers and consumers alike.