TITLE: CEO of OMD MENA
YEARS IN THE ROLE: 2.5 years
YEARS IN THE INDUSTRY: 18 years
YEARS IN THE MIDDLE EAST REGION: 18 years
OTHER ROLES: Member of IAB, Emir, and The Marketing Society
POWER ESSAY: Shift the mindset
Global ad spend is set to reach a historic milestone, surpassing one trillion dollars for the first time
this year. This 13-digit figure underscores the growing importance of advertising in today’s digital-driven economy.
In the MENA region, however, ad spending varies significantly, ranging from a modest 10 billion to an optimistic 18 billion dollars, depending on the report. Despite this wide range, it’s clear that MENA’s ad market is still considerably smaller than those in many developed countries. Even when considering the higher figure of 18 billion dollars, the ad spends per capita in MENA remain roughly 10 times lower than in Germany, 15 times lower than in the UK, and 35 times lower than in the US.
These figures should prompt readers and marketers to pause and consider the under-indexation of MENA ad spend compared to global markets. While this presents challenges, it also offers significant opportunities for growth.
In this article, I will not be able to point out all the opportunities and challenges of the MENA ad industry, but rather will focus on a specific aspect: how consumers have shifted their behaviour and consumption patterns, and how industry specialists should adapt to these changes.
For years, TV advertising dominated MENA advertising investments. However, recently we have seen digital advertising surpassing TV and accounting for more than half of the total ad spend. Of these digital expenditures, over three-quarters (some reports claim 90 per cent) are concentrated on Meta, Google, TikTok, and Amazon.
This shift is unsurprising given the technological advancements, innovation, and accessibility of these platforms. Search ad spending constitutes more than 30 per cent of global ad spend, compared to 14 per cent in the MENA region. Yet, we’re witnessing a dramatic shift in how people search for information.
I can’t recall the last time I searched for a restaurant on Google. Nowadays, people often find it easier to browse Instagram for pictures of meals. Similarly, they turn to X for real-time news and rely on TikTok for the latest recipes.
By adopting AI, businesses can make faster decisions and gain a competitive edge.
Technological advancements have introduced new search formats like Circle to Search on Android devices, streamlining the search process by eliminating the need to switch apps. Moreover, the growing popularity of AI language models like ChatGPT and Gemini suggests that a significant portion of future searches will occur within these platforms.
To succeed in the search landscape, marketers must deeply understand how consumers search for their brands and shift their strategies accordingly.
E-commerce has dramatically transformed consumer buying habits. In KSA and UAE, a staggering 91 per cent and 96 per cent of consumers, respectively, have embraced online shopping, presenting a significant opportunity for marketers.
Globally, retail media accounts for one-fifth of total ad spending. However, in the MENA region, retail media is still in its nascent stages and is significantly underdeveloped compared to the size of the commerce market, estimated to reach $57bn by 2026.
As shoppers become more accustomed to the online shopping experience, coupled with the convenience of financial services like Tabby and Tamara, we can expect a shift towards retail media.
Amazon ads can further enhance brand and retailer performance, especially with their partnership with TikTok. This partnership allows for seamless in-stream purchases, eliminating the need to navigate to the Amazon app or website.
To accelerate growth, brand marketers should reassess their strategies and shift their focus towards improving their commerce ecosystems. By addressing the shortcomings in their online shopping experiences, marketers can better capitalise on the growing e-commerce market in the MENA region.
Finally, like all recent articles, AI should have their own dedicated section. AI is a dominant force in today’s technological landscape. Earlier this year, Chat GPT unveiled GPT-4, demonstrating significant advancements in intelligence and capabilities. Apple showcased its AI prowess and demonstrated it with the launch of iPhone 16, while Google quietly integrated Gemini AI into Chrome’s address bar.
These developments will revolutionise how people search, consume, learn, and purchase. As a result, we can expect a shift in how brands utilise AI. By adopting AI, businesses can make faster decisions and gain a competitive edge.
Accordingly, agencies, whether creative or media-focused will have to shift their focus, embracing AI to fuel their tools and shifting their search for talent, hiring those who are AI-fluent.
The future of advertising globally and in the MENA region is bright, but it requires a concerted effort from marketers and industry leaders to navigate the complexities and capitalise on the potential. Those who embrace these shifts will be better positioned to succeed. Those who fail to adapt to those shifts may find themselves at a disadvantage.
CAREER HIGHLIGHT
Witnessing my team’s growth and success is one of my most fulfilling career achievements. It’s incredibly rewarding to witness their development over the year and seeing them become seasoned professionals; watching them take on new challenges, learn new skills and work towards their goals is something I am very proud of.
RAPID FIRE
Focus for the next 12 months?
Read more.
Buzzword we need to kill?
“Thrilled to announce”.
Biggest blessing in your life?
After visiting Uganda, Rwanda and Kenya this year as part of a company initiative to support Médecins Sans Frontières (MSF), my biggest blessing is that my family has a roof to sleep under and food they can eat.
Value/principle that matters the most?
Treat people with respect.
Next travel destination?
For work, Saudi Arabia. For leisure, Lebanon.
What is your pet peeve?
Those who don’t take care of their health.
What are you reading?
‘Good to Great’ by Jim Collins
Favourite hobby?
Running.
Top tip?
Don’t limit your potential by limiting your belief.
