Amid pandemic, Middle East adtech startups play essential role in business growth

Denis Lagutenko Contributor

Denis Lagutenko is the founder of digital marketing agency AdsProfit. He is an affiliate marketing expert and a member of Forbes Councils.

The pandemic’s impact on the business world encouraged adtech startups and digital marketing agencies to collaborate more, helping brands survive the pandemic by bringing businesses closer to consumers.

Although overall spending on advertising slowed in 2020, it is expected to recover in 2021 and reach $630 billion in 2024. According to Statista, North America spends the most on advertising, with second place going to Asia and Western Europe. The rest of Europe, Africa and the Middle East lag behind.

Although overall spending on advertising slowed in 2020, it is expected to recover in 2021 and reach $630 billion in 2024.

However, the Middle East embodies great potential. According to Statista, it boasts the highest growth, with a 600% increase in digital advertising in the MENA region between 2010 and 2015. Although consumers in the region used to prefer traditional advertising channels, the internet took over in 2020, with 44.2% of the total ad expenditures, while TV dropped to 30%.

Here are several essential characteristics of digital advertising in the Middle East region:

1. According to a PwC report, 39% of shoppers in the Middle East use social media to find inspiration for purchases, compared to the global average of 29%.
2. Due to the existence of a shadow economy, political regulations and unofficial business, the amount of digital ad spending in the MENA region ranged from $1 billion to $1.2 billion in 2020.
3. Paid social is the leading category in digital advertising expenditures in the MENA region. Saudi Arabia and Egypt are the largest in terms of active YouTube users.
4. There are more than 500 digital agencies listed in the region. UAE is leading in terms of big advertising agencies, while Egypt and Saudi Arabia are famous for small- and medium-size agencies. Most digital marketing talent and creative resources reside in Egypt, Lebanon and Jordan, while most adtech startups are born in Israel, UAE and Qatar, according to digital marketing consultant Yasser Ahmad.
5. E-commerce is driving growth, hitting $17 billion in the Middle East in 2020, according to Statista, with many online shoppers increasing the frequency of purchases during the pandemic.

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