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Advertising in Saudi Arabia Saudi Arabia is a major contributor to the Middle East, both financially and culturally. Many cultural and technological advances have changed the advertising landscape in Saudi Arabia in recent decades. The increasing access to the internet, the election of Prince Mohammed bin Salman and an evolving political system have set the stage for a modern system of advertising to take hold. While the Saudi government still adheres to traditional Islamic values and enforces strict religious regulations on all media content, advertisers on the web, TV and radio, newsprint and outdoor media have been allowed to flourish and develop creative, funny, and sometimes controversial campaigns.

A. History

In Saudi Arabia, advertising and the promotional industry did not begin to flourish until the 1980s. Leading up to this time, advertising was limited to local agencies that used techniques such as simple newspaper ads, billboards, and neon signs. Since local companies were familiar with their audiences, much of the advertising was done locally or “in-house” and there was not a large demand for ad agencies. This was a precedent for early advertising and a good way for companies/businesses to save money. Another strategy that was proven effective during this time was “word of mouth” communication. Agencies would hire people to spread messages that promoted their products and businesses.

As Saudi Arabia became the “world’s premier exporter of crude oil” and the market became more lucrative, this change prompted international marketers to take notice and begin building offices within the country. These international marketers began producing advertisements in the Kingdom strictly for the Saudi Market. They also began to ask “Saudi representatives to share some of their advertising activities through cooperative advertising schemes”. This allowed creative work in agencies to shift from being controlled by foreigners, to now beginning to incorporate more local expertise. Using local expertise helps to more effectively reach the target audience, as locals have a better understanding of the culture and the traditions that must be respected.

In response to this need for “local promotion capability,” Saudi businessmen began to establish their own advertising agencies. Thus, marked the birth of advertising in Saudi Arabia. People began to realize that within the rapidly growing market, advertising and sales had been incorporated in order to succeed. Advertising in Saudi Arabia is now the “largest advertising market in the region, accounting for 40% of all advertising expenditures in the Gulf alone”.

B. Regulation Saudi Arabia is an Islamic state, and it is the only country that applies the provisions of Islamic law according to the Quran. Due to the fact that religious beliefs can affect an audience’s attitudes toward advertising, advertisements in Saudi Arabia are subject to many controls (Rice & Al-Mossawi, 2002). The government controls the content, the method of organization and presentation, and the process of the ads (Albaqme, 2014). Advertising in Saudi Arabia represents a huge market, but in order to participate, ad companies must take into consideration certain conditions. Companies have to respect the rules of Saudi censorship. For instance, because they must observe the customs and traditions of the country, it was not allowed for them to publish any ads that have bold scenes, or someone who is eating with his left hand. It is not permitted to portray any non-Islamic religious symbols or photographs, paintings or sculptures representing a person or animal in advertisements, but this is not the case in other Arab countries where censorship laws are less stringent. (“Permitted and prohibited in Saudi advertising,” 2009). Today, because advertising in the Arab region ranks 12th in the global advertising market, and the size of the advertising market in Saudi Arabia reaches more than 2 billion dollars, advertising practices have progressed but some strict regulations remain the same.

C. Agencies

ASDA’A BCW

ASDA’A was founded by Sunil John in 2000 as an independent agency. Today, the agency is the leading PR consultancy firm in the Middle East and Africa with around 200 employees across 10 different offices and seven affiliates. The agency has more than 100 retained clients in the region. Some of ASDA’A’s most notable clients include: Ford of Arabia, Downtown Dubai, HTC Vive and the Federal Tax Authority. ASDA’A claims to have won more regional and international industry awards than any other agency in the Middle East. In 2008, the London-based advertising agency, WPP, acquired a majority-stake in the firm. This acquisition meant that ASDA’A was now part of the Burson-Marstellar global network. After a recent merger of Burson-Marstellar and Cohn & Wolfe, ASDA’A is now ASDA’A BCW. Sunil John continues to lead the agency as President. M&C Saatchi UAE

Maurice and Charles Saatchi was founded as an advertising network in 1995. In 2012, M&C Saatchi opened its office in Abu Dhabi. The company expanded its reach in the Middle East in 2016 when it opened its office in Dubai. Today, M&C Saatchi claims to be the largest independent network. The CEO of the agency’s UAE network is Scott Feasey. Some of M&C Saatchi’s clients include: Abu Dhabi Tourism & Culture Authority, Mashreq Bank, Shell, Lipton and Etihad Airways. One of M&C Saatchi’s most successful and well-known campaigns was their ‘Flying Reimagined’ campaign in 2015. This campaign was done for Etihad Airways and featured actress Nicole Kidman. Sara United Advertising (SUA)

Sara United advertising was founded in 1999 as a creative digital advertising agency. The agency focuses on integrated digital advertising and strategic marketing planning. SUA also specializes in 3D exhibitions and 3D media. SUA has around 20 employees and is led by its operations and creative director, Mohammed Nagah. SUA is a member of Sara Group Holdings, a brand and company network. On its website, SUA features a large client list including government agencies, oil companies and other retailers.

D. Platforms

Saudi Arabia has all of the major platforms advertisers regularly use. Television, radio, and newsprint are primarily state-run, but many households in the country have access to satellite television and receive programming from outside of Saudi Arabia (santandertrade.com, 2018).

Newsprint

Newsprint advertising is the powerhouse of the advertising world, but with the majority of the population relying on newspapers less and less, the revenue streams have dwindled. Ads are sold by the inch.

Accounts for 23% of the total advertising expenditure in 2016. (Mideastmedia.org, 2016)

As of 2019, classified rates at the English print newspaper “Arab News” are as follows: 100 SR for Text Ads (individual) 150 SR for Text Ads (corporate, excluding job listings) 200 SR for Classified Ads 5 cm x 1 Col. (Black & White) 300 SR for Classified Ads 5 cm x 1 Col. (colored) (arabnews.com) Popular newspapers in Saudi Arabia http://www.alwatan.com.sa/ http://www.okaz.com.sa/ http://www.al-jazirah.com/ http://www.alhayat.com/ https://aawsat.com/english http://www.alriyadh.com/

Radio

Radio advertising is like television Saudi Arabia, advertising is heavily regulated by the government; however, the majority of the country has internet access which allows its citizens to listen to radio from all over the world. The SBA lists five domestic stations. When listening to ads, the sound is similar to common radio ads from around the world. (SBA.sa)

Accounts for 22% of the total advertising expenditures in 2016. (Mideastmedia.org, 2016)

Popular Radio Broadcasters in Saudi Arabia http://www.sba.sa/channels/ https://www.liveonlineradio.net/fr/category/saudi-arabia http://www.mbc.net/ar/mbc-fm.html

OOH

Outdoor advertising consists of billboards or building ads, buses or other vehicles, street furniture and any other format that consumers may encounter outside of the home. Accounts for 33% of the total advertising expenditures in 2016. (Mideastmedia.org, 2016)

Popular outdoor advertising agencies in Saudi Arabia https://www.alj.com/en/advertising-media/ http://saudisignsm.com/

Television

Television advertising is heavily regulated by the government; however, many households in Saudi Arabia have access to satellite television. Domestic broadcasts run by Saudi Arabia’s Saudi Broadcasting Authority (SBA). The SBA lists 6 channels (SBA.sa). The SBA recently changed its name from the Saudi Broadcasting Corporation. The company has plans to increase its revenues and has updated its programming strategies to attract advertisers that have traditionally advertised elsewhere relying on the satellite (networkarabianbusiness.com).

Accounts for 1% of the total advertising expenditures in 2016. (Mideastmedia.org, 2016)

Popular TV Networks in Saudi Arabia http://www.sba.sa/channels/ http://artonline.tv/home/ http://www.mbc.net/en.html http://www.stv.sa

Internet

Internet/Social Media advertising t has increased its presence in Saudi Arabia faster than anyone could have expected. With it, the revenue streams for internet advertisers. Arab websites use border ads and pop-ups. Ads are priced by the inch and advertisers are often charged per click. Popular internet advertising companies in Saudi Arabia http://bassmat.com/ http://www.solutel.sa/ https://solutiondots.com/

3. References

1. Albaqme, A. S. (2014). Consumer Protection under Saudi Arabia Law. Arab Law Quarterly, 28(2), 158-175.

2. Rice, G., & Al-Mossawi, M. (2002). The implications of Islam for advertising messages: The Middle Eastern context. Journal of Euromarketing, 11(3), 71-96.

3. New Saudi TV station feeds into modernization drive. (2018, May 13). n/a. Arabianbusiness. Retrieved from https://www.arabianbusiness.com/media/396366-new-saudi-tv-station-feeds-into-modernisation-drive

4. Saudi Arabia: Reaching the consumers. (……). n/a. Santander. Retrieved from https://en.portal.santandertrade.com/analyse-markets/saudi-arabia/reaching-the-consumers

5. Permitted and prohibited in Saudi advertising. (2009, July 20). n/a. Observers. Retrieved from https://observers.france24.com/ar/20090720-saudi-arabia-advertising-censorship-religion-women

7. History – ASDA'A BCW | Dubai PR Agency, Public Relations Agency, PR Consultancy Dubai, PR Company, PR Jobs. (n.d.). Retrieved from https://asdaa-bcw.com/en/about-us/history/

8. M&C Saatchi UAE. (n.d.). About. Retrieved from http://www.mcsaatchi.ae/about.html

9. Mideastmedia.org. 2016. Retrieved from http://www.mideastmedia.org/industry/2016/advertising/

10. Arabnews.com. 2016. Retrieved from http://www.arabnews.com/%5Btermalias-raw%5D/classified-ads-arab-news

11. Orham Erdem, Secil Tuncalp, (1998) "Advertising agency scene in Saudi Arabia," Management Research News, Vol. 21 Issue: 1, pp.1-8, https://doi.org/10.1108/01409179810781301

12. Julie HESBOIS, (2008-2009) “Advertising in Saudi Arabia,” http://defidocs36.tice.ac-orleans-tours.fr/eva/sites/cpaml36/IMG/pdf/Memoire_final.pdf

13. Statista.com. 2019. Retrieved from https://www.statista.com/outlook/216/110/digital-advertising/saudi-arabia#market-revenue

14. About Sara United Advertising, SUA. (n.d.). Retrieved from https://saraunited.com/about-sua/