When it comes to business expansion, 90% of the company's focus on Western Europe or North America (USA, Canada) to grow. However, there is one huge market that is worthy of exploring: the Middle East. Let’s look at the differences between advertising in the Middle East and Western markets.
The Middle East has a population of almost 400 million people. It expands from Morocco in Western Africa to Saudi Arabia in the Arabian Peninsula. Most of the population is Muslim and speaks Arabic; however, in a city-state such as Dubai, you can find people from all over the world.
The Middle East is a region with unique marketing. Below are the key market specifics.
Advertising in the Middle East
A recent report by McKinsey & Company found that for every dollar spent in the Middle East, a company can reach out to over 4 people. The Middle East is generally seen as an attractive market for marketers who are looking to increase their brand awareness. The Middle East is an attractive market for marketers. It has a growing middle class, a large population, and high rates of internet usage. It is also a region with many different cultures and religions, which makes it particularly interesting to study.
The growth of mobile technology in the region has also helped with the increased use of advertising in the Middle East. One example of this is Dubai’s use of digital billboards to promote tourism in their city.
Advertising in the Middle East is a complicated task. It requires a lot of research and understanding of the people and their culture. The Middle East has changed over time, so it's important to understand what's happening in this region as well as how to adapt to it. Many factors affect the advertising industry in this region.
Also Read: Contribution of ERP in the Middle East Economy
Middle East Market Size
The market in Arab countries is growing fast. In recent years, the market and advertising in the Middle East have become attractive thanks to several reasons.
The first is demographics. Almost 50% of the population in the area is around the age of 25. Thus, they spend much more time online, specifically on social media than older generations. This can be a benefit for consumer-oriented industries with entertainment, food, beverage, fashion, or electronic products.
Fun fact: The Gulf area has the highest spending on cosmetic products per capita in the world and the market is still growing.
Also, many of them have high-income jobs or are affluent entrepreneurs, making them an ideal consumer group for luxury brands and electronics. This translates to higher revenue per customer and higher customer value.
Corporations own the largest market share
Competition in the Middle East is not very high; it’s just dominated by a small number of big brands. Everything, from electronics, media, beauty, or even restaurants is owned by big brands and supported by local investors. On the other hand, small local companies tend to fail, as Arab consumers are used to buying products from the same brands.
Seemingly, big brands are becoming a symbol of status. Since the market opened in the 80s, massive investments have flown into regions focused on advertising and it's not stopping. Budget plays a key role here in the advertising in the Middle East.
Take a look at the table below for the most popular brands in UAE. The only local brand is Emaar, a real estate developer. That speaks for itself.
Top 10 most popular brands in UAE
| Rank | Brand | Score |
| 1 | Emirates | 57,5 |
| 2 | 45,1 | |
| 3 | Samsung | 44,6 |
| 4 | Carrefour | 43,3 |
| 5 | Samsung Galaxy | 42,4 |
| 6 | YouTube | 42,0 |
| 7 | iPhone | 41,2 |
| 8 | Apple | 40,7 |
| 9 | Emaar | 40,7 |
| 10 | 39.7 |
Not ideal for startups
Have you ever thought about the fact that all new technologies have come from the West, especially the USA? Computers, the internet, smartphones, social media, and electric cars, all of came from California, mainly Silicon Valley.
But there is no similar place in the Middle East. Dubai is the best place to do business, but it's not known to be the birthplace of new ideas and technologies. As mentioned above, new products and services are not easy to market, as they face competition from big established markets that own most of the market share.
Fewer customer personas
Arab consumers, in comparison to Europeans and Americans, are easier to segment and you will spend less time creating your ideal customer personas. Unlike in the West, however, traditional surveys are not an ideal way to do so. Consumers in the Middle East do not share their honest opinions and are more conservative. It's better to use social media engagement or monitor trends to define the key motivations of potential customers for advertising in the middle east.
It's also important to localize your marketing strategies for the goal market such as user experience, creatives, and channels. To do that, you will need locals to create your marketing message. Alternatively, you could find an expert for local culture.
Common marketing tactics are the way to go
Many big brands have used the same marketing tactics in local regions for many years for a simple reason - it's working. If it's not broken, don't fix it. Locals are still influenced by media and general marketing campaigns instead of personal experiences.
You need to think about the social impact
Most Arab consumers tend to buy the same brands within their social circle. They are afraid to choose something based on their personal need because it can lead to friends and relatives judging them. The whole idea is to appease people to boost their social appearance.
Different standards for quality and service
In many Western markets, you have comparison websites that focus on product reviews. Many consumers buy products based on these reviews and they play a major role in buying decisions.
In comparison to advertising in the Middle East, there is nothing like this. People buy things because they enjoy it. They don't look at products as a long-term investment or plan; it’s solely entertainment for them.
Don’t Let Go Upcoming Trends of Advertising in the Middle East
Just like the not-stopping digital world, trends of marketing in the Middle East also change. Increasing usage of 5G is very likely to change the whole concept of delivering and consuming ads. Brands are now focusing on AR and VR to create more engaging experiences for consumers. Such technology allows brands to show their products in innovative ways, moving toward an interactive mode of marketing in the Middle East.
Not only that, but social media has also become a critical method for building brands. Similarly, influencer marketing is becoming a trend, where local influencers are bringing a new pool of audience for brands.
The more authentic and relevant the influencer, the more this will help build brand credibility and raise consumer awareness. Companies have to work on finding and building relationships with such influencers who represent their brand and can connect well with their target audience.
Overlooking Culture Sensitivity and Localization for Advertising Can Be A Huge Mistake
Other major areas of concern for marketing in the Middle East are cultural sensitivity and localization. The Middle East is one of those regions where cultures, traditions, and languages vastly differ from others. Marketing campaigns should be made in a way that mirrors local values, customs, and tastes.
What you want to say in your ads should need to be planned in such a manner that the your ad campaign must touch the hearts of locals. For example, holiday-themed promotions around Ramadan or Eid can be a smart move to build a strong relationship with your target audience.
Localization is not just translating your ads into different languages. This is all about knowing the regional shades and applying them to your marketing game. You can use the use of visuals, colour schemes, and messaging that resonate with local tastes and sensibilities.
Must Follow These Regulations for Marketing In The Middle East
If you want to start advertising in the Middle East, you should know about some regulations. In fact, each country in the Middle East region has a set of rules for running online ads. By understanding the following, you will be able to protect yourself from any possible issues and gain more trust with your target audience.
Here's what you should keep in mind:
- Make sure that your ads do not contain any aspect that may be offensive to the local culture or religion.
- Most countries in this region have stern legislation with regards to the processing of information about users. Ensure that user data is kept safe and abide by these laws.
- Some regions demand that your ad be reviewed and approved by local authorities before publication. This will more than likely impact your timeline to begin your campaign.
- In addition to translating your ad into the local language, you may also have to employ local dialects for better identification with and relating to your audience.
Final thoughts
Advertising in the Middle East is not better or worse than in the West; it's just different. To begin, you first need to understand the market. To do that, you either need time and budget to try, fail, and repeat. Or, as most of the companies do, you will find a local marketing agency to help you with your advertising efforts. Let GO-Globe help you with a marketing strategy and advertising in the Middle East. Contact us today, and let’s make something happen together.
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FAQs
1. Why should our company think about expanding into the Middle East?
Expanding into the Middle East offers an opportunity for growth given its nearly 400 million population and a rapidly expanding middle class. The region has internet usage and a young tech savvy demographic making it an appealing market for digital marketing and consumer focused industries. Moreover, the cultural diversity in the region allows for marketing strategies to reach different audiences effectively.
2. What are the primary obstacles of advertising in the Middle East?
Advertising in the Middle East demands an understanding of local cultures, religious sensitivities and social dynamics. The market is dominated by a major brand posing challenges for smaller businesses to establish themselves. Furthermore, traditional advertising methods like surveys may not yield desired results requiring marketers to adjust their approaches to resonate with a conservative and diverse audience.
3. How does the Eastern market differ from Western markets?
The Eastern market stands out due to its unique cultural and social norms. In contrast to markets where consumers rely heavily on product reviews and comparison sites consumers in the Middle East base their purchasing decisions, on enjoyment and social influence.
The market in the Middle East is less crowded, with a well-known brand dominating the scene and there is a strong focus on brand loyalty within social circles.
4. Which industries thrive in the Middle East?
Industries that cater to the regions prosperous population, such as luxury goods, electronics, cosmetics and entertainment tend to do well in the Middle East. There is also spending on beauty products and luxury items making it a profitable market for brands targeting these segments.
5. Is it important to customize marketing strategies for the Middle East?
Yes, tailoring marketing strategies to suit the Eastern audience is crucial. The diverse cultures and languages of the region necessitate tailored messaging that resonates with communities. Working with experts or cultural consultants can help ensure that your marketing efforts are impactful and culturally sensitive.
6. What role does social media play in advertising in the Middle East?
Social media holds sway in the Middle East especially among its younger demographics. Platforms like Instagram, Twitter and Facebook are widely. Offer valuable insights into consumer behavior. Engaging with customers, on media provides a more effective way to understand their preferences and motivations compared to traditional survey methods.
7. How can GO Globe assist with marketing in the Middle East?
GO Globe provides marketing plans tailored specifically for the Middle Eastern market. Leveraging our in depth knowledge of the regions characteristics we can guide you through the intricacies of advertising in the Middle East to ensure that your brand resonates with the appropriate audience. Reach out to us today to explore how we can facilitate your business expansion into this market.
8. What key factors should be considered when launching a business in the Middle East?
When embarking on a business venture in the Middle East it is crucial to take into account aspects such as nuances, legal prerequisites and prevailing market conditions. Adapting your business model to suit consumer behavior and conforming to regional standards can greatly influence your chances of success. Collaborating with professionals and devising a targeted marketing strategy that resonates with the local populace are essential steps towards establishing a strong presence in the region.
9. Is the Middle East an environment for startup ventures?
Although there are opportunities in the Eastern market startups may encounter obstacles due to well established brands and a consumer base that prioritizes familiarity. Nonetheless startups offering value propositions and adjusting their approaches to align with local tastes stand a chance, at thriving amidst competition.
Understanding the market thoroughly and being ready to navigate its complexities is crucial. Cultural sensitivity plays a role in Middle Eastern marketing. Given the cultures and significant religious values, in the region marketers must tread carefully to ensure their messages do not cause offense. It is essential to grasp customs, traditions and social norms to develop successful and respectful marketing strategies.
