Saudi Arabia ing And Advertising Agency Market - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Saudi Arabia Marketing And Advertising Agency Market Analysis

The Saudi Arabia marketing and advertising agency market is expected to grow from USD 3.03 billion in 2025 to USD 3.19 billion in 2026 and is forecast to reach USD 4.14 billion by 2031 at 5.34% CAGR over 2026-2031. Vision 2030’s digital-first mandate, the creation of 525 fintech firms, and a USD 500 billion smart-city pipeline are steering budget reallocations from traditional to data-driven formats while preserving a robust out-of-home (OOH) footprint. Full-service networks benefit from large enterprise accounts that still favor integrated contracts, yet specialist shops are scaling quickly on influencer, gaming, and Arabic content briefs. Persistent talent shortages in artificial-intelligence (AI) mar-tech, compliance overhead in a conservative culture, and working-capital pressure from delayed public-sector payments temper the growth trajectory. At the same time, sustained government spending on healthcare, e-commerce, and mega-events injects multi-year visibility into agency pipelines, encouraging steady platform and people investments.

Saudi Arabia Marketing And Advertising Agency Market Trends and Insights

Surge in Digital-Ad Spend Driven by Vision 2030 Transformation

Middle East digital ad outlays quadrupled between 2022 and 2024, with the Kingdom contributing more than half of incremental spending. National ICT turnover reached USD 40.94 billion in 2023 and framed a data infrastructure that obliges ministries to default to online citizen services. The Saudi Data and AI Authority (SDAIA) links 66 Vision 2030 goals to AI implementation, pushing agencies toward advanced analytics offerings. In 2024, over 350 multinational firms established regional headquarters in Riyadh to retain public contracts; each relocation initiated immediate localization and digital-asset demands. Together, sovereign tech investment and mandatory e-government workflows lock in multi-year digital-media growth for the Saudi Arabia marketing and advertising agency market.

Accelerated E-Commerce and Fintech Ecosystem Expansion

Mada card spend hit SAR 14.11 billion (USD 3.76 billion) in February 2024, up 25% year-over-year, sustained by 97% smartphone penetration. National strategy envisions 525 fintech firms and 18,000 jobs by 2030, creating verticals payments, buy-now-pay-later, and open banking that demand rigorous regulatory-compliance messaging. Average annual online basket values have climbed more than 50% since 2023, compelling brands to fund precise performance campaigns. Every new fintech license translates into extensive go-to-market, customer education, and retention briefs that buoy the Saudi Arabia marketing and advertising agency market.

Talent Shortage in Advanced Mar-Tech Skills Constraining Growth

Digital roles represent only 1.7% of GCC employment versus 5.4% in the EU. While female labor participation rose to 35% in 2023, certified AI engineers and data scientists remain scarce. SDAIA’s commitment to train 20,000 specialists by 2030 mitigates but does not erase the gap. Competition from sovereign cloud providers and fintechs inflates wages, eroding agency margins and lengthening project timelines.

Other drivers and restraints analyzed in the detailed report include:

1. SME Sector Marketing Outsourcing Acceleration
2. Entertainment and Sports Mega-Events Marketing Pipeline
3. Brand-Safety and Cultural-Fit Compliance Creating Operational Overhead

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Large enterprises accounted for 66.10% of 2025 billings, anchoring the Saudi Arabia marketing and advertising agency market through multi-year retainers tied to Vision 2030 transformation programs. These accounts typically demand integrated ATL, digital, experiential, and compliance deliverables, justifying enterprise-wide scopes and sustaining the full-service agency tier. SMEs, however, are the growth propellant: their 5.94% CAGR rides on funding reforms, e-commerce legalization, and government procurement allotments.

Between 2026 and 2031, SMEs will inject a cumulative USD 1 billion in fresh annual media spend, steering boutique agencies toward performance-based contracts, influencer management, and light-touch creative-as-a-service models. Such agile propositions position SMEs to chip away at the incumbents’ hold, yet the resource-intensive tendering environment keeps the scale advantage with large networks.

Digital advertising secured 61.85% of Saudi Arabia's marketing and advertising agency market size in 2025 on the back of 99% internet penetration and mandatory e-government communications. Search, social, and programmatic video absorb the bulk of spend as ministries migrate citizen outreach online and retailers refine shoppable commerce. Traditional media preserves relevance for mass-reach national campaigns during Hajj, National Day, and mega-events, but its relative weighting continues to fade.

Data- and analytics-led services post the swiftest 6.58% CAGR, reflecting SDAIA’s USD 20 billion AI investment blueprint and the rollout of real-time identity platforms such as Nafath. Agencies capable of weaving first-party data, predictive modeling, and privacy-by-design stand to command premium pricing, creating a bifurcation between insight-rich consultative partners and commoditized media buyers.

The Saudi Arabia Marketing and Advertising Agency Market is Segmented by Organization Size (Small and Medium-Sized Enterprises and Large Enterprises), Service Type (Digital Advertising Services, and More), Coverage Model (Full-Service Agencies and Specialist/Boutique Agencies), Communication Channel (Social Media, Search and Performance, and More), and End-User Industry (Technology and Telecom, Healthcare, and More).

List of Companies Covered in this Report:

1. WPP plc
2. Publicis Groupe SA
3. Omnicom Group Inc.
4. The Interpublic Group of Companies, Inc.
5. Dentsu Group Inc.
6. Havas SA
7. Accenture plc
8. Stagwell Inc.
9. Hakuhodo DY Holdings Inc.
10. TBWA\Worldwide Middle East FZ-LLC
11. Serviceplan Group Middle East FZ-LLC
12. Extend Advertising Company
13. Creative Waves Advertising Company
14. Advertising Ways Company Ltd.
15. WOW Marketing Company
16. UBRAND Advertising Company
17. HyperThink Advertising Production House
18. Anamel Advertising Company
19. 8Points Advertising Company
20. Smart Touch Advertising and Promotion Co.
21. Al Raqi Advertising Agency Co.
22. Crowd Digital Marketing Co.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support