By Staff writer
Orient Planet Research says boom in online ads being driven by surge in Arab world internet penetration
Increased internet penetration in the Arab world has led to a jump in the GCC region's online ad spending this year, with internet ads in the GCC set to grow 20 percent in 2017, according to a new report.
Research by Orient Planet Research said that the region's ad spending is poised to grow faster than the world average in the next five years and is set to register a growth of 25 percent this year.
According to the study, which outlines key trends in online advertising and e-commerce within the Arab region, internet advertising expenditure is forecast to grow globally at a compound annual growth rate (CAGR) of 11.9 percent until 2020.
Global ad spending in 2015 was recorded at $531 billion, with online ads making up 27 percent of the total amount.
The report said internet users in the Arab world are expected to reach 197 million by 2017.
Abdul Kader Al Kamli, research consultant, Orient Planet Research, said: "Organisations are slowly realising the importance of cultivating their online presence, which is no longer a luxury, but a necessity in today's increasingly more technological society.
"The shift towards a more knowledge based society has also driven growth in the market, and the rise of innovative programs has shown organisations how their company can greatly benefit from using online advertising to promote their products and services."
He said the Middle East has been experiencing exponential growth in online advertising spend, over the past few years, which is set to continue in the next few years.
"This is largely a result of the increased internet penetration in the Arab World, with recent studies noting that the number of Internet users in the Arab region is expected to increase to about 197 million by 2017," he added.