Streaming Is Becoming a Profitable Path for Advertisers
Streaming growth across the Gulf is accelerating the rise of Connected TV advertising, as Smart TVs, FAST channels, and data-driven targeting reshape how brands reach engaged audiences in MENA.
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Streaming is on the rise across the Gulf, which means advertisers are discovering new ways to connect with engaged audiences there and across the wider region.
Demand for consumer entertainment, at little to no cost, is enjoying record growth, driven by a mix of Arabic and English-language content, and underpinned by high internet penetration in the GCC countries.
Smart TVs, in many ways, have been the gateway to the streaming explosion globally, transforming TVs from a simple one-way device to the hub of the connected home. CTV, in turn, empowers brands and advertisers to harness the power of the new TV advertising age, powered by data and creativity.
TV advertising has never been more compelling for brands in the Gulf, and streaming is a big driver of that. Across the region, the numbers are rising steadily – as in Europe and the US, our research shows that Connected TV now leads at-home viewing.
In MENA, 67% of Samsung Smart TV owners say they’re subscribed to at least three different streaming platforms [source: GWI].
Gen Z, Smart TVs, and the New Prime Time
Younger audiences have jumped across with particular enthusiasm. Gen Z and Millennials, who are becoming far harder to reach with linear TV, have a higher chance of exclusively watching OTT TV.
In fact, many are on streaming platforms every day. GWI data shows that among 18-34-year-old Samsung Smart TV owners in the region, 89% identify their Smart TV as their primary screen for entertainment; they are also 66% more likely than the average online user to be heavy streamers.
Our own first-party viewing data further supports this: Ramadan, a key viewing moment in the region, drove TV usage across the region up by 42% after sunset during Iftar – soaring to 80% past midnight.
In a fragmented market, with linear TV declining and audiences spread across a multitude of apps and channels, reaching a mass audience has never been so complex.
The good news for advertisers is that the concept of an ‘unreachable’ streamer audience is slowly fading away.
Turning CTV Complexity into Opportunity
The challenge with today’s fragmented CTV landscape has now become identifying where audience members are going for their entertainment.
Just as viewing habits have changed, so have the possibilities of advertising, which can now include native advertising – high-impact premium home screen placements that capture users from the moment they switch on their TV.
On average, users navigate back to the home screen five times a day, in search of the perfect thing to watch or play next.
We also know that smart TV audiences appreciate relevant advertising and respond to relevant recommendations and messages. 37% want to see ads curated to their interests or the content they are watching. 45% say the primary way they find new products or brands is via ads on TV.
Of course, there is already a wealth of entertainment options available in the Gulf – including ever-shifting subscription TV and broadcast video on demand options, as well as traditional linear TV, new Advertising Video On Demand (AVOD) channels, and FAST TV.
The new TV landscape can be confusing for advertisers, but in a market where the enthusiasm for streaming is rising – even as subscription fees are heading in the same direction – FAST TV has a bright future in the Gulf.
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