Saudi Arabia's creative and media industry on course for continued expansion, says GroupM MENA head
DUBAI: Multinational advertising network WPP's media investment business, GroupM MENA, aims to “shape the next era of media, where advertising works better for people”, said Amer El-Hajj, who became its CEO last September.
“This has been our focus at 'North Star,'” he told Arab News. In support of this goal, the company has set new “benchmarks for customer satisfaction, talent cultivation and industry influence” and is “actively shaping our proposition, best practices and strategies to lie one step ahead of industry trends,” he added.
GroupM said it won 10 new clients in the first six months of this year, already marking 2024 as the most successful year to date in the region, with 40 percent growth in billings compared to 2022. The companies it has added to its books include L'Oreal Middle East, Al-Fardan Jewelry, Americana Foods, Diriyah Gate Development Authority, telecom company du and snack company Mondelez.
It attributed the success to an organizational transformation, including a new business development team, a restructured purchasing, finance and operations department and a focus on hiring new talent while retaining and developing existing talent.
Many of the new hires are at the group level, the company said, including regional director of customer experience, data and technology; eCommerce Director; head of purchasing; and head of marketing and communications.
Like other industries, the media sector is becoming more dependent on the latest technological developments. For example, the media buying process is becoming increasingly automated thanks to improvements in artificial intelligence, which can use algorithms to buy advertising space in real time, target different audiences on multiple platforms, and even display different advertising messages depending on factors such as time of day or type of audience.
A 2023 PwC report found that 67 percent of leaders in the technology, media and telecom sectors believed that new technologies such as generative AI threaten current business models. However, El-Hajj said GenAI facilitates the creation of real-time content that can be customized and tailored to the target audience's individual preferences, which in turn improves the automation and effectiveness of advertising campaigns.
Within organizations, he added, it can serve as an important tool in efforts to streamline operational processes, including repetitive tasks, leading to greater efficiency and more cost-effective results.
Still, he warned, companies must not rely solely on AI without some human input and adequate quality controls.
“AI may lack the understanding of our culture and habits that is essential for nuanced advertising,” El-Hajj said. “Additionally, navigating regulatory complexity and addressing data integrity issues are critical considerations.”
The continued development of technology means that companies constantly need to retrain their talent. A recent report by the World Economic Forum, titled “The Transformational Opportunity of AI on ICT Jobs,” found that 58 percent of employees believe their job capabilities will change significantly in the next five years as a result of AI and big data. In addition, 92 percent of technology roles are expected to evolve in response to advances in AI, it said.
GroupM defines its main goal as “creating value not only for our customers but also for the communities in which we operate.” To that end, it is committed to developing local talent in Saudi Arabia, El-Hajj said, and more than 45 percent of its employees are Saudi.
It is also launching a university and academy initiative to help attract, recruit, train and educate the next generation of talent, to help drive the company's growth and increase its market share in the Kingdom, he added.
These initiatives come at a time of wider transformation and growth in Saudi society, which he said creates promising opportunities for advertisers and agencies.
“With a youthful population, a large percentage (of which) is under 30, there has been increased investment in digital advertising, social media marketing and content creation tailored to local tastes,” El-Hajj said.
Driven by the goals of Saudi Vision 2030, the Kingdom is developing and diversifying its economy, leading to growth in the number of SMEs in the advertising and digital sectors, he added. Authorities in the country are also easing restrictions on cultural activities, which has “triggered a demand for innovative content and digital media consumption.”
Thanks to these developments, “Saudi Arabia's creative and media industry is on a trajectory of continued expansion” with the goal of “positioning the Kingdom as a regional hub for media and entertainment,” El-Hajj said.
