Saudi Arabia's creative and media industry on a trajectory of continued expansion, says GroupM MENA head
DUBAI: Multinational advertising network WPP's media investment business, GroupM MENA, aspires to “shape the next era of media, where advertising works better for people”, said Amer El-Hajj, who became CEO his last September.
“That was our focus on the '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 stay ahead of industry trends,” it added he.
GroupM said it won 10 new clients in the first six months of this year, already marking 2024 as its most successful year to date in the region, with a 40 percent increase in billings compared to 2022. The businesses it- added to its books include L'Oreal Middle East, Al-Fardan Jewelry, Americana Foods, Diriyah Gate Development Authority, telecommunications company du and snacks company Mondelez.
He attributed the successes 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 group-wide, the company said, including regional director of customer experience, data and technology; e-commerce director; head of purchasing; and Head of Marketing and Communications.
In common with other industries, the media sector is becoming increasingly dependent on the latest developments in technology. For example, the media buying process is becoming increasingly automated thanks to improvements in artificial intelligence, which can use algorithms to buy ad space in real-time, target different audiences across multiple platforms, and even deliver different ad messages based on factors such as the time of day or the type of audience.
A 2023 PwC report found that 67% of leaders in the technology, media and telecommunications sector believed that new technologies such as generative artificial intelligence threaten current business models. However, El-Hajj said GenAI facilitates the creation of real-time content that can be tailored and tailored to individual target audience preferences, which in turn improves the automation and effectiveness of ad 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 outcomes.
However, he cautioned, businesses should not rely solely on AI without any human input and proper quality controls.
“AI may not understand our culture and habits, which are essential for nuanced advertising,” El-Hajj said. “Furthermore, navigating regulatory complexities and addressing data privacy issues are crucial considerations.”
The continuous evolution of technology means that businesses must constantly retrain their talent. A recent report by the World Economic Forum titled “The Opportunity for AI to Transform ICT Jobs” found that 58% of employees believe their job skills will change significantly in the next five years as a result of AI and of big data. Moreover, 92 percent of technology roles are expected to evolve in response to advances in AI, it said.
GroupM defines its main objective 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 Saudis.
It is also launching a university and academic 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 broader transformation and growth in Saudi society, which he said creates promising opportunities for advertisers and agencies.
“With a young population, a large percentage (of which is) under 30 years old, they have invested more in digital advertising, social media marketing and creating content 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 the growth of small and medium enterprises in the advertising and digital sectors, he added. Authorities in the country are also easing restrictions on cultural activities, which “sparked 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 continuous expansion,” with the goal of “positioning the Kingdom as a regional hub for media and entertainment,” El-Hajj said.
