Snap Inc. to Asharq Al-Awsat: Saudi Digital Spending Shifts Focus to Returns

Digital advertising in Saudi Arabia is experiencing a growth spurt, but its effectiveness in driving e-commerce results needs refinement. A new report by Snap Inc. and Kearney highlights an eight-percentage-point gap between the expansion of digital ad spending and e-commerce growth in the kingdom. This suggests a significant opportunity for more efficient investment and a clearer connection to tangible business outcomes.

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The gap alone does not explain market performance. E-commerce is shaped by factors including sector dynamics, changing consumer behavior and the split between digital and traditional purchasing channels.

Abdullah Al-Hammadi, Snap Inc.'s general manager in Saudi Arabia, explained that the gap signifies a market maturing beyond simple digital expansion. The focus is now shifting towards effectiveness and precise measurement. "Higher spending alone does not automatically produce stronger business outcomes," Al-Hammadi stated in an interview with Asharq Al-Awsat. He emphasized that the challenge lies not just in reaching consumers, but in integrating strategy, content, consumer journey activation, data, and measurement into a cohesive system.

The Saudi Digital Advertising Maturity Framework, developed by Snap Inc. and Kearney, aims to help organizations evaluate their ability to translate advertising investments into measurable results. The framework assesses four key areas: strategy, creativity and localization, consumer journey activation, and data and measurement. Success in one area cannot compensate for weaknesses in others; the emphasis is on the synergistic performance of all four components.

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Higher spending alone does not automatically produce stronger business outcomes.

Al-Hammadi clarified that the goal is not to curb digital investment but to enhance its efficacy. Saudi Arabia possesses the necessary digital infrastructure, consumer engagement, and growth momentum. The next frontier, he noted, is equipping advertisers with the maturity, local relevance, and measurement discipline required to convert this momentum into sustainable business outcomes. The core issue is whether advertising reach translates into tangible changes in awareness, consideration, purchase intent, engagement, or sales.

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The challenge, he said, was no longer simply reaching consumers, but connecting strategy, content, consumer journey activation, data and measurement within one system.

The report also points to uneven levels of digital maturity among Saudi advertisers. Large local companies often have greater resources and data capabilities compared to small and medium-sized businesses. Global brands face the challenge of understanding local consumer nuances, while government entities, startups, and e-commerce platforms have their own unique requirements. The framework identifies specific areas for improvement, particularly in activating the full consumer journey and integrating measurement systems, suggesting that some organizations are still developing these capabilities.

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The aim was not to slow digital investment, but to make it more effective.