Augmented Reality (AR) and performance-driven ad formats are making waves across the Gulf’s media industry, with executives at Al Tayer Group confirming that the brand is now pursuing an always-on approach to AR working closely with longtime partner Snapchat. This approach has not only impacted driving efficient results for their lifestyle platform Nisnass, but it has also surprisingly unlocked incremental revenue for their luxury online destination Ounass.
The two companies collaborated on numerous initiatives in the past year as Nisnass sought to increase brand awareness, build relationships with consumers at scale, and drive efficient growth in a highly-competitive online marketplace.
Speaking to the power of mobile-first engagement, executives at Al Tayer Group note that reach, creativity, and profitability are the three main reasons businesses should invest in mobile advertising to drive their business. The executives also confirmed how a pure-play mobile strategy can outperform other platforms in terms of reaching new quality audiences and boosting returns on advertising spend.
Regardless of the platform, recent studies suggest that people are willing to spend time on experiences that catch their attention. In one report from Mindshare, AR-powered advertising like that pioneered by Snapchat was found to deliver 45% higher attention levels compared to TV viewing and online browsing[1]. Meanwhile, AR advertising revenues worldwide are expected to jump from $453 million in 2018 to $8.8 billion in 2023, according to ARtillery Intelligence[2].
Anticipating these market dynamics, Snapchat has invested heavily in solutions for performance marketers over the last year to drive efficient ROI for e-commerce businesses in the region. Offerings like Dynamic Ads provide automated personalization and new ways to scale performance campaigns while maintaining brand identity through mobile-first templates. Snapchat has also grown its user base in the region, reaching over 90% of 13-34 year-olds in Saudi Arabia today.