Middle East's influencer marketing domain to reach USD1.3bn valuation in 2023
YAAP, a new-age specialized content and influencer marketing company, has launched ‘The State of Influencer Marketing in UAE 2023’ report, in conjunction with the leading media and news outlet Khaleej Times.
The comprehensive report, a first-of-its-kind deep dive into Middle East’s burgeoning influencer marketing domain, was launched at Khaleej Times’ marketing conclave, TRIBE - The CMO Connect, held on 27th April.
Launching the report, Sadia Akhter, Partner at YAAP, said the ‘The State of Influencer Marketing in UAE 2023’ holds a mirror to the status quo of the domain in the region.
“Influencer marketing has gained significant ground in the Middle East, particularly the UAE, necessitating marketers cut across sectoral lines to explore its viability for their businesses. At this juncture marked by heightened interest, lingering hesitancies, and a lack of clarity on potential ROI, our detailed report will be of great consequence, providing much-needed answers and little-known statistics,”
Akhter opined.
The report estimated the Middle East’s Influencer Marketing domain to reach a valuation of $1.3 billion by 2023 while underlining the supporting trends, technologies, and tailwinds. YAAP’s research methodology included attaining sector-wide perspectives of CMOs, marketing heads, and digital marketers from leading brands in the region. A few findings reinforced the UAE’s competitive edge globally in influencer marketing and the absorption of supporting technologies.
A resounding 76.9% of marketers said that influencer marketing is a top priority for their brand after social media, revealing the growing traction of “influencing” within the branding and advertising industries. While overall influencer marketing budgets have grown considerably in 2023, about 76.5% of marketers have channelled the investments from TV, print, and outdoor to influencers, in a telling revelation about the domain’s prospects.
Interestingly, a whopping 79.3% of respondents felt mid-tier influencers are most important to deliver their brand message, with a majority also underscoring the prominence of socially conscious influencers. The technological imperative found emphasis as 71.8% of marketers expressed they measure the engagement of their influencer marketing campaigns. Broadly, the research hinted at the increasing role of AI in influencer marketing in 2023, with virtual or CGI influencers primed for an uptake.
“Today, influencer marketing is like Facebook was in 2008 - at its nascency compared to its full potential, with early movers gaining a competitive edge and others experiencing a fear of missing out (FOMO). For the marketing industry, it is a tangential moment with influencers beginning to chart a new course. ‘The State of Influencer Marketing in UAE 2023’ report is a reliable guide for those aspiring to venture in that direction with greater clarity and actionable insights,”
expressed Arshad Zaheer, Senior Partner at YAAP.
YAAP was recently in the news following its strategic partnership with leading US-based influencer marketing agency Tagger Media. That development was preceded by the acquisition of Crayons Communications, a reputable advertising agency in the Middle East, and an impressive top-line growth of 97% and a 5X jump in profitability for FY21-22. YAAP’s portfolio includes esteemed clients such as Coca-Cola, Visit Dubai, Lufthansa, RuPay, American Express, Disney, Amazon, and Square Enix.