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 Al-Haj, who became its CEO in September last year.
“This has become our 'North Star' focus,” he told Arab News. In support of this objective, the company has set “new benchmarks for customer satisfaction, talent cultivation and industry impact” and is “actively shaping our offering, best practices and strategies to stay ahead of industry trends,” he added.
GroupM said it won 10 new clients in the first six months of this year, marking 2024 as its most successful year in the sector to date, with a 40 percent increase in billings compared to 2022. Oriel Middle East, Al-Fardan Jewelry, Americana Foods, Diriya Gate Development Authority, Telecom Company Du, and snacks company Mondelez.
It attributes the success to organizational transformation, including a new business-development team, restructured procurement, finance and operations departments, and a focus on recruiting new talent while retaining and developing existing talent.
Many of the new hires are at the group level, the company said, including regional managing director of customer experience, data and technology; Director of E-Commerce; head of purchase; and Head of Marketing and Communications.
Like 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 slots in real time, targeting different audiences on multiple platforms and even delivering different ad messages based on different factors. 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 would threaten current business models. However, El-Haj said that GenAI facilitates real-time content creation that can be customized and adapted to the individual preferences of the target audience, which improves 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 cautioned, businesses should not rely solely on AI without any human input and adequate quality control.
“AI may lack an understanding of our culture and habits that is important for subtle advertising,” El-Haj said. “Additionally, navigating regulatory complexities and addressing data-privacy issues are important considerations.”
The constant evolution of technology means that businesses need to constantly re-skill their talent. A recent World Economic Forum report, titled “AI's Transformational Opportunity in ICT Jobs,” found that 58 percent of employees believe their job skills will change significantly in the next five years as a result of AI and big data. Furthermore, 92 percent of technology roles are expected to evolve in response to advances in AI, it said.
GroupM defines its core purpose as “creating value not only for our customers, but for the communities in which we operate.” To this end, it is committed to developing local talent in Saudi Arabia, El-Haj 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 encourage the company's growth and increase its market share in the state, he added.
These initiatives come at a time of massive transformation and growth in Saudi society, creating promising opportunities for advertisers and agencies.
“With a young population, a large percentage (of which) is under 30 years old, there is increased investment in digital advertising, social media marketing, and content creation tailored to local tastes,” said El-Haj.
Driven by the goals of Saudi Vision 2030, the kingdom is developing and diversifying its economy, which is increasing the number of small and medium-sized businesses in the advertising and digital sectors, he added. The country's authorities are also easing restrictions on cultural activities, which has “sparked demand for innovative content and digital-media consumption.”
Thanks to these developments “Saudi Arabia's creative and media industry is on a path of continuous expansion” with the aim of “establishing the kingdom as a regional center for media and entertainment,” Al-Haj said.
