The AI revolution: Transforming advertising in MENA with innovation and authenticity

Safwan Kanj, managing director at EssenceMediacom — Saudi Arabia.
Safwan Kanj, managing director at EssenceMediacom — Saudi Arabia.
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Updated 25 November 2024
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The AI revolution: Transforming advertising in MENA with innovation and authenticity

Safwan Kanj, managing director at EssenceMediacom — Saudi Arabia.

Artificial intelligence is reshaping advertising in the world, enabling brands to craft campaigns that are personalized, innovative, and efficient. 

AI-driven personalization and targeting

Personalization lies at the core of AI’s transformative impact. The MENA region’s cultural diversity and varied consumer preferences demand highly tailored campaigns, and AI is meeting that challenge head-on.

A remarkable example is Coca-Cola Arabia’s 2022 campaign during the FIFA World Cup in Qatar. To boost reach and sales among Saudi Gen Z audiences, Coca-Cola collaborated with Google and EssenceMediacom to conduct affinity-based audience research. This led to the creation of over 30 personalized video ads using Google’s AI-powered Ads Creative Studio. These ads dynamically tailored visuals and messages in real-time to resonate with specific interests like gaming, soccer, and fashion.

The results were extraordinary: a video view-through rate of 46 percent (exceeding the planned 30 percent), a 42 percent cost-per-view saving, a 10 percent market share growth in Saudi Arabia, and a 22 percent increase in sales volume during the promotional period. These outcomes highlight how AI-powered targeting can achieve measurable business success.

Creative innovation with AI

AI is also transforming content creation, automating repetitive tasks and enabling brands to generate dynamic, high-quality visuals and videos. Tools like Runway ML have become integral in the region’s creative workflows.

In a project for a regional beauty brand, we used AI to generate visuals aligned with local beauty standards and cultural symbolism. The combination of AI and cultural understanding resulted in content that deeply resonated with audiences. Similarly, Anghami, MENA’s leading music streaming platform, uses AI to deliver personalized audio ads tailored to listener preferences, improving ad recall and brand affinity.

Building trust in advertising

As AI becomes integral to advertising, ethical considerations such as transparency and cultural sensitivity are paramount. In my work with a financial services provider, consumer resistance to AI-powered decision-making around data privacy required a proactive approach. By adopting IBM Watson OpenScale for transparency in AI models, we bridged the trust gap effectively.

Another notable example is TikTok’s use of AI-powered moderation tools that filter content in alignment with regional cultural norms. By combining AI with human oversight, TikTok ensures transparency while adhering to local regulations, fostering trust among users.

Future trends in AI-powered advertising

AI is driving several trends that will shape the future of advertising in MENA:

1.Predictive analytics for enhanced targeting

AI uses historical data to predict consumer behavior, allowing brands to tailor campaigns for maximum ROI.

2.Hyper-personalization of content

Real-time, highly personalized messages based on user behavior and demographics are significantly boosting engagement rates.

3.AI-generated creative content

Dynamic tools like DALL·E enable brands to quickly create visually engaging content, maintaining a fresh and consistent presence.

4.AI-optimized programmatic advertising

Machine learning ensures precise ad targeting and efficient use of budgets, revolutionizing ad buying.

5.Ethical AI and transparency

As regulatory scrutiny grows, brands are adopting explainable AI systems to build consumer trust.

While these trends highlight AI’s potential, challenges remain. Infrastructure inconsistencies across the region mean some markets are thriving with AI solutions, while others struggle with basic digital integration. Bridging this gap requires investment in digital education and partnerships with tech providers.

Strategies for marketers in MENA

In my experience, marketers in MENA must ACE their approach: Adapt, Conceptualize, and Engage. AI-driven advertising offers opportunities to stay competitive and deliver impactful campaigns. Key strategies include:

  • Leverage advanced tools (Adapt): Use platforms like Meta Advantage+ and Google Ads Creative Studio to craft tailored campaigns. Creative automation tools like Smartly.io can ensure content freshness.
  • Build data ecosystems (Conceptualize): Implement AI-powered customer data platforms like Tealium or Segment for deeper insights and strategy alignment.
  • Focus on creative AI (Engage): Tools like Runway ML and Synthesia enhance storytelling by creating culturally relevant, visually consistent content.
  • Adopt ethical practices: Build trust through transparent campaigns with tools like IBM Watson OpenScale to monitor AI fairness.
  • Stay agile: Monitor and adjust campaigns using predictive analytics tools like Google Analytics 4 (GA4) or Datorama by Salesforce for real-time optimizations.

Conclusion

AI is revolutionizing advertising in MENA, unlocking new opportunities for personalization, creativity, and efficiency. While challenges like digital readiness and ethical concerns persist, the potential for AI to redefine advertising is immense.

Elon Musk once remarked, “AI is far more dangerous than nukes.” While this highlights AI’s power, I believe it can be a force for good — provided it is used with professionalism, transparency, and positive intent.

The future of advertising in MENA will be defined by a fusion of technological innovation and cultural sensitivity, paving the way for impactful and authentic brand storytelling.

  • The writer is Safwan Kanj, managing director at EssenceMediacom — Saudi Arabia.

Mohamed Yousuf Naghi Group forms Jiad International Holding Company to lead strategic restructuring

Mohamed Yousuf Naghi Group forms Jiad International Holding Company to lead strategic restructuring
Updated 03 December 2024
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Mohamed Yousuf Naghi Group forms Jiad International Holding Company to lead strategic restructuring

Mohamed Yousuf Naghi Group forms Jiad International Holding Company to lead strategic restructuring

Mohamed Yousuf Naghi Group has announced the formation of Jiad International Holding Company, a strategic initiative to optimize the group’s diverse portfolio of investments and accelerate long-term growth across key sectors, including automotive, transportation, logistics, and consumer goods distribution.

This new corporate structure highlights Mohamed Yousuf Naghi Group’s commitment to enhancing corporate governance while solidifying its position as a leading service provider by empowering its subsidiaries to seize emerging opportunities. 

HIGHLIGHT

The formation of Jiad International Holding Company is a strategic initiative to optimize the group’s diverse portfolio of investments and accelerate long-term growth across key sectors.

Leading this venture, as the CEO of Jiad International Holding Company, will be Hossam Y. Radwan, who comes with a proven track record of experience spanning more than three decades in investment banking. He will be bringing exceptional expertise in driving the company’s strategic vision.

An alumnus of Georgetown University, US, Radwan most recently served as CEO of the Saudi Mortgage Guarantees Company (Damanat) and was previously appointed to numerous leadership roles in renowned financial institutions, such as JPMorgan, Goldman Sachs, EFG-Hermes and Abraj Partners Holding.

The group expressed its enthusiastic welcome to Radwan, and expressed their confidence in his ability to drive Jiad International toward achieving its strategic objectives and unlocking a new era of growth for Mohamed Yousuf Naghi Group.


Kerten Hospitality opens ‘Nakhati’ gelato store in Diriyah

Kerten Hospitality opens ‘Nakhati’ gelato store in Diriyah
Updated 03 December 2024
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Kerten Hospitality opens ‘Nakhati’ gelato store in Diriyah

Kerten Hospitality opens ‘Nakhati’ gelato store in Diriyah

Kerten Hospitality’s Nakhati brand, recognized as Saudi Arabia’s pioneering social impact food and beverage initiative, launched its latest location at the prestigious Bujairi Terrace in Diriyah. The store opening, which took place on Nov. 28, brings Nakhati gelato’s locally inspired blends to the heart of Diriyah, reflecting the richness of Saudi heritage and modern culinary flair. Founded by Kerten Hospitality, the unique gelato franchise is dedicated to empowering Saudi female entrepreneurs and fostering community prosperity.

To celebrate the opening, Nakhati introduced an exclusive aroma drawn from the heritage of Diriyah: Tahini Gelato. This special edition is being offered in two distinctive variations:

• Tahini and White Chocolate Variegato: A creamy indulgence crafted to captivate both newcomers and gelato enthusiasts alike.

• Tahini, Cardamom and Dates: A flavorful tribute to traditional tastes, celebrating the essence of Diriyah’s rich history.

Additionally, guests at the Bujairi Terrace location had the chance to sample “Pinturicchio,” a gelato made with premium olive oil and a touch of salt, as a complimentary treat on the opening day.

“Nakhati isn’t just a dessert brand; it’s a mission-driven initiative by Kerten Hospitality. Under a social franchise model, Nakhati empowers Saudi women through accessible pathways to business ownership, providing full franchise support, financing tools, training, and ongoing mentorship. This model exemplifies Kerten Hospitality’s commitment to fostering social responsibility while delivering premium culinary experiences,” a statement said.

“Our expansion into Diriyah is a testament to Nakhati’s mission: to empower Saudi women through a business model that merges quality, craftsmanship, and social impact,” said Marloes Knippenberg, CEO of Kerten Hospitality. “Nakhati showcases the skill of gelato-making, while also highlighting the potential for businesses to drive positive change.”

By 2028, Nakhati aims to empower 50 Saudi women through its network of 30 gelato carts and 20 kiosks across the Kingdom, bringing locally crafted gelato to communities throughout Saudi Arabia. Nakhati’s impact has garnered international recognition, including the prestigious Dentons Best Franchising Model Award, which celebrates the brand’s unique approach to sustainable and inclusive business.

Aligned with Kerten Hospitality’s broader vision for gender equity and community empowerment, Nakhati’s social franchise model is reshaping the industry, showing how social responsibility and business success can flourish side by side. Through each franchisee, Nakhati is helping to create a more inclusive and prosperous future for Saudi women and their communities.


HORECA Riyadh brings best of hospitality to Kingdom

HORECA Riyadh brings best of hospitality to Kingdom
Updated 03 December 2024
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HORECA Riyadh brings best of hospitality to Kingdom

HORECA Riyadh brings best of hospitality to Kingdom

The 13th edition of HORECA Riyadh opened on Nov. 25 at Riyadh International Convention and Exhibition Center. The opening ceremony was attended by Mayada Badr, CEO of the Culinary Arts Commission, and Prince Waleed bin Nasser Al-Saud, founder and CEO of Mukatafa, along with several diplomats and top business leaders from across the Kingdom.

Concurrently, the second edition of Salon du Chocolat et de la Pâtisserie also commenced, featuring a unique blend of chocolate and pastry arts, as well as the Saudi Elite Chefs competition. Strategically partnered with the Culinary Arts Commission, the event gathered an assembly of elite professionals and international brands through Nov. 27.

This year’s HORECA, the most expansive in its history, extended over 29,000 square meters and hosted more than 400 exhibitors representing 20,000 brands from 48 countries. These were displayed across eight international pavilions, each a showcase of cultural diversity and innovation that defines the modern hospitality landscape.

The inaugural ceremony featured a special tribute to Badr, whose visionary leadership in the Saudi Ministry of Culture’s Culinary Arts Commission has significantly elevated the national culinary arts scene.

The opening day’s events included a range of competitions and demonstrations, including cooking, barista and mocktail competitions, drawing more than 100 skilled participants from around the globe, each eager to impress a panel of international judges.

Salon du Chocolat et de la Pâtisserie comprised more than 40 distinctive events, which included celebrated pastry chefs unveiling their latest creations and sharing insights into emerging trends in the world of chocolate and pastries. Additionally, the exhibition provided an arena for chefs to engage in competitions adjudicated by globally acclaimed chefs.

Adding an intellectual flavor, this year’s event introduced “The Talks,” an engaging series of panel discussions tackling a variety of contemporary issues, led by a cadre of industry leaders.

The Saudi Elite Chefs competition offered a face off between chefs facing novel challenges in Saudi cuisine, judged by a panel comprising Meilleurs Ouvriers de France laureates Philippe Bertrand, Jonathan Mougel, Joseph Viola and Jacques Rolancy.

The two exhibitions provide an ideal platform for expert networking and the forging of strategic partnerships. These events not only reinforce Riyadh’s eminent status as a global and regional hub for the hospitality, and food and beverage industries but also spotlight its dynamic role on the world stage.

Established almost 30 years ago, HORECA, an annual business meeting place, brings together an array of distinguished brands, experts and international personalities from the vibrant worlds of hospitality and food service. Over recent years, HORECA has cemented its strong presence in the GCC, particularly within Saudi Arabia. 

Besides Riyadh, HORECA also takes place annually in Jeddah, as well as in Beirut, Kuwait, Amman and Muscat. 


Eyeing KSA’s $1.1bn rice market, LT Foods opens Riyadh office

Eyeing KSA’s $1.1bn rice market, LT Foods opens Riyadh office
Updated 02 December 2024
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Eyeing KSA’s $1.1bn rice market, LT Foods opens Riyadh office

Eyeing KSA’s $1.1bn rice market, LT Foods opens Riyadh office

LT Foods Ltd., a global fast-moving consumer goods company in the consumer food space, has announced its official entry into Saudi Arabia with the inauguration of a new office in Riyadh. 

The goal is to tap the $1.1 billion rice and rice-based food market in the Kingdom.

The move is part of the company’s strategic vision of expanding its global footprint to newer geographies. Today, LT Foods generates $1 billion in global revenue, demonstrating an established track record of sustained year-on-year profit growth. It has delivered 18 years of revenue compound annual growth rate of 18 percent and a profit CAGR of 21 percent.

With its new office in Riyadh, the company is set to revolutionize the rice market in Saudi Arabia and meet consumers’ growing demand for authentic and premium rice and rice-based food products. The new office will act as a hub for LT Foods’ regional operations, enabling the company to leverage its deep expertise in rice and rice-based food products that align with Saudi-based consumers’ tastes and culinary traditions.

LT Foods plans to invest SR185 million ($49.2 million) in warehousing, stocks, and people over the next five years in the Kingdom. It is eyeing a revenue of SR435 million over the next five years. With Saudi Agricultural and Livestock Investment Company as a key shareholder, LT Foods is also gearing to set up local manufacturing facilities in the Kingdom.

Vijay Arora, chairman and managing director, LT Foods, said: “We have built successful businesses in every market where we have set up our operations. We have provided quality products and premium food offerings to consumers. LT Foods has also added significant value to the economy and to its operations. We are now very excited to expand our footprint in Saudi Arabia. Our trusted brands — Daawat, Hadeel and Mufaddal — have long been a part of the Kingdom of Saudi Arabia. With SALIC being a strategic shareholder in LT Foods, we are now expanding our footprint in the Kingdom with warehouses and are prepared to establish local manufacturing.”

Gursajan Arora, CEO — Middle East Business, LT Foods, said: “Saudi Arabia is one of the largest importers of rice and a key market for us. We see tremendous potential for growth in the market and are excited to bring our legacy of quality, innovation, and trust to the region. With our Riyadh office, we aim to deepen our connections with local consumers and partners, tailoring our offerings to meet their specific preferences. We are confident in our ability to strengthen our market presence, drive sustainable growth, and continue delivering exceptional value to all our stakeholders.”


SADAFCO-MODON partnership to drive sustainable development

SADAFCO-MODON partnership  to drive sustainable development
Updated 02 December 2024
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SADAFCO-MODON partnership to drive sustainable development

SADAFCO-MODON partnership  to drive sustainable development

Saudia Dairy and Foodstuff Company, known as SADAFCO, and the Saudi Authority for Industrial Cities and Technology Zones, or MODON, have signed a memorandum of understanding to advance sustainable development and enhance collaborative efforts.

Brian Strong, SADAFCO’s chief transformation officer, signed the agreement with Majed bin Rafed Al-Arqoobi, MODON’s CEO. The partnership signifies a commitment to mutual knowledge-sharing, operational collaboration, and environmental responsibility.

The MoU outlines several key areas of collaboration:

• Knowledge exchange: SADAFCO and MODON will exchange expertise to enhance efficiencies and develop best practices in their respective sectors.

• Joint workshops and training: Both organizations will host workshops and training sessions that cater to shared goals, enhancing skill development and fostering continuous learning.

• Consultancy and studies: The two parties will collaborate on studies and advisory services, exploring new solutions to drive operational excellence and address industry challenges.

• Public relations and media: SADAFCO and MODON will work together on public relations initiatives that highlight their commitment to sustainable industrial growth.

Central to this partnership is the support for the “Green Saudi Cities” initiative, which aims to develop green spaces, including playgrounds and parks, near Jeddah’s industrial residential areas. 

“This MoU reflects our dedication to community-centric sustainable growth. By working with MODON, we hope to foster environments that benefit the people and support Vision 2030’s goals of environmental responsibility,” said Strong.

Al-Arqoobi added: “Our collaboration with SADAFCO aligns with MODON’s mission of building sustainable, community-oriented spaces. Together, we are working to create industrial cities that enhance quality of life and support the Kingdom’s long-term vision.”

The partnership underscores a shared commitment to creating positive, sustainable impacts within Saudi Arabia’s industrial landscape.