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Gulf brands cautiously enter gaming ads, seeking long-term loyalty

Semafor Tech11h ago
Gulf brands cautiously enter gaming ads, seeking long-term loyalty

Key takeaway

Gulf region brands are beginning to invest in gaming advertising, though marketing budgets in this channel remain smaller than traditional channels. Almarai, Saudi Arabia's leading dairy company, has indicated gaming ad spending in the region will grow twelvefold over the next decade. Success requires a long-term strategic commitment: players reject brands that enter and exit quickly, while luxury companies like LVMH and Sephora are using gaming to build brand loyalty with younger consumers who may not yet afford their products.

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3 Key Points

  • What happened

    Marketing teams in the Gulf region are beginning to invest in gaming as an advertising channel, though spend remains modest compared to other channels. Saudi dairy giant Almarai has signaled gaming ad spending in the region will grow twelvefold over the next decade.

  • Why it matters

    Brands face pressure from finance teams to show measurable returns, making them reluctant to experiment in unfamiliar spaces. Gaming rewards long-term commitment; players embrace brands that stay and reject those that treat the platform as a short-term sales opportunity. Luxury brands like LVMH and Sephora are using gaming to build brand loyalty with younger audiences who cannot yet afford their products, betting on future purchasing power.

  • What to watch

    Success in gaming advertising requires treating it as a strategic, multi-year commitment rather than a one-off campaign. Brands that demonstrate sustained presence are more likely to gain player trust and acceptance.

In Depth

The Gulf region's largest brands are gradually entering the gaming advertising space, though their commitment remains cautious and their spending modest compared to traditional marketing channels. Unlike established advertising platforms, gaming presents a fundamentally different challenge: marketing teams must justify investment to finance departments that expect reliable, measurable returns, yet gaming advertising—especially for brand-building—operates on longer time horizons and softer success metrics.

According to marketing experts, this conservative posture stems directly from financial oversight. "Marketing teams are under pressure from their finance departments to deliver reliable, measurable returns and have little room to experiment," making them "very reluctant to look at new, innovative spaces." The gaming space rewards those who move past this hesitation—but only if they are willing to stay. Players embrace brands that demonstrate sustained commitment but actively reject those that treat gaming as a one-off sales opportunity. "Don't jump in and jump out. This has to be a strategic decision," as one analyst put it.

Almarai, Saudi Arabia's leading dairy producer, stands out as an early believer in gaming's potential. The company's head of marketing has publicly stated that gaming ad spending in the region will grow twelvefold over the next decade, signaling confidence in the channel's maturation. Meanwhile, luxury conglomerates are taking an unconventional long-term approach. Both LVMH and Sephora are actively courting gamers who cannot yet afford their premium products, betting that brand loyalty formed early will translate to customer loyalty once these players enter the market with purchasing power. This strategy treats gaming not as a sales channel but as a loyalty-building investment that begins years before a customer makes a purchase.

Context & Analysis

Gaming has emerged as an advertising channel with significant potential in the Gulf region, yet it remains underfunded relative to its audience size and engagement levels. The disconnect stems from a fundamental tension in modern marketing: finance departments demand measurable, reliable returns, while gaming advertising—especially for brand-building with younger audiences—operates on longer time horizons and softer metrics than direct-response channels. This risk-aversion has kept marketing teams cautious even as some early movers report positive results.

The region's largest brands are beginning to recognize that gaming requires a different playbook than traditional advertising. Almarai's public commitment to growing gaming ad spend twelvefold over the coming decade signals confidence that the channel will mature and deliver value. Luxury conglomerates like LVMH and Sephora have adopted a deliberate strategy: they target young gamers who cannot yet afford their products, accepting that the investment is a long-term brand-building exercise rather than an immediate sales driver. This approach directly contradicts the temptation to "jump in and jump out"—a pattern players actively punish by rejecting brands perceived as opportunistic or transient. For marketing teams accustomed to quarterly reporting cycles, adopting a multi-year gaming strategy represents both an organizational and cultural shift.

FAQ

Why are Gulf brands hesitant to spend heavily on gaming ads?
Marketing teams face pressure from finance departments to deliver reliable, measurable returns and have little room to experiment. This makes them reluctant to invest in new, innovative advertising spaces where ROI may be harder to demonstrate upfront.
What approach are luxury brands taking in gaming?
LVMH and Sephora are courting gamers who cannot yet afford their products, betting that brand loyalty can be formed long before purchase and that these players will eventually become customers.
What do players value from brands in gaming spaces?
Players tend to embrace brands that make a lasting commitment to the space and reject those that enter purely to sell. Gaming requires a strategic, long-term approach rather than a short-term drop-in campaign.

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