Advertisement industry struggles to mature despite booming market

Despite being valued at SR 2 billion and ranking second in size in the Arab world, the Saudi advertising industry is struggling under the weight of a lack of innovation, a lack of specialization and a lack of qualified workers in addition to the absence of an overarching regulatory body, say investors and agency owners.
The chaos in the industry has resulted in irresponsible practices and violations of standards and laws by many companies, which has given the industry a tarnished image in the eyes of the public.
Sultan Al-Saidi, a member of the Committee on Advertising at the Jeddah Chamber of Commerce and Industry (JCCI), said violations include prolonged commercial and non-commercial advertising on the street that is not removed even, in some cases, when the event advertised has come and gone. Some advertisers also go overboard with leaflets, ads pasted illegally on home doors and walls and on public utilities. Such ads often promote companies that say they will help to pay off personal debts, enable you to relinquish legal sponsorship of a maid or a driver and expedite government paperwork.
Legal consultant Hazem Karam said many such ads seen on streets and in free advertisement publication are aimed at exploiting and defrauding consumers. “What makes it worse is that it is difficult to punish those who post the ads because there is no clear reference to who is doing it,” Karam said.
Although penalties differ according to the violation, they are often gradual, meaning the violator receives a warning, then a fine, then the revocation of a license or even naming and shaming, he said.