The fee for out of home (OOH) inventory such as lit and unlit billboard ads have been increased in Jeddah in Saudi Arabia. The Council of Ministers amended fees on these ads, ads located on private property or buses within the city, ads on Ministry of Transportation road projects, and ads located in ports, at airports and the new railways.
According to the decision, the fee per ad will be SR 600 per square meter. Fees for lit and unlit billboards for commercial stores will be SR 400 per square meter.
The effects of the decision will become evident next year, as it is expected to take effect starting with the last quarter of this year. The decision will help increase municipal revenues during the coming two years by 50-60 percent.
Jeddah is among one of the key markets in Saudi Arabia’s advertising revenue coming from OOH. While it is expected that this decision will increase municipal revenues, how the decision will impact OOH advertising is yet to be seen.