Why Many GCC Businesses Waste Their Ad Budgets and What Needs to Change

Why Many GCC Businesses Waste Their Ad Budgets and What Needs to Change
Why Many GCC Businesses Waste Their Ad Budgets and What Needs to Change
By: Ali Al Hassan
Digital Marketing Manager at DSRPT
4 min read

For years, businesses across the GCC have been pouring millions of dollars into digital advertising with the hope that visibility would automatically mean revenue. However, the truth is much harsher than what reports and dashboard typically reveal. Most businesses in the region are wasting the majority of their ad budgets without realizing it.

Not because advertising doesn’t work. Not because platforms like Google, Meta or TikTok are ineffective. But because most businesses are running ads without strategy, structure, data or real measurement.

Currently, the problem is not a lack of advertising, it’s a lack of understanding what the advertising is actually doing and that’s the uncomfortable truth.

Visibility VS Return

Most companies across the GCC still operate based on a fairly outdated mindset, “if we increase our budget, we will increase our results”. The reality is different:

  • More budget only multiplies existing inefficiencies.
  • More impressions do not mean more customers.
  • More engagement does not mean more sales.

Every year, companies proudly showcase numbers like “one million impressions”, “100,000 people reached”, “thousands of likes”, etc. But the real questions are how many customers did this convert? How much revenue did it generate? What’s the Return on Ad Spend (ROAS)? What’s the Customer Acquisition Cost (CAC)? The response is silence.

Most businesses still operate on vanity metrics, not business metrics.

The Real Reasons Budgets are Wasted

1. No Strategy

Ads are being launched because “we need to be visible” or “competitors are doing it”, not because of a clear objective. Without clear Key Performance Indicators (KPIS), campaigns run blindly.

2. Zero Testing or Experimentation

Campaigns run one message, one format, one audience. Through that, decisions are made based on opinion as opposed to actual evidence.

3. Poor Landing Pages & Broken Funnels

Even great ads fail when:

  • The website is slow
  • The CTA is unclear
  • The user journey is confusing
  • No retargeting is set up

Ads send traffic to a leaking bucket and therefore the budget disappears.

4. No Alignment Between Offline and Online

In sectors like automotive, healthcare, F&B and retail, most conversations still happen offline. If businesses can’t connect digital spend to offline results, they simply guess instead of know.

5. No Integration of Calendar, Weather or Seasonality

Audience behavior in the GCC is heavily influenced by:

  • Heatwaves
  • Ramadan and Eid
  • School terms
  • Travel seasons
  • Salary cycles

Most businesses ignore this and insist on spending heavily when attention is lowest.

6. No Real-Time Optimization

Campaigns run for weeks without adjustments because teams wait for a monthly report. Optimization must be done daily, sometimes even hourly.

The Most Dangerous Sentence in Marketing

“We have always done it this way”.

This mindset stops innovation and in a world driven by AI-powered decisioning, the slow will be erased by the fast. Businesses no longer need:

  • Bigger budgets
  • More platforms
  • More creative guessing

What they need is:

  • Clean data
  • Measurable funnels
  • Incrementality testing
  • Real ROAS
  • Full visibility

The Shift from Creative-First to Performance-First

Marketing used to be driven by aesthetics. Today, it is driven by profitability. Before, questions like “Does the campaign look good?” has changed now to “Does the campaign make money?”

The future of advertising in the GCC is not about spending more, it’s about spending smarter.

What Smart Businesses are Doing

  • Running continuous A/B testing instead of single campaigns
  • Using AI to predict peak performance times & consumer behavior
  • Integrating offline analytics into digital reporting
  • Building real funnel visibility instead of assuming conversion
  • Treating marketing as an investment, not an expense
  • Measuring business impact, not exposure

These companies grow faster, spend less and scale sustainably because they make decisions based on data, not ego.

The Bottom Line:

If businesses cannot answer:

  • How much revenue did this campaign generate?
  • What is my cost per acquisition?
  • What is my return on ad spend?
  • Where is the funnel leaking?

Then it is not advertising, it’s burning money.

The future belongs to companies that:

  • Measure everything
  • Test aggressively
  • Integrate intelligence
  • Act fast
  • Optimize relentlessly

Everything else becomes irrelevant.

The problem in marketing is not a lack of budget, but a lack of accountability. The businesses that win over the next 12 months will not be the ones shouting the loudest, but the ones who listen to the data, learn quickly and adapt faster than everyone else.

The era of guess-based marketing is gone and the era of intelligent marketing has begun.

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