Retail Platform Advertising - Egypt

In Egypt, ad spending in the Retail Platform Advertising market market is projected to reach US$365.40m in 2024.
The ad spending in this sector is expected to exhibit an annual growth rate (CAGR 2024-2030) of 11.99%, leading to a projected market volume of US$720.90m by 2030.
Furthermore, the average ad spending per user in Egypt's Retail Platform Advertising market market is anticipated to amount to US$20.77 in 2024.
In a global context, the majority of ad spending will be generated the United States, with a figure of US$57.63bn in 2024.
In Egypt, the retail platform advertising sector is increasingly harnessing digital innovations to engage a rapidly growing online consumer base.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in Egypt is witnessing steady growth, fueled by factors like the expansion of e-commerce, increased digital engagement, and the rising demand for targeted advertising strategies among brands aiming to connect with consumers effectively.

Customer preferences: Consumers in Egypt are increasingly gravitating towards personalized online shopping experiences, driven by the growing influence of social media and mobile technology. This shift is reflected in the rising popularity of influencer marketing, where brands leverage local voices to resonate with diverse demographic segments. Additionally, a youthful population is embracing digital interactions, prompting retailers to adopt innovative advertising strategies that cater to individual preferences. This evolving landscape highlights a desire for authentic connections and culturally relevant content in retail advertising.

Trends in the market: In Egypt, the Retail Platform Advertising Market is experiencing a surge in personalized advertising strategies, as brands increasingly utilize data analytics to tailor campaigns to individual consumer preferences. The rise of social media platforms has facilitated this shift, enabling direct engagement with younger audiences. Additionally, the popularity of localized influencer partnerships is transforming brand messages to resonate more deeply within various cultural contexts. As digital-savvy consumers demand authenticity, industry stakeholders must prioritize innovative, culturally relevant content to foster brand loyalty and enhance consumer experiences. This trend signifies a pivotal shift in retail dynamics, urging retailers to embrace agile marketing methodologies.

Local special circumstances: In Egypt, the Retail Platform Advertising Market is shaped by a unique blend of cultural heritage and modern consumer behavior, significantly influenced by the region's demographics and economic landscape. The youthful population, with a high affinity for mobile technology, drives the demand for engaging digital content. Additionally, local customs and traditions necessitate culturally tailored advertisements that resonate with diverse communities. Regulatory frameworks also play a role, as brands must navigate advertising laws that emphasize consumer protection, affecting campaign strategies in this dynamic market.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Egypt is significantly shaped by macroeconomic factors such as the overall economic health, consumer spending patterns, and global digital advertising trends. Economic growth, reflected in rising GDP and improving employment rates, enhances disposable income, enabling consumers to engage more with digital platforms. Additionally, government initiatives promoting digital transformation and e-commerce bolster investment in online advertising. However, inflation and currency fluctuations pose challenges, affecting advertising budgets and pricing strategies. Furthermore, global shifts towards sustainability and ethical advertising compel brands to align their campaigns with socially responsible practices, influencing market dynamics.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.