Retail Platform Advertising - GCC

In the GCC, ad spending in the Retail Platform Advertising market market is projected to reach US$1.38bn in 2024.
The ad spending in this region is expected to show an annual growth rate (CAGR 2024-2030) of 12.13%, resulting in a projected market volume of US$2.75bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market within the GCC is projected to amount to US$69.93 in 2024.
In a global context, it is noted that most ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In the GCC, retail platform advertising is increasingly becoming a pivotal strategy for brands seeking to enhance consumer engagement through personalized digital experiences.

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 the GCC is witnessing mild growth, influenced by factors such as evolving consumer behaviors, increasing online shopping trends, and the need for targeted advertising amidst rising competition in the digital landscape.

Customer preferences: Consumers in the GCC are showing a growing preference for personalized shopping experiences, driven by the rise of e-commerce and digital marketplaces. This trend is influenced by cultural values that prioritize convenience and instant access to products. Additionally, younger demographics are increasingly engaging with social media platforms, leading brands to leverage influencer partnerships and targeted advertisements. The demand for localized content is also rising, reflecting the region's diverse cultural landscape and the desire for relatable and culturally relevant marketing messages.

Trends in the market: In the GCC, the Retail Platform Advertising Market is experiencing a surge in mobile commerce, with brands increasingly optimizing their advertising strategies for mobile devices to reach on-the-go consumers. Social media shopping is gaining momentum, as platforms like Instagram and TikTok integrate e-commerce features, fostering direct purchases. Furthermore, data analytics are being utilized to create hyper-targeted ad campaigns that resonate with diverse cultural backgrounds, enhancing customer engagement. This shift underscores the importance of adapting marketing efforts to regional preferences, ultimately driving sales and brand loyalty.

Local special circumstances: In the GCC, the Retail Platform Advertising Market is shaped by a youthful and tech-savvy population, with high smartphone penetration driving mobile commerce adoption. Cultural preferences emphasize luxury and personalization, prompting brands to tailor their advertising campaigns to resonate with local tastes. Additionally, regulatory frameworks promoting e-commerce and consumer protection enhance trust in digital transactions. These factors collectively foster a dynamic advertising landscape, as businesses leverage innovative strategies to engage consumers and build brand loyalty in a rapidly evolving market.

Underlying macroeconomic factors: The Retail Platform Advertising Market in the GCC is significantly influenced by macroeconomic factors such as economic diversification, consumer spending trends, and investment in digital infrastructure. As oil-dependent economies pivot towards non-oil sectors, increased government spending on technology and e-commerce initiatives fosters a supportive environment for digital advertising. Additionally, rising disposable incomes and a growing middle class enhance consumer purchasing power, driving demand for personalized advertising. Global trends such as the shift towards sustainability and ethical consumerism further impact brand strategies, necessitating alignment with local values to optimize market engagement.

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.