Retail Platform Advertising - MENA

In MENA, ad spending in the Retail Platform Advertising market market is projected to reach US$3.24bn in 2024.
This spending is expected to exhibit an annual growth rate (CAGR 2024-2030) of 11.85%, leading to a projected market volume of US$6.34bn by 2030.
Furthermore, the average ad spending per user in the Retail Platform Advertising market market within MENA is anticipated to amount to US$28.91 in 2024.
In a global context, the majority of ad spending will be generated the United States, with a total of US$57.63bn in 2024.
In the MENA region, retail platform advertising is increasingly focusing on personalized digital experiences, driven by the growing demand for localized content and consumer engagement.

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 MENA is witnessing mild growth, influenced by factors such as the increasing integration of e-commerce platforms, evolving consumer behaviors, and the need for more targeted advertising solutions in a competitive landscape.

Customer preferences: Consumers in the MENA region are increasingly prioritizing personalized shopping experiences, prompting retail platforms to adapt their advertising strategies accordingly. The rise of mobile commerce has led to a surge in targeted ads that resonate with local cultural preferences and festive occasions. Additionally, younger demographics are driving demand for sustainability-focused products, compelling brands to showcase eco-friendly practices. As social media consumption grows, influencer partnerships are becoming pivotal in shaping purchasing decisions, making engagement more critical in the advertising landscape.

Trends in the market: In the MENA region, the Retail Platform Advertising Market is experiencing a significant shift towards personalized marketing strategies as consumers demand tailored shopping experiences. As mobile commerce continues to rise, brands are increasingly utilizing targeted advertising that resonates with local cultures and seasonal events. The younger demographic's emphasis on sustainability is pushing retailers to highlight eco-friendly initiatives. Moreover, the growing influence of social media is steering brands towards partnerships with local influencers, making engagement and authenticity essential for capturing consumer attention and driving sales.

Local special circumstances: In the MENA region, the Retail Platform Advertising Market is shaped by diverse cultural nuances and varying levels of internet penetration across countries. The region’s rich tapestry of traditions influences consumer preferences, prompting brands to adopt localized advertising strategies that resonate with specific cultural values and festivities. Additionally, regulatory frameworks surrounding data privacy vary, necessitating adaptive marketing approaches. The rapid growth of mobile usage and e-commerce aligns with a younger demographic keen on sustainable practices, driving brands to promote eco-friendly products and engage authentically through local influencers.

Underlying macroeconomic factors: The Retail Platform Advertising Market in the MENA region is significantly influenced by macroeconomic factors, including fluctuating oil prices, which directly impact national economic health and consumer spending power. Countries experiencing economic diversification are seeing increased investments in digital infrastructure, enabling more robust e-commerce growth. Additionally, varying inflation rates and currency stability affect advertising budgets and consumer behavior. Fiscal policies promoting digital innovation and entrepreneurship are further driving market expansion, while global economic trends, such as the shift toward sustainable consumption, compel brands to align with eco-conscious consumer preferences and practices.

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.