Retail Platform Advertising - Northern Africa

In Northern Africa, ad spending in the Retail Platform Advertising market market is projected to reach US$552.90m in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 12.85%, leading to a projected market volume of US$1.14bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Northern Africa is anticipated to amount to US$15.09 in 2024.
In a global context, the majority of ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Northern Africa, the retail platform advertising market is increasingly leveraging local consumer data to enhance personalized marketing strategies and improve 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 Northern Africa is experiencing steady growth, influenced by factors such as the rising penetration of e-commerce, increasing mobile usage, and growing consumer engagement on digital platforms, enhancing advertising effectiveness.

Customer preferences: Consumers in Northern Africa are demonstrating a growing preference for localized and culturally relevant advertising on retail platforms, reflecting an increased desire for authenticity and connection with brands. The rise of social media influencers and micro-communities is shaping purchasing decisions, especially among younger demographics. Additionally, as mobile commerce gains traction, there is a marked inclination towards personalized shopping experiences, with consumers favoring targeted promotions that resonate with their unique lifestyles and values.

Trends in the market: In Northern Africa, the Retail Platform Advertising Market is experiencing a shift towards highly localized advertising strategies that resonate deeply with cultural nuances. As communities increasingly turn to social media for shopping inspiration, brands are leveraging collaborations with local influencers to enhance authenticity and foster brand loyalty. Furthermore, the rise of mobile commerce is driving demand for tailored promotions, with consumers expecting personalized shopping experiences that align with their lifestyles. This trend underscores the necessity for industry stakeholders to invest in data-driven marketing strategies to effectively engage with diverse consumer segments.

Local special circumstances: In Northern Africa, the Retail Platform Advertising Market is uniquely shaped by a blend of cultural diversity and regional regulations. The vibrant tapestry of local traditions and languages necessitates highly localized marketing strategies that resonate with distinct community values. Additionally, the increasing mobile penetration has led to a surge in e-commerce, compelling brands to adopt mobile-first advertising approaches. Regulatory variations across countries also play a pivotal role, influencing how brands navigate advertising practices and consumer data privacy, ultimately shaping their engagement strategies.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Northern Africa is significantly influenced by macroeconomic factors such as regional economic growth, consumer spending patterns, and digital infrastructure development. As economies in the region show varying levels of stability and growth, brands are adapting their advertising strategies to align with local purchasing power and economic conditions. Furthermore, increased internet and mobile accessibility is fostering a digital-first consumer culture, prompting brands to invest in targeted online advertising. Additionally, fluctuations in foreign investment and government policies regarding trade and taxation can either bolster or hinder market performance, shaping the competitive landscape within the retail sector.

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.