Retail Platform Advertising - Pakistan

Ad spending in the Retail Platform Advertising market market in Pakistan is projected to reach US$49.08m in 2024.
The ad spending in this market is expected to show an annual growth rate (CAGR 2024-2030) of 9.86%, leading to a projected market volume of US$86.28m by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Pakistan is projected to amount to US$7.10 in 2024.
In global comparison, the majority of ad spending will be generated the United States, with an expected total of US$57.63bn in 2024.
In Pakistan, the retail platform advertising market is experiencing significant growth as local brands increasingly leverage digital channels to engage tech-savvy consumers.

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 Pakistan is witnessing subdued growth, influenced by factors such as limited digital infrastructure, low consumer engagement online, and ongoing economic challenges that hinder advertising investments and innovation.

Customer preferences: In Pakistan, consumers are increasingly gravitating towards localized online shopping experiences that cater to their cultural preferences and regional needs, prompting retailers to enhance their digital presence. There is a growing demand for personalized advertising that resonates with local traditions and values, particularly among younger demographics. Additionally, the rise of social media influencers is shaping consumer decisions, as shoppers seek authenticity and relatability in promotional content, driving brands to invest strategically in retail platform advertising.

Trends in the market: In Pakistan, the Retail Platform Advertising Market is experiencing a surge in hyper-localized advertising strategies, as brands seek to connect with consumers on a more personal level. The rise of mobile commerce is driving retailers to optimize their advertising efforts across digital platforms, particularly social media channels that resonate with younger audiences. Additionally, the emergence of video content marketing is becoming pivotal, as consumers are increasingly drawn to engaging visual narratives. This shift not only enhances brand visibility but also fosters deeper consumer loyalty, urging industry stakeholders to adapt their strategies for sustained growth.

Local special circumstances: In Pakistan, the Retail Platform Advertising Market is significantly influenced by the country's diverse cultural landscape and regional preferences. The multitude of languages and customs across provinces necessitates tailored advertising strategies that resonate with local audiences. Moreover, the rise of e-commerce, driven by younger consumers seeking convenience, is prompting brands to leverage localized content on social media. Regulatory considerations, such as digital advertising guidelines, also shape how businesses approach their marketing efforts, fostering innovation while ensuring compliance.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Pakistan is shaped by macroeconomic factors including economic growth, consumer spending patterns, and technological advancements. The country's GDP growth, driven by a young population and urbanization, encourages greater disposable income and a shift towards online shopping. Consequently, brands are investing more in digital advertising to capture this growing market. Additionally, inflation rates and fiscal policies impact consumer behavior, influencing advertising budgets and strategies. As global e-commerce trends accelerate, local brands are compelled to adapt their advertising approaches, integrating innovative digital solutions to remain competitive in a rapidly evolving landscape.

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.