Retail Platform Advertising - United Arab Emirates

  • United Arab Emirates
  • In the United Arab Emirates, ad spending in the Retail Platform Advertising market is projected to reach US$307.00m in 2024.
  • It is expected that ad spending will demonstrate an annual growth rate (CAGR 2024-2029) of 14.25%, leading to a projected market volume of US$597.60m by 2029.
  • The average ad spending per user in the Retail Platform Advertising market in the United Arab Emirates is projected to amount to US$69.92 in 2024.
  • In a global context, the majority of ad spending will be generated the United States, which is expected to reach US$57,630.00m in 2024.
  • In the United Arab Emirates, Retail Platform Advertising is increasingly leveraging digital innovation to enhance consumer engagement and drive brand loyalty.
 
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Analyst Opinion

The Retail Platform Advertising Market in the United Arab Emirates is experiencing steady growth, fueled by factors such as increased digital transformation, evolving consumer behaviors, and enhanced targeting capabilities that optimize advertising strategies and drive engagement.

Customer preferences:
Consumers in the United Arab Emirates are increasingly gravitating towards personalized shopping experiences facilitated by retail platform advertising. This shift is driven by a growing preference for tailored product recommendations that resonate with individual tastes and preferences. Additionally, the rise of social commerce is reshaping purchasing behaviors, as consumers seek authentic interactions and peer reviews before making buying decisions. Moreover, the influence of local culture and trends is prompting brands to adapt their messaging, creating a more relevant and engaging shopping experience that reflects the diverse demographics of the region.

Trends in the market:
In the United Arab Emirates, the Retail Platform Advertising Market is experiencing a notable shift towards hyper-personalized marketing strategies, as brands leverage data analytics to curate tailored advertisements that align with consumer preferences. The emergence of social media influencers is further enhancing engagement, as shoppers prioritize recommendations from trusted figures. Additionally, the integration of augmented reality in shopping experiences is becoming prevalent, allowing consumers to visualize products in real-time. These trends underscore the importance of adaptability for brands, as they must innovate continuously to meet evolving consumer expectations and foster loyalty in a competitive landscape.

Local special circumstances:
In the United Arab Emirates, the Retail Platform Advertising Market is uniquely influenced by its multicultural population and high internet penetration rates. The diverse demographics drive brands to create culturally resonant campaigns that appeal to various nationalities. Furthermore, the UAE's robust e-commerce infrastructure, bolstered by government support for digital transformation, facilitates seamless online shopping experiences. Regulatory factors, such as data protection laws, also shape advertising strategies, compelling brands to prioritize consumer privacy while leveraging data for targeted marketing.

Underlying macroeconomic factors:
The Retail Platform Advertising Market in the United Arab Emirates is shaped by macroeconomic factors including strong economic growth, rising disposable incomes, and strategic fiscal policies that encourage digital innovation. The UAE's economic diversification efforts reduce reliance on oil, fostering a vibrant e-commerce ecosystem. Global economic trends, such as the shift towards online shopping, further enhance local market dynamics, leading to increased advertising budgets from brands looking to capitalize on digital platforms. Additionally, the UAE's investment in advanced technologies and infrastructure supports efficient advertising strategies, while consumer spending trends drive demand for targeted campaigns that resonate with diverse audiences.

Methodology

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).

Overview

  • Ad Spending
  • Analyst Opinion
  • Reach
  • Global Comparison
  • Methodology
  • Key Market Indicators
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