Retail Platform Advertising - Western Africa

In Western Africa, ad spending in the Retail Platform Advertising market market is projected to reach US$142.40m in 2024.
This region is expected to experience an annual growth rate (CAGR 2024-2030) of 12.61%, leading to a projected market volume of US$290.50m by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Western Africa is anticipated to amount to US$4.75 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 Nigeria, the Retail Platform Advertising market is increasingly leveraging mobile technology to enhance targeted outreach and consumer engagement in urban areas.

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 Western Africa is experiencing steady growth, influenced by the surge in e-commerce, increasing smartphone penetration, and a growing number of businesses seeking to enhance their online visibility and engagement with consumers.

Customer preferences: Consumers in Western Africa are increasingly gravitating towards personalized shopping experiences on retail platforms, reflecting a shift towards tailored advertising strategies. The rise of social media influencers and local brand ambassadors is reshaping how businesses engage with their audience, fostering trust and authenticity. Additionally, the growing middle class, coupled with urbanization, is leading to higher disposable incomes, prompting a demand for premium products and services. This evolving landscape highlights the importance of culturally relevant content in advertising to resonate with diverse consumer segments.

Trends in the market: In Western Africa, the Retail Platform Advertising Market is experiencing a surge in demand for personalized shopping experiences, with brands leveraging data analytics to tailor their marketing strategies effectively. The influence of social media is growing, with local influencers driving engagement and fostering brand loyalty. Urbanization and a burgeoning middle class are contributing to increased spending on premium products, necessitating culturally relevant advertising content. This trend highlights the importance of adaptability for businesses, as they must navigate diverse consumer preferences to remain competitive in this dynamic landscape.

Local special circumstances: In Western Africa, the Retail Platform Advertising Market is shaped by diverse cultural practices and regional languages, impacting how brands communicate with consumers. Fast urbanization and a young, tech-savvy population are shifting traditional shopping behaviors towards e-commerce. Additionally, regulatory frameworks that promote digital advertising are emerging, enhancing transparency and trust. Local festivals and cultural events provide unique advertising opportunities, allowing brands to connect deeply with consumers, further underscoring the necessity for culturally resonant marketing strategies in this vibrant landscape.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Western Africa is significantly influenced by macroeconomic factors such as GDP growth rates, digital infrastructure development, and foreign direct investment (FDI). As countries in the region experience increased economic stability and growth, consumer spending power rises, driving demand for innovative advertising solutions. Furthermore, improvements in internet connectivity and mobile penetration facilitate the growth of e-commerce, creating new avenues for retail advertising. Additionally, supportive fiscal policies aimed at boosting the digital economy are enhancing market opportunities. Overall, these economic indicators shape a dynamic landscape for retail platform advertising, fostering greater engagement between brands and consumers.

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.