Advertising strategies to easily profit in the Middle East e-commerce market!

Programmatic advertising is experiencing significant growth in the Middle East and Africa. According to industry forecasts, the programmatic advertising market in the region is expected to grow at a CAGR of 7.89% during 2022-2027, highlighting its growing importance in the market.

In the Middle East and Africa market, the growing relevance of programmatic advertising goes hand-in-hand with the growing popularity of digital advertising in the region. Additionally, the use of data and technology in programmatic advertising is critical to effectively reach a broad customer base beyond walled gardens, in line with the ever-evolving digital environment.

Programmatic advertising in the Middle East and Africa is expected to expand, driven by the proliferation of digital technologies, growth in e-commerce, demand for personalized advertising, rising data capabilities, shift from traditional to digital platforms, and advancements in technology.

Overview of the Programmatic Advertising Industry in the Middle East and North Africa

The advertising industry in the Middle East and North Africa (MENA) region is undergoing a major transformation. Advertising spending is expected to exceed $12 billion by 2024, a significant increase from approximately $9.2 billion in 2021. This shows that the advertising sector in the MENA region has huge growth potential.

In 2020, Saudi Arabia became the largest digital advertising market in the MENA region, followed by the UAE.

Egypt leads the way in digital ad spend growth in 2021, with Morocco and Tunisia also making significant progress.

Conversely, digital ad spending grew more slowly in Qatar, Jordan and Algeria.

As the region continues to influence global ad tech trends and shows significant growth potential, it presents an interesting prospect for advertisers and industry stakeholders to explore and leverage various advertising opportunities in the MENA region.

The impact of digitalization on the Middle East and North Africa

The impact of digitalization on the Middle East and North Africa

The impact of programmatic advertising

Digitalization has dramatically changed programmatic advertising, particularly through the increased utilization of data and technology and the growing role of mobile programmatic advertising in driving market growth.

1.Utilization of data and technology

The increasing digitalization of media consumption and advertising has enabled publishers and agencies to leverage data-driven insights and advanced technologies. This has led to optimization of ad targeting, delivery and performance measurement, enabling more precise audience segmentation and personalized ad delivery, resulting in more effective and efficient advertising campaigns.

2.The Importance of Mobile Programmatic Advertising

The rise in mobile usage globally, especially in the Middle East and Africa, has made mobile programmatic advertising a key driver of market growth. Mobile platforms offer unique opportunities for precise geo-targeting, engaging ad formats, and seamless integration with apps, helping programmatic advertising effectively drive engagement and conversions.

3.The rise of digital outdoor advertising

The Middle East and North Africa region is witnessing a steady integration of digital elements and advanced technologies, with digital outdoor advertising accounting for about 50% of total outdoor advertising investment. In addition, the adoption of programmatic digital outdoor advertising is also increasing, which provides flexibility, precise audience targeting, and dynamic data-driven advertising campaigns, which is expected to connect with the audience in a more relevant and responsive way. The digital outdoor (DOOH) market in the Middle East and North Africa is expected to grow from US$335.59 million in 2024 to US$717.4 million in 2029, with a CAGR of 16.41% during the forecast period.

4.Impact of COVID-19

The COVID-19 pandemic has further accelerated the digitization of advertising in the MENA region. Advertisers have shifted their focus to digital channels, including programmatic advertising, to reach and engage with consumers in a predominantly digital environment, beyond closed market environments, reflecting the programmatic advertising space’s resilience and adaptability to external market forces.

5.Regulatory environment

The evolving regulatory environment around data privacy and consumer protection in the MENA region is impacting the digital advertising ecosystem. Advertisers and agencies are adapting their programmatic strategies to the changing regulations, emphasizing the responsible and compliant use of consumer data in programmatic campaigns.

The digitization of media and the emphasis on mobile programmatic advertising has revolutionized the way publishers and agencies optimize campaigns, resulting in more effective and targeted advertising, especially in reaching audiences in a mobile-first digital environment.

MENA

Key factors for programmatic advertising growth

The Middle East and Africa programmatic advertising market is expected to grow at a compound annual growth rate (CAGR) of 7.89% between 2022 and 2027, indicating that advertisers in the region adopting innovative storytelling approaches to enhance customers’ brand experience will drive the market Achieve significant growth.

Furthermore, online ad spending in the MENA region is expected to grow significantly by approximately 20% by 2024, with ad spending expected to reach approximately $12.3 billion in 2024. This growth reflects the region’s highly competitive digital advertising landscape and its potential for significant expansion in ad spend, particularly in the digital space. The growing popularity of digital advertising and surge in mobile programmatic advertising are expected to be the key drivers of market growth.

1.Mobile-first regions

The MENA region is widely considered a mobile-first market, with a strong preference for mobile applications. This shift in consumer behavior will drive retail chains and businesses to increase their social media spend, providing a great opportunity to capitalize on the region’s propensity towards mobile devices.

2.Outdoor Advertising

Digital out-of-home (DOOH) advertising formats are growing in the region, driven by government-led initiatives to promote technological innovation and a growing trend towards using programmatic approaches in outdoor marketing campaigns. Digital technology combined with strategic placements in high-traffic areas is revolutionizing outdoor advertising in the region, providing interactive experiences to reach consumers more effectively.

3.Gaming Industry

The gaming boom in the MENA region presents opportunities for advertisers, with gaming revenue and total gamer numbers expected to grow. Understanding how to effectively plan in-game advertising media is critical, especially given its “always-on” nature. Programmatic in-game advertising emerges as a powerful strategy that advertisers can leverage in this fast-paced environment.

4.Data privacy issues

Data privacy concerns are shaping the future of ad tech in the MENA region, with third-party cookies being phased out on Chrome and laws requiring brands to adopt data privacy and governance measures outside of their walled gardens. Retailers have begun to leverage the rich consumer data they have, developing advanced retail media capabilities to address these trends.

These factors suggest that a unique combination of innovation, shifting consumer habits, and ongoing trends are reshaping the advertising landscape in the Middle East and North Africa, and provide insights into the expected growth of programmatic advertising in the region.