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Retail Media Market Update – July, 2025

Global Retail Media Landscape

Retail media has quickly evolved from a niche advertising option to a key player in digital advertising. As traditional advertising methods lose ground, retailers leverage their first-party data to create highly targeted ad experiences, providing new revenue streams.

Growth of Retail Media

Retail media is experiencing exponential growth. In 2022, global retail media revenue reached $101 billion, representing 18% of global digital ad spend. Projections indicate that retail media will make up more than $100 billion in U.S. ad spend by 2027, underscoring its rapid expansion.

Why is Retail Media Growing So Quickly?

Retail media networks are growing rapidly due to several key factors:

First-Party Data: Retailers utilize consumer shopping behavior and purchase data for highly relevant, targeted advertising.

Omnichannel Advertising: Retailers are integrating digital ads with connected TV, social media, and in-store placements to reach consumers across multiple touchpoints.

Direct Conversion Measurement: Retail media allows for direct measurement between ad impressions and purchases, offering superior ROAS compared to other advertising channels.

Retail Media in the Middle East

The Middle East is undergoing rapid digital transformation, with more consumers in Saudi Arabia and the UAE embracing e-commerce. In Saudi Arabia, 91% of consumers shop online, and 96% of UAE consumers now engage in e-commerce. Retail media plays a pivotal role in this transformation.

GoWit & Etmana Partnership

GoWit’s partnership with Etmana, an online fashion marketplace, is enhancing Etmana’s ability to deliver personalized ads. This strategic alliance highlights the increasing importance of retail media in the region.

Amazon’s Dominance in MENA

Amazon dominates the retail media landscape in the MENA region. In the UAE, brands such as Emirates Islamic Bank have successfully used Amazon’s advertising solutions to reduce cost-per-lead by 80%.

Challenges in MENA

Fragmentation: The rise of multiple retail media networks creates challenges for advertisers in optimizing campaigns across platforms. This fragmentation is exacerbated by inconsistent metrics and attribution models.

In-Store Integration: Integrating retail media into the physical store environment is a challenge for many brands. To maximize retail media’s potential, a seamless online-offline experience is crucial.

Benefits of Retail Media

Retail media offers several advantages:

Direct Access to High-Intent Shoppers: Ads target consumers during their shopping journey, increasing conversion likelihood.

Rich First-Party Data: Brands can target consumers based on detailed insights like shopping behavior and preferences, leading to more personalized ads.

Improved ROAS: Retail media provides clear connections between ad spend and sales, optimizing ad budgets.

Enhanced Targeting: Retail media allows for precise targeting based on real-time consumer behavior, leading to more effective campaigns.

Omnichannel Reach: Expanding beyond digital ads, retailers engage consumers through connected TV, social commerce, and in-store ads, ensuring a holistic presence.

Scalable Campaigns: Campaigns can scale across multiple platforms, including on-site, off-site, and in-store, offering full-funnel marketing solutions.

Advanced Measurement: Retail media platforms offer detailed analytics, allowing brands to track campaign performance and optimize ad spend.

The Challenges Facing Retail Media

Creative Strategy Lagging Behind: Many retail media campaigns overlook the importance of creative execution. Tailored, engaging content is needed to drive consumer engagement across different stages of their purchase journey.

Data Access and Sharing: Retailers need to improve data collaboration with brands to optimize campaigns. Transparent data sharing will enhance campaign effectiveness.

Measurement and Attribution: The complexity of measuring campaigns across multiple channels, especially in CTV and social media, requires consistent metrics and attribution models.

Operational Complexity: Managing campaigns across multiple platforms increases operational complexity. Streamlined ad-tech integration can help brands scale campaigns more effectively.

Retail Media’s Path Forward

To stay competitive, brands must:

Leverage Omnichannel Strategies: Use integrated on-site, off-site, and in-store placements to engage consumers at every touchpoint.

Prioritize Video Integration: Dynamic, shoppable videos will continue to dominate, offering high engagement rates and driving conversions.

Foster Data Collaboration: Brands and retailers must work together to create transparent data-sharing systems and adopt standardized measurement practices.

Conclusion

Retail media is becoming a dominant force in the advertising world. With its ability to provide highly targeted, measurable, and scalable campaigns, retail media offers brands a competitive edge in today’s fast-evolving digital landscape.

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Retail Media Market Update – July, 2025

Global Retail Media Landscape

Growth of Retail Media

Why is Retail Media Growing So Quickly?

Retail Media in the Middle East

GoWit & Etmana Partnership

Amazon’s Dominance in MENA

Challenges in MENA

Benefits of Retail Media

The Challenges Facing Retail Media

Retail Media’s Path Forward

Conclusion

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Table of Contents

The Latest

Just-In-Time Fulfillment Excellence for a Consumer Electronics Retailer

Scaling Peak-Season Fulfillment for a Consumer Electronics Retailer

From Warehouse to Living Room: Qafila’s White-Glove Packaging and Delivery For Consumer Electronics Brand

Enhancing Last-Mile Delivery for a Smart Home Tech Retailer

Zero Backlogs, Faster Deliveries: Qafila’s Peak-Season Fulfillment Success Story for an Electronics Brand

Seamless Fulfillment for Rapid Growth: A GCC Beauty Brand’s Success Story with Qafila