How Retail Media Networks Are Revolutionizing the Advertising Landscape in 2025: Implications for MENA Marketers

The battle for consumer attention has entered a new arena. In 2025, retail media networks (RMNs) have evolved from auxiliary marketing channels into powerful economic engines that are fundamentally restructuring the advertising ecosystem. These platforms now command boardroom attention as they deliver what traditional advertising has long promised but rarely achieved: precise targeting at the moment of purchase intent with clearly measurable returns.

The Global Retail Media Explosion

The numbers tell a compelling story: the global retail media market is on track to surpass $106 billion by 2027 according to eMarketer. This meteoric rise stems from several converging factors: the accelerated shift to e-commerce triggered by the pandemic, increasing privacy regulations phasing out third-party cookies, and consumers’ ever-growing expectations for personalized shopping experiences.

While Amazon Ads and Walmart Connect maintain their dominance in the US market with approximately 75% market share, 2025 has become the inflection point where operational sophistication meets technological innovation across the entire retail media landscape.

MENA: Fertile Ground for Retail Media Growth

The Middle East and North Africa region presents particularly promising conditions for retail media network expansion. With high smartphone penetration, youthful demographics, and a rapidly growing e-commerce sector projected to reach $49 billion in 2025 (Statista), MENA offers exceptional opportunities for retail media innovation.

Regional retail leaders like Noon, Carrefour, and Majid Al Futtaim are developing sophisticated retail media offerings that leverage their extensive customer databases to deliver precisely targeted advertising opportunities. The UAE and Saudi Arabia are spearheading this transformation with their digital-first economies and substantial investments in retail technology infrastructure.

Five Transformative Trends Reshaping Retail Media in 2025

1. AI-Powered Operational Excellence

In 2025, retail media networks have fully embraced artificial intelligence to drive unprecedented operational efficiency. The days of fragmented campaign management are behind us, with unified self-service platforms now allowing advertisers to manage cross-channel campaigns seamlessly.

In the MENA region, where digital talent can sometimes be scarce, this automation delivers exceptional value. According to McKinsey, AI-powered retail media platforms in Gulf countries are achieving customer acquisition costs 35% lower than traditional digital channels—a compelling advantage for brands operating in competitive markets.

2. Regional Network Expansion and Strategic Partnerships

While global giants continue expanding their footprint, we’re witnessing the emergence of regional retail media “unicorns” across different markets. In MENA, homegrown networks are gaining significant traction by deeply understanding local consumer behaviors and preferences.

MAF Media, the retail media arm of Majid Al Futtaim, exemplifies this trend, having expanded across 17 countries in the Middle East, Africa, and Asia. By integrating data from physical stores, e-commerce platforms, and entertainment venues, they offer brands unprecedented consumer insights that global players simply cannot match.

3. Seamless Physical-Digital Integration

The distinction between online and offline shopping experiences continues to blur in 2025. Today’s retail media networks extend well beyond websites and apps to include in-store digital displays, interactive kiosks, and smart shelves—creating truly omnichannel advertising opportunities.

In the UAE, smart retail initiatives have transformed physical stores into interactive advertising spaces. Mall of the Emirates has pioneered “phygital” retail media experiences with digital screens displaying personalized offers based on anonymized customer data. This approach has demonstrated a remarkable 28% increase in conversion rates compared to traditional in-store advertising methods.

4. Advanced Personalization Without Privacy Compromises

As privacy regulations tighten globally, retail media networks have become increasingly valuable due to their access to first-party data. In 2025, RMNs deliver hyper-personalized experiences without compromising consumer privacy—a critical balance that other advertising channels struggle to achieve.

MENA consumers, particularly in GCC countries, have exceptionally high expectations for personalization. A PwC consumer survey reveals that 73% of UAE consumers expect retailers to understand their individual preferences and needs. Retail media networks meet these expectations by leveraging AI to deliver relevant content that enhances rather than interrupts the shopping experience.

5. Standardized Measurement and Enhanced Transparency

One of the most significant developments in 2025 is the standardization of retail media metrics. Brands now demand—and receive—clear, consistent measurement frameworks to evaluate performance across different networks.

The MENA Retail Media Alliance, formed in late 2024, has established regional standards for measuring and reporting retail media performance. This initiative has substantially increased advertiser confidence, with 62% of regional marketers now rating retail media as their most accountable digital advertising platform according to recent industry research.

Read also: Full-Funnel Retail Media Tactics to Accelerate MENA Shopper Conversion

Unique MENA Opportunities and Challenges

The MENA region offers distinctive opportunities for retail media innovation:

• Mobile-first consumer base: With smartphone penetration exceeding 90% in many MENA countries, mobile-optimized retail media formats show exceptional engagement rates.
• Rapid e-commerce growth: As traditional retail continues its digital transformation, new advertising inventory is continually being created.
• Cultural relevance: Local retail media networks understand regional nuances, enabling more culturally appropriate and effective advertising.

However, challenges remain:

• Market fragmentation: Unlike more consolidated markets, MENA’s retail landscape remains relatively fragmented, requiring advertisers to navigate multiple networks.
• Data integration: Connecting online and offline customer data presents technical challenges, though rapid progress is being made.

Looking Ahead: The Future of Retail Media in MENA

As we look toward the horizon, several developments are poised to further transform retail media in the region:

• Convergence with social commerce: The boundaries between social media, e-commerce, and retail media will continue to dissolve.
• Advanced contextual targeting: As AI capabilities mature, we’ll see increasingly sophisticated contextual targeting that doesn’t rely on individual identifiers.
• Cross-border retail media opportunities: Regional networks will increasingly offer advertisers unified access to multiple MENA markets.

Seizing the Retail Media Opportunity

For marketers and advertisers in the MENA region, retail media networks represent a prime opportunity to connect with consumers at the critical moment of purchase intent, with the added benefit of closed-loop measurement that proves ROI.

As traditional digital advertising channels face mounting challenges from privacy regulations and ad blockers, retail media offers a privacy-compliant alternative with exceptional targeting capabilities. The brands and agencies that master this evolving channel—understanding its unique capabilities, measurement frameworks, and best practices—will gain significant competitive advantages in the increasingly complex digital marketing landscape of 2025 and beyond.

The question is no longer whether to invest in retail media networks, but how to leverage them most effectively to drive measurable business growth in this new era of digital advertising.