How Retailers in MENA Can Monetize Beyond Selling Products and Unlock New Revenue Streams

The retail industry in MENA (Middle East and North Africa) is at a transformative juncture. With digital transformation accelerating and consumer behavior evolving, retailers are no longer limited to traditional product sales for revenue generation. Instead, innovative monetization strategies like retail media advertising are taking center stage. In this blog, we explore how retailers in the MENA region can unlock new revenue streams, with a primary focus on retail media advertising, and why now is the perfect time to embrace these opportunities.

The Power of Retail Media Advertising

Retail media advertising is the strategic use of a retailer’s digital and physical assets to sell advertising space. This approach allows brands to connect directly with customers at the point of purchase, leveraging first-party data to create highly targeted campaigns. According to a report by McKinsey, the global retail media market is expected to grow to $100 billion by 2026, and the MENA region is poised to be a significant contributor, given its rapid digital adoption and growing e-commerce penetration.

Key Benefits of Retail Media Advertising:

1. Data-Driven Insights: MENA retailers can leverage first-party data to deliver personalized advertising campaigns that resonate with their audience.
2. High ROI for Brands: Retail media ads drive conversions as they are displayed at critical touchpoints, such as e-commerce checkout pages or in-store displays.
3. Diversified Revenue Streams: Retailers can monetize both digital and physical spaces, creating a sustainable and scalable income model.

Opportunities for Retailers to Monetize Assets

Here are the key areas where retailers in MENA can generate additional revenue:

1. Customer Data

Retailers in MENA hold a goldmine of first-party data. This data, including customer preferences, shopping habits, and purchase history, can be monetized through:

• Targeted advertising: Offering brands insights for personalized ad campaigns.
• Exclusive reports: Selling market insights to third-party businesses.

2. On-Site and Off-Site Retail Media Advertising

• On-Site: Retailers can create ad inventory on their e-commerce platforms. For example, Carrefour’s online marketplace can offer banner ads, sponsored listings, or “purchase again” recommendations.
• Off-Site: Retailers like Noon and Amazon MENA can use their data to target audiences through external platforms, such as social media and search engines.

3. In-Store Advertising

Retailers in the MENA region can monetize physical spaces through:

• Digital screens: Offering ad space to brands for in-store visibility.
• Promotional end caps: Charging fees for premium shelf placements.

For instance, Majid Al Futtaim’s malls in Dubai offer high-visibility ad spaces to brands, generating substantial ad revenue.

4. Sustainability Initiatives

MENA’s push for sustainability presents opportunities for retailers to:

• Monetize re-commerce platforms for pre-loved items.
• Offer recycling programs where brands pay to participate, appealing to eco-conscious consumers.

5. Experiential Marketing

In a region known for its shopping festivals and cultural events, retailers can:

• Host pop-up events during Dubai Shopping Festival or Riyadh Season.
• Collaborate with brands for exclusive product launches or live-stream shopping events.

Read also: The Ultimate Blueprint for Retail Media Advertising Success in 2025

6. Shelf Space and In-Store Promotions

Retailers can charge brands for premium in-store placements, such as:

• Slotting fees: Securing prime shelf positions.
• End caps: High-visibility promotional displays.
• Sampling opportunities: Fees for in-store demos or sampling activities.

7. Branded Products

• Private labels: Selling retailer-owned brands with higher margins.
• Co-branded merchandise: Partnering with popular brands to create exclusive products.

8. Technology and Logistics Services

• Fulfillment services: Offering packaging, warehousing, and delivery solutions to smaller businesses.
• White-label technology: Providing e-commerce solutions to other retailers.
• Click-and-collect fees: Charging customers for convenient order pickups.

9. Subscriptions and Memberships

Retailers can implement subscription models for:

• Loyalty programs: Offering exclusive perks for a recurring fee.
• Delivery services: Similar to Amazon Prime, providing free or expedited delivery.

10. Space Monetization

• Pop-up shops: Leasing space to brands for temporary events.
• Third-party kiosks: Allowing external brands to operate within stores.

11. Financial Services

• Buy Now, Pay Later (BNPL): Offering flexible payment options and earning through fees or interest.
• Co-branded credit cards: Partnering with banks to offer loyalty-linked credit cards and sharing revenue.

12. Training and Consulting

• Retail consultancy: Helping other businesses optimize their operations.
• Workshops and training: Providing industry insights and skill-building seminars.

Why Retail Media is Booming in MENA

1. E-commerce Growth: According to Statista, e-commerce revenue in the UAE alone is expected to grow at a CAGR of 12.81% from 2023 to 2027, reaching $17 billion by 2027.
2. Tech-Savvy Consumers: With over 70% internet penetration in the GCC, consumers are increasingly shopping online, creating fertile ground for retail media advertising.
3. Increased Brand Spending: Brands are allocating larger budgets to retail media, recognizing its ability to drive conversions.

Figures That Speak Volumes

• $7.5 billion: The projected size of MENA’s e-commerce market by 2025, according to Bain & Company.
• 60%: The share of UAE shoppers who prefer personalized shopping experiences, highlighting the value of data-driven retail media.
• 25% YoY Growth: The growth rate of retail media ad spending globally, with MENA expected to mirror this trend.

Empowering Retailers to Innovate

Retailers in MENA have an unprecedented opportunity to diversify their revenue streams through retail media advertising and other monetization strategies. By leveraging first-party data, physical and digital assets, and experiential offerings, they can stay ahead of the competition while delivering exceptional value to brands and consumers alike.

The question is no longer whether retailers in MENA should monetize their assets, but how soon they can implement these strategies to maximize profitability.