In an age of digital saturation, consumers are increasingly tuning out. Screen fatigue is real, ad blockers are everywhere, and attention is becoming harder to earn. People are actively limiting their screen time, 78% seek more “human” interactions with brands, and a staggering 81% of Gen Z say they wish it were easier to disconnect from their devices. In this climate, traditional advertising methods are becoming less effective at connecting with consumers.
Retail media offers a compelling alternative. Rather than shouting for attention across the open web, it integrates seamlessly into the shopping journey. Whether through search results, app banners, or in-store digital screens, retail media delivers ads at the point of intent, when consumers are already looking to buy. It supports the buying journey by aligning with what the customer is already looking for.
With retail media projected to grow twice as fast as overall ad spending by 2025 and surpass open web advertising to hit $101 billion in global revenue by 2028, the shift is unmistakable. In the Middle East, this evolution is accelerating, fueled by a tech-savvy population, digital-first retail models, and rising demand for omnichannel experiences.
The problem with traditional ads
The Middle East’s e-commerce market is set to reach $50 billion by 2025, ushering in a digital-first retail era. As customers demand faster delivery and hyper-personalised experiences, traditional digital advertising, from programmatic display to interruptive video, is beginning to show its cracks.
The advertising experience has often been about interruption rather than engagement. 71% of consumers say they are less likely to purchase from a brand that bombards them with intrusive ads. Another 42% of internet users now use ad blockers, and that number continues to grow. The rise of ad blockers, increasing privacy concerns, and the phase-out of third-party cookies have further undermined trust. In this environment, attention has become a key asset. Marketers need to rethink how and where they engage consumers.
What makes retail media different
Retail media is advertising that appears on a retailer’s digital or physical property, using first-party data and real-time shopping behaviour to deliver highly contextual placements. For example, when a shopper searches for cooking oil on a grocery app, and a specific food brand appears in a top search result or recommendation slot, that’s retail media. It provides relevant information right when the customer is making a decision.
Retail media continues to demonstrate measurable impact. According to recent studies, 61% of shoppers credit retail media touchpoints for influencing their purchasing decisions. Retailers have shifted from just selling products to turning their platforms into valuable advertising spaces, supported by automation, AI, and first-party data.
Data breaches involving third-party vendors have become increasingly common. Retail media offers brands the ability to target based on actual behaviours, not assumptions. By tracking activity through their customers’ previous interactions and purchase history, retailers can deliver relevant offers to logged-in users. This avoids reliance on third-party cookies, which often carry security and privacy risks due to limited transparency in data collection. This approach improves targeting accuracy and strengthens consumer trust by prioritising data privacy from the outset.
What was once limited to static banners is now a dynamic, measurable, and AI-optimised channel. Global spending on retail data analytics is expected to hit $200 billion by 2026, with the UAE alone contributing $5.5 billion. It’s a clear signal that brands are investing in performance and precision.
Platforms like Yango Ads are making this transition easier, helping advertisers manage omnichannel campaigns, track transparent performance metrics, and create value without overextending their budgets. Businesses that move early stand to gain a competitive advantage.
A better fit for today’s consumer
Research shows 80% of consumers are more likely to do business with brands that offer personalised experiences, and nearly 90% prefer ads relevant to their interests. Retail media supports this by offering timely and relevant messaging during a natural part of the shopping process. And it does so across a brand-safe environment where consumers are already in discovery or purchase mode.
Technologies like digital mirrors, AR try-ons, and real-time inventory updates are enhancing in-store interactions. At the same time, AI-powered recommendations and dynamic product ads make digital browsing more intuitive. This hybrid approach, online browsing, in-store experiences, and seamless checkout caters to today’s omnichannel expectations. Beyond FMCG, sectors like telecom, banking, insurance, and lifestyle brands are entering the retail media space.
What’s more, static personas are giving way to dynamic recommendation systems that adapt to user intent and context. The future lies not in identifying who might convert, but in surfacing the most relevant product experience for each user at any given moment.
Performance meets privacy
One of retail media’s biggest strengths is that it balances personalisation with privacy. As third-party cookies disappear, first-party data becomes king. Retailers know what their customers are searching, buying, and browsing. Logged-in user data allows for smarter segmentation of those with the highest conversion potential, without crossing privacy boundaries. In fact, 77% of marketers are now prioritising first-party data, with another 15% planning to adopt it soon.
This data also fuels effective retargeting. For instance, if a user abandoned a travel booking, AI can help retarget them with relevant offers based on browsing behaviour. Studies show 92% of marketers say retargeting outperforms other formats, and 70% of consumers are more likely to convert after being retargeted.
However, it goes beyond conversions. To unlock long-term value, marketers must look beyond cost-per-click and instead focus on customer lifetime value (LTV). By tracking user engagement across the funnel and distinguishing between new and returning customers, advertisers can optimise campaigns for sustainable growth. AI enables the identification of high-LTV segments and helps allocate budgets toward nurturing these relationships, not just chasing clicks.
The next smarter chapter in advertising
The future of advertising isn’t about being louder, it’s about being more relevant. To fully unlock retail media’s potential, the ecosystem must continue to evolve, investing in automation, standardising measurement frameworks, and building strong partnerships between retailers and brands.
AdTech platforms play a vital role in simplifying campaign execution, ensuring transparency, and allowing advertisers to tap into this rapidly growing market with confidence. Some of the most forward-thinking advertisers are already shifting from immediate conversions to long-term traffic generation and LTV maximisation. As AI and machine learning continue to advance, there will be an even greater shift toward value-driven, sustainable advertising.
The question is how fast businesses are willing to seize the opportunity to embrace data-driven advertising while the industry is still taking shape.
