As the industry moves into a generation driven by ecommerce and social media, the shift to online shopping is becoming mainstay. A recent Admitad report shows that the average penetration of online shopping in the world is expected to reach over 63 percent by the end of 2019.
To put things into perspective, globally over 1.9 billion people currently use online platforms for their shopping purposes. In most Arab countries, millennials monopolize majority of the internet usage and command a significantly higher purchasing power as compared to their peers from other countries. As per Global Media Insight, over 64 percent of the UAE’s population were under the age of 31. As of 2019, the UAE is one of the biggest players in the Arab ecommerce market.
Admitad’s annual report states that 83 percent of UAE’s 8.2 million internet users make purchases online. With the rise of digital retail platforms, such as Namshi, Noon, Ounass and several others, UAE’s ecommerce market is estimated to be worth USD 27.1 billion by the year 2022.
The report also outlines the high purchasing power for luxury goods in the Middle East & North Africa (MENA) region, particularly in the UAE, is significantly bigger than any other country in the world. Arab countries currently rank 9th by demand for luxury goods, but Admitad’s analysis shows a steady rise in the UAE’s position on the list. While growth opportunities in many markets do tend to decline in specific periods of time, it has become imperative to acknowledge the current climate in the UAE and what that means for affiliate marketing advertisers.
“We saw more publishers choose not websites, but social media communities, messengers, YouTube channels, etc for their affiliate strategy. We are talking about thousands of new publishers, and millions of potential target customers. Our goal is to give advertisers a chance to successfully communicate with the audience in a new way where transparency and efficiency is a key feature,” added Artem Rudyuk, Head of Admitad MENA.
Of Mobile Advertising
Another important analysis outlined that by the year 2020, the mobile advertising market will exceed all other ‘traditional’ channels. It is becoming increasingly imperative for advertisers to find a way to increase traffic via mobile internet and social media platforms.
Omnichannel approaches too are picking up speed today, as consumers access multiple platforms, devices and spaces for convenience. More companies are becoming aware of the switch from desktop usage to mobiles, and are consequently launching mobile apps to accompany their marketing efforts. “There is no shortage of great websites and applications in every vertical, from travel & tourism to luxury goods. Nowhere is there greater opportunity right now than in the Middle East,” remarked Michael Hansen, DuBLi.com CEO & Founder.