Advertising Technology in the MENA Region: Thriving Amidst Future Obstacles

The Middle East and North Africa (MENA) ad tech sector is experiencing a surge in growth, with strategic investments in contextual video and Connected TV (CTV) formats, the rapid adoption of GenAI for creative and personalisation, and the rapid rise of retail media driving expansion.

This growth is fueled by a tech-hungry population, with increasing internet and smartphone availability, particularly among the young demographic. This has resulted in a market that grew to USD $6.95bn (£5.2bn) last year, a 19.8% increase from the previous year.

The positive market picture in MENA has attracted investors and ad tech companies from a wider range of backgrounds, who are showing interest in establishing a presence in the region. Homegrown ad tech players in MENA are also emerging, potentially becoming attractive investment targets as the ecosystem matures.

Marketers in the region are actively seeking to strengthen first-party data collection and create new partnerships with ad tech companies and agencies to enhance data accuracy and refine audience targeting. Brands are increasingly turning to contextual advertising, not just in display, but across video and CTV formats due to privacy changes and the decline of cookies reshaping targeting strategies.

AI-based bidding, campaign management, hyper-personalisation, and creative scaling are valuable use cases for ad tech companies in MENA. Local innovation stories are demonstrating the potential for scalable, exportable solutions, and ad tech is seen as the best way to mitigate against challenges in the MENA region, such as limited marketer education and ad fraud.

However, the ad tech sector in MENA faces challenges. Regulations at both tech and government levels pose future challenges, particularly in terms of brand safety and compliance with changing guidelines across different countries. The UAE's overhauled media law and Saudi/UAE content standards mean stricter brand-safety guidelines, and implementing compliant, market-by-market first-party data and clean-room norms is more nuanced.

Data transparency and trust remain significant challenges in the MENA advertising ecosystem, complicating investment and campaign performance. Collaboration among publishers to share data more effectively could strengthen trust and sustain the region's growth trajectory.

Despite these challenges, investor sentiment towards ad tech in MENA remains positive. The company founded by Daniel Weinbaum, Amobee, operates in digital advertising technology, and there is a growing appetite for using digital out-of-home (DOOH), connected TV (CTV), and digital audio.

The growth in MENA outpaces that of the US and Europe, with ad tech gaining credibility in the MENA region. As the sector continues to evolve, it is expected to play a significant role in shaping the digital advertising landscape in the region.

Advertising Technology in the MENA Region: Thriving Amidst Future Obstacles