By Rajesh Verma, General Manager, Middle East, Epsilon

As retail media cements its global reputation as a hot marketing strategy in 2024, brands in the MENA region are eager to take advantage of this burgeoning opportunity. Projections indicate that retail media is set to become the fastest-growing channel over at least the next three years, with WARC forecasting it will account for 14.3% of global ad spend this year – double the share recorded in 2019. Moreover, advertising spend in the Middle East is expected to rise by 8.1% in 2024, further emphasising the transformative potential for brands to engage consumers.

This growth is exemplified by the likes of retail giant Alshaya Group, which recently launched an omnichannel network to transform digital advertising in the region. By using first-party data from its 70 franchise partners, it provides brands with solutions for targeted advertising on retail platforms. This empowers companies to connect with consumers in personalised ways, fostering deeper relationships that drive sales and enhance customer loyalty.

However, despite the clear benefits, several misconceptions surrounding retail media are stalling brands’ progress. Addressing these myths head-on will enable them to unlock the full potential of retail media and navigate this dynamic landscape with confidence.

Myth 1: The higher the reach, the better the results
Many brands mistakenly believe that a larger reach translates to better results. Some solution providers boast impressive metrics, often counting email addresses and device IDs instead of unique individuals. This can mislead brands into thinking they’re engaging more consumers than they actually are. The truth is that many people have multiple email addresses and devices, which can significantly distort these numbers without indicating genuine customer engagement. Brands should prioritise reaching unique, verified individuals rather than relying on inflated reach metrics to maximise their ad spend and ensure meaningful interactions.

Reality check: Quantity doesn’t always equal quality. Effective retail media strategies emphasise quality engagement over sheer numbers.

Myth 2: Retail media is limited to retailer websites
It’s widely believed that retail media only occurs on a retailer’s website, but this narrow view can significantly limit reach. Our own analysis for a retail client revealed that 46 million of its 53 million consumers (88%) could only be reached through the open web. Only a small fraction (10-20%) of consumers regularly shop on retailers’ owned digital channels; most prefer in-store or other online options. This tells us that retailers risk missing out on 80-90% of potential customers if they don’t optimise their networks for on-site and off-site engagement.

Retailers must provide unified on-site, off-site, and in-store capabilities to connect with a broader audience. This approach, powered by first-party data, enhances marketing performance and drives more shoppers back to retailers’ platforms, benefiting all parties.

Reality Check: If retailers aren’t driving off-site demand, they risk leaving substantial revenue on the table.

Myth 3: Retail media is driven by customer signals
Many believe that retail media strategies are based solely on signals like online behaviour and demographics. This misconception overlooks the fundamental trust that retail media primarily places on actual transactions. Strategies and decisions are informed by what customers are purchasing rather than inferred behaviours, allowing advertisers to create campaigns that are directly aligned with consumers’ demonstrated preferences and actions.

Reality Check: Retail media driven by transactional data leads to more targeted marketing and improved customer loyalty.

Myth 4: Measuring success across endemic and non-endemic campaigns is impossible
It’s easy to see why tracking conversions for a food or drink brand on a grocer’s platform seems straightforward. However, a common misconception is that success metrics for non-endemic campaigns—say, a fitness app or a bank reaching the grocer’s audience offsite—are out of reach. In reality, with robust tagging and tracking systems in place, advertisers can capture valuable insights and gauge performance regardless of where transactions take place. This means that non-endemic brands, too, can measure impact and fine-tune their strategies through retail media networks, maximising the power of targeted engagement beyond traditional categories.

Reality check: Proper tracking allows non-endemic brands to measure performance effectively and gain valuable insights.


Ultimately, retail media presents a promising opportunity for brands across MENA, but understanding and debunking these myths is essential for developing effective strategies. By gaining clarity on what retail media truly entails, brands can navigate this growing space with confidence, making smarter choices and maximising their investments.

Brands should not ignore their intuition when evaluating a retail media network, especially if something seems too good to be true. For those looking to embrace this approach, taking proactive steps to redefine connections with consumers is crucial. Separating fact from fiction is never easy, but it’s far easier than facing setbacks in your marketing efforts. By using retail media effectively, brands can drive sustainable growth in an ever-changing digital landscape.