Amazon’s Rayan Karaky on how retail media 3.0 is transforming advertising in MENA

The advertising playbook is being rewritten. By 2030, industry forecasts predict that all media will effectively be retail media, where every impression is shoppable, every campaign measurable, and every customer interaction both brand-building and transactional.

For MENA, this shift represents not just evolution but opportunity. With e-commerce growth outpacing global averages, mobile-first consumers, and super-app ecosystems taking shape, the region is poised to leapfrog legacy markets into a new era of connected commerce.

In this conversation, Gulf Business speaks with Rayan Karaky, MD for EMEA and Southeast Asia at Amazon Ads, to explore key insights from the company’s latest whitepaper, Maximising Brand Impact Through Retail Media 3.0 in MENA.

Karaky explains why the marketing funnel is officially obsolete, how first-party data and closed-loop measurement are reshaping business strategy, and what brands must do now to prepare for a world where advertising and retail are one and the same.

IAB UK projects that by 2030, all media will be retail media. What does this mean for MENA businesses and how is this transformation already happening?

This projection for me is the last nail in the coffin for the marketing funnel in its classical sense, It took longer than we expected but finally here we are… The future of advertising is one where content and commerce intertwine. This means that more media and ad channels will behave like shopping channels, and businesses will rely on end-to-end advertising solutions that tell their brand story across retail sites, social, video, search, and even traditional media.

The classic funnel of awareness, consideration, and conversion is giving way to a model where every touchpoint is both brand-building and transactional, every impression measurable, and every piece of media potentially shoppable.

Just like with mobile and social media consumption, I believe that MENA has the opportunity to leapfrog again; Unlike some mature markets that are weighed down by legacy systems, MENA can build modern retail media infrastructures more natively. With e-commerce adoption surging, super-apps taking root in Saudi Arabia and the UAE, and mobile commerce driving consumer behavior, the region is positioned to integrate retail media in a more seamless and future-proof way.

For advertisers, this creates both urgency and advantage. Budgets are already shifting: forecasts show retail media spend in MENA approaching half a billion dollars by 2025, with a path to $700m not long after, making it one of the fastest-growing ad channels.

The evolution to retail media 3.0 is helping businesses move beyond basic product promotion to sophisticated, data-driven strategies that connect with customers across the full journey. But unlike older models, where marketers accepted proxy metrics, this era demands robust measurement.

Advertisers will only keep investing if retail media proves its incremental impact compared to traditional channels. Standardization, attribution frameworks, and validated metrics are now necessities, not nice-to-haves. This is why now is different: MENA brands and retailers must not just launch retail media networks, but also ensure they deliver trusted measurement to unlock long-term budgets.

The foundation of this shift is first-party data. It allows businesses to understand customer behavior in real time, deliver more relevant advertising, and make smarter decisions that benefit both their brand and their customers. For customers, this means more personalised recommendations, faster discovery of the products they want, and shopping experiences that feel intuitive and seamless.

For businesses, it means reorganizing how media, commerce, and product teams work together, optimising supply chains, guiding product development, and investing in creative formats that are both compelling and shoppable. In short, the funnel is gone, and MENA has a unique opportunity not just to catch up but to lead, provided it embraces both the leapfrogging potential of its markets and the discipline of measurement that this new era demands.

How is retail media 3.0 different from traditional digital advertising, and what new opportunities does it present for businesses?

First of all, I want to call out that we just called digital advertising “traditional”, what a shape shift of the landscape from where we were just 5 years ago; There are two major differences I see; in the past ads relied on third-party cookies, broad targeting, and proxy metrics that didn’t necessarily translate to business outcome.

Retail media 3.0 is built on privacy-safe, first-party shopping data with closed-loop measurement, letting businesses connect directly to customer intent and prove impact on sales.

The second and perhaps most exciting change, at least for me, is in product discovery. In the past, discovery was often accidental or disconnected from purchase. Today, it’s intuitive, accessible, and seamlessly shoppable.

Nine in ten MENA shoppers use online resources to research products, and 70 per cent of CPG shoppers now come to Amazon searching for a product rather than a brand.

Discovery can happen anywhere, a beauty product revealed in a livestream, an offer printed on an Amazon Fresh delivery bag, or a recommendation surfaced while browsing. For customers, discovery is the most rewarding part of the journey; for businesses, it’s the golden opportunity to inspire and convert at the point of decision.

Awareness in its classical sense has been, in my opinion abolished; With programmatic extending beyond funnels specific goals, coupled with AI and machine learning that bring personalisation at scale, ensuring customers see products that matter to them. And the insights from retail media don’t just improve marketing effectiveness, they inform supply chains, product development, and planning with greater confidence.

In short, retail media 3.0 fuses commerce with media, collapsing the gap between inspiration and transaction. It delivers richer experiences for customers and scalable, measurable growth for businesses, in ways traditional digital advertising simply tried, but simply couldn’t.

With regional businesses investing heavily in digital transformation, what kind of ROI and business impact are you seeing from retail media 3.0?

Retail media 3.0 is helping brands deliver measurable ROI, while at the same time helping them unlock business impact that goes well beyond traditional marketing.

Take First Abu Dhabi Bank (FAB) for example, during the peak shopping season which includes key shopping events such as Singles’ Day (11:11) and White Friday, FAB partnered with Amazon Ads to integrate On-Box Advertising (OBA) into its broader full-funnel strategy.

More than 500,000 FAB branded Amazon boxes were delivered across Q4, turning the unboxing moment into a direct brand interaction for customers in the UAE.

This tactic was supported by consistent digital presence across Amazon DSP, Hero Gateway, display ads, video ads, and Brand Stores, ensuring FAB’s message reached customers across every stage of their journey.  The campaign generated over 25 million impressions and reached over 1.9 million shoppers.

Additionally, the QR codes printed on the boxes achieved a scan rate 15 times higher than the global average. Beyond these numbers, this campaign demonstrated how retail media can deliver cost-efficient impact while integrating seamlessly into everyday shopping behaviors.

Emirates Airlines also turned to Amazon Ads to position its economy class as the top choice for leisure travelers in the U.S. Using Amazon DSP, Emirates delivered streaming TV ads on Freevee and Prime Video Channels, alongside audio ads on Amazon Music. These immersive formats allowed Emirates to reach travelers in moments of entertainment and discovery.

By leveraging the Amazon Shopper Panel survey, Emirates measured real impact, seeing a 12 per cent lift in ad recall, a 9 per cent lift from audio ads, and a 6 per cent increase in brand preference. This campaign highlighted the precision and accountability of retail media compared to traditional channels such as TV or print, where attribution is harder to track.

The real transformation lies in how businesses are now using retail media insights beyond advertising. With access to first-party shopping data, brands can see what products are trending, how quickly customers are making decisions, and which categories are resonating. These insights are being applied to optimise supply chains, guide product development, and shape long-term strategies.

Retail media 3.0 delivers on two fronts. It provides cost efficiency by ensuring every advertising dollar is measurable and optimized, driving business intelligence that helps companies operate smarter across the value chain.

For customers, that translates into products being available when they need them, innovations that better reflect their preferences, and shopping experiences that are more convenient and better fit into their lifestyles.

Looking ahead, what should MENA businesses do now to prepare for this retail media future?

Shoppers in our region are making decisions faster than ever before. In the UAE and Saudi Arabia, 72 per cent of customers complete their purchase journeys within a single day.  For advertisers, that speed creates a very small window to influence decisions, which is why first-party data, precise targeting, and real-time optimisation are becoming essential.

To help businesses prepare, Amazon Ads has introduced the Amazon Business Maturity Framework (ABMF), a strategic roadmap that guides brands through four key stages of digital advertising maturity. The framework begins with the ‘Foundation Stage’ where brands establish their basic online presence and initial advertising.

During the ‘Growth Stage’, ABMF guides brands to expand ad types and optimize campaigns. At the ‘Advanced Stage’, brands can leverage sophisticated targeting and automation. And finally, at the ‘Innovative and Data-Driven Stage’, ABMF empowers brands to utilise predictive analytics and emerging technologies.

As retail media continues to evolve in MENA, ABMF enables brands to systematically scale their digital advertising presence and meet shoppers with relevant messages at every stage of their journey.  The framework ensures businesses build capabilities in a structured way, so they can scale impact in line with their overall objectives.

A critical part of this preparation is developing strong first-party data strategies. As third-party identifiers are phased out, first-party insights become the foundation for reaching the right audiences at the right time. Businesses that invest in technology and analytics capabilities will be better equipped to understand customer signals and act on them in real time.

At the same time, companies need to focus on building internal expertise and strong partnerships. Retail Media 3.0 requires balancing short-term performance marketing with long-term brand building. Businesses that combine both will be able to drive sales today while also strengthening customer relationships and trust for the future.

Ultimately, preparing for the future of retail media is not only about adopting new tools but also about having a customer-obsessed mindset, ensuring every campaign, partnership, and investment contributes to better experiences and stronger results.