Affiliate marketing is an effective strategy for entering new markets in 2024, with the MENA region being a prime example – it holds a significant 2% market share of the global affiliate marketing revenue, which is worth $370.24 million and is expected to grow at a 7.7% CAGR by 2031. Significant players already leverage this trend by implementing strategic initiatives such as product innovation, partnerships, and advanced marketing tools. In particular, the UAE stands out as a digital innovation hub within MENA, with residents spending an average of three hours daily on social media platforms like YouTube, Facebook, and WhatsApp.
The MENA Region: A Thriving Market for Business Expansion
Choosing the right region for expansion can be daunting, given the many factors that must be considered. These include the pace of market growth, the approach towards entry, whether to be a first mover or a later entrant, the relevance and timeliness of the framework, understanding market needs, competitors’ positions, and the prevailing economic conditions. However, the MENA region is a promising destination due to its diversity and strong growth potential.
Take its economy, for example. The MENA region boasts a booming economy, with a projected growth rate of 2.9% this year. Furthermore, a large and young population fuels this economic strength, with over 108 million people in the region, or 28% of the total, aged between 15 and 29, representing a significant pool of consumers with increasing purchasing power. Not to mention that tax incentives for foreign businesses also make the MENA region more strategically attractive.
At the same time, the digital landscape in MENA is rapidly evolving. For instance, cross-border data flow has skyrocketed by over 150%, connecting the region to the global marketplace. Specifically, the McKinsey report indicates that over 99% of residents have access to the Internet, 90% in Saudi Arabia and 71% in Egypt. This widespread digital adoption creates exciting opportunities, particularly for performance-based affiliate marketing.
In fact, a unique characteristic of the MENA market is the dominance of coupon usage. Consumers in countries such as the UAE, Saudi Arabia, and Egypt are increasingly leveraging online platforms and mobile apps to access a variety of coupons and discounts, reflecting a growing trend towards cost-conscious shopping. Banks, e-commerce giants, and many other organisations rely on this system. This shift is facilitated by e-commerce giants and local retailers alike, who are integrating sophisticated coupon tracking systems to attract and retain customers.
4 Proven Strategies for Success in the MENA Region
The MENA region offers exciting growth opportunities for businesses. However, a successful expansion requires looking beyond traditional competitor research and diving deeper into the region’s unique dynamics. Here are four essential strategies to navigate the MENA market effectively:
#1 Talk to the Key Players
While competitor research offers valuable insights, a comprehensive understanding of the MENA market demands a more holistic approach. Engaging in direct dialogue with key market participants, including potential partners, industry leaders, and even your target customers, is paramount. For example, if you’re a marketplace, talk to sellers to understand their challenges with networks. You can also participate in local conferences to physically meet current and potential partners – it’s a great way to gauge the market.
The key takeaway is conducting a thorough analysis, not just competitor research. Look at their history, how they grew, and how many people they have. It is a common mistake to underestimate the market and enter with the same old offer. Brand recognition or exclusive contracts might work, but more is needed to get guaranteed success.
Actionable Strategy: Prioritize fostering connections with relevant market participants such as distributors, publishers, or other entities aligned with your target audience. Engage them in dialogue to glean crucial insights, such as the most significant challenges encountered when collaborating with brands entering the MENA market, key differentiators between successful brands and those experiencing difficulties within the region, and cultural nuances or preferences that warrant consideration within your marketing strategy.
#2 Secure Local Expertise for Market Penetration
Building a market presence remotely presents significant challenges. The successful penetration of the MENA market necessitates the presence of a local representative who profoundly understands the region’s cultural and business environment and can foster meaningful relationships in person. While recruiting a local representative is critical, their motivations should be carefully considered.
Actionable Strategy: Adopt a meticulous approach to identifying the ideal local representative. Evaluation factors include an established network, industry knowledge, and genuine enthusiasm.
#3 Prioritize Core Functionality and Strategic Localization
Extensive product adaptations before market entry can hold back the progress. Instead, consider launching with a minimum viable product (MVP) focusing on core functionalities. While localisation is essential, a data-driven approach should be employed to prioritise translations. This minimises unnecessary development costs and enables businesses to validate product-market fit before committing to substantial investments.
Actionable Strategy: Leverage user data to pinpoint areas with lower English proficiency. For instance, if a higher concentration of users originates from Arabic-speaking countries, prioritise Arabic translation over English for the initial launch.
#4 Scale Success Through Strategic Partnerships and Targeted Outreach
Once initial traction is achieved, it is time to scale successful strategies. That is why it is crucial to identify key decision-makers within companies that express interest in your product. Additionally, consider leveraging existing client relationships – they can significantly boost your market reach. We also recommend to aim to partner with key regional players and engage in joint marketing activities. In the MENA region, fostering and maintaining relationships is particularly important.
Actionable Strategy: Сultivate strong relationships with key decision-makers who can champion your product within their organisations. Build and maintain trustworthy relations, organise co-marketing activities.
The MENA region presents many opportunities for businesses seeking to expand their reach. With a strategic approach that includes affiliate marketing and the tactics discussed above, you can not only navigate the unique landscape but also tap into a growing consumer base, fostering brand loyalty and achieving long-term success in this dynamic market.
