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Digital Marketing in the Middle East: Data, Culture, and What’s Next

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June 2, 2025
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Digital Marketing in the Middle East: Data, Culture, and What’s Next
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Mohammadreza Ashrafi, CEO of a Digital Marketing agency in Dubai, discusses the future of marketing in the Middle East and wider MENA region.

With extensive experience leading campaigns both within Arab countries and Iran and their neighboring Persian-speaking markets, Ashrafi shares grounded insights on how the region’s digital landscape is shifting, particularly with the rise of AI in different languages and revolutionary changes in search habits among the Gen Z.

Let’s talk trends, what’s hot in 2025 and how exactly is AI shaking things up?

Ashrafi: Almost everyone knows these days that Artificial intelligence is genuinely transforming the way we operate, and across the MENA region, we’re seeing this shift gather real momentum thanks to high mobile penetration and digital maturity. At our agency for example, we’ve been integrating AI tools to analyse real-time behaviour and deliver more relevant campaigns across both Arabic- and Persian-speaking markets.

With third-party cookies on the way out, AI helps us make far smarter use of first-party data. From dynamic segmentation to content personalisation, the results have been significant. We’re also experimenting with generative AI tools but always with human oversight to maintain cultural authenticity. A market forecast anticipates the Middle East’s AI sector will grow by over 43% annually until 2033 according to IMARC Group. Another whitepaper published in May 2025 by SleekFlow, indicates that more than 60% of businesses in the UAE are already tapping into AI, and similar momentum is building in Iran as well.

When it comes to typing’s old news, how are people searching now, and what should marketers do to keep up?

Ashrafi: People aren’t just typing into search bars anymore. Voice and visual search are gaining popularity, particularly among the younger crowd in the region. According to a recent Google report, Google Lens now handles around 20 billion visual searches monthly, with shopping queries being a large part of that. In the MENA region, where image-rich communication and mobile usage dominate, these shifts are even more pronounced.

We’re now optimising content not just for text-based SEO, but for voice and visuals, especially in Arabic and Persian. We’ve made changes like incoporating local dialects into FAQs, using structured data, and ensuring images are properly tagged. Speed matters too! most voice searches happen on mobile, so fast-loading, mobile-friendly pages are essential.

If we cling to the metaphor of David vs. Goliath, then how can smaller brands realistically outsmart the big FMCG players?

Ashrafi: The larger brands obviously enjoy more resources and visibility, but that doesn’t mean smaller players can’t make their mark. At Lamana Agency for example, we’ve seen real success through targeted, data-driven campaigns that let smaller brands speak directly to niche audiences. We’ve worked with startups in Iran that managed to outperform much larger competitors using this approach.

Social commerce is another leveller. If we look at other fresh insights, A recent Ramadan sales analysis showed that around 30% of online shopping in Saudi Arabia took place via social media. When smaller brands use Instagram Shops, WhatsApp Commerce, or shoppable TikTok content with the right local influencers, they can achieve a very strong return without big retail partnerships.

How about the Gen Z trend these days. Is it a misunderstood hype or the most important audience of our time?

Ashrafi: Gen Z in the MENA region are incredibly digital-savvy but also socially conscious. According to a regional consumer insight report by EY (Ernst & Young), 92% of Gen Z say they want brands to be transparent and honest. A growing number are using platforms like TikTok as their main discovery and search tools in the Arab world. However in Iran, despite the limits of using social media, Instagram is still on the top when it comes to popularity.

In both Arabic and Persian campaigns, we’ve seen great results by co-creating content with young micro-influencers. One project in Saudi Arabia used short Reels infused with humour and local language which outperformed conventional ads four times over. Whether in Tehran or Dubai, the story is the same: Gen Z wants entertaining, meaningful, and ethical content, and a Gen Z’s audience behaviour in MENA, might be different from the one in north America or Europe

Does this mean influencer marketing past its prime, or just getting smarter?

Ashrafi: Not at all. it’s just matured. Big-name influencers don’t have the pull they once did. Instead, we’re seeing far better engagement from micro- and nano-influencers, especially those who speak directly to a community or subculture. And the key is understanding the generation and the complex layers of subcultures.

Recent Scarlet Media Report suggests that micro-influencers in the region generate engagement rates between 10–20%. We now use AI tools to select influencers not only by metrics but also by alignment with the brand’s values and audience. In one UAE campaign, working with local food influencers lifted ROI by 38% over traditional sponsored posts. It’s the same story in Iran, where audiences crave relatable, trusted voices more than star power.

“Phygital” is a buzzword, but is it actually useful or just marketing speak?

Ashrafi: Blending physical and digital experiences, what we call ‘phygital’ is quickly becoming expected, especially in retail. A regional market study by Thee Digital revealed that mobile commerce in countries like Saudi Arabia and Iran already accounts for over 90% of all online transactions.

We’ve helped brands launch AR-powered virtual try-ons and digital displays that sync with customer profiles. Consumers expect seamless journeys between the digital and real worlds. If you’re not delivering that, you’re already behind.

How do brands speak to modern consumers without offending cultural norms while they need to be bold and respectful?

Ashrafi: Cultural sensitivity is non-negotiable in this region. A campaign that feels clever in Beirut might be seen as tone-deaf in Tehran, so far in London. You have to really understand local values, holidays, dialects and even colours and humour.

In our agency, we always bring in local voices to vet creative before launch. We’ve worked with Iranian artists and Arab influencers alike to localise not just language but mood and message. And one may think if the language of the campaign is English then the problem with culture is resolved, which is a wrong hypothesis in my opinion.

What should we brace for post-2025 in MENA marketing?

Ashrafi: I think we’re entering a phase where AI will do more than support, it will lead. We’re looking at AI agents running campaign logistics, AR driving brand interaction, and communities shaping brand narratives.

Several forecasts point to AI-driven marketing agents and immersive experiences becoming common practice. The brands that win will be those that embrace innovation while keeping a strong grip on local relevance. Whether you’re marketing in Persian, Arabic, or English, the human connection is still what matters most.

Final thought: what’s the one thing global marketers consistently underestimate when entering MENA markets?

Ashrafi: Without a doubt, it’s the depth and diversity of culture. You can’t run a campaign in Toronto, however diverse it is, the same way you would in Tehran or Casablanca. Success in the Middle East isn’t just about translating your message and it’s about understanding the cultural context behind it. That comes from either being native to the region or taking the time to study it deeply.

Too often, international marketers apply a one-size-fits-all approach, and it simply doesn’t work. At Lamana, our team includes people from different parts of the region, which allows us to tailor each campaign with cultural fluency. If you’re serious about marketing here, cultural intelligence isn’t optional. It’s your greatest asset.

Bonus question: If surprisingly sanctions ease between Iran and the US, is Iran ready for a global marketing wave and what role could agencies like yours play in it?

Ashrafi: That’s an excellent and timely question. Iran has an incredibly educated, youthful, and digitally engaged population. If even partial sanctions are lifted, the market could open very quickly to international brands looking for fresh growth opportunities. But it’s not a plug-and-play market.

Global agencies will need local partners who understand the nuances of Iranian culture, language, regulation, and consumer psychology. That’s where agencies like Lamana can have something to say as we already have the operational know-how and cultural insight from working on the ground. We can act as a strategic bridge, helping foreign brands avoid missteps and find authentic ways to engage Iranian audiences. The appetite is there for sure, the question is whether the execution will match the opportunity or not.

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Digital Marketing in the Middle East: Data, Culture, and What’s Next

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