The UAE's strategic focus on its digital economy, driven by investments in cutting-edge infrastructure, artificial intelligence, and strong online security, has positioned it as one of the most digitally connected countries globally.
With 99% of the population actively using the internet, it's no surprise that e-commerce has surged, with over 70.5% of purchases made through smartphones in 2023. Additionally, recent reports highlight that nearly half of UAE consumers plan to increase their online shopping in the coming year, which is encouraging for brands looking to expand their digital presence.
In Q4, the ‘Golden Quarter’ of the shopping season, confidence in digital commerce is at an all-time high. Consumers are using their mobile devices to shop online at any time of day, especially in the beauty, fashion, and F&B sectors.
The 25-44 year age group, with its substantial purchasing power, relies on digital platforms for everything from product research and comparisons to reviews and tutorials. These consumers also gravitate toward brands that offer seamless purchasing directly from shoppable videos on digital platforms, streamlining the experience and transforming customer engagement and service.
This shift is reflected in research on TikTok, where 81% of users reported discovering new brands and products on the platform, and 67% indicated they are more likely to purchase from a brand after viewing a TikTok shopping ad.
The ideal time for brands
The period from October to December is packed with global shopping moments like Black Friday, Singles' Day, and Cyber Monday, drawing in eager consumers looking for great deals on new brands and products. In the UAE, where cultural values deeply influence consumer behaviour, spending on beauty, luxury, travel and home rises significantly during this time, especially as local celebrations like UAE National Day and the holiday season approach.
With a packed shopping calendar, brands entering Q4 with thoughtful marketing strategies that personally connect with their audience—by aligning with their interests, cultural traditions, and values—can build trust and influence purchasing decisions.
The key to success is connecting with consumers where they are spending their time: on digital platforms, especially short-form video platforms like TikTok, which can provide them a competitive edge. By tapping into the platform’s user-generated content, entertainment, and commerce features, brands can capture and maintain attention and recall through interactive experiences.
In Q4-2023, there were over 10 billion video views on shopping-related content on TikTok and a surge in shopping-related searches during this period alone.
Digital platforms empower brands
One of the key strengths of digital platforms, especially during this time of year, is their ability to run consistent campaigns that cater to the constant appetite for shopping. Unlike traditional e-commerce platforms, where consumers typically shop during specific times or promotional events, digital platforms create a continuous and immersive shopping experience. Shoppers can engage with brands and products anytime through content tailored to their interests and preferences. In Q4-2023, TikTok saw an average spend that was 1.2x higher compared to other channels because of such digital campaigns in the UAE and Saudi Arabia.
Adopting an activation strategy that stretches out for the entire quarter provides benefits that extend beyond one-off promotional events, heightening the impact of the ‘Golden Quarter ‘and maximizing marketing budgets.
In 2023, brands that implemented full-quarter campaigns on TikTok, utilizing diverse strategies, including user-generated content, trending topics, the platforms AI production tools, and ads, experienced remarkable results. They achieved a 79% reduction in cost-per-action compared to brands that focused solely on short-term promotional campaigns.
Brands that also drove shopping at different times of the day and across the months with creator collaborations and bundled ad products for enhanced visibility saw a 44% increase in conversion rates.
It also led to transactions occurring outside traditional promotional periods, proving the value of ongoing engagement in shaping long-term consumer behavior and purchasing decisions.
Buying directly through video content
The retail sector is undergoing a major shift as consumers expect shopping to be more personalized and accessible on the go. Consumers not only want to learn about products on digital platforms but also complete their purchases within seconds, without leaving the app, and seamlessly return to their scrolling.
Integrating shoppable video ads into campaigns allows consumers to fully explore products and visualize using them, combining product discovery and brand awareness in a single video. This also boosts returns as evidenced in 2023, when campaigns using video shopping ads on TikTok saw a 46% increase in return on ad spend (ROAS) and a 24% decrease in cost per acquisition.
New technology on digital platforms are increasingly blurring the lines between entertainment and commerce, creating new opportunities for brands to engage consumers in innovative ways. Platforms like TikTok have transformed into retail powerhouses, offering a dynamic space where consumers can interact with brands in real-time and make faster, more informed purchasing decisions, while also shortening the sales cycle.
As TikTok evolves with new ad formats, creative tools, and localized content, brands can expect a more meaningful impact in reaching a highly engaged, ready-to-spend audience all year round.
