The digital advertising industry in Iran is facing a significant and complex paradox. On one hand, this sector is experiencing the fastest growth among all advertising channels, with reports and forecasts predicting a staggering 50% expansion by 2025. On the other hand, its total share of the country’s advertising economy is merely 20%—a figure that starkly contrasts with the 60% global average. This deep divide highlights both the immense opportunities ahead and the complex structural barriers in place. In this article, we delve into this paradox.

The Dominance of Yektanet: Power Concentration in the Domestic Ecosystem

One of the primary reasons for this situation is the intense concentration of power on the advertising supply side. The Yektanet platform has emerged as the dominant player in this field, establishing a near-monopoly in the domestic online advertising market by holding an estimated 80% market share. Yektanet has achieved this massive scale through its AI models and strategic collaborations, such as its partnership with the Divar platform. This centralization makes it easier for businesses to reach the mass audience on the domestic internet. But is that the whole story?

The VPN Challenge: Audience Fragmentation on the Global Internet

Contrary to this concentration, the demand side—or the audience—is in a completely different state. The widespread use of VPNs in Iran, reaching over 80% in some demographics, is an undeniable reality. This phenomenon has effectively created two parallel internets. The first is a domestic ecosystem covered by local platforms. The second is a global space where a large portion of Iranian users connect via VPNs. This audience segment is typically beyond the reach of domestic advertising networks.

The Dual Strategy: A Solution to Overcome the Market Paradox

This duality creates a strategic challenge for brands. Relying solely on the domestic advertising network means ignoring a significant portion of the audience—a segment that often has global-oriented preferences and holds considerable economic value. Therefore, a smart strategy must be twofold. Brands should leverage the capacity of domestic platforms to achieve mass reach while simultaneously finding alternative and creative channels to connect with users on the global internet. This complexity in media planning bears a strong resemblance to other challenges we discussed in the article [Advertising in a Crisis: Statistical Lessons from the 12-Day War for Brands]. Success in today’s digital advertising market in Iran requires a deep understanding of this fractured market and the design of an integrated approach.