Direct Messaging Advertising - NAFTA

Ad spending in the Direct Messaging Advertising market in NAFTA is forecasted to reach US$32.95bn in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 1.68%, leading to a projected market volume of US$36.40bn by 2030.
With a market volume of US$22.43bn in 2024, Direct Mail Advertising holds the largest share in the market.
In a global context, the United States leads in ad spending with US$29.98bn in 2024.
The average ad spending per capita in the Direct Messaging Advertising market is estimated to be US$64.56 in 2024.
In the NAFTA region, Direct Messaging Advertising is experiencing a surge in personalized campaigns targeting diverse consumer segments for higher engagement and conversion rates.

Definition:

Direct Messaging Advertising refers to a type of advertising format that involves sending advertisement messages directly to individual audiences or specific target groups through private communication channels. Direct Messaging Advertising includes both traditional and digital advertising methods, such as direct mail, e-mail, SMS, web push, instant messaging, and telemarketing. This form of advertising aims to establish a personalized and direct connection with potential customers.

Structure:

Direct Messaging Advertising typically refers to advertising formats used within various messaging platforms or direct messaging channels. These formats are designed to deliver targeted advertisements directly via private communication channels such as e-mail, SMS, direct mail, web push, telemarketing, and instant messaging.

Additional information:

Direct Messaging Advertising comprises advertising spending and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

SMS advertising
Direct mail advertising
Web push advertising
Telemarketing
Instant messaging advertising
Traditional direct messaging
Digital direct messaging

Service agencies
Consultant fees
Production costs
Design services

The Direct Messaging Advertising market in NAFTA is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trend. Customer preferences in the Direct Messaging Advertising market are shifting towards more personalized and targeted advertising. With the rise of social media and mobile messaging apps, consumers are increasingly using these platforms to communicate with friends, family, and businesses. As a result, they expect advertising messages to be relevant and tailored to their interests and needs. This has led to an increase in the use of direct messaging as a means of advertising, as it allows brands to reach consumers directly and engage in personalized conversations. Trends in the Direct Messaging Advertising market are also driving its development in NAFTA. One key trend is the integration of artificial intelligence and chatbots into messaging platforms. This allows brands to automate their messaging campaigns and provide instant responses to customer inquiries. Additionally, the use of chatbots enables brands to gather valuable data on customer preferences and behavior, which can be used to further personalize advertising messages. Another trend in the market is the growing popularity of influencer marketing. Influencers, who have a large following on social media platforms, are increasingly being used by brands to promote their products or services through direct messaging. This form of advertising is effective because it leverages the trust and credibility that influencers have built with their followers. Local special circumstances in NAFTA also contribute to the development of the Direct Messaging Advertising market. In the United States, for example, the high level of smartphone penetration and the popularity of messaging apps such as WhatsApp and Facebook Messenger have created a fertile ground for direct messaging advertising. Similarly, in Canada and Mexico, the widespread use of social media platforms and messaging apps has made direct messaging advertising a viable and effective strategy for brands to reach their target audience. Underlying macroeconomic factors are also playing a role in the growth of the Direct Messaging Advertising market in NAFTA. The region's strong economic growth and increasing disposable incomes have led to higher consumer spending and a greater demand for products and services. This has created opportunities for brands to invest in advertising and reach consumers through direct messaging. In conclusion, the Direct Messaging Advertising market in NAFTA is developing due to customer preferences for personalized and targeted advertising, trends such as the integration of AI and chatbots, the popularity of influencer marketing, local special circumstances including high smartphone penetration and the use of messaging apps, and underlying macroeconomic factors such as strong economic growth and increasing disposable incomes. As these factors continue to evolve, the Direct Messaging Advertising market in NAFTA is expected to further expand and innovate.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses via e-mail, SMS, direct mail, messengers, web push, telemarketing, and instant messaging.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, number of smartphone users, internet coverage, and number of urban households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.