Market Insights Advertising & Media Advertising Direct Messaging Advertising

SMS Advertising - Eastern Africa

Eastern Africa

Ad spending in the SMS Advertising market in Eastern Africa is forecasted to reach US$0.88m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 1.54%, leading to a projected market volume of US$0.95m by 2029.
When compared globally, the United States will account for the highest ad spending (US$310.40m in 2024).
The average ad spending per capita in the SMS Advertising market is estimated to be US$0.00 in 2024.
In Eastern Africa, SMS Advertising is experiencing rapid growth due to the increasing mobile phone penetration rates in countries like Kenya and Tanzania.

Key regions: India, Germany, China, United Kingdom, Australia

Market

Region

Region comparison

Currency

Analyst Opinion

The SMS Advertising market in Eastern Africa is experiencing significant growth and development due to several factors.

Customer preferences: Customers in Eastern Africa are increasingly relying on mobile phones as their primary means of communication and accessing information. With the widespread availability of affordable smartphones and mobile internet, the region has witnessed a surge in mobile phone ownership and usage. This has created a fertile ground for SMS Advertising, as businesses can reach a large and diverse customer base through targeted SMS campaigns.

Trends in the market: One of the key trends in the SMS Advertising market in Eastern Africa is the adoption of SMS as a marketing channel by small and medium-sized enterprises (SMEs). Previously, SMS Advertising was mainly utilized by large corporations with substantial marketing budgets. However, the affordability and effectiveness of SMS campaigns have made it accessible to SMEs, allowing them to compete with larger players in the market. This trend has led to increased competition and innovation in the SMS Advertising sector. Another trend in the market is the integration of SMS Advertising with other digital marketing channels. Businesses are realizing the importance of a multi-channel marketing approach and are incorporating SMS campaigns into their overall marketing strategies. This integration allows for a more cohesive and targeted marketing message, resulting in higher engagement and conversion rates.

Local special circumstances: Eastern Africa has a young and tech-savvy population, which further fuels the growth of the SMS Advertising market. With a high percentage of the population below the age of 35, there is a strong demand for mobile-based services and digital communication. Additionally, the region has a high mobile penetration rate, with a large percentage of the population having access to mobile phones. These factors create a conducive environment for SMS Advertising to thrive.

Underlying macroeconomic factors: The economic growth in Eastern Africa has contributed to the expansion of the SMS Advertising market. As the region experiences increasing urbanization and rising disposable incomes, businesses are looking for effective ways to reach consumers and promote their products or services. SMS Advertising provides a cost-effective solution for businesses to engage with potential customers, resulting in increased sales and revenue. In conclusion, the SMS Advertising market in Eastern Africa is witnessing significant growth and development due to the increasing reliance on mobile phones, the adoption of SMS as a marketing channel by SMEs, the integration of SMS Advertising with other digital marketing channels, the young and tech-savvy population, and the region's economic growth. These factors are driving the expansion of the SMS Advertising market and creating opportunities for businesses to effectively reach and engage with their target audience.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on SMS Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for creating and sending SMS advertisements.

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, and internet coverage. 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 internet 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.