SMS Advertising - Eastern Asia | Statista Market Forecast

Ad spending in the SMS Advertising market in Eastern Asia is forecasted to reach US$223.00m in 2024.
The market is expected to experience a compound annual growth rate (CAGR 2024-2030) of 2.67%, leading to a projected market volume of US$261.30m by 2030.
When compared globally, the United States is anticipated to lead in ad spending with US$310.40m in 2024.
The average ad spending per capita in the SMS Advertising market is projected to be US$0.14 in 2024.
In South Korea, SMS advertising is thriving due to high smartphone penetration and a tech-savvy population embracing mobile marketing strategies.

Definition:

SMS Advertising spending refers to the advertising budget that advertisers allocate to their SMS (Short Message Service) advertisements. This type of spending encompasses the budget designated to create and deliver promotional messages through text messages sent to targeted recipients’ mobile phones.

Additional information:

SMS 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.

The advertising budget used for SMS advertisements
Software fees for creating and sending SMS advertisements

Service agencies
Consultant fees
Production costs
Design services

The SMS Advertising market in Eastern Asia is experiencing significant growth and development. Customer preferences in the region indicate a strong demand for SMS advertising. This can be attributed to the high mobile penetration rate in Eastern Asia, with a large portion of the population owning smartphones and actively using mobile devices for communication and internet access. Additionally, consumers in the region are increasingly relying on mobile apps and messaging platforms for various purposes, including shopping, socializing, and entertainment. This shift in consumer behavior has created a fertile ground for SMS advertising, as it allows businesses to directly reach their target audience on a platform they are already actively engaged with. Trends in the market indicate a growing adoption of SMS advertising by businesses in Eastern Asia. Companies are recognizing the effectiveness and efficiency of SMS as a marketing channel, as it allows for targeted and personalized communication with customers. SMS advertising offers a high open and response rate compared to other forms of advertising, making it an attractive option for businesses looking to maximize their marketing ROI. Furthermore, advancements in technology have made it easier for businesses to automate and optimize their SMS advertising campaigns, further driving the growth of the market. Local special circumstances in Eastern Asia also contribute to the development of the SMS Advertising market. For example, in countries like China, where social media platforms such as Facebook and Twitter are banned, SMS advertising provides an alternative way for businesses to reach their target audience. Additionally, the prevalence of mobile payment systems in Eastern Asia, such as Alipay and WeChat Pay, makes it easier for businesses to convert SMS advertising into actual sales by providing a seamless payment experience. Underlying macroeconomic factors further support the growth of the SMS Advertising market in Eastern Asia. The region's strong economic growth, rising disposable incomes, and increasing consumer spending contribute to a favorable business environment for advertisers. As businesses look for cost-effective and efficient marketing strategies to tap into the growing consumer market, SMS advertising emerges as a viable solution. In conclusion, the SMS Advertising market in Eastern Asia is experiencing significant growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As businesses continue to recognize the effectiveness of SMS advertising in reaching and engaging with their target audience, the market is expected to further expand in the coming years.

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.

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.