SMS Advertising - Ethiopia

Ethiopia

Highlights

Ad spending in the SMS Advertising market in Ethiopia is forecasted to reach US$87.07k in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 3.82%, leading to a projected market volume of US$109.00k by 2030.
When compared globally, the United States is expected to generate the highest ad spending (US$310.40m in 2024).
The average ad spending per capita in the SMS Advertising market is projected to be US$0.00 in 2024.
Ethiopia's SMS Advertising market is rapidly expanding, leveraging the country's high mobile phone penetration to reach a growing audience effectively.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Ethiopian consumers have shown a strong preference for mobile communication and messaging services. With a large portion of the population owning mobile phones, SMS advertising has become an effective way for businesses to reach their target audience. Many consumers in Ethiopia rely on SMS messages for important updates, promotions, and notifications, making it a highly effective channel for advertising.

Trends in the market: One of the key trends in the SMS Advertising market in Ethiopia is the increasing adoption of mobile technology. As more Ethiopians gain access to affordable smartphones, the demand for mobile advertising is expected to grow. This trend is driven by the country's improving telecommunications infrastructure and the availability of affordable data plans. As a result, businesses are increasingly turning to SMS advertising to reach their target audience. Another trend in the market is the rise of mobile banking and financial services in Ethiopia. With the introduction of mobile money services, consumers are now able to make payments, transfer money, and access financial services through their mobile phones. This has created new opportunities for SMS advertising, as businesses can now target consumers with personalized offers and promotions based on their financial behavior.

Local special circumstances: Ethiopia has a large and diverse population, with different ethnic groups and languages spoken across the country. This presents a unique challenge for SMS advertising, as businesses need to tailor their messages to specific regions and demographics. In order to effectively reach their target audience, businesses must consider the cultural and linguistic preferences of their customers.

Underlying macroeconomic factors: Ethiopia has experienced steady economic growth in recent years, which has contributed to the development of the SMS Advertising market. As disposable incomes rise and consumer spending increases, businesses are looking for cost-effective ways to promote their products and services. SMS advertising offers a cost-effective solution, allowing businesses to reach a wide audience at a relatively low cost. Furthermore, the government of Ethiopia has implemented policies to promote the growth of the telecommunications sector, including the liberalization of the market and the introduction of new regulations. These policies have attracted foreign investment and encouraged competition, leading to improved infrastructure and increased access to mobile services. This has created a favorable environment for the growth of the SMS Advertising market. In conclusion, the SMS Advertising market in Ethiopia is experiencing significant growth and development due to the increasing adoption of mobile technology, the rise of mobile banking and financial services, the diverse population and cultural preferences, and the favorable macroeconomic factors. As businesses continue to recognize the effectiveness of SMS advertising in reaching 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.