Market Insights Advertising & Media Advertising Direct Messaging Advertising

SMS Advertising - EU-27

EU-27

Ad spending in the SMS Advertising market in EU-27 is forecasted to reach US$86.34m in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.74%, leading to a projected market size of US$89.58m by 2029.
When compared globally, the United States is anticipated 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$0.19 in 2024.
In the EU-27, SMS Advertising is gaining traction as companies leverage its cost-effectiveness and wide reach to engage consumers effectively.

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

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Analyst Opinion

The SMS Advertising market in EU-27 is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in EU-27 are increasingly relying on their mobile devices for communication and information. With the widespread adoption of smartphones and the increasing popularity of mobile apps, SMS Advertising provides a direct and effective way for businesses to reach their target audience. Additionally, SMS Advertising offers a personalized and interactive experience for customers, allowing them to engage with brands in a convenient and timely manner.

Trends in the market: One of the key trends in the SMS Advertising market in EU-27 is the growing use of location-based targeting. This allows businesses to send targeted SMS advertisements to customers based on their geographical location, increasing the relevance and effectiveness of the messages. Another trend is the integration of SMS Advertising with other marketing channels, such as social media and email marketing. This multi-channel approach allows businesses to reach customers across different platforms and increase the overall impact of their advertising campaigns.

Local special circumstances: EU-27 is a diverse region with different languages, cultures, and regulations. This presents both opportunities and challenges for SMS Advertising. Businesses need to adapt their campaigns to the local languages and cultural preferences of each country in order to effectively engage with customers. Additionally, there are specific regulations in place to protect consumer privacy and prevent spam messages. Businesses operating in EU-27 need to ensure that their SMS Advertising campaigns comply with these regulations to avoid legal issues and maintain a positive brand image.

Underlying macroeconomic factors: The growing SMS Advertising market in EU-27 is also influenced by underlying macroeconomic factors. The region has a strong economy and a high level of mobile penetration, which provides a large and receptive customer base for SMS Advertising. Additionally, the increasing use of mobile devices for online shopping and e-commerce activities further drives the demand for SMS Advertising as businesses seek to reach customers during their purchase journey. The overall positive economic outlook and consumer spending power in EU-27 contribute to the growth and development of the SMS Advertising market. In conclusion, the SMS Advertising market in EU-27 is developing rapidly due to customer preferences for mobile communication, trends such as location-based targeting and multi-channel integration, local special circumstances including language and regulatory considerations, and underlying macroeconomic factors such as a strong economy and high mobile penetration. As businesses continue to recognize the effectiveness of SMS Advertising in reaching and engaging customers, the market is expected to further expand in the coming years.

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.