Market Insights Advertising & Media Advertising Direct Messaging Advertising

SMS Advertising - Hong Kong

Hong Kong

Ad spending in the SMS Advertising market in Hong Kong is forecasted to reach US$2.44m in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2029) of 1.12%, leading to a projected market volume of US$2.58m by 2029.
When compared globally, the United States will generate the highest ad spending, reaching US$310.40m in 2024.
The average ad spending per capita in the SMS Advertising market is projected to be US$0.33 in 2024.
In Hong Kong, SMS Advertising is gaining traction due to its cost-effectiveness and high engagement rates among tech-savvy consumers.

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

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Analyst Opinion

The SMS Advertising market in Hong Kong is experiencing significant growth and development.

Customer preferences: Customers in Hong Kong have shown a strong preference for SMS advertising due to its convenience and effectiveness. With the majority of the population owning a mobile phone, SMS advertising allows businesses to reach a large audience instantly. Furthermore, SMS messages are often read within minutes of being received, ensuring that the advertising message is delivered in a timely manner.

Trends in the market: One of the key trends in the SMS Advertising market in Hong Kong is the increasing use of personalized and targeted messages. Businesses are leveraging customer data to send customized SMS advertisements that are tailored to individual preferences and behaviors. This approach not only increases the effectiveness of the advertisements but also enhances customer engagement and loyalty. Additionally, businesses are adopting interactive SMS advertising campaigns, allowing customers to respond to messages and participate in promotions or contests. This interactive approach not only creates a more engaging experience for customers but also provides valuable data for businesses to further refine their marketing strategies.

Local special circumstances: Hong Kong's highly competitive business environment and dense population create a unique set of circumstances for SMS advertising. With numerous businesses vying for customers' attention, SMS advertising provides a cost-effective and efficient way for businesses to stand out from the competition. Furthermore, Hong Kong's high mobile phone penetration rate and tech-savvy population make SMS advertising a popular and effective marketing channel.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the SMS Advertising market in Hong Kong. Firstly, the rapid advancement of mobile technology has made it more accessible and affordable for businesses to implement SMS advertising campaigns. With the increasing use of smartphones and mobile internet, customers are constantly connected and receptive to receiving SMS advertisements. Secondly, the growing e-commerce industry in Hong Kong has created a demand for effective marketing strategies, with businesses relying on SMS advertising to promote their products and services. Finally, the COVID-19 pandemic has accelerated the adoption of digital marketing channels, including SMS advertising, as businesses seek alternative ways to reach customers in a time of social distancing and reduced physical interactions. In conclusion, the SMS Advertising market in Hong Kong is thriving due to customer preferences for its convenience and effectiveness, the adoption of personalized and interactive campaigns, the competitive business environment, and the underlying macroeconomic factors such as mobile technology advancements, the growth of the e-commerce industry, and the impact of the COVID-19 pandemic. As businesses continue to recognize the benefits of SMS advertising, 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), 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 Consumer Insightsis reweighted for representativeness.