SMS Advertising - NAFTA

NAFTA

Highlights

Ad spending in the SMS Advertising market in NAFTA is forecasted to reach US$334.40m in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 2.14%, leading to a projected market volume of US$379.80m by 2030.
Among in North American Free Trade Agreement (NAFTA) countries, the United States is anticipated to generate the highest ad spending (US$310.40m in 2024).
The projected average ad spending per capita in the SMS Advertising market is US$0.66 in 2024.
The proliferation of mobile devices in the NAFTA region is driving a surge in SMS advertising campaigns, revolutionizing the advertising market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The SMS Advertising market in NAFTA is experiencing a steady growth due to the increasing popularity of mobile devices and the rising demand for targeted advertising.

Customer preferences: Customers in the NAFTA region are increasingly using mobile devices for various activities, including communication, entertainment, and shopping. As a result, they are more likely to pay attention to SMS advertisements that are delivered directly to their phones. Additionally, customers in this region appreciate personalized and targeted advertising, as it allows them to receive relevant offers and promotions.

Trends in the market: One of the key trends in the SMS Advertising market in NAFTA is the shift towards mobile-first advertising strategies. With the majority of customers using mobile devices, businesses are focusing on optimizing their advertising campaigns for mobile platforms. This includes creating mobile-friendly landing pages, utilizing SMS short codes for easy interaction, and implementing location-based targeting to deliver relevant ads to customers based on their geographical location. Another trend in the market is the integration of SMS advertising with other digital marketing channels. Businesses are recognizing the importance of a multi-channel approach and are incorporating SMS advertising into their overall marketing strategies. This integration allows for a more cohesive and effective advertising campaign, as businesses can reach customers through multiple touchpoints and reinforce their messaging.

Local special circumstances: The SMS Advertising market in NAFTA is influenced by the cultural diversity and varying consumer behaviors across the region. While mobile device usage is high in all NAFTA countries, there are differences in customer preferences and response rates to SMS advertisements. For example, customers in the United States may be more receptive to SMS advertisements that offer discounts and promotions, while customers in Canada may prefer SMS advertisements that provide information about new products or services. Understanding these local preferences is crucial for businesses to effectively engage with their target audience.

Underlying macroeconomic factors: The growth of the SMS Advertising market in NAFTA is also supported by the strong economic conditions in the region. The NAFTA countries have stable economies with high levels of consumer spending, which creates a favorable environment for businesses to invest in advertising. Additionally, the increasing penetration of smartphones and mobile internet access further contributes to the growth of the SMS Advertising market, as it provides businesses with a larger audience to target. In conclusion, the SMS Advertising market in NAFTA is experiencing growth due to the increasing popularity of mobile devices, customer preferences for personalized advertising, and the integration of SMS advertising with other digital marketing channels. Businesses in the region are adapting their advertising strategies to cater to the mobile-first mindset of customers and are leveraging SMS advertising as part of their multi-channel marketing approach. Understanding local preferences and cultural nuances is essential for businesses to effectively engage with their target audience in the NAFTA region.

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.