SMS Advertising - Nigeria | Statista Market Forecast

Ad spending in the SMS Advertising market in Nigeria is forecasted to reach US$514.30k in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 2.06%, leading to an estimated market volume of US$581.30k by 2030.
When compared globally, the United States is expected to generate the highest ad spending amounting to US$310.40m in 2024.
The average ad spending per capita in the SMS Advertising market is projected to be US$0.00 in Nigeria in 2024.
In Nigeria, SMS Advertising is rapidly growing due to the high mobile phone penetration rate and the effectiveness of targeted messaging strategies in reaching consumers.

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 Nigeria has been experiencing significant growth in recent years.

Customer preferences: Nigerian consumers have shown a strong preference for mobile communication, with mobile phones becoming an integral part of their daily lives. This has made SMS advertising an effective and popular marketing tool for businesses in Nigeria. SMS messages are easily accessible and have a high open rate, making them an effective way for businesses to reach their target audience.

Trends in the market: One of the key trends in the SMS Advertising market in Nigeria is the increasing use of SMS for promotional campaigns. Businesses are realizing the potential of SMS advertising to reach a large number of consumers in a cost-effective manner. This has led to a rise in the number of businesses using SMS advertising as part of their marketing strategy. Another trend in the market is the use of SMS advertising for customer engagement and retention. Businesses are using SMS messages to send personalized offers, discounts, and updates to their existing customers. This not only helps in retaining customers but also fosters a sense of loyalty towards the brand.

Local special circumstances: Nigeria has a large population with a significant number of people who are unbanked or underbanked. This has led to the rise of mobile money services in the country, with many Nigerians using their mobile phones for financial transactions. This presents an opportunity for businesses to leverage SMS advertising to promote their products or services and drive sales.

Underlying macroeconomic factors: Nigeria has been experiencing economic growth in recent years, with a growing middle class and increasing disposable income. This has led to an increase in consumer spending, creating a favorable environment for businesses to invest in marketing and advertising. The growth of the SMS Advertising market in Nigeria can be attributed to this economic development. In conclusion, the SMS Advertising market in Nigeria is developing rapidly due to customer preferences for mobile communication, the increasing use of SMS for promotional campaigns, and the rise of mobile money services. The underlying macroeconomic factors, such as economic growth and increasing consumer spending, have also contributed to the growth of the market. As businesses continue to recognize the effectiveness of SMS advertising, 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.