Market Insights Advertising & Media Advertising Direct Messaging Advertising

SMS Advertising - Nigeria

Nigeria

Ad spending in the SMS Advertising market in Nigeria is forecasted to reach US$0.51m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 2.25%, leading to an estimated market volume of US$0.57m by 2029.
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.

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

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Analyst Opinion

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.

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.