SMS Advertising - Nordics

Nordics

Highlights

Ad spending in the SMS Advertising market in Nordics is forecasted to reach US$11.46m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 0.71%, leading to a projected market volume of US$11.96m by 2030.
When compared globally, the United States is set 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$0.41 in 2024.
In the Nordics, SMS Advertising is increasingly popular due to its high engagement rates and targeted reach in the competitive advertising market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The SMS Advertising market in Nordics is experiencing significant growth and development. Customer preferences have shifted towards mobile advertising, leading to an increased demand for SMS advertising services. This trend is driven by several factors, including the widespread use of smartphones, the popularity of messaging apps, and the effectiveness of SMS as a marketing channel.

Customer preferences: Customers in the Nordics have increasingly turned to mobile devices for their everyday activities, including browsing the internet, shopping, and communicating with others. As a result, businesses have recognized the need to reach their target audience through mobile advertising channels. SMS advertising has emerged as a preferred choice due to its direct and personal nature. Unlike other forms of advertising, SMS messages are delivered directly to the recipient's mobile device, ensuring a higher level of engagement and visibility.

Trends in the market: One of the key trends in the SMS advertising market in the Nordics is the integration of SMS with messaging apps. With the popularity of messaging apps such as WhatsApp and Facebook Messenger, businesses are leveraging these platforms to reach their customers through SMS advertising. This integration allows businesses to tap into the large user base of messaging apps while still utilizing the effectiveness of SMS as a marketing channel. Another trend in the market is the use of personalized and targeted SMS campaigns. Businesses are increasingly using customer data and analytics to create personalized SMS messages that cater to the individual preferences and interests of their customers. This approach not only increases the effectiveness of SMS advertising but also enhances the overall customer experience.

Local special circumstances: The Nordics region has a high smartphone penetration rate, with a large percentage of the population owning smartphones. This high smartphone adoption has created a favorable environment for SMS advertising, as businesses can easily reach their target audience through their mobile devices. Additionally, the Nordics region has a high literacy rate, making SMS advertising an effective way to communicate with customers.

Underlying macroeconomic factors: The Nordics region has a strong and stable economy, which has contributed to the growth of the SMS advertising market. Businesses in the region have the financial resources to invest in advertising and marketing campaigns, including SMS advertising. Additionally, the high level of digitalization in the Nordics region has created a tech-savvy population that is receptive to mobile advertising. In conclusion, the SMS Advertising market in the Nordics is growing and developing due to customer preferences for mobile advertising, the integration of SMS with messaging apps, personalized and targeted SMS campaigns, the high smartphone penetration rate, and the strong and stable economy in the region. These factors have created a favorable environment for businesses to leverage SMS advertising as an effective marketing channel.

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.