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SMS Advertising - South America

South America

Ad spending in the SMS Advertising market in South America is forecasted to reach US$18.80m in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.79%, leading to a projected market volume of US$19.55m by 2029.
When compared globally, the United States will generate the highest ad spending (US$310.40m in 2024).
The average ad spending per capita in the SMS Advertising market is projected to be US$0.05 in 2024.
In Brazil, SMS Advertising is gaining traction as companies seek cost-effective ways to reach a wide audience in the competitive advertising market.

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

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Analyst Opinion

The SMS Advertising market in South America is experiencing significant growth and development.

Customer preferences: South American customers are increasingly using mobile phones as their primary means of communication, making SMS advertising an effective way for businesses to reach their target audience. SMS messages have a high open rate and are more likely to be read compared to other forms of advertising such as emails or social media posts. Additionally, SMS advertising allows for personalized and targeted messaging, which is appealing to customers who prefer relevant and customized content.

Trends in the market: One of the key trends in the SMS Advertising market in South America is the increasing adoption of SMS campaigns by businesses across various industries. Companies are recognizing the potential of SMS advertising to reach a wide audience and are investing in SMS marketing strategies to promote their products and services. This trend is driven by the growing smartphone penetration in South America, which provides businesses with a larger customer base to target. Another trend in the market is the use of SMS advertising for customer engagement and loyalty programs. Businesses are leveraging SMS campaigns to send exclusive offers, discounts, and rewards to their loyal customers. This helps in building customer loyalty and increasing repeat purchases.

Local special circumstances: South America is a diverse region with different countries having unique cultural and linguistic characteristics. This diversity poses a challenge for businesses operating in the SMS Advertising market as they need to tailor their campaigns to suit the preferences and needs of each country. Localizing the content and language of SMS messages is crucial to effectively engage with customers and drive conversions.

Underlying macroeconomic factors: The growing economy in South America is contributing to the development of the SMS Advertising market. As disposable incomes rise, consumers have more purchasing power, leading to increased demand for products and services. Businesses are capitalizing on this opportunity by investing in SMS advertising to promote their offerings and attract customers. Furthermore, the increasing smartphone penetration in South America is a key driver for the growth of the SMS Advertising market. With more people owning smartphones, businesses can reach a larger audience through SMS campaigns. Additionally, the availability of affordable data plans and internet connectivity has made it easier for customers to access and engage with SMS advertisements. In conclusion, the SMS Advertising market in South America is experiencing growth and development due to customer preferences for mobile communication, the increasing adoption of SMS campaigns by businesses, and the underlying macroeconomic factors such as the growing economy and smartphone penetration. However, businesses need to be mindful of the local special circumstances and tailor their SMS advertising strategies to suit the preferences and needs of each country in South America.

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.