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SMS Advertising - Southern Africa

Southern Africa

Ad spending in the SMS Advertising market in Southern Africa is forecasted to reach US$2.15m in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of -0.95%, leading to a projected market volume of US$2.05m by 2029.
When compared globally, the United States will see the highest ad spending with US$310.40m in 2024.
The average ad spending per capita in the SMS Advertising market is projected to be US$0.03 in 2024.
In Southern Africa, SMS Advertising is gaining traction due to high mobile penetration rates and the effectiveness of targeted messaging strategies in the market.

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

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Analyst Opinion

The SMS Advertising market in Southern Africa is experiencing significant growth and development due to various factors.

Customer preferences: Customers in Southern Africa have shown a strong preference for SMS advertising as a means of communication and receiving promotional offers. SMS messages have a high open rate and are more likely to be read compared to other forms of advertising, such as email or social media. Additionally, SMS advertising allows for targeted and personalized messaging, which resonates well with customers in the region.

Trends in the market: One of the key trends in the SMS Advertising market in Southern Africa is the increasing use of mobile phones. The region has witnessed a rapid growth in mobile phone penetration, with a large percentage of the population now owning a mobile device. This has created a vast audience for SMS advertising, as businesses can reach a wide range of customers through their mobile phones. Another trend in the market is the rise of mobile banking and mobile payments in Southern Africa. Many people in the region rely on mobile banking services to send and receive money, pay bills, and make purchases. This presents an opportunity for businesses to incorporate SMS advertising into their mobile banking platforms, allowing them to reach customers directly and promote their products or services.

Local special circumstances: Southern Africa is home to a diverse population with different languages and cultural backgrounds. This presents a challenge for businesses in terms of creating SMS advertisements that are culturally sensitive and relevant to their target audience. To overcome this, businesses need to invest in market research and tailor their SMS advertising campaigns to specific regions and demographics within Southern Africa.

Underlying macroeconomic factors: The growing economy in Southern Africa is contributing to the development of the SMS Advertising market. As the region experiences economic growth, more businesses are investing in advertising and marketing strategies to reach their target audience. This includes utilizing SMS advertising as an effective and cost-efficient way to promote their products or services. Furthermore, the improvement in telecommunications infrastructure in Southern Africa is also driving the growth of the SMS Advertising market. With better network coverage and faster internet speeds, businesses can easily send SMS messages to a large number of customers, ensuring that their advertisements reach the intended recipients in a timely manner. In conclusion, the SMS Advertising market in Southern Africa is thriving due to customer preferences for personalized and targeted messaging, the increasing use of mobile phones and mobile banking, as well as the region's growing economy and improved telecommunications infrastructure. Businesses in the region can take advantage of these trends and circumstances to effectively promote their products or services through SMS advertising.

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 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.