SMS Advertising - United Arab Emirates

  • United Arab Emirates
  • Ad spending in the SMS Advertising market in the United Arab Emirates is forecasted to reach US$1.26m in 2024.
  • The market is expected to experience an annual growth rate (CAGR 2024-2029) of 1.54%, leading to a projected market volume of US$1.36m 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 anticipated to be US$0.13 in 2024.
  • In the United Arab Emirates, SMS advertising is witnessing a surge in popularity among businesses aiming to reach a tech-savvy consumer base.

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

 
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Analyst Opinion

The SMS Advertising market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences:
Customers in United Arab Emirates have shown a strong preference for SMS advertising as a means of communication and marketing. This is due to several factors, including the high mobile penetration rate in the country and the convenience of receiving messages directly on their phones. Additionally, SMS advertising allows for personalized and targeted messaging, which is appealing to customers who value relevant and timely information.

Trends in the market:
One of the key trends in the SMS Advertising market in United Arab Emirates is the increasing adoption of mobile marketing strategies by businesses. As more companies recognize the potential of SMS advertising in reaching their target audience, they are investing in mobile marketing campaigns to promote their products and services. This trend is driven by the growing smartphone usage in the country and the popularity of mobile apps and social media platforms. Another trend in the market is the use of SMS advertising for customer engagement and loyalty programs. Businesses are leveraging SMS campaigns to engage with their customers, provide exclusive offers and discounts, and build long-term relationships. This approach has proven to be effective in driving customer loyalty and increasing repeat purchases.

Local special circumstances:
The SMS Advertising market in United Arab Emirates is influenced by the cultural and regulatory environment of the country. The United Arab Emirates has a diverse population, with a significant expatriate community. This diversity poses a challenge for businesses to create SMS campaigns that resonate with different cultural backgrounds and languages. Therefore, companies need to carefully tailor their messages to ensure they are relevant and appropriate for their target audience. Additionally, the regulatory framework in United Arab Emirates imposes certain restrictions on SMS advertising. Businesses are required to obtain consent from customers before sending them promotional messages, and there are guidelines in place to prevent spam and protect consumer privacy. These regulations ensure that SMS advertising is conducted in a responsible and ethical manner.

Underlying macroeconomic factors:
The growth of the SMS Advertising market in United Arab Emirates is supported by several macroeconomic factors. The country has a strong and stable economy, driven by sectors such as tourism, trade, and finance. This economic stability provides businesses with the confidence to invest in marketing strategies, including SMS advertising. Furthermore, the high smartphone penetration rate in United Arab Emirates is a key driver of the SMS Advertising market. With a large percentage of the population owning smartphones, businesses have a wide reach and can effectively target their audience through SMS campaigns. In conclusion, the SMS Advertising market in United Arab Emirates is experiencing growth due to customer preferences for personalized and targeted messaging, the increasing adoption of mobile marketing strategies by businesses, and the cultural and regulatory environment of the country. These trends are supported by the underlying macroeconomic factors of a strong and stable economy and a high smartphone penetration rate.

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.

Overview

  • Ad Spending
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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