Influencer Advertising - Ethiopia

The Influencer Advertising market in Ethiopia is projected to reach US$6.55m in 2024.
The market is expected to grow annually at a rate of 8.05% from 2024 to 2030, reaching a projected volume of US$10.42m by 2030.
The average ad spending per internet user in the Influencer Advertising market in Ethiopia is projected to be US$0.21 in 2024.
In global comparison, China will lead in ad spending with US$19.16bn in 2024.
Influencer Advertising in Ethiopia is gaining traction, with local content creators collaborating with brands to reach a growing online audience.

Definition:
Influencer Advertising refers to advertising that allows marketers to promote products or services by collaborating with influencers on social media. Influencer Advertising allows marketers to reach targeted audiences based on the influencer’s performance and their follower profiles; they also have the ability to measure the performance of campaigns. Influencer Advertising refers to all advertising fees paid directly to influencers (or to their person of trust or representative) for posting or streaming sponsored content (e.g., posts, videos, and/or stories) on social media to promote products or services to their followers. This sponsored content typically includes images, videos, live streams, and/or text.

Additional information:
Influencer Advertising comprises advertising spending, users, and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

Advertising spending paid directly to influencers to post sponsored content

The values of giveaway products as well as services that influencers receive in exchange for reviews, mentions, or giveaways for their followers
Advertising spending allocated to paid social media campaigns to boost content
Affiliate commissions, i.e., the commissions that are paid to influencers when someone makes a purchase based on their content or links
Gross merchandise volume (GMV) of transactions from sponsored posts or live streams

In recent years, the Influencer Advertising market in Ethiopia has experienced significant growth and development.

Customer preferences: Ethiopian consumers have shown a growing interest in influencer advertising as a means to discover and engage with new products and services. Influencers are seen as trustworthy sources of information and recommendations, and their content resonates well with the local audience. Additionally, social media platforms have gained popularity in Ethiopia, providing a fertile ground for influencer marketing to thrive.

Trends in the market: One of the key trends in the Ethiopian influencer advertising market is the rise of micro-influencers. These are individuals with a smaller but highly engaged following, often within a specific niche or community. Brands are increasingly recognizing the value of micro-influencers in reaching targeted audiences and driving authentic engagement. This trend is particularly evident in sectors such as fashion, beauty, and food where niche influencers can have a significant impact. Another trend in the market is the growing diversification of platforms used for influencer advertising. While Instagram remains the dominant platform for influencers in Ethiopia, there is a rising interest in other platforms such as YouTube and TikTok. This diversification allows brands to reach a wider audience and tap into different demographics.

Local special circumstances: Ethiopia has a young and rapidly growing population, with a high percentage of internet users and social media enthusiasts. This demographic shift has created a favorable environment for influencer advertising to thrive. Additionally, the country has witnessed an increase in disposable income among the middle class, enabling consumers to engage with brands and make purchasing decisions based on influencer recommendations.

Underlying macroeconomic factors: Ethiopia's economy has been growing steadily in recent years, with a focus on sectors such as agriculture, manufacturing, and services. This economic growth has resulted in increased consumer spending power and a growing middle class. As a result, brands are investing more in influencer advertising to tap into this expanding consumer base and drive sales. In conclusion, the Influencer Advertising market in Ethiopia is experiencing significant growth and development due to customer preferences for authentic and trustworthy recommendations, the rise of micro-influencers, diversification of platforms, a young and internet-savvy population, and the country's economic growth. These factors combined create a favorable environment for influencer advertising to thrive and contribute to the overall marketing landscape in Ethiopia.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Influencer marketing has become one of the most popular and effective forms of online marketing. With millions of internet users browsing social media platforms for entertainment, inspiration, and product recommendations daily, it is no surprise that marketers are harnessing the power of social media’s most recognizable faces for promotion. The global influencer marketing market value stood at 21.1 billion U.S. dollars as of 2023, having more than tripled since 2019. As influencer endorsement continues to mature as an industry, the size and value of influencer marketing platforms also continue to expand every year, making collaborations between brands and creators more profitable than ever.