Retail Platform Advertising - Bulgaria

In Bulgaria, ad spending in the Retail Platform Advertising market is projected to reach US$32.02m in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2030) of 9.47%, leading to a projected market volume of US$55.11m by 2030.
The average ad spending per user in the Retail Platform Advertising market in Bulgaria is projected to amount to US$16.15 in 2024.
In a global context, the highest ad spending will be generated the United States, with an estimated US$57.63bn in 2024.
In Bulgaria, the retail platform advertising sector is increasingly leveraging social media channels to enhance brand visibility and consumer engagement.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in Bulgaria is witnessing subdued growth, influenced by factors such as increasing competition, evolving consumer preferences, and challenges in effectively measuring advertising impact across various digital channels.

Customer preferences: Consumers in Bulgaria are increasingly prioritizing convenience and personalization in their shopping experiences, leading to a shift towards targeted advertising on retail platforms. This trend is influenced by the rise of mobile shopping and social media, where shoppers seek curated recommendations tailored to their interests. Additionally, the growing emphasis on sustainability is prompting brands to highlight eco-friendly products, aligning with the values of younger demographics. This evolving landscape necessitates innovative advertising strategies that resonate with consumer values and preferences.

Trends in the market: In Bulgaria, the Retail Platform Advertising Market is experiencing a notable shift towards hyper-targeted advertising, driven by the increasing reliance on digital channels for shopping. This trend is bolstered by the surge in mobile commerce and social media engagement, where personalized content plays a crucial role in influencing purchasing decisions. As consumers seek seamless and efficient shopping experiences, brands are adapting their strategies to offer curated recommendations. Furthermore, a heightened focus on sustainable practices is prompting advertisers to showcase eco-friendly options, particularly appealing to younger, environmentally conscious shoppers. This transformation highlights the need for innovative advertising approaches that align with evolving consumer values, ultimately reshaping the competitive landscape for industry players.

Local special circumstances: In Bulgaria, the Retail Platform Advertising Market is influenced by a rich cultural heritage that emphasizes community and family values, shaping consumer preferences towards localized products and services. The country's geographical diversity, with urban centers like Sofia driving digital adoption, contrasts with rural areas where traditional shopping remains prevalent. Additionally, regulatory frameworks promoting data protection are pushing advertisers to prioritize transparent practices, fostering trust among consumers. These unique factors create a distinct advertising landscape, compelling brands to tailor their strategies for a diverse audience.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Bulgaria is shaped by several macroeconomic factors, including the overall economic stability, consumer spending trends, and technological advancement. The national economic health, marked by gradual GDP growth and rising disposable incomes, has led to increased consumer confidence, prompting greater investments in advertising. Furthermore, fiscal policies focused on digital economy incentives are encouraging retailers to adopt innovative advertising strategies. Globally, shifts towards e-commerce and digital marketing, coupled with the rise of social media platforms, are driving local brands to enhance their online presence, thus reshaping the competitive landscape of retail advertising.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. 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 particular 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.

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 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).

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