Search Advertising - Baltics

Baltics

Highlights

Ad spending in the Search Advertising market in Baltics is forecasted to reach US$146.10m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 6.96%, leading to a projected market volume of US$218.80m by 2030.
When compared globally, the United States will account for the highest ad spending (US$137.00bn in 2024).
Within the Search Advertising market, 37% of total ad spending will come from mobile in 2030.
The average ad spending per internet user in the Search Advertising market is estimated to be US$28.99 in 2024.
In the Baltics, Search Advertising is experiencing a surge in demand, with businesses increasingly investing in digital marketing strategies to reach target audiences effectively.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Search Advertising market in Baltics has been experiencing significant growth in recent years.

Customer preferences: Customers in the Baltics are increasingly relying on search engines to find products and services. They prefer to use search engines as a primary source of information, making search advertising an effective way for businesses to reach their target audience. Furthermore, customers in the Baltics are becoming more tech-savvy and are comfortable with online shopping, which further drives the demand for search advertising.

Trends in the market: One of the key trends in the Search Advertising market in Baltics is the increasing adoption of mobile devices. With the growing popularity of smartphones and tablets, people in the Baltics are accessing the internet more frequently through these devices. This trend has led to a shift in advertising strategies, with businesses focusing more on mobile search advertising to target customers on the go. Another trend in the Baltics is the rise of e-commerce. Online shopping has been gaining momentum in the region, and businesses are recognizing the need to advertise their products and services online to capture this growing market. As a result, there is a higher demand for search advertising to drive traffic to e-commerce websites and increase online sales.

Local special circumstances: The Baltics consist of three countries - Estonia, Latvia, and Lithuania - each with its own unique characteristics. While these countries share similarities in terms of customer preferences and market trends, there are also some local special circumstances that impact the Search Advertising market. For example, Estonia has a highly developed digital infrastructure and is known as a hub for technology startups. This creates a favorable environment for digital advertising, including search advertising. In Latvia, on the other hand, there is a strong focus on tourism, which presents opportunities for businesses in the hospitality industry to target tourists through search advertising. Lithuania has a large population and a growing economy, making it an attractive market for businesses looking to expand their reach through search advertising.

Underlying macroeconomic factors: The growth of the Search Advertising market in Baltics is also influenced by underlying macroeconomic factors. The region has been experiencing steady economic growth, which has led to increased consumer spending power. This, in turn, drives the demand for products and services, and businesses are leveraging search advertising to reach these consumers. Furthermore, the Baltics have a high internet penetration rate, with a large percentage of the population having access to the internet. This provides a broad customer base for businesses to target through search advertising. Additionally, the region has a young and tech-savvy population, which further contributes to the growth of the Search Advertising market. In conclusion, the Search Advertising market in Baltics is growing due to customer preferences for online search, the increasing adoption of mobile devices, the rise of e-commerce, local special circumstances, and underlying macroeconomic factors. As businesses in the region recognize the importance of search advertising in reaching their target audience, the market is expected to continue its upward trajectory.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

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.