Search Advertising - Pakistan

  • Pakistan
  • Ad spending in the Search Advertising market in Pakistan is forecasted to reach US$99.67m in 2024.
  • The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 13.20%, leading to a projected market volume of US$185.30m by 2029.
  • When compared globally, the United States is expected to generate the highest ad spending (US$137.00bn in 2024).
  • In the Search Advertising market of Pakistan, 39% of total ad spending is estimated to come from mobile devices by 2029.
  • The average ad spending per internet user in the Search Advertising market of Pakistan is projected to be US$0.89 in 2024.
  • Pakistan's Search Advertising market is rapidly expanding, with a surge in digital ad spending driving competition among businesses to optimize online visibility.

Key regions: Australia, Japan, United States, Europe, Asia

 
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Analyst Opinion

The Search Advertising market in Pakistan is showing steady growth and development, driven by increasing customer preferences for online shopping and digital marketing.

Customer preferences:
Customers in Pakistan are increasingly turning to online platforms for their shopping needs. This shift in consumer behavior is driven by several factors, including convenience, a wide range of products, and competitive pricing. As a result, businesses are investing more in digital marketing strategies to reach these online customers. Search advertising allows businesses to target specific keywords and appear prominently in search engine results, increasing their visibility and driving traffic to their websites.

Trends in the market:
One of the key trends in the Search Advertising market in Pakistan is the growing adoption of mobile devices. With the increasing availability of affordable smartphones and affordable data plans, more people in Pakistan are accessing the internet through their mobile devices. This has led to a significant increase in mobile searches, creating new opportunities for businesses to reach their target audience through mobile search advertising. Another trend in the market is the rise of e-commerce platforms. Online marketplaces and e-commerce websites have gained popularity in Pakistan, offering a wide range of products and services. These platforms heavily rely on search advertising to drive traffic and increase sales. As a result, businesses are allocating a larger portion of their marketing budgets towards search advertising to compete in this growing e-commerce landscape.

Local special circumstances:
Pakistan has a large and young population, with a high percentage of internet users. This provides a favorable environment for the growth of the Search Advertising market. Additionally, the government of Pakistan has been taking initiatives to promote digitalization and e-commerce in the country. These efforts include improving internet infrastructure, providing incentives for digital startups, and implementing policies to facilitate online transactions. These special circumstances create a conducive environment for the growth of the Search Advertising market in Pakistan.

Underlying macroeconomic factors:
The overall economic growth in Pakistan is also contributing to the development of the Search Advertising market. As the economy grows, businesses have more resources to invest in marketing and advertising. Additionally, the increasing disposable income of the population allows for higher consumer spending, which in turn drives the demand for products and services advertised through search advertising. In conclusion, the Search Advertising market in Pakistan is experiencing growth and development due to increasing customer preferences for online shopping, the rise of mobile devices, the growth of e-commerce platforms, favorable local circumstances, and underlying macroeconomic factors. As businesses continue to recognize the importance of digital marketing, the Search Advertising market in Pakistan is expected to further expand in the coming years.

Methodology

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.

Overview

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