Market Insights Advertising & Media Advertising

Search Advertising - Southern Africa

Southern Africa

Ad spending in the Search Advertising market in Southern Africa is forecasted to reach US$305.10m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 7.89%, leading to a projected market volume of US$446.00m by 2029.
When compared globally, the majority of ad spending will originate the United States (US$132.70bn in 2024).
Within the Search Advertising market in Southern Africa, 62% of total ad spending will be attributed to mobile in 2029.
The average ad spending per internet user in the Search Advertising market is estimated to be US$5.53 in 2024.
In Southern Africa, the Search Advertising market is experiencing a surge in demand, driven by the region's growing digitalization and increasing internet penetration rates.

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

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Analyst Opinion

The Search Advertising market in Southern Africa is experiencing significant growth and development.

Customer preferences: Customers in Southern Africa are increasingly relying on search engines to find products and services. With the growth of internet penetration and smartphone usage in the region, more people are turning to search engines like Google to search for information, compare prices, and make purchasing decisions. This shift in customer behavior has led to a higher demand for search advertising services.

Trends in the market: One of the key trends in the Search Advertising market in Southern Africa is the increasing competition among businesses to appear at the top of search engine results. As more companies recognize the importance of search advertising, they are investing more in search engine optimization (SEO) and pay-per-click (PPC) advertising to improve their visibility and attract more customers. Another trend is the growing adoption of mobile advertising. With the increase in smartphone usage in Southern Africa, businesses are focusing on mobile search advertising to reach their target audience. Mobile ads are becoming more targeted and personalized, with companies leveraging location-based targeting and mobile-specific ad formats to engage users on their mobile devices.

Local special circumstances: One of the unique factors influencing the Search Advertising market in Southern Africa is the diversity of languages spoken in the region. Southern Africa is home to a wide range of languages, including English, Afrikaans, Zulu, and Swahili, among others. This diversity poses a challenge for businesses looking to target specific language-speaking audiences and requires them to develop localized search advertising strategies to effectively reach their target customers.

Underlying macroeconomic factors: The growth of the Search Advertising market in Southern Africa can also be attributed to the overall economic development in the region. Southern Africa has witnessed steady economic growth in recent years, with increased foreign direct investment and improvements in infrastructure. This has led to a rise in consumer spending power and increased business activity, driving the demand for search advertising services. Furthermore, the increasing internet penetration rate in Southern Africa is contributing to the growth of the Search Advertising market. As more people gain access to the internet, the potential customer base for online businesses expands, creating opportunities for companies to reach a larger audience through search advertising. In conclusion, the Search Advertising market in Southern Africa is experiencing growth due to changing customer preferences, increasing competition among businesses, the adoption of mobile advertising, the diversity of languages spoken in the region, and underlying macroeconomic factors such as economic development and internet penetration. As the region continues to develop and more businesses recognize the importance of search advertising, the market 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.