Market Insights Advertising & Media Advertising

Social Media Advertising - Eastern Africa

Eastern Africa

In Eastern Africa, ad spending in the Social Media Advertising market is projected to reach US$178.40m in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 10.39%, which will result in a projected market volume of US$292.40m by 2029.
In a global context, the majority of ad spending will be generated China, with an expected total of US$84,650.00m in 2024.
Within the Social Media Advertising market, it is anticipated that 70% of total ad spending will be generated through mobile in 2029.
Additionally, the number of users in the Social Media Advertising market in Eastern Africa is expected to amount to 123,200.0k users by 2029.
In Kenya, social media advertising is increasingly becoming a vital tool for businesses to engage younger audiences and enhance brand visibility.

Key regions: United States, France, Japan, Europe, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Social Media Advertising market in Eastern Africa is experiencing significant growth and development.

Customer preferences: Customers in Eastern Africa are increasingly turning to social media platforms for various purposes, including entertainment, communication, and information sharing. As a result, businesses are recognizing the potential of social media advertising to reach their target audience more effectively. With the rise of smartphone penetration and affordable internet access, social media has become an integral part of people's daily lives in the region.

Trends in the market: One of the key trends in the Eastern African Social Media Advertising market is the increasing adoption of influencer marketing. Influencers, who have a substantial following on social media platforms, are being leveraged by businesses to promote their products or services. This trend is driven by the trust and credibility that influencers have built with their audience, making their recommendations more influential. As a result, businesses are collaborating with influencers to create sponsored content that resonates with their target customers. Another trend in the market is the growing popularity of video content. Social media platforms such as YouTube, Instagram, and TikTok are witnessing a surge in video consumption. This presents an opportunity for businesses to engage with their audience through visually appealing and engaging video advertisements. Short-form videos, in particular, are gaining traction as they cater to the preferences of users who have shorter attention spans.

Local special circumstances: Eastern Africa has a diverse cultural landscape, with different countries having their own unique preferences and demographics. Therefore, businesses operating in the region need to tailor their social media advertising strategies to cater to the specific needs and preferences of each country. For example, Kenya, with its tech-savvy population, has a higher adoption rate of social media platforms compared to other countries in the region. On the other hand, Tanzania has a higher preference for mobile messaging apps, which businesses can leverage for targeted advertising.

Underlying macroeconomic factors: The growth of the Social Media Advertising market in Eastern Africa can be attributed to several macroeconomic factors. The increasing internet penetration rate, driven by the expansion of mobile networks and the affordability of smartphones, has made social media accessible to a larger population. Additionally, the region's young and growing population presents a lucrative market for businesses to tap into. As the middle class continues to expand, disposable income is increasing, leading to higher consumer spending. This provides businesses with the opportunity to invest in social media advertising to capture a share of the growing market. In conclusion, the Social Media Advertising market in Eastern Africa is witnessing significant growth and development due to customer preferences for social media platforms, the adoption of influencer marketing, the popularity of video content, and the region's unique cultural landscape. With the underlying macroeconomic factors supporting this growth, businesses in Eastern Africa have a valuable opportunity to leverage social media advertising to reach their target audience effectively.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). 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, social media 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.