Market Insights Advertising & Media Advertising

Social Media Advertising - Egypt

Egypt

In Egypt, ad spending in the Social Media Advertising market is projected to reach US$268.40m in 2024.
The ad spending in the country is expected to exhibit an annual growth rate (CAGR 2024-2029) of 10.69%, leading to a projected market volume of US$445.90m by 2029.
In a global context, China will generate the highest ad spending, with an anticipated amount of US$84,650.00m in 2024.
Within Egypt's Social Media Advertising market, it is forecasted that 70% of the total ad spending will be generated through mobile by 2029.
Additionally, the number of users in Egypt's Social Media Advertising market is expected to reach 117.4m users by 2029.
In Egypt, social media advertising is increasingly becoming a vital tool for brands aiming to engage the nation’s youthful and digitally savvy population.

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

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Analyst Opinion

The Social Media Advertising market in Egypt is experiencing significant growth and development, driven by changing customer preferences and local special circumstances.

Customer preferences: Egyptian consumers are increasingly turning to social media platforms for entertainment, information, and social interaction. With a large population of tech-savvy individuals, social media usage in Egypt has been on the rise in recent years. This has created a lucrative opportunity for advertisers to reach a wide audience through targeted social media advertising campaigns.

Trends in the market: One of the key trends in the Social Media Advertising market in Egypt is the growing popularity of influencer marketing. Influencers, who have a significant following on social media platforms, are seen as trustworthy sources of information and recommendations. Brands are leveraging this trend by partnering with influencers to promote their products or services, thereby reaching a larger and more engaged audience. Another trend in the market is the increasing use of video content in social media advertising. Video ads have proven to be highly effective in capturing the attention of users and conveying brand messages. Advertisers in Egypt are recognizing the power of video and are investing in creating engaging and shareable video content to attract and retain customers.

Local special circumstances: Egypt has a young and tech-savvy population, with a high percentage of internet users. This demographic is highly active on social media platforms, spending a significant amount of time scrolling through their feeds and engaging with content. This presents a unique opportunity for advertisers to target and engage with a large and receptive audience. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital technologies in Egypt. With people spending more time at home and relying on digital platforms for work, education, and entertainment, the demand for social media advertising has increased. Advertisers are capitalizing on this trend by shifting their marketing budgets towards digital channels, including social media advertising.

Underlying macroeconomic factors: Egypt's economy has been growing steadily in recent years, with a focus on diversifying industries and attracting foreign investment. This has created a favorable business environment for advertisers, with increased competition and a growing consumer market. As the economy continues to develop, more businesses are investing in social media advertising to reach and engage with their target customers. In conclusion, the Social Media Advertising market in Egypt is witnessing significant growth and development. Changing customer preferences, such as the popularity of influencer marketing and the use of video content, are driving this growth. Additionally, local special circumstances, including a young and tech-savvy population, and the impact of the COVID-19 pandemic, are further fueling the demand for social media advertising. With a growing economy and favorable business environment, Egypt presents a promising market for advertisers looking to leverage the power of social media.

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.