Market Insights Advertising & Media Advertising

Social Media Advertising - Estonia

Estonia

In Estonia, ad spending in the Social Media Advertising market is projected to reach US$42.45m in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2029) of 11.31%, leading to a projected market volume of US$72.52m by 2029.
When compared globally, the majority of ad spending will be generated China, which is anticipated to reach US$84,650.00m in 2024.
Within the Social Media Advertising market in Estonia, it is estimated that 82% of total ad spending will be derived from mobile by 2029.
Furthermore, the number of users in the Social Media Advertising market in Estonia is expected to amount to 1,050.0k users by 2029.
In Estonia, the social media advertising landscape is rapidly evolving, with businesses increasingly leveraging targeted campaigns to engage the digitally savvy population.

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

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Analyst Opinion

The Social Media Advertising market in Estonia has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing importance of digital advertising.

Customer preferences: Estonian customers have shown a strong preference for social media platforms as a means of communication and entertainment. This has led to a surge in the number of people using social media, creating a large and engaged audience for advertisers. Additionally, customers in Estonia are increasingly relying on their mobile devices for accessing social media, which has further fueled the growth of social media advertising.

Trends in the market: One of the key trends in the Social Media Advertising market in Estonia is the shift towards video content. Customers are increasingly consuming video content on social media platforms, and advertisers have recognized the potential of this medium to capture their attention. As a result, there has been a significant increase in the number of video ads being served on social media platforms in Estonia. Another trend in the market is the growing importance of influencer marketing. Customers in Estonia are highly influenced by the opinions and recommendations of influencers on social media. This has led to a rise in the number of brands collaborating with influencers to promote their products or services. Influencer marketing has proven to be an effective way for brands to reach their target audience and build trust.

Local special circumstances: Estonia has a highly digital-savvy population, with a high internet penetration rate and a strong culture of technology adoption. This has created a favorable environment for the growth of social media advertising. Additionally, Estonia has a small population compared to other countries, which makes it easier for advertisers to target specific audience segments and achieve higher levels of engagement.

Underlying macroeconomic factors: The growth of the Social Media Advertising market in Estonia is also influenced by macroeconomic factors. The country has a stable economy and a high level of disposable income, which has contributed to increased consumer spending. This has created opportunities for advertisers to promote their products or services on social media platforms. In conclusion, the Social Media Advertising market in Estonia is experiencing significant growth due to changing customer preferences, such as the preference for social media platforms and the shift towards video content. Additionally, the growing importance of influencer marketing and the favorable local circumstances in Estonia have contributed to the growth of the market. The underlying macroeconomic factors, including a stable economy and high disposable income, have also played a role in driving the growth of social media advertising in Estonia.

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.