Social Media Advertising - Ethiopia

In Ethiopia, ad spending in the Social Media Advertising market market is projected to reach US$23.75m in 2024.
The ad spending in this sector is expected to exhibit an annual growth rate (CAGR 2024-2030) of 9.22%, which will culminate in a projected market volume of US$40.32m by 2030.
In a global context, the majority of ad spending will be generated China, amounting to US$84.65bn in 2024.
Within the Social Media Advertising market market, it is anticipated that 70% of total ad spending will be generated through mobile by 2030.
Additionally, the number of users in the Social Media Advertising market market in Ethiopia is expected to reach 7.0m users by 2030.
Ethiopia's burgeoning digital landscape is increasingly attracting social media advertising investments, highlighting the nation's potential for innovative marketing strategies amidst a youthful population.

Definition:
Social Media Advertising is a form of online digital marketing in which paid banner and video ad campaigns are run on social media platforms to reach the target audiences. Marketers can promote brands, products, and services and increase purchase intention.

Additional information:
Social Media Advertising comprises advertising spending, users, average revenue per user, and key players. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Social Media Advertising include Facebook, Instagram, Twitter, TikTok, LinkedIn, Weibo, Naver, and Kakao. For more information on the data displayed, use the info button right next to the boxes.

All ad spending generated by social networks
Sponsored posts

Ads within online games playable on social networks
Revenue generated from membership subscriptions or premium fees

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

Customer preferences: Ethiopian consumers are increasingly turning to social media platforms for entertainment, communication, and information. With a growing internet penetration rate and a young and tech-savvy population, social media has become an integral part of daily life for many Ethiopians. As a result, businesses and advertisers are recognizing the potential of social media advertising to reach and engage with their target audience.

Trends in the market: One of the key trends in the Ethiopian social media advertising market is the rise of influencer marketing. Influencers, who have a large and engaged following on social media platforms, are being sought after by brands to promote their products and services. This form of advertising is particularly effective in Ethiopia due to the high level of trust that consumers place in influencers and their recommendations. Another trend in the market is the increasing use of video content in social media advertising. Videos have proven to be highly engaging and shareable, making them a valuable tool for brands to communicate their messages effectively. With the availability of affordable smartphones and improved internet connectivity, more Ethiopians are consuming video content on social media platforms, creating opportunities for advertisers to capture their attention.

Local special circumstances: Ethiopia has experienced rapid economic growth in recent years, leading to an increase in disposable income and consumer spending. This has created a favorable environment for businesses to invest in advertising and marketing, including social media advertising. Additionally, the government has taken steps to improve internet infrastructure and expand access to the internet, further fueling the growth of the social media advertising market.

Underlying macroeconomic factors: Ethiopia's young and growing population, coupled with increasing urbanization, provides a large and attractive consumer market for businesses. The country's economic development and rising middle class have resulted in a greater demand for products and services, driving the need for effective advertising strategies. Furthermore, the government's focus on digital transformation and the promotion of the technology sector has created an environment conducive to the growth of the social media advertising market. In conclusion, the Social Media Advertising market in Ethiopia is experiencing significant growth and development due to customer preferences for social media platforms, trends such as influencer marketing and video content, local special circumstances such as economic growth and improved internet infrastructure, and underlying macroeconomic factors such as a young and growing population and government support for the technology sector.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Social media is no longer just for connecting with friends; now brands meet customers, and trends are born in these platforms. As social media advertising spending is projected to continue to grow during the second half of the decade, buying behavior is consistently impacted by likes, comments, and shares. Social influence has led marketing strategies to align with platforms that promote video content. In 2024, TikTok and social media ranked among the top three leading consumer trends according to marketers surveyed around the globe, making such channels unavoidable for most advertising strategies. The social media advertising market is not limited to one region; countries across all continents are investing in social media advertising, with the United States and China recording the highest expenditures worldwide.