Market Insights Advertising & Media Advertising

Social Media Advertising - Latvia

Latvia

In Latvia, ad spending in the Social Media Advertising market is projected to reach US$51.58m in 2024.
This ad spending is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 9.79%, leading to a projected market volume of US$82.29m by 2029.
In a global context, the majority of ad spending will be generated China, with a figure of US$84,650.00m in 2024.
Within the Social Media Advertising market, it is estimated that 82% of total ad spending will be generated through mobile by 2029.
Furthermore, the number of users in the Social Media Advertising market in Latvia is expected to reach 1,617.0k users by 2029.
In Latvia, the shift towards personalized content in social media advertising is becoming increasingly essential for brands to engage their target audiences effectively.

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

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Analyst Opinion

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

Customer preferences: Latvian consumers have shown a strong preference for social media platforms as a means of communication and information sharing. With a high internet penetration rate and a tech-savvy population, social media has become an integral part of daily life in Latvia. As a result, advertisers are increasingly turning to social media platforms to reach their target audience and promote their products or services.

Trends in the market: One of the key trends in the Social Media Advertising market in Latvia is the shift towards mobile advertising. With the increasing use of smartphones and mobile devices, consumers are accessing social media platforms on the go. This has created new opportunities for advertisers to reach their audience through targeted mobile ads. Additionally, social media platforms are constantly evolving and introducing new features and advertising options, such as video ads and sponsored content, which are gaining popularity among advertisers in Latvia. Another trend in the market is the growing importance of influencer marketing. Influencers, who have a large following on social media platforms, have become powerful marketing tools for brands. By partnering with influencers, advertisers can leverage their reach and credibility to promote their products or services. This trend is particularly prominent in Latvia, where consumers value authenticity and trust in their purchasing decisions.

Local special circumstances: Latvia has a relatively small population compared to other European countries, which presents both challenges and opportunities for advertisers. On one hand, the smaller market size means that advertisers have a limited pool of potential customers to target. However, it also allows for more targeted and personalized advertising campaigns, as advertisers can focus on specific demographic groups or geographic areas.

Underlying macroeconomic factors: The growing Social Media Advertising market in Latvia can be attributed to several underlying macroeconomic factors. Firstly, Latvia has experienced steady economic growth in recent years, which has led to an increase in consumer spending power. This has created a favorable environment for advertisers to invest in social media advertising and reach a larger audience. Furthermore, the government of Latvia has been actively promoting the development of the digital economy, including the advertising sector. This has resulted in the establishment of favorable policies and regulations that support the growth of the Social Media Advertising market. Additionally, Latvia's membership in the European Union has facilitated access to a larger market and increased opportunities for cross-border advertising campaigns. In conclusion, the Social Media Advertising market in Latvia is experiencing significant growth and development. Customer preferences for social media platforms, the shift towards mobile advertising, and the growing importance of influencer marketing are driving the market trends. Local special circumstances, such as the smaller market size, present both challenges and opportunities for advertisers. Underlying macroeconomic factors, including economic growth and government support, are contributing to the market's expansion.

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.