Social Media Advertising - Nordics

Nordics

Highlights

In the Nordics, ad spending in the Social Media Advertising market market is projected to reach US$2.82bn in 2024.
This region is expected to experience an annual growth rate (CAGR 2024-2030) of 10.06%, resulting in a projected market volume of US$5.01bn by 2030.
In a global context, the majority of ad spending will be generated China, which is anticipated to reach US$84.65bn in 2024.
Within the Social Media Advertising market market, it is expected that 78% of total ad spending will be generated through mobile by 2030.
Additionally, the number of users in the Social Media Advertising market market in the Nordics is projected to amount to 25.9m users by 2030.
In the Nordics, brands are increasingly leveraging social media advertising to enhance customer engagement and drive brand loyalty in a digitally-savvy marketplace.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in the Nordics have a strong preference for digital platforms and are highly active on social media. Social media platforms such as Facebook, Instagram, and Twitter are widely used by individuals and businesses alike. Customers in the Nordics value personalized and targeted advertising, as well as engaging and interactive content. They are also increasingly concerned about data privacy and expect transparency from advertisers.

Trends in the market: One of the key trends in the Social Media Advertising market in the Nordics is the shift towards mobile advertising. With the increasing use of smartphones and tablets, customers in the region are spending more time on mobile devices and accessing social media platforms through mobile apps. This trend has led to an increased demand for mobile-optimized advertisements and the development of innovative ad formats specifically designed for mobile devices. Another trend in the market is the growing popularity of influencer marketing. Influencers, who have a large following on social media platforms, are being used by businesses to promote their products and services. Customers in the Nordics are more likely to trust recommendations from influencers they follow, making influencer marketing an effective strategy for reaching and engaging with the target audience. Furthermore, there is a growing demand for video advertising in the Nordics. Videos are highly engaging and can effectively convey messages to customers. Social media platforms have recognized this trend and are providing more opportunities for businesses to advertise through video content. The use of video ads is expected to continue to grow in the coming years, as it offers a unique and interactive way to connect with customers.

Local special circumstances: The Nordics have a highly developed digital infrastructure, with a high internet penetration rate and widespread access to high-speed internet. This enables businesses in the region to effectively reach their target audience through social media advertising. Additionally, the Nordics have a high level of digital literacy among the population, which further contributes to the success of social media advertising campaigns.

Underlying macroeconomic factors: The strong economy in the Nordics, coupled with high disposable incomes, has contributed to the growth of the Social Media Advertising market. Businesses in the region are willing to invest in advertising to reach their target audience and drive sales. Additionally, the Nordics have a high level of internet connectivity and smartphone penetration, which provides a fertile ground for social media advertising to thrive. In conclusion, the Social Media Advertising market in the Nordics is experiencing significant growth and development. Customers in the region have a strong preference for digital platforms and personalized advertising. The market is witnessing trends such as mobile advertising, influencer marketing, and video advertising. The Nordics' highly developed digital infrastructure, coupled with a strong economy and high disposable incomes, are contributing to the success of social media advertising in the region.

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.