AR Advertising - EU-27

EU-27

Highlights

In the EU-27, revenue in the AR Advertising market market is projected to reach US$878.4m in 2024.
The revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.26%, leading to a projected market volume of US$1.4bn by 2029.
While the projected market volume in the EU-27 is US$1.2bn in 2024, it is noteworthy that most revenue is generated the United States.
The EU-27 is experiencing a surge in AR advertising investments, driven by innovative digital marketing strategies that enhance consumer engagement across diverse sectors.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The AR Advertising market in EU-27 is experiencing significant growth and development due to several key factors. Customer preferences are shifting towards more immersive and interactive advertising experiences, driving the adoption of AR technology. Additionally, the market is being propelled by trends such as increased smartphone penetration, advancements in AR technology, and the rise of social media platforms.

Customer preferences: Customers in the EU-27 are increasingly seeking engaging and interactive advertising experiences. Traditional forms of advertising are becoming less effective, as consumers are becoming more adept at filtering out irrelevant and intrusive messages. AR advertising offers a unique and immersive experience that captures consumers' attention and allows for greater interactivity. This aligns with customers' desire for personalized and interactive content.

Trends in the market: The AR Advertising market in the EU-27 is being driven by several key trends. Firstly, there has been a significant increase in smartphone penetration across the region. Smartphones serve as the primary device for accessing AR content, making it easier for advertisers to reach a wider audience. This trend is further fueled by advancements in AR technology, which have made it more accessible and user-friendly. Another trend contributing to the growth of the AR Advertising market is the rise of social media platforms. Platforms such as Facebook, Instagram, and Snapchat have integrated AR features into their apps, allowing advertisers to leverage these platforms to reach their target audience. The popularity of these platforms, especially among younger demographics, provides a fertile ground for AR advertising.

Local special circumstances: The EU-27 market presents unique opportunities and challenges for AR advertising. The region is known for its cultural diversity and multilingualism, which requires advertisers to tailor their AR campaigns to different languages and cultural nuances. Advertisers must also navigate varying regulations and privacy laws across EU member states, ensuring compliance with data protection regulations.

Underlying macroeconomic factors: The development of the AR Advertising market in the EU-27 is also influenced by underlying macroeconomic factors. The region has a strong and stable economy, which provides a favorable environment for businesses to invest in AR advertising. Additionally, the EU-27 has a large consumer market with high disposable income, making it an attractive market for advertisers. In conclusion, the AR Advertising market in the EU-27 is growing and developing rapidly due to customer preferences for immersive and interactive advertising experiences. This is driven by trends such as increased smartphone penetration, advancements in AR technology, and the rise of social media platforms. Advertisers must also consider local special circumstances, such as cultural diversity and varying regulations. The underlying macroeconomic factors of a strong and stable economy and a large consumer market further contribute to the growth of the AR Advertising market in the EU-27.

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).