Market Insights Advertising & Media AR & VR

AR Advertising - Nigeria

Nigeria

In Nigeria, revenue in the AR Advertising market market is projected to reach US$35.5m in 2024.
The revenue in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 9.29%, which would lead to a projected market volume of US$55.3m by 2029.
While the projected market volume in Nigeria is significantly lower than that of the United States, which is expected to generate most of the revenue with a market volume of US$1,224.0m in 2024, in Nigeria is nevertheless a growing player in the AR Advertising market landscape.
In Nigeria, AR advertising is gaining traction as brands increasingly leverage immersive experiences to engage a tech-savvy youth demographic.

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Analyst Opinion

The AR Advertising market in Nigeria is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in Nigeria are increasingly drawn to AR Advertising due to its immersive and interactive nature. AR Advertising allows consumers to engage with brands in a more personal and engaging way, enhancing their overall experience and creating a lasting impression. With the rise of smartphone usage in Nigeria, consumers are becoming more accustomed to AR technology and are open to exploring new advertising formats that utilize this technology.

Trends in the market: One of the major trends in the AR Advertising market in Nigeria is the integration of AR into social media platforms. Social media platforms such as Facebook, Instagram, and Snapchat are incorporating AR features into their advertising offerings, allowing brands to reach a wider audience and engage with consumers in a more meaningful way. This trend is driven by the growing popularity of social media in Nigeria, with a large percentage of the population actively using these platforms on a daily basis. Another trend in the market is the use of AR in the retail sector. Retailers in Nigeria are leveraging AR technology to enhance the shopping experience for their customers. AR allows customers to virtually try on clothes, visualize furniture in their homes, and even test out makeup products before making a purchase. This trend is driven by the desire to provide a more personalized and convenient shopping experience, as well as the increasing competition in the retail sector.

Local special circumstances: Nigeria has a large and young population, with a high percentage of tech-savvy individuals. This demographic is more open to adopting new technologies and exploring innovative advertising formats such as AR. Additionally, Nigeria has a growing middle class with increasing disposable income, which further fuels the demand for AR Advertising.

Underlying macroeconomic factors: The Nigerian economy has been experiencing steady growth in recent years, with a focus on diversification and the development of the technology sector. This has created a favorable environment for the growth of AR Advertising, as businesses are investing in innovative marketing strategies to reach their target audience. Additionally, the government of Nigeria has been supportive of the technology sector, providing incentives and creating a conducive business environment for tech startups and companies. This has attracted both local and international players in the AR Advertising market, further driving its growth.

Methodology

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).