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AR Advertising - Pakistan

Pakistan
  • In Pakistan, revenue in the AR Advertising market market is projected to reach US$24.8m in 2024.
  • Revenue in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.26%, leading to a projected market volume of US$38.6m by 2029.
  • While the majority of revenue is generated the United States, Pakistan's AR Advertising market market is set to experience significant growth, with a projected market volume of US$1.2bn in 2024.
  • In Pakistan, the burgeoning AR advertising market is increasingly attracting local brands aiming to enhance consumer engagement through immersive digital experiences.

The AR Advertising market includes revenues from in-app advertising. This can be pop-up advertising, banner advertising, or advertising that is directly integrated into the relevant app. Revenue figures only include spending on mobile apps. Revenues that are solely generated via the internet are not considered here. All revenue data solely refers to B2C transactions.

In-Scope

  • In-app advertising in apps that can be downloaded from major app stores
  • Advertising revenues from apps that include augmented reality
  • Only covers apps that can be accessed via iPhones or Android phones

Out-Of-Scope

  • Advertising revenues from individual apps that are not distributed via major app stores
  • Advertising revenues from apps that are exclusively offered by Microsoft Store and Amazon Appstore for Android phones
  • B2B advertising revenues
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Study Details

    Revenue

    Most recent update: Apr 2024

    Source: Statista Market Insights

    Most recent update: Apr 2024

    Source: Statista Market Insights

    Analyst Opinion

    The AR Advertising market in Pakistan is experiencing significant growth and development, driven by customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

    Customer preferences:
    Customers in Pakistan are increasingly embracing augmented reality (AR) advertising due to its interactive and engaging nature. AR allows consumers to have a more immersive experience with products and brands, enabling them to visualize and interact with virtual objects in the real world. This appeals to the younger generation, who are tech-savvy and seek unique and personalized experiences. Additionally, AR advertising offers a novel way for businesses to showcase their products and services, capturing the attention of consumers and increasing brand awareness.

    Trends in the market:
    One of the key trends in the AR Advertising market in Pakistan is the integration of AR technology into mobile applications. With the widespread adoption of smartphones in the country, mobile apps have become a popular platform for AR advertising. Companies are developing AR-enabled apps that allow users to experience virtual try-ons, interactive games, and immersive brand experiences. This trend is driven by the increasing demand for mobile entertainment and the convenience of accessing AR content on-the-go. Another trend in the market is the collaboration between brands and social media influencers. Influencer marketing has gained traction in Pakistan, and brands are leveraging the popularity and reach of influencers to promote their products through AR advertising. By partnering with influencers, brands can tap into their followers' trust and influence, enhancing the effectiveness of AR advertising campaigns and increasing customer engagement.

    Local special circumstances:
    Pakistan has a large and growing youth population, with a high percentage of internet users and smartphone penetration. This demographic presents a significant opportunity for AR Advertising, as young consumers are more open to adopting new technologies and engaging with AR content. Furthermore, the increasing availability of affordable smartphones and internet connectivity has made AR advertising more accessible to a wider audience in Pakistan.

    Underlying macroeconomic factors:
    The growing digital ecosystem and e-commerce industry in Pakistan are driving the development of the AR Advertising market. The government has been taking initiatives to promote digitalization and entrepreneurship, creating a favorable environment for businesses to invest in AR technology. Additionally, the COVID-19 pandemic has accelerated the shift towards digital advertising, as companies look for innovative ways to reach consumers while adhering to social distancing measures. This has further fueled the demand for AR advertising solutions in Pakistan. In conclusion, the AR Advertising market in Pakistan is experiencing rapid growth and development, fueled by customer preferences for interactive and engaging experiences, emerging trends in mobile applications and influencer marketing, local special circumstances such as a young and tech-savvy population, and underlying macroeconomic factors including the digital ecosystem and government initiatives. This market presents significant opportunities for businesses to leverage AR technology and enhance their advertising campaigns in Pakistan.

    Global Comparison

    Most recent update: Apr 2024

    Source: Statista Market Insights

    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).

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    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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