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SMS Advertising - Brazil

Brazil

Ad spending in the SMS Advertising market in Brazil is forecasted to reach US$11.69m in 2024.
The market is expected to experience a compound annual growth rate (CAGR 2024-2029) of 0.34%, which will lead to a projected market volume of US$11.89m by 2029.
When compared globally, the United States will generate the highest ad spending (US$310.40m in 2024).
The projected average ad spending per capita in the SMS Advertising market in Brazil is estimated to be US$0.05 in 2024.
Brazil's SMS advertising market is booming, leveraging the country's high mobile penetration rates and engaging consumers effectively through targeted messaging campaigns.

Key regions: China, Asia, Europe, Germany, United States

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Analyst Opinion

The SMS Advertising market in Brazil has been experiencing significant growth in recent years.

Customer preferences: Customers in Brazil have shown a strong preference for SMS advertising due to its convenience and effectiveness. SMS messages have a high open rate and are more likely to be read by recipients compared to other forms of advertising. Additionally, SMS advertising allows for targeted campaigns, enabling companies to reach specific audiences with personalized messages. This level of customization has resonated well with Brazilian consumers, who appreciate tailored offers and promotions.

Trends in the market: One of the key trends in the SMS Advertising market in Brazil is the increasing use of mobile devices. Brazil has a large population of mobile phone users, and this trend is expected to continue as smartphones become more affordable and accessible. As a result, companies are investing more in SMS advertising to reach this growing mobile audience. Another trend in the market is the integration of SMS advertising with other marketing channels. Companies are using SMS as part of a multi-channel marketing strategy, combining it with social media, email marketing, and other digital channels to create a cohesive and comprehensive advertising campaign. This integration allows for a more holistic approach to reaching customers and provides a seamless experience across different touchpoints.

Local special circumstances: One of the unique aspects of the SMS Advertising market in Brazil is the prevalence of prepaid mobile plans. Many Brazilians use prepaid mobile plans, which means they pay for their phone service in advance. This has implications for SMS advertising, as companies need to consider the cost of sending SMS messages to prepaid users. Offering incentives or discounts for prepaid users can help encourage engagement and response rates.

Underlying macroeconomic factors: The growing SMS Advertising market in Brazil can be attributed to several underlying macroeconomic factors. Brazil has a large and diverse consumer market, with a population of over 200 million people. This provides ample opportunities for companies to target different segments and niches. Additionally, Brazil has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has created a favorable environment for advertising and marketing activities, including SMS advertising. In conclusion, the SMS Advertising market in Brazil is thriving due to customer preferences for convenience and personalization, as well as the increasing use of mobile devices. The integration of SMS advertising with other marketing channels and the prevalence of prepaid mobile plans are also contributing to the market's growth. These trends, combined with Brazil's large consumer market and favorable macroeconomic conditions, make it an attractive market for companies looking to engage with customers through SMS advertising.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on SMS Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for creating and sending SMS advertisements.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet coverage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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. The main drivers are GDP per capita, consumer spending per capita, and internet coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. 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). Data from Consumer Insightsis reweighted for representativeness.