SMS Advertising - MENA

  • MENA
  • Ad spending in the SMS Advertising market in MENA is forecasted to reach US$14.01m in 2024.
  • The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 2.25%, leading to an estimated market volume of US$15.66m by 2029.
  • When compared globally, the United States is expected to generate the highest ad spending (US$310.40m in 2024).
  • The average ad spending per capita in the SMS Advertising market is projected to be US$0.02 in 2024.
  • In MENA, SMS Advertising is experiencing a surge in popularity due to its cost-effectiveness and high engagement rates in the region.

Key regions: India, Germany, China, United Kingdom, Australia

 
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Analyst Opinion

Over the past few years, the SMS Advertising market in the MENA region has been experiencing significant growth and development.

Customer preferences:
Customers in the MENA region have shown a growing preference for SMS advertising due to its direct and personalized nature. With the increasing use of mobile phones in the region, consumers are more likely to engage with brands through SMS, making it a preferred choice for businesses to reach their target audience effectively.

Trends in the market:
In Saudi Arabia, there has been a noticeable trend of businesses utilizing SMS advertising to promote special offers and discounts, as the population in the country is highly receptive to such marketing strategies. This trend has led to a surge in the number of companies investing in SMS advertising campaigns to boost their sales and customer engagement.

Local special circumstances:
In the UAE, where the population is tech-savvy and always connected, SMS advertising has become a popular choice for businesses to communicate with their customers. Moreover, strict regulations on email marketing have pushed companies to explore SMS advertising as a more reliable and effective channel to reach their target audience in the country.

Underlying macroeconomic factors:
The growing economy in the MENA region, coupled with increasing disposable income among the population, has contributed to the expansion of the SMS advertising market. As businesses look for cost-effective ways to promote their products and services, SMS advertising offers a lucrative opportunity to connect with consumers in a personalized manner, driving the market growth further.

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 Global survey), 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 the Statista Consumer Insights Global survey is reweighted for representativeness.

Overview

  • Ad Spending
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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