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SMS Advertising - Portugal

Portugal

Ad spending in the SMS Advertising market in Portugal is forecasted to reach US$1.24m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.10%, leading to a projected market volume of US$1.31m by 2029.
When compared globally, the United States will lead in ad spending, reaching US$310.40m in 2024.
The average ad spending per capita in the SMS Advertising market is expected to be US$0.12 in Portugal in 2024.
Portugal's SMS Advertising market is thriving with innovative campaigns leveraging the country's high smartphone penetration and tech-savvy population.

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

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Analyst Opinion

The SMS Advertising market in Portugal is witnessing significant growth and development in recent years.

Customer preferences: Portuguese customers have shown a strong preference for SMS advertising as a means of communication and engagement. This preference can be attributed to several factors. Firstly, SMS messages have a high open rate, with the majority of recipients opening and reading SMS messages within minutes of receiving them. This makes SMS advertising an effective way for businesses to reach their target audience and ensure that their message is seen. Additionally, SMS advertising is a non-intrusive form of marketing, as recipients can choose to read or ignore messages at their convenience. This is particularly important in a market where consumers are increasingly wary of intrusive advertising methods.

Trends in the market: One of the key trends in the SMS advertising market in Portugal is the increasing use of personalized and targeted messages. Businesses are recognizing the importance of tailoring their messages to individual customers in order to increase engagement and response rates. This trend is driven by advancements in data analytics and customer segmentation techniques, which allow businesses to gather and analyze customer data to create highly targeted SMS campaigns. Additionally, the use of SMS advertising in conjunction with other marketing channels, such as email and social media, is becoming more common. This multi-channel approach allows businesses to reach customers through multiple touchpoints and increase the effectiveness of their marketing campaigns.

Local special circumstances: Portugal has a high mobile penetration rate, with a large percentage of the population owning and using smartphones. This widespread use of mobile devices has created a fertile ground for SMS advertising, as businesses can easily reach their target audience through SMS messages. Additionally, the Portuguese market has a strong culture of mobile communication, with SMS being a popular and widely used communication method. This familiarity with SMS messaging has made it easier for businesses to adopt SMS advertising as a marketing tool and for customers to engage with SMS campaigns.

Underlying macroeconomic factors: The growth of the SMS advertising market in Portugal can also be attributed to underlying macroeconomic factors. Portugal has experienced steady economic growth in recent years, with increasing consumer spending and business investment. This positive economic environment has created opportunities for businesses to invest in marketing and advertising activities, including SMS advertising. Additionally, the Portuguese government has implemented policies to promote entrepreneurship and innovation, which has led to the emergence of new businesses and increased competition in the market. These factors have created a favorable business environment for SMS advertising to thrive and grow in Portugal.

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.