Market Insights Advertising & Media Advertising

Social Media Advertising - Denmark

Denmark

Ad spending in the Social Media Advertising market is projected to reach US$0.52bn in 2024.
Ad spending is expected to show an annual growth rate (CAGR 2024-2029) of 8.72%, resulting in a projected market volume of US$0.79bn by 2029.
In global comparison, most ad spending will be generated in China (US$81,360.00m in 2024).
In the Social Media Advertising market, the number of users is expected to amount to 5,841.00k users by 2029.

Key regions: China, France, Australia, India, Germany

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Currency

Analyst Opinion

The Social Media Advertising market in Denmark is experiencing significant growth and development in recent years.

Customer preferences: Denmark has one of the highest rates of internet penetration in the world, with a large percentage of the population actively using social media platforms. This has created a strong demand for social media advertising as businesses seek to reach and engage with their target audience. Customers in Denmark are increasingly turning to social media platforms for information, entertainment, and social interaction, making it an ideal channel for advertisers to connect with their target market.

Trends in the market: One of the key trends in the Social Media Advertising market in Denmark is the increasing adoption of mobile advertising. With the widespread use of smartphones and tablets, people are accessing social media platforms on the go, creating new opportunities for advertisers to reach consumers in real-time. Mobile advertising offers the advantage of higher engagement rates and the ability to target specific locations, making it an effective strategy for businesses looking to drive sales and brand awareness. Another trend in the market is the growing popularity of influencer marketing. Danish consumers are increasingly influenced by social media personalities and influencers who have a large following and credibility within their niche. Businesses are leveraging this trend by partnering with influencers to promote their products or services, tapping into their loyal fan base and gaining access to a highly engaged audience. This form of advertising is seen as more authentic and relatable, leading to higher conversion rates and brand loyalty.

Local special circumstances: Denmark has a strong focus on sustainability and corporate social responsibility, which is reflected in the advertising landscape. Businesses in Denmark are increasingly incorporating social and environmental values into their advertising campaigns to align with the values of their target audience. This includes promoting sustainable products and practices, supporting local communities, and advocating for causes that resonate with Danish consumers. Social media platforms provide a platform for businesses to showcase their commitment to sustainability and connect with like-minded customers.

Underlying macroeconomic factors: Denmark has a stable and prosperous economy, with a high standard of living and disposable income. This creates a favorable environment for businesses to invest in advertising and marketing activities, including social media advertising. The Danish government also supports entrepreneurship and innovation, providing incentives and resources for businesses to grow and expand. These favorable macroeconomic factors contribute to the growth of the Social Media Advertising market in Denmark, attracting both local and international businesses to invest in advertising campaigns to capture the attention of Danish consumers.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.