Market Insights Advertising & Media AR & VR

AR Advertising - Egypt

Egypt

The AR Advertising market in Egypt is expected to witness a significant growth in revenue, projected to reach US$26.9m in 2024.
This projection indicates a positive trend in the market's performance.
Moreover, the market is anticipated to maintain a steady growth rate of 9.77% annually from 2024 to 2028, resulting in a projected market volume of US$39.0m by 2028.
With a projected market volume of US$1,224.0m in 2024, in the United States is the leading contributor to the revenue generated in the AR Advertising market.
This highlights the dominance of the US market in terms of generating revenue in this segment.
Egypt's AR advertising market is experiencing rapid growth, driven by the increased adoption of mobile devices and the country's rich historical and cultural heritage.

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Analyst Opinion

The AR Advertising market in Egypt is experiencing significant growth and development.

Customer preferences: Customers in Egypt are increasingly embracing AR Advertising due to its interactive and immersive nature. AR Advertising allows consumers to engage with brands in a more personalized and engaging way, which resonates well with the Egyptian population. Additionally, AR Advertising offers a unique and innovative experience, which appeals to the tech-savvy younger generation in Egypt.

Trends in the market: One of the key trends in the AR Advertising market in Egypt is the increasing adoption of AR technology by businesses. Companies in various industries, including retail, e-commerce, and entertainment, are leveraging AR Advertising to enhance their marketing campaigns and engage with their target audience. This trend is driven by the growing awareness of the benefits of AR Advertising, such as increased brand visibility, higher customer engagement, and improved conversion rates. Another trend in the market is the integration of AR Advertising with social media platforms. With the popularity of social media in Egypt, brands are leveraging platforms like Facebook, Instagram, and Snapchat to deliver AR Advertising experiences to their target audience. This integration allows brands to reach a wider audience and tap into the social media habits of Egyptian consumers.

Local special circumstances: One of the factors contributing to the development of the AR Advertising market in Egypt is the increasing smartphone penetration in the country. Egypt has a large population of smartphone users, and this provides a significant opportunity for AR Advertising to reach a wide audience. The availability of affordable smartphones and affordable data plans has made it easier for consumers to access AR content and engage with AR Advertising experiences. Furthermore, the young and tech-savvy population in Egypt is driving the demand for AR Advertising. The younger generation in Egypt is more open to adopting new technologies and is highly active on social media platforms. This demographic is more likely to engage with AR Advertising and share their experiences with their peers, further amplifying the reach and impact of AR campaigns.

Underlying macroeconomic factors: Egypt's growing economy and increasing consumer spending power are also contributing to the development of the AR Advertising market. As the economy continues to grow, businesses have more resources to invest in innovative marketing strategies like AR Advertising. Additionally, the rising disposable income of consumers enables them to engage with AR Advertising and make purchasing decisions based on the interactive experiences provided by AR campaigns. In conclusion, the AR Advertising market in Egypt is experiencing growth and development due to customer preferences for interactive and immersive advertising experiences, the increasing adoption of AR technology by businesses, the integration of AR Advertising with social media platforms, the high smartphone penetration in the country, the tech-savvy younger population, and the growing economy and consumer spending power. These factors create a favorable environment for the expansion of the AR Advertising market in Egypt.

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).