Market Insights Advertising & Media AR & VR

AR Advertising - Kenya

Kenya

The AR Advertising market in Kenya is expected to witness significant growth in the coming years.
Revenue in this market is projected to reach US$10.1m in 2024.
Furthermore, a steady annual growth rate of 9.27% (CAGR 2024-2029) is anticipated, leading to a projected market volume of US$15.7m by 2029.
It is worth noting that in the United States is the primary revenue generator in this market, with a projected market volume of US$1,224.0m in 2024.
Kenya's AR advertising market is experiencing rapid growth, driven by the increasing adoption of smartphones and the country's tech-savvy consumer base.

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Analyst Opinion

The AR Advertising market in Kenya is experiencing significant growth and development, driven by several key factors.

Customer preferences: Customers in Kenya are increasingly embracing AR Advertising due to its immersive and interactive nature. AR Advertising allows brands to create engaging and memorable experiences for consumers, capturing their attention and increasing brand awareness. With the rise of smartphone usage and internet penetration in Kenya, consumers are becoming more tech-savvy and open to exploring new digital experiences. This has created a favorable environment for the adoption of AR Advertising.

Trends in the market: One of the key trends in the AR Advertising market in Kenya is the integration of AR technology into social media platforms. Social media platforms such as Facebook, Instagram, and Snapchat are incorporating AR features, allowing brands to reach a wider audience and engage with consumers in a more personalized way. This trend is particularly popular among the younger generation in Kenya, who are active social media users and are receptive to innovative advertising formats. Another trend in the market is the use of AR Advertising in the retail sector. Retailers in Kenya are leveraging AR technology to enhance the shopping experience for customers. AR-powered virtual try-on features enable consumers to visualize how products will look on them before making a purchase, reducing the need for physical try-ons and increasing convenience. This trend is especially relevant in the fashion and beauty industries, where consumers value personalized and interactive experiences.

Local special circumstances: Kenya has a vibrant and growing tech startup ecosystem, which has played a significant role in driving the development of AR Advertising in the country. Local startups are actively exploring AR technology and developing innovative solutions for brands and advertisers. This entrepreneurial spirit has created a dynamic and competitive market, with a wide range of AR Advertising options available for businesses in Kenya.

Underlying macroeconomic factors: Kenya's strong economic growth and increasing middle-class population have contributed to the growth of the AR Advertising market. As disposable incomes rise, consumers have more purchasing power and are more receptive to advertising messages. This provides an opportunity for brands to invest in AR Advertising to capture the attention of this growing consumer segment. Furthermore, the government of Kenya has been actively promoting the development of the country's digital economy. Initiatives such as the National Broadband Strategy and the Digital Literacy Program have helped to improve internet connectivity and digital literacy levels in the country. This has created a favorable environment for the adoption of AR Advertising, as more consumers have access to the necessary technology and skills to engage with AR content. In conclusion, the AR Advertising market in Kenya is experiencing significant growth and development, driven by customer preferences for immersive and interactive experiences, trends such as the integration of AR technology into social media platforms and the use of AR Advertising in the retail sector, local special circumstances including a vibrant tech startup ecosystem, and underlying macroeconomic factors such as strong economic growth and government support for the digital economy.

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).