Market Insights Advertising & Media AR & VR

VR Advertising - Portugal

Portugal

The VR Advertising market in Portugal is expected to witness significant growth in the coming years.
According to projections, the market's revenue is estimated to reach US$0.6m by 2024.
Furthermore, it is anticipated that the market will experience a steady annual growth rate (CAGR 2024-2029) of 1.34%, leading to a projected market volume of US$0.6m by 2029.
It is worth noting that in the United States currently dominates the market, generating the majority of the revenue with a projected market volume of US$47.4m in 2024.
Portugal is experiencing a surge in VR advertising, with companies using immersive technology to engage consumers in interactive and captivating brand experiences.

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Analyst Opinion

The VR Advertising market in Portugal is experiencing significant growth and development.

Customer preferences: Portuguese consumers are increasingly embracing virtual reality technology, creating a favorable environment for VR advertising. The younger generation, in particular, is highly receptive to immersive experiences and enjoys engaging with brands through interactive virtual reality advertisements. Additionally, Portuguese consumers value personalized and interactive content, which VR advertising can provide. This preference for personalized experiences is driving the demand for VR advertising in Portugal.

Trends in the market: One of the key trends in the VR Advertising market in Portugal is the integration of virtual reality with social media platforms. Social media platforms are popular among Portuguese consumers, and brands are leveraging this by incorporating VR advertising into their social media campaigns. This allows brands to reach a wider audience and create more engaging and interactive experiences for consumers. Furthermore, the use of VR headsets in gaming and entertainment is also contributing to the growth of VR advertising in Portugal. As more consumers adopt VR technology for gaming and entertainment purposes, brands are seizing the opportunity to advertise their products and services through virtual reality experiences.

Local special circumstances: Portugal's tourism industry is a significant driver of VR advertising in the country. With its rich history, beautiful landscapes, and vibrant culture, Portugal attracts millions of tourists every year. VR advertising allows tourists to experience Portugal's attractions and destinations virtually, creating a desire to visit the country in person. This presents an opportunity for businesses in the tourism sector to showcase their offerings through immersive VR advertisements, enticing potential visitors to choose Portugal as their next travel destination. Additionally, the Portuguese government has been actively promoting the adoption of digital technologies, including virtual reality, which further supports the growth of the VR advertising market in the country.

Underlying macroeconomic factors: The growing economy in Portugal is contributing to the development of the VR advertising market. As the country's economy continues to recover from the global financial crisis, businesses are investing more in advertising and marketing to expand their customer base and increase brand awareness. This increased investment in advertising is driving the demand for innovative and engaging advertising formats, such as VR advertising. Furthermore, Portugal's strong technology sector and its focus on digital innovation are creating a favorable environment for the growth of the VR advertising market. The presence of skilled professionals in the technology sector and the availability of advanced VR technology are enabling businesses to create high-quality VR advertising experiences. In conclusion, the VR Advertising market in Portugal is experiencing growth and development due to customer preferences for personalized and interactive content, the integration of VR with social media platforms, the influence of the tourism industry, and the country's growing economy and focus on digital innovation. These factors are driving the demand for VR advertising and creating opportunities for businesses to engage with consumers in a unique and immersive way.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

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).