SMS Advertising - Australia

  • Australia
  • Ad spending in the SMS Advertising market in Australia is forecasted to reach €12.98m in 2024.
  • The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.32%, leading to a projected market volume of €13.19m by 2029.
  • When compared globally, the United States is expected to generate the highest ad spending (€287.80m in 2024).
  • The average ad spending per capita in the SMS Advertising market is projected to be €0.49 in 2024.
  • Australia's SMS advertising market is rapidly growing as businesses capitalize on the high mobile phone penetration rate in the country.

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

 
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Analyst Opinion

The SMS Advertising market in Australia has been experiencing significant growth in recent years. Customer preferences have shifted towards mobile advertising, leading to an increased demand for SMS advertising services. This trend is driven by several factors, including the widespread use of smartphones, the convenience of SMS messaging, and the effectiveness of SMS advertising in reaching target audiences.

Customer preferences:
Australian consumers have embraced mobile technology, with smartphone penetration reaching high levels. This has resulted in a shift in customer preferences towards mobile advertising, including SMS advertising. SMS messaging is a widely used communication channel in Australia, with the majority of mobile phone users actively using SMS to send and receive messages. This makes SMS advertising an effective way for businesses to reach and engage with their target audience.

Trends in the market:
One of the key trends in the SMS Advertising market in Australia is the increasing adoption of SMS advertising by businesses across various industries. Businesses are recognizing the potential of SMS advertising to effectively reach their target audience and drive customer engagement. This trend is driven by the high open and response rates of SMS messages compared to other forms of advertising, such as email or social media. Additionally, SMS advertising allows for personalized and targeted messaging, which further enhances its effectiveness. Another trend in the market is the integration of SMS advertising with other marketing channels. Businesses are leveraging SMS advertising as part of their multi-channel marketing strategies, combining it with email marketing, social media advertising, and other digital marketing tactics. This integration allows businesses to create cohesive and personalized marketing campaigns that effectively engage customers across different touchpoints.

Local special circumstances:
Australia has a highly competitive business environment, with businesses constantly seeking innovative ways to reach and engage with their target audience. SMS advertising provides a cost-effective and efficient solution for businesses to connect with their customers. Additionally, Australia has strict regulations regarding unsolicited marketing messages, which has led to the development of opt-in SMS advertising strategies. This ensures that SMS advertising campaigns are targeted to individuals who have expressed interest in receiving promotional messages, increasing the effectiveness of the campaigns.

Underlying macroeconomic factors:
The growth of the SMS Advertising market in Australia is also influenced by underlying macroeconomic factors. Australia has a stable economy with a strong focus on consumer spending. This creates a favorable environment for businesses to invest in advertising and marketing activities, including SMS advertising. Additionally, the increasing reliance on mobile technology and the high smartphone penetration rate in Australia contribute to the growth of the SMS Advertising market. In conclusion, the SMS Advertising market in Australia is experiencing significant growth due to customer preferences for mobile advertising, the effectiveness of SMS advertising in reaching target audiences, and the integration of SMS advertising with other marketing channels. The local special circumstances, such as strict regulations and the competitive business environment, further contribute to the growth of the market. Additionally, the underlying macroeconomic factors, including a stable economy and high smartphone penetration rate, support the growth of the SMS Advertising market in Australia.

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 Global survey), 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 the Statista Consumer Insights Global survey is reweighted for representativeness.

Vue d’ensemble

  • Ad Spending
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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