Market Insights Advertising & Media Advertising

Social Media Advertising - Portugal

Portugal

Ad spending in the Social Media Advertising market is projected to reach €295.20m in 2024.
Ad spending is expected to show an annual growth rate (CAGR 2024-2029) of 6.50%, resulting in a projected market volume of €404.50m by 2029.
In global comparison, most ad spending will be generated in China (€75,450.00m in 2024).
In the Social Media Advertising market, the number of users is expected to amount to 8,350.0k users by 2029.

Key regions: United States, France, Japan, Europe, Germany

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Social Media Advertising market in Portugal has been experiencing significant growth in recent years.

Customer preferences: Portuguese consumers are increasingly spending more time on social media platforms, which has led to a growing demand for social media advertising. Social media platforms such as Facebook, Instagram, and Twitter are popular among Portuguese users, and advertisers are taking advantage of this trend by targeting their audience through these platforms.

Trends in the market: One of the key trends in the Social Media Advertising market in Portugal is the shift towards mobile advertising. With the increasing use of smartphones and tablets, Portuguese consumers are accessing social media platforms on their mobile devices more frequently. As a result, advertisers are focusing on mobile advertising to reach their target audience effectively. This trend is expected to continue as mobile usage continues to rise in Portugal. Another trend in the market is the use of influencer marketing. Portuguese consumers are increasingly influenced by individuals who have a large following on social media platforms. Advertisers are collaborating with these influencers to promote their products or services, as they have a significant impact on their followers' purchasing decisions. This form of advertising has proven to be effective in reaching a wider audience and generating brand awareness.

Local special circumstances: Portugal has a relatively small population compared to other European countries. As a result, advertisers in Portugal are targeting a more niche market. This has led to the development of specialized social media advertising campaigns that are tailored to the Portuguese audience. Advertisers are focusing on creating content that resonates with local consumers, taking into account their cultural preferences and language.

Underlying macroeconomic factors: The growing Social Media Advertising market in Portugal can be attributed to several underlying macroeconomic factors. The country has experienced economic growth in recent years, leading to an increase in consumer spending. This has resulted in higher advertising budgets for businesses, allowing them to invest more in social media advertising. Furthermore, the high internet penetration rate in Portugal has contributed to the growth of the Social Media Advertising market. The majority of the population has access to the internet, and social media platforms have become an integral part of their daily lives. Advertisers recognize the potential of reaching a large audience through these platforms and are allocating more resources to social media advertising. In conclusion, the Social Media Advertising market in Portugal is experiencing significant growth due to the increasing consumer preference for social media platforms, the shift towards mobile advertising, the use of influencer marketing, the development of specialized campaigns for the Portuguese audience, and the underlying macroeconomic factors such as economic growth and high internet penetration rate.

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.