Programmatic advertising has grown to become one of the most important forms of ads worldwide. With exceedingly widespread digital technologies, and high proliferation of the internet across the world, programmatic ads have become an essential part of brands’ strategies. Not surprisingly, Algeria is demonstrating a similar trend to the global one.
Digital ads market
Digital advertising is emerging as one of the most competitives spheres in Algeria with huge potential for rise in ad spend. In 2022, ad spending is expected to reach $188.50m. Moreover, Algerian advertisers are growing investment in programmatic ads. According to Statista, 70% of Digital advertising revenue will be generated through programmatic advertising by 2026. Accordingly with user trends for Algeria which has a large mobile user base, advertisers have focused on mobile ads more.
There are 27.28million internet users in Algeria. It is about 60.6% of the total population. Meanwhile, the number of internet users continues to grow. According to DataReportal, internet users in Algeria increased by 1.8 million (+7.3%) between 2021 and 2022. With the spread and affordability of internet connections, more and more Algerians prefer to spend their time online rather than offline. Еhey spend most of their time online on sites: Google.com, Youtube.com, Facebook.com, Instagram.com, Ouedkniss.com, Google.dz, Ennaharonline.com, Twitter.com, Echoroukonline.com, Amazon.com, Yahoo.com, Wikipedia.org, Blogger.com, Tiktok.com.
Mobile phone users are commonly found in every country, and Algeria isn’t an exception. Data from DataReportal shows that there were 46.57 million cellular mobile connections in Algeria in February of 2022. It’s equivalent to 103.5% of the total population. The number of mobile users increased by 936 thousand (+2.1%) between 2021 and 2022.
Social media users have increased as well. Kepios analysis reveals that social media users increased by 1.6 million (+6.4%) between 2021 and 2022. In January 2022, there were 26.60 million (59.1%) social networks users in Algeria.
The market’s largest segment is Banner Advertising with a market volume of US$82.90m in 2022.
As users’ interest in social networks is growing, advertisers allocate more budgets to social media advertising. So ad spending in the segment is expected to reach $57.05m in 2022. According to Statista, ad spending is projected to reach $87.18m by 2026. It will grow by 11.18% annually between 2022 and 2026. The most popular platforms for ads on social media among Algerian advertisers are Facebook, Instagram. In 2021, the market share of Meta Platforms, Inc. evaluated 95% of the Social Media Advertising segment in Algeria.
E-commerce market in Algeria
Despite the far from reaching its potential and still lags behind other markets in Northern Africa, e-commerce in Algeria is growing. The market potential is evaluated at $5 billion. To boost e-commerce in the country, the government is seeking to increase internet proliferation. Therefore, the Algerian e-commerce market has huge potential for growth with support from the government. Based on Statista research, revenue in the e-commerce market is expected to reach $1,205.00m in 2022. Moreover, it is expected to show annual growth by 15.86%, resulting in a projected market volume of $1,874.00m by 2025.
As internet penetration rates rise, e-commerce is growing and users are increasingly attracted by easier and more convenient ways of purchasing online. However, consumers still more often make purchases from small retailers or supermarkets offline. Despite those preferences, Algerians tend to research brands or products online before buying offline.
So there is a good opportunity for brands to “catch” their target audience in Algeria while users are researching products online. Moreover, an ever-grow share of internet traffic is generated through mobile devices in Algeria. Thus, considering mobile users are an essential factor for a successful ad campaign in Algeria.
Although the Algerian programmatic ad market is classificated as an emerging ad market, it has a good potential to grow. Especially given how the government is facilitating the rise in internet penetration rate and development of digital technologies.
However, low proliferation of internet connection, lack of knowledge about programmatic, online safety, etc. are still barriers for widespread digital technologies in Algeria. But these problems can be solved.