Georgia is a developing country, and the advertising market is in the process of formation. Accordingly, the introduction of programmatic advertising will help to set these processes in the right direction.
DIGITAL ADS MARKET
According to Statista, Ad spending in the Digital Advertising market is projected to reach US$44m in 2022. In the Digital Advertising market, 52% of total ad spending will be generated through mobile in 2026. In the Digital Advertising market, 87% of the Digital Advertising revenue will be generated through programmatic advertising in 2026.
Georgia’s internet penetration rate stood at 72.5% of the total population at the start of 2022. The Kepios analysis indicates that internet users in Georgia decreased by 7,416 (-0.3%) between 2021 and 2022.
There were 3.35 million social media users in Georgia in January 2022. The number of social media users in Georgia at the start of 2022 was equivalent to 84.3% of the total population.
The available audience for internet advertising – more than 3.98 mln cookies and more than 1.3 B impressions.
The market’s largest segment is Banner Advertising with a market volume of US$17m in 2022. Also popular ad formats in Georgia are search advertising and video.
Top Websites Ranking
- google.com, youtube.com, facebook.com, instagram.com, wikipedia.org, amazon.com, yahoo.com, twitter.com
Most popular region-specific sites
- google.ge, adjaranet.com, imovies.cc, myvideo.ge, interpressnews.ge
E-COMMERCE MARKET IN GEORGIA
Georgian e-commerce is developing as Covid-19 has inspired a lot of consumers to buy online for the first time or amplify the frequency of online purchases, while Georgian organizations have been pressured to amplify their online offerings.
The volume of the local e-commerce market increased by 3.2 times to US$38.6m in 2020. Local e-commerce spending is expected to increase by 52% to US$308m by 2025.
The most prevalent category in Georgian e-commerce is electronics, household appliances and equipment, accounting for 65% of local e-commerce income in 2020. Apparel and accessories are the 2nd-largest category, catching 16% of the e-commerce market, followed by household goods and furniture with an 8% share in 2020.
A unique place in Georgia’s digital buying ecosystem is earned food delivery. Because regional retailers used food delivery channels to supply grocery, private care and pharmaceutical merchandise in the course of the pandemic. It is estimated that the food shipping sector turnover was US$13.1m in 2020.
Nowadays, revenue in the e-Commerce market is projected to reach US$735m in 2022. And consumer penetration is predicted to hit 52.6% by 2025.
In Georgia, programmatic is the new way of digital ad, but very few agencies implement it. The main barriers are little understanding of its processes and limited access to trading desks.
There are no regional offices of the big three (Google, Facebook, Twitter), hence it slows down the capability of developing a large digital ad market. The whole digital advertising industry has always relied strongly on government spending.
But there are all possible resources for a successful launch in this market.