In the Caucasus markets, including Armenia, Azerbaijan, and Georgia, there is a notable shift towards digital technologies, especially in the field of advertising. Traditional advertising methods are gradually being replaced by new digital approaches, with a strong focus on the mobile segment.

In this material, we will analyze the digital market in these three Caucasus countries, with particular attention to mobile advertising.

Armenia: Demographics and Digital Technologies

Let’s begin by examining socio-demographic data to gain a deeper understanding of the market landscape in Armenia.

Armenia has a population of 2.78 million people, with a nearly even gender distribution: 55% female and 45% male. The average age of the country’s residents is 35.4 years.

There are 2.14 million internet users in Armenia, representing 77% of the total population. Over the past decade, the share of mobile traffic in Armenia has been growing slowly but steadily, with a particularly significant increase observed between 2019 and 2020, when it rose by approximately 20%.

The number of mobile connections in the country exceeds the population, reaching 4.18 million. This suggests that some residents may own multiple mobile devices, which they actively use in their daily lives.

According to Data Reportal Armenia, the distribution of operating systems as of 2024 is as follows:

• Android: 68.44%
• iOS (Apple): 31.23%

Digital Advertising in Armenia: The Role of the Mobile Segment

Digital advertising in Armenia continues to show impressive growth, with the market projected to reach $42.8 million by 2024.

The most popular segment of digital advertising remains banner ads. Their visual appeal and effectiveness in capturing audience attention make them highly sought after.

Banners are successfully integrated into both websites and mobile applications, expanding their visibility across various platforms and enhancing targeting potential. Check out examples of banner advertising on our website.

In the digital advertising market, it is expected that by 2028, 55% of all spending will be directed towards mobile devices, highlighting the growing importance of mobile technologies for advertisers.

Mobile app advertising, in particular, will become increasingly relevant.

Additionally, programmatic advertising is expected to generate 76% of digital advertising revenue in Armenia, indicating a strong preference for automated methods of purchasing ad space.

Azerbaijan: Demographics and Digital Technologies

Azerbaijan has a population of 10.44 million people, with an annual growth rate of 0.5%. The gender distribution is almost even: 50.6% female and 49.4% male. According to Data Reportal, the average age of the country’s residents is 32.7 years.

The young median age and stable population growth indicate a high level of digital technology adoption, making the market attractive for advertising and marketing strategies.

In Azerbaijan, there are 9.19 million internet users, which represents 88% of the total population. Over the past 10 years, internet usage in the country has consistently increased without any downturns.

Mobile devices dominate internet traffic distribution, accounting for 79.66%. This segment has shown significant growth, increasing by 20.3% over the past year. Meanwhile, the share of desktop traffic has decreased to 19.29%.

Regarding operating systems, Android leads with a dominant share of 83.82%.

Digital Advertising in Azerbaijan: The Role of the Mobile Segment

Forecasts indicate that digital advertising expenditures in Azerbaijan will reach $182 million.

In 2024, search advertising will be the most popular form of advertising, followed by banner and video ads. However, advertisers should not limit themselves to search advertising alone, despite its significance.

The cost of acquiring a single user in this segment is expected to be $9.10 in 2024. A more effective approach will be to employ an omnichannel strategy that incorporates various types of advertising.

The mobile segment in Azerbaijan demonstrates significant popularity. By 2028, it is expected that 47% of all digital advertising expenditures will be directed towards mobile devices. This year, mobile advertising expenditures amount to $86 million and continue to grow.

Additionally, programmatic advertising is becoming increasingly sought after. By 2028, it is expected to generate 83% of digital advertising revenue in Azerbaijan.

Georgia: Demographics and Digital Technologies

As of 2024, Georgia has a population of 3.72 million people, with an annual decline of 0.4%. The gender distribution is 47% male and 53% female. The average age of the country’s residents is 36.7 years.

In Georgia, 2.93 million people actively use the internet. Although there has been a slight annual decline of 0.4% over the past two years, it has not had a significant impact, and the number of users remains high.

In Georgia, as in many other countries, mobile web traffic outweighs desktop traffic. Mobile devices account for 53.59% of the traffic, while desktops account for 43.52%.

A significant increase in mobile traffic was recorded in 2020, which many attribute to the pandemic.

The distribution of internet traffic by operating systems in Georgia is as follows:

• Android: 73.10%
• iOS: 25.41%
• Samsung: 1.40%

Digital Advertising in Georgia: The Role of the Mobile Segment

Forecasts indicate that digital advertising expenditures in Georgia will reach $79.7 million this year. This reflects a strong growth trend and underscores the significance of the digital market in the country.

In Georgia, as in Azerbaijan, the largest segment is search advertising, with expenditures expected to reach $29.6 million. However, the cost per user in this segment is higher, at $9.70, which necessitates careful budget allocation.

By 2028, 50% of all digital advertising expenditures in Georgia will be allocated to mobile devices, highlighting the growing importance of the mobile segment.

Additionally, by 2028, 80% of digital advertising revenue will come from programmatic advertising. To learn more about how programmatic advertising works, check out our guide.

Conclusion

In conclusion, our analysis of the digital markets in the Caucasus countries – Armenia, Azerbaijan, and Georgia – reveals several key insights.

Firstly, mobile traffic continues to grow, while desktop traffic is on the decline. At the same time, programmatic advertising is becoming the primary method for purchasing ad space. These trends, along with digital advertising expenditures, indicate that brands targeting or entering the Caucasus region should place a strong emphasis on mobile advertising.

If you are planning to launch a mobile advertising campaign, we recommend using the programmatic platform BYYD. Explore our case studies and contact us for a consultation.

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