Advertising - Central America | Statista Market Forecast

Ad spending in the Advertising market in Central America is forecasted to reach US$1.59bn in 2024.
The largest market in Central America is TV & Video Advertising with a market volume of US$435.50m in 2024.
When compared globally, the United States is expected to lead in ad spending with US$425.90bn in 2024.
Within the Advertising market in Central America, 76% of total ad spending will be attributed to digital advertising in 2030.
The average ad spending per capita in the TV & Video Advertising market is projected to be US$8.24 in Central America in 2024.
In the Advertising market of Central America, Advertising market of the 79% revenue will come from programmatic advertising in 2030.
In Central America, the advertising market is experiencing a shift towards digital platforms, with a growing focus on targeted online campaigns to reach specific audiences.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in Central America is experiencing significant growth and development.

Customer preferences: Customers in Central America have shown a strong preference for digital advertising. With the increasing penetration of smartphones and internet connectivity, consumers are spending more time online, leading to a shift in advertising budgets towards digital platforms. Social media platforms such as Facebook and Instagram are particularly popular among the younger population, making them attractive advertising channels for businesses. Additionally, customers in Central America are becoming more conscious of sustainability and social responsibility, which is reflected in their preference for advertisements that promote these values.

Trends in the market: One of the key trends in the Central American advertising market is the rise of influencer marketing. Influencers, who have a significant following on social media platforms, are being utilized by brands to promote their products and services. This form of marketing is effective in reaching the target audience and creating a sense of authenticity. Another trend in the market is the increasing use of video advertising. As internet speeds improve and data costs decrease, consumers are more likely to engage with video content, making it an attractive medium for advertisers.

Local special circumstances: Central America is a region with a diverse cultural landscape, and advertisers need to take into account the local customs and traditions when designing their campaigns. Each country in Central America has its own unique characteristics and preferences, and a one-size-fits-all approach may not be effective. Advertisers need to tailor their messages and creative content to resonate with the local audience. Additionally, Central America has a large informal economy, which presents challenges for advertisers in terms of reaching and measuring the effectiveness of their campaigns.

Underlying macroeconomic factors: The economic growth in Central America has contributed to the development of the advertising market. As the middle class expands, consumers have more purchasing power, leading to increased demand for products and services. This has created opportunities for advertisers to target this growing consumer base. Furthermore, the increasing urbanization in Central America has resulted in higher concentration of consumers in cities, making it easier for advertisers to reach their target audience. Additionally, the government policies in Central America have been supportive of the advertising industry, encouraging investment and innovation in the sector. In conclusion, the Advertising market in Central America is evolving to meet the changing preferences of customers. The shift towards digital advertising, the rise of influencer marketing, and the increasing use of video advertising are some of the key trends in the market. Advertisers need to be aware of the local special circumstances and tailor their campaigns accordingly. The underlying macroeconomic factors, such as economic growth and urbanization, are driving the development of the advertising market in Central America.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. 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 particular 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.

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 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).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.