Advertising - Chile | Statista Market Forecast

Ad spending in the Advertising market in Chile is forecasted to reach US$1.98bn in 2024.
The largest market is TV & Video Advertising with a market volume of US$725.20m in 2024.
In a global context, the United States will lead in ad spending with US$425.90bn in 2024.
Within the Advertising market of Chile, 64% of total ad spending is expected to come from digital channels in 2030.
The average ad spending per capita in the TV & Video Advertising market is projected to be US$36.89 in 2024.
Furthermore, within the Advertising sector in Chile, Advertising market of the 77% revenue will be generated through programmatic advertising in 2030.
Chile's advertising market is witnessing a surge in digital ad spending, reflecting a shift towards online platforms to reach tech-savvy consumers.

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 Chile has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: One of the main customer preferences in the Advertising market in Chile is a shift towards digital advertising. With the increasing penetration of smartphones and internet access, consumers are spending more time online, creating new opportunities for advertisers to reach their target audience. Additionally, consumers are becoming more tech-savvy and are demanding personalized and interactive advertising experiences. This has led to a rise in digital advertising platforms and technologies in Chile.

Trends in the market: One of the major trends in the Advertising market in Chile is the growth of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend is driven by the increasing availability of data and analytics, which enable advertisers to target their audience more effectively. Programmatic advertising also offers real-time bidding and optimization capabilities, allowing advertisers to maximize their return on investment. Another trend in the Advertising market in Chile is the increasing importance of social media advertising. Social media platforms such as Facebook, Instagram, and Twitter have gained significant popularity among Chilean consumers, providing advertisers with a powerful tool to reach their target audience. Social media advertising offers advanced targeting options, allowing advertisers to reach specific demographics, interests, and behaviors. Additionally, social media platforms provide interactive and engaging ad formats, enhancing the effectiveness of advertising campaigns.

Local special circumstances: One of the local special circumstances in the Advertising market in Chile is the high level of smartphone penetration. Chile has one of the highest smartphone penetration rates in Latin America, with a large portion of the population owning a smartphone. This presents a unique opportunity for advertisers to reach consumers through mobile advertising, leveraging the capabilities of smartphones such as location-based targeting and push notifications. Mobile advertising is particularly effective in reaching younger demographics, who are more likely to engage with ads on their smartphones.

Underlying macroeconomic factors: The growth of the Advertising market in Chile is also influenced by underlying macroeconomic factors. Chile has experienced stable economic growth in recent years, which has led to an increase in consumer spending and business investments. This has created a favorable environment for advertisers, as businesses are willing to allocate more budget towards advertising and consumers have more disposable income to spend on products and services. Additionally, Chile has a relatively stable political environment and a well-developed infrastructure, which further supports the growth of the Advertising market. In conclusion, the Advertising market in Chile is experiencing significant growth, driven by customer preferences for digital and interactive advertising, trends such as programmatic advertising and social media advertising, local special circumstances such as high smartphone penetration, and underlying macroeconomic factors including stable economic growth and a favorable business environment.

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.