Instant Messaging Advertising - South America

South America

Highlights

Ad spending in the Instant Messaging Advertising market in South America is forecasted to reach US$5.99m in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 2.06%, leading to a projected market volume of US$6.77m by 2030.
When compared globally, the United States will generate the highest ad spending (US$74.28m in 2024).
The projected average ad spending per internet user in the Instant Messaging Advertising market is US$0.02 in 2024.
In Brazil, Instant Messaging Advertising is rapidly growing, with brands leveraging popular messaging apps to engage with consumers effectively.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Instant Messaging Advertising market in South America is experiencing significant growth due to changing customer preferences and the increasing popularity of instant messaging platforms in the region.

Customer preferences: Customers in South America are increasingly using instant messaging platforms as a primary means of communication. This shift in customer behavior has created a lucrative opportunity for advertisers to reach a large and engaged audience. Instant messaging apps offer a convenient and efficient way for users to communicate with their friends, family, and colleagues, making them an ideal platform for targeted advertising.

Trends in the market: One of the key trends in the Instant Messaging Advertising market in South America is the rise of mobile advertising. With the increasing penetration of smartphones in the region, more users are accessing instant messaging apps on their mobile devices. This trend has led to a shift in advertising strategies, with advertisers focusing more on mobile-specific ad formats such as in-app ads and mobile video ads. Another trend in the market is the growing use of personalized and interactive ads. Advertisers are leveraging the data collected from instant messaging platforms to deliver personalized ads that are tailored to each user's interests and preferences. Additionally, interactive ads, such as polls and quizzes, are gaining popularity as they provide users with a more engaging and interactive ad experience.

Local special circumstances: One of the unique characteristics of the South American market is the high usage of instant messaging platforms compared to other regions. Instant messaging apps like WhatsApp and Facebook Messenger have a strong presence in the region, with millions of active users. This high usage rate creates a favorable environment for advertisers to reach a large and engaged audience. Additionally, South American countries have a young and tech-savvy population, which further contributes to the popularity of instant messaging apps. This demographic is more likely to be receptive to advertising on these platforms, making it an attractive market for advertisers.

Underlying macroeconomic factors: The growth of the Instant Messaging Advertising market in South America can also be attributed to the region's improving economic conditions. As the economy continues to strengthen, businesses are allocating more budget towards advertising and marketing activities. This increased spending is driving the growth of the advertising market as a whole, including the Instant Messaging Advertising segment. Furthermore, the rapid growth of e-commerce in South America is also fueling the demand for instant messaging advertising. As more consumers turn to online shopping, businesses are looking for effective ways to reach and engage with their target audience. Instant messaging platforms provide an ideal channel for advertisers to promote their products and services to online shoppers. In conclusion, the Instant Messaging Advertising market in South America is witnessing significant growth due to changing customer preferences, the rise of mobile advertising, and the unique characteristics of the local market. As instant messaging apps continue to gain popularity in the region, advertisers are leveraging these platforms to reach a large and engaged audience. With the region's improving economic conditions and the growth of e-commerce, the demand for instant messaging advertising is expected to continue to rise in the coming years.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Instant Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for distributing instant messaging advertisements.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, and internet coverage. 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 relevant 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. The main drivers are GDP per capita, consumer spending per capita, and internet users.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a 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). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.