Direct Messaging Advertising - South America

Ad spending in the Direct Messaging Advertising market in South America is forecasted to reach US$2.77bn in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2030) of 0.07%, leading to a projected market volume of US$2.79bn by 2030.
The largest market in South America is Direct Mail Advertising, with a market volume of US$1.98bn in 2024.
When compared globally, the United States is anticipated to lead in ad spending, with US$29.98bn in 2024.
The average ad spending per capita in the Direct Messaging Advertising market in South America is projected to be US$6.71 in 2024.
Direct Messaging Advertising in Brazil is experiencing a surge in demand, with companies leveraging personalized content to target specific audiences effectively.

Definition:

Direct Messaging Advertising refers to a type of advertising format that involves sending advertisement messages directly to individual audiences or specific target groups through private communication channels. Direct Messaging Advertising includes both traditional and digital advertising methods, such as direct mail, e-mail, SMS, web push, instant messaging, and telemarketing. This form of advertising aims to establish a personalized and direct connection with potential customers.

Structure:

Direct Messaging Advertising typically refers to advertising formats used within various messaging platforms or direct messaging channels. These formats are designed to deliver targeted advertisements directly via private communication channels such as e-mail, SMS, direct mail, web push, telemarketing, and instant messaging.

Additional information:

Direct Messaging Advertising comprises advertising spending and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

SMS advertising
Direct mail advertising
Web push advertising
Telemarketing
Instant messaging advertising
Traditional direct messaging
Digital direct messaging

Service agencies
Consultant fees
Production costs
Design services

The Direct Messaging Advertising market in South America has been experiencing significant growth in recent years.

Customer preferences: Customers in South America have shown a strong preference for direct messaging advertising due to its personalized and targeted nature. Direct messaging allows companies to reach their customers directly and engage in one-on-one conversations, which is highly valued by consumers. Additionally, customers appreciate the convenience of receiving promotional messages through messaging apps, as it allows them to easily access information and make purchases without leaving the app.

Trends in the market: One of the key trends in the Direct Messaging Advertising market in South America is the increasing adoption of messaging apps. South America has seen a rapid increase in the number of people using messaging apps, making it an ideal platform for advertisers to reach their target audience. This trend is driven by the growing popularity of smartphones and the increasing availability of affordable internet access. As more people in South America gain access to smartphones and the internet, the potential reach of direct messaging advertising continues to expand. Another trend in the market is the rise of chatbots. Chatbots are computer programs that can simulate human conversation and provide automated responses. They are increasingly being used by companies in South America to interact with customers and deliver personalized advertising messages. Chatbots can be integrated into messaging apps, allowing companies to engage with customers in a more interactive and conversational manner. This trend is driven by the desire to provide a seamless customer experience and improve customer engagement.

Local special circumstances: South America is a diverse region with different languages, cultures, and preferences. This poses a challenge for companies operating in the Direct Messaging Advertising market, as they need to tailor their messages to specific countries and demographics. For example, companies may need to localize their advertising content to appeal to different language speakers or adapt their messaging to cultural norms and preferences. Additionally, companies need to consider the varying levels of internet penetration and smartphone adoption across South America, as this can impact the reach and effectiveness of direct messaging advertising.

Underlying macroeconomic factors: The growth of the Direct Messaging Advertising market in South America is also influenced by underlying macroeconomic factors. South America has seen steady economic growth in recent years, which has resulted in an expanding middle class and increased consumer spending power. This has created a larger market for advertisers to target and has contributed to the growth of the direct messaging advertising industry. Additionally, the increasing digitalization of businesses and the shift towards online shopping have created new opportunities for direct messaging advertising in South America.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses via e-mail, SMS, direct mail, messengers, web push, telemarketing, and instant messaging.

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, number of smartphone users, internet coverage, and number of urban households. 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 4G coverage.

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.

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.