Advertising - El Salvador | Statista Market Forecast

Ad spending in the Advertising market of El Salvador is forecasted to reach US$152.50m in 2024.
The largest market withEl_Salvador is TV & Video Advertising with a market volume of US$45.31m in 2024.
When compared globally, the United States is expected to generate the most ad spending, reaching US$425.90bn in 2024.
Within the Advertising market of El Salvador, 71% of total ad spending will come from digital sources in 2030.
The average ad spending per capita in the TV & Video Advertising market is projected to be US$7.08 in 2024 in El Salvador.
Additionally, within the Advertising market of El Salvador, Advertising market of the 81% revenue will be generated through programmatic advertising in 2030.
El Salvador's advertising market is experiencing a shift towards digital platforms, with social media and influencer marketing gaining significant traction.

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 El Salvador is experiencing significant growth and development.

Customer preferences: Customers in El Salvador are increasingly seeking personalized and targeted advertising campaigns. They are looking for advertisements that are relevant to their interests and needs. This shift in customer preferences can be attributed to the increasing availability and accessibility of digital platforms, which allow advertisers to reach their target audience more effectively. Additionally, customers are becoming more discerning and selective in their choices, preferring advertisements that are creative, engaging, and provide value.

Trends in the market: One of the key trends in the advertising market in El Salvador is the rapid growth of digital advertising. With the increasing penetration of smartphones and internet connectivity, more and more people are accessing digital content, making it an attractive platform for advertisers. Digital advertising offers various advantages such as precise targeting, real-time analytics, and cost-effectiveness. As a result, businesses in El Salvador are allocating a larger portion of their advertising budgets to digital channels. Another trend in the market is the rise of influencer marketing. Influencers, who have a significant following on social media platforms, are being utilized by businesses to promote their products or services. This form of advertising is effective in reaching a specific target audience and generating brand awareness. With the growing popularity of social media platforms among Salvadorans, influencer marketing has become an integral part of the advertising landscape.

Local special circumstances: El Salvador has a young and tech-savvy population, which contributes to the growth of the advertising market. The country has a high internet penetration rate, with a large portion of the population actively using social media platforms. This provides advertisers with a wide reach and opportunities to engage with their target audience effectively. Additionally, the government of El Salvador has implemented policies to promote foreign investment and entrepreneurship, creating a favorable environment for businesses to thrive.

Underlying macroeconomic factors: The growing advertising market in El Salvador is also influenced by favorable macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in consumer spending. This, in turn, has created a demand for advertising services as businesses seek to attract and retain customers. Furthermore, the government has implemented reforms to improve the business environment, making it easier for companies to operate and invest in the country. In conclusion, the advertising market in El Salvador is witnessing significant growth and development. Customer preferences are shifting towards personalized and targeted advertising campaigns, while digital advertising and influencer marketing are emerging as key trends. The country's young and tech-savvy population, along with favorable macroeconomic factors, contribute to the growth of the market. As El Salvador continues to experience economic growth and attract foreign investment, the advertising industry is expected to further expand in the coming years.

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.