In-App Advertising - South America

South America

Highlights

Ad spending in the In-App Advertising market in South America is forecasted to reach US$6.08bn by 2024.
The market is anticipated to experience a compound annual growth rate (CAGR 2024-2030) of 7.56%, leading to a projected market volume of US$9.41bn by 2030.
The average ad spending per mobile internet user in the In-App Advertising market is estimated to be US$17.99 in 2024.
When compared globally, China is expected to lead in ad spending with US$132.80bn in 2024.
In Brazil, the surge in In-App Advertising is reshaping the digital marketing landscape, driving higher engagement and personalized brand experiences for users.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The In-App Advertising market in South America is experiencing significant growth due to the increasing popularity of smartphones and the growing adoption of mobile apps.

Customer preferences: South American consumers are increasingly relying on smartphones for various activities, including social media, entertainment, shopping, and banking. As a result, there is a high demand for mobile apps that cater to these needs. In-App Advertising provides a way for app developers to monetize their products while offering free or low-cost services to consumers. This model is particularly appealing to price-sensitive consumers in South America who are looking for cost-effective solutions.

Trends in the market: One of the key trends in the In-App Advertising market in South America is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, enabling them to target specific audiences and optimize their ad spend. This trend is driven by the increasing availability of data and advanced targeting capabilities, which enable advertisers to reach their desired audience more effectively. Programmatic advertising is also gaining traction due to its cost efficiency and transparency. Another trend in the market is the growing use of native ads. Native ads seamlessly integrate into the user interface of the app, providing a non-disruptive advertising experience. This type of advertising is favored by both advertisers and consumers as it blends in with the app's content and appears more natural. Native ads are particularly effective in South America, where consumers are more likely to engage with ads that are relevant to their interests and preferences.

Local special circumstances: South America is a diverse region with varying levels of internet penetration and smartphone adoption. While countries like Brazil and Argentina have high smartphone penetration rates, other countries in the region are still catching up. This variation in market maturity affects the availability and effectiveness of In-App Advertising in different countries. Advertisers need to consider these local differences and tailor their strategies accordingly.

Underlying macroeconomic factors: The In-App Advertising market in South America is also influenced by macroeconomic factors such as GDP growth, inflation rates, and consumer spending. Economic stability and growth contribute to increased consumer spending power, which in turn drives demand for mobile apps and In-App Advertising. However, economic fluctuations and currency devaluations can impact advertisers' budgets and their ability to invest in advertising. In conclusion, the In-App Advertising market in South America is growing rapidly due to the increasing popularity of smartphones and the growing adoption of mobile apps. South American consumers are increasingly relying on smartphones for various activities, creating a high demand for mobile apps and In-App Advertising. The market is characterized by the rise of programmatic advertising and the use of native ads, which provide more targeted and non-disruptive advertising experiences. However, advertisers need to consider local special circumstances and macroeconomic factors when developing their strategies in the South American market.

Data coverage:

The data encompasses B2B enterprises. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., the Consumer Insights Global Survey), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year.