Influencer Advertising - Central America

In Central America, ad spending in the Influencer Advertising market is forecasted to reach US$46.80m in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 8.52%, leading to a projected market volume of US$76.41m by 2030.
The average ad spending per internet user in the Influencer Advertising market is estimated to be US$1.24 in 2024.
When compared globally, China is anticipated to generate the highest ad spending, reaching US$19.16bn in 2024.
Influencer Advertising in Central America is gaining traction among local brands seeking to tap into the region's growing digital-savvy consumer base.

Definition:
Influencer Advertising refers to advertising that allows marketers to promote products or services by collaborating with influencers on social media. Influencer Advertising allows marketers to reach targeted audiences based on the influencer’s performance and their follower profiles; they also have the ability to measure the performance of campaigns. Influencer Advertising refers to all advertising fees paid directly to influencers (or to their person of trust or representative) for posting or streaming sponsored content (e.g., posts, videos, and/or stories) on social media to promote products or services to their followers. This sponsored content typically includes images, videos, live streams, and/or text.

Additional information:
Influencer Advertising comprises advertising spending, users, 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.

Advertising spending paid directly to influencers to post sponsored content

The values of giveaway products as well as services that influencers receive in exchange for reviews, mentions, or giveaways for their followers
Advertising spending allocated to paid social media campaigns to boost content
Affiliate commissions, i.e., the commissions that are paid to influencers when someone makes a purchase based on their content or links
Gross merchandise volume (GMV) of transactions from sponsored posts or live streams

The Influencer Advertising market in Central America is experiencing significant growth and development, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Central America are shifting towards digital platforms and social media, creating a demand for influencer advertising. With the increasing use of smartphones and internet access, consumers are spending more time on social media platforms such as Facebook, Instagram, and YouTube. This has created a new avenue for brands to reach their target audience through influencer marketing. Customers are increasingly looking for authentic and relatable content, and influencer advertising provides a way for brands to connect with their audience in a more personal and engaging manner. Trends in the market show that influencer advertising is becoming more sophisticated and targeted. Brands are now focusing on working with micro-influencers, who have a smaller but highly engaged audience. This allows brands to reach a niche market and create a more personalized connection with their target consumers. Additionally, there is a growing trend of brands collaborating with influencers from Central America, as local influencers have a better understanding of the culture and preferences of the target audience. Local special circumstances in Central America also contribute to the development of the influencer advertising market. The region has a young and tech-savvy population, which is highly active on social media. This provides a fertile ground for influencers to build a strong following and engage with their audience. Furthermore, Central America has a vibrant and diverse culture, with each country having its own unique characteristics. This diversity allows influencers to create content that is tailored to the specific preferences and interests of the local audience. Underlying macroeconomic factors also play a role in the growth of the influencer advertising market in Central America. The region has been experiencing steady economic growth, which has led to an increase in disposable income and consumer spending. This provides brands with the opportunity to invest in influencer advertising as a way to reach and influence consumer purchasing decisions. Additionally, the rise of e-commerce and online shopping in Central America has created a need for brands to establish a strong online presence, and influencer advertising is an effective way to achieve this. In conclusion, the Influencer Advertising market in Central America is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Brands are recognizing the power of influencer marketing to connect with their target audience and are leveraging the popularity of social media platforms in the region. As the market continues to evolve, it is expected that influencer advertising will play an even bigger role in the marketing strategies of brands operating in Central America.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Influencer marketing has become one of the most popular and effective forms of online marketing. With millions of internet users browsing social media platforms for entertainment, inspiration, and product recommendations daily, it is no surprise that marketers are harnessing the power of social media’s most recognizable faces for promotion. The global influencer marketing market value stood at 21.1 billion U.S. dollars as of 2023, having more than tripled since 2019. As influencer endorsement continues to mature as an industry, the size and value of influencer marketing platforms also continue to expand every year, making collaborations between brands and creators more profitable than ever.