Influencer Advertising - Costa Rica

Costa Rica is expected to see ad spending in the Influencer Advertising market reach US$11.62m in 2024.
The market is projected to experience an annual growth rate (CAGR 2024-2030) of 8.26%, leading to a market volume of US$18.70m by 2030.
The projected average ad spending per internet user in the Influencer Advertising market in Costa Rica is US$2.61 in 2024.
When compared globally, China is anticipated to lead in ad spending with US$19.16bn in 2024.
Costa Rica's Influencer Advertising market is rapidly expanding, with local influencers gaining traction among global brands seeking authentic connections with consumers.

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 Costa Rica is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in consumer behavior towards digital platforms and social media in Costa Rica. With the increasing popularity of platforms such as Instagram, YouTube, and TikTok, consumers are spending more time online and engaging with content created by influencers. This has led to a growing demand for influencer advertising as brands recognize the potential of reaching their target audience through these channels.

Trends in the market: One of the key trends in the Influencer Advertising market in Costa Rica is the rise of micro-influencers. These are individuals with a smaller but highly engaged following on social media platforms. Brands are recognizing the value of working with micro-influencers who have a more niche and loyal audience, as they can often generate higher levels of engagement and authenticity. This trend is particularly evident in industries such as fashion, beauty, and travel, where consumers are seeking recommendations from trusted individuals. Another trend in the market is the increasing use of video content. With the popularity of platforms like YouTube and TikTok, video has become a powerful medium for influencer advertising. Brands are leveraging these platforms to create engaging and entertaining video content that resonates with their target audience. This trend is driven by the fact that video content tends to be more shareable and has the potential to go viral, increasing brand exposure and reach.

Local special circumstances: Costa Rica is known for its natural beauty and eco-tourism, and this has had an impact on the Influencer Advertising market. Many influencers in Costa Rica focus on promoting sustainable and eco-friendly products and experiences. This aligns with the values of the local population and resonates with consumers who are conscious of their environmental impact. Brands that can tap into this trend and work with influencers who promote sustainable practices are likely to see success in the Costa Rican market.

Underlying macroeconomic factors: The growth of the Influencer Advertising market in Costa Rica is also influenced by macroeconomic factors. Costa Rica has seen steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has created a larger market for brands to target and has contributed to the overall growth of the advertising industry, including influencer advertising. Additionally, the high levels of internet penetration and smartphone usage in Costa Rica have made it easier for consumers to access social media platforms and engage with influencer content, further driving the demand for influencer advertising. In conclusion, the Influencer Advertising market in Costa Rica is experiencing growth and development due to changing consumer preferences, the rise of micro-influencers, the increasing use of video content, local special circumstances such as the focus on sustainability, and underlying macroeconomic factors such as economic growth and high internet penetration. Brands that can effectively tap into these trends and leverage influencer advertising are likely to succeed in the Costa Rican market.

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.