Influencer Advertising - South America

Ad spending in South America's Influencer Advertising market is forecasted to reach US$728.10m in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 9.51%, leading to a projected market volume of US$1.26bn by 2030.
The average ad spending per internet user in the Influencer Advertising market is estimated to be US$2.25 in 2024.
When compared globally, the highest ad spending is anticipated China, amounting to US$19.16bn in 2024.
In South America, influencer advertising in the advertising market is rapidly growing, with a focus on authentic content and engagement with local audiences.

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 South America is experiencing significant growth and development. Customer preferences in South America are shifting towards more personalized and authentic marketing strategies. Influencer Advertising allows brands to connect with their target audience in a more genuine and relatable way, which resonates with consumers in South America. Additionally, social media platforms are widely used in the region, making it an ideal platform for influencer marketing campaigns. One of the key trends in the Influencer Advertising market in South America is the rise of micro-influencers. These individuals have a smaller but highly engaged following, which allows brands to reach niche audiences and create a more targeted impact. Micro-influencers are seen as more relatable and trustworthy by consumers, making them an effective marketing tool for brands in South America. Another trend in the market is the increasing use of video content. South American consumers have shown a preference for video content over other forms of media, and influencers are leveraging this trend by creating engaging and entertaining videos that promote brands and products. Video content allows for a more immersive and interactive experience, which is highly valued by consumers in South America. Local special circumstances in South America also contribute to the growth of the Influencer Advertising market. The region has a large and diverse population, with different countries and cultures within close proximity of each other. This diversity provides brands with the opportunity to work with influencers who have a deep understanding of local markets and can effectively communicate with their target audience. Underlying macroeconomic factors in South America also play a role in the development of the Influencer Advertising market. The region has seen steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This economic growth has created a larger consumer market and increased demand for products and services, making influencer marketing an attractive option for brands looking to expand their reach in South America. In conclusion, the Influencer Advertising market in South America is experiencing growth and development due to shifting customer preferences, the rise of micro-influencers, the increasing use of video content, local special circumstances, and underlying macroeconomic factors. Brands in South America are leveraging influencer marketing to connect with their target audience in a more personalized and authentic way, and this trend is expected to continue in the coming years.

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.