Out-of-Home Advertising - South America

Out-of-Home Advertising market in South America is expected to see ad spending reach US$959.10m in 2024.
The largest market within Out-of-Home Advertising market is Traditional Out-of-Home Advertising, with a market volume of US$567.50m in 2024.
When compared globally, United States is forecasted to lead in ad spending, reaching US$9.34bn in 2024.
The average ad spending per capita in the Out-of-Home Advertising market is projected to be US$2.32 in 2024.
In Brazil, digital out-of-home advertising is rapidly gaining popularity, revolutionizing the advertising market with dynamic and engaging content.

Definition:
Out-of-Home (OOH) Advertising refers to any advertising in public areas. OOH Advertising includes all ad spending on large formats (e.g., billboards), street furniture (e.g., bus shelters), transit and transportation (e.g., bus and commuter rail displays), and place-based media (e.g., traditional ambient media at the point of sale). Out-of-Home Advertising is divided into two markets: Traditional OOH Advertising and Digital OOH Advertising.

Structure:

The Traditional Out-of-Home Advertising market refers to all revenues from advertising in traditional (physical) out-of-home media. The content in this market only refers to non-digital revenues.
Digital Out-of-Home Advertising refers to all revenues generated from internet-connected out-of-home advertisements. The content in this market only refers to digital revenues.

Additional information:
Out-of-Home (OOH) 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. Additional definitions of Traditional Out-of-Home (OOH) Advertising and Digital Out-of-Home (DOOH) Advertising can be found on the respective pages. Key players in Out-of-Home Advertising include JCDecaux, Ströer, Focus Media Information, Hakuhodo, Dentsu, Clear Channel Outdoor, and APG SGA. For more information on the data displayed, use the info button right next to the boxes.

Traditional & digital billboards
Traditional & digital street furniture
Traditional & digital transit & transportation
Traditional & digital place-based media

Movie theater advertising
Event- and promotion-media

The Out-of-Home Advertising market in South America has been experiencing steady growth in recent years, driven by changing customer preferences and the increasing demand for outdoor advertising.

Customer preferences: Customers in South America have shown a growing preference for out-of-home advertising due to its ability to reach a wide audience and create a lasting impression. With the rise of digital advertising, consumers are becoming increasingly selective about the ads they engage with online. This has led to a shift towards more traditional forms of advertising, such as billboards, street furniture, and transit advertising. These forms of out-of-home advertising provide a physical presence that cannot be ignored or blocked, making them an effective way to capture consumers' attention.

Trends in the market: One of the key trends in the South American Out-of-Home Advertising market is the adoption of digital technology. Digital billboards and screens are becoming increasingly popular, allowing advertisers to display dynamic and interactive content. This not only attracts attention but also enables real-time updates and targeted advertising based on location and time of day. Another trend is the integration of out-of-home advertising with mobile devices. Many outdoor advertising campaigns now include QR codes or NFC tags that allow consumers to interact with the ad using their smartphones. This integration provides a seamless connection between the physical and digital worlds, enhancing the overall effectiveness of the advertising campaign.

Local special circumstances: South America is a diverse region with a wide range of cultures and languages. This diversity presents both opportunities and challenges for out-of-home advertising. Advertisers need to carefully consider the cultural sensitivities and language preferences of their target audience to ensure their message is effectively communicated. Localization of content and creative messaging is essential to resonate with consumers in different countries within South America.

Underlying macroeconomic factors: The growth of the Out-of-Home Advertising market in South America is also influenced by underlying macroeconomic factors. As the region's economies continue to grow, there is an increasing demand for consumer goods and services. This has led to a rise in advertising spending by both local and international brands, driving the expansion of the out-of-home advertising market. Additionally, rapid urbanization in South America has resulted in increased traffic and a higher concentration of people in urban areas. This presents advertisers with a unique opportunity to reach a large audience through out-of-home advertising. As cities continue to expand and develop, the demand for outdoor advertising space is expected to grow. In conclusion, the Out-of-Home Advertising market in South America is experiencing growth due to changing customer preferences, the adoption of digital technology, and the integration of out-of-home advertising with mobile devices. Advertisers need to consider the local special circumstances and cultural sensitivities of each country within the region to effectively engage with their target audience. The underlying macroeconomic factors, such as economic growth and urbanization, are also driving the expansion of the market.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on out-of-home (OOH) advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional out-of-home advertising (offline out-of-home advertisements) and digital out-of-home advertising (internet-connected out-of-home advertisements).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. 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) to analyze the markets. 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, population, urban population, and internet infrastructure.

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.

When consumers take a break from smartphones, connected TVs, and computer screens, outdoor advertising is often there, promoting products and services on billboards and transit displays. Still, out-of-home (OOH) channels have also gone increasingly digital – today, online and programmatic solutions drive the industry's expansion worldwide. Mid-2023 estimates indicated that static OOH could barely grow half as fast as the digital OOH (or DOOH) subsegment between 2023 and 2025.