Traditional Out-of-Home Advertising - South America

In South America, ad spending in the Traditional Out-of-Home Advertising market is forecasted to hit US$567.50m in 2024.
The market is anticipated to experience an annual growth rate (CAGR 2024-2030) of 2.06%, leading to a projected market volume of US$641.30m by 2030.
The average ad spending per capita in the Traditional Out-of-Home Advertising market is estimated to be US$1.37 in 2024.
In South America, traditional out-of-home advertising remains a dominant force, with billboards and bus stop ads still highly effective in reaching a wide audience.

Definition:
Traditional Out-of-Home (OOH) Advertising refers to all advertising revenues generated by traditional (physical) out-of-home media in public areas. The Traditional Out-of-Home Advertising market includes all ad spending on large outdoor formats, street furniture, transit and transportation, and others.

Additional information:
Traditional 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. Key players in Traditional 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 billboards (bulletins, large banners, inflatable billboards)
Traditional street furniture (advertising columns)
Traditional transit & transportation (traditional indoor and outside advertising in and on vehicles used for public transportation)
Traditional place-based media (e.g. traditional ambient media at point of sale, posters in restrooms)

Digital billboards (city-light boards)
Digital street furniture (city-light posters, city-light posters)
Digital transit & transportation (digital advertising in and on vehicles used for public transportation)
Digital place-based media (digital ambient media at point of sale)
Event- and promotion-related media

The Traditional Out-of-Home Advertising market in South America is experiencing significant growth and development.

Customer preferences: Customers in South America have shown a strong preference for traditional out-of-home advertising methods. This can be attributed to several factors, including the high visibility and impact of outdoor advertisements. South American consumers tend to spend a considerable amount of time outside their homes, making them more likely to notice and engage with outdoor advertisements. Additionally, traditional out-of-home advertising methods such as billboards and posters have a long-standing presence in the region, which has contributed to their popularity among consumers.

Trends in the market: One of the key trends in the Traditional Out-of-Home Advertising market in South America is the increasing use of digital technologies. Digital billboards and screens are becoming more prevalent in major cities across the region. These digital displays offer advertisers the opportunity to deliver dynamic and interactive content, which can capture the attention of consumers in a more engaging way. The use of digital technologies also allows for greater flexibility in terms of content customization and real-time updates, making outdoor advertising campaigns more targeted and effective. Another trend in the market is the growing focus on sustainability and eco-friendly advertising practices. South American consumers are becoming increasingly conscious of environmental issues, and this is influencing their preferences when it comes to advertising. Advertisers are now exploring more sustainable materials and methods for outdoor advertisements, such as using recycled materials and utilizing energy-efficient lighting. This trend not only aligns with consumer values but also helps brands enhance their reputation and appeal to a wider audience.

Local special circumstances: South America is a diverse region with varying cultural and economic factors that impact the Traditional Out-of-Home Advertising market. For example, in countries with large urban populations like Brazil and Argentina, there is a higher demand for outdoor advertising in major cities. This is due to the higher concentration of consumers and the increased visibility of advertisements in densely populated areas. On the other hand, in more rural areas, outdoor advertising may be less prevalent due to lower population density and limited infrastructure.

Underlying macroeconomic factors: The growth of the Traditional Out-of-Home Advertising market in South America can also be attributed to the region's improving economic conditions. As the economies of countries like Brazil, Argentina, and Colombia continue to grow, businesses are investing more in advertising to reach a larger consumer base. This has led to an increase in advertising budgets and a greater demand for outdoor advertising services. In conclusion, the Traditional Out-of-Home Advertising market in South America is developing due to customer preferences for high-impact and visible advertising methods, the adoption of digital technologies, the focus on sustainability, and the region's improving economic conditions. These trends, along with local special circumstances and underlying macroeconomic factors, are shaping the growth and development of the market in South America.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and place-based media.

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.