Retail Platform Advertising - Central America

In Central America, ad spending in the Retail Platform Advertising market market is projected to reach US$240.30m in 2024.
This spending is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 11.86%, leading to a projected market volume of US$470.70m by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Central America is anticipated to be US$37.20 in 2024.
In global comparison, the majority of ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Central America, retail platform advertising is increasingly embracing digital transformation, as brands seek innovative ways to engage a tech-savvy consumer base.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in Central America is experiencing mild growth, influenced by factors such as the gradual digital transformation of businesses, increasing investment in online advertising, and evolving consumer behaviors towards digital shopping experiences.

Customer preferences: In Central America, consumers are increasingly gravitating towards personalized shopping experiences facilitated by advanced retail platform advertising. This trend is characterized by a growing preference for targeted ads that resonate with local culture and values, reflecting a blend of tradition and modernity. Additionally, younger demographics are embracing e-commerce, driven by mobile accessibility and social media influences. As lifestyles evolve, there’s a notable shift towards sustainability, prompting brands to highlight eco-friendly products in their advertising strategies, ultimately reshaping consumer expectations.

Trends in the market: In Central America, the Retail Platform Advertising Market is experiencing a surge in personalized advertising strategies that cater to local cultural nuances and consumer preferences. This trend underscores a shift towards data-driven marketing, where brands leverage analytics to create targeted campaigns that resonate with diverse audiences. Additionally, social media's impact on shopping behaviors is significant, particularly among younger consumers who favor mobile-friendly platforms. As sustainability becomes increasingly important, retailers are integrating eco-conscious messaging into their advertising, influencing brand loyalty and consumer decision-making. This evolution poses both opportunities and challenges for industry stakeholders, who must adapt to rapidly changing consumer expectations and technological advancements.

Local special circumstances: In Central America, the Retail Platform Advertising Market is shaped by unique local factors, including a diverse cultural landscape and varying levels of internet penetration across the region. Countries like Guatemala and Honduras face challenges in digital literacy, affecting how brands engage with consumers. Additionally, local traditions and values influence advertising narratives, necessitating culturally relevant messaging. Regulatory environments also differ, with some governments promoting digital commerce while others impose restrictions, impacting how brands strategize their advertising efforts.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Central America is significantly influenced by macroeconomic factors such as regional economic stability, consumer spending patterns, and digital infrastructure investments. As global economic trends shift towards e-commerce and online spending, Central American countries experiencing economic growth are better positioned to adapt to these changes. National fiscal policies, including tax incentives for digital businesses, can spur investment in advertising technologies. Moreover, varying levels of internet access and mobile penetration affect consumer engagement, compelling brands to tailor their strategies to local market conditions and preferences.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, 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). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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 some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

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