Retail Platform Advertising - Chile

In Chile, ad spending in the Retail Platform Advertising market market is projected to reach US$236.60m in 2024.
The ad spending in this market is expected to exhibit an annual growth rate (CAGR 2024-2030) of 10.51%, leading to a projected market volume of US$431.10m by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Chile is anticipated to amount to US$23.59 in 2024.
In a global context, the majority of ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Chile, the Retail Platform Advertising market is increasingly integrating social commerce strategies, reflecting a shift towards digital consumer engagement.

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 Chile is witnessing subdued growth, influenced by factors such as evolving consumer behavior, increased competition among platforms, and challenges in effectively measuring advertising performance within the digital landscape.

Customer preferences: Consumers in Chile are increasingly prioritizing sustainability and ethical consumption, prompting retail platforms to adapt their advertising strategies accordingly. There is a growing demand for eco-friendly products and transparency in sourcing, influencing brands to promote sustainable practices. Additionally, younger demographics are gravitating towards personalized shopping experiences, driven by social media trends and influencer marketing. This shift necessitates innovative targeting methods, as platforms strive to engage consumers through tailored content reflecting their values and lifestyles.

Trends in the market: In Chile, the Retail Platform Advertising Market is experiencing a significant shift towards sustainability and ethical consumption, with brands increasingly showcasing eco-friendly products and transparent sourcing practices. Concurrently, younger consumers, influenced by social media and influencer marketing, demand personalized shopping experiences, leading to an emphasis on innovative targeting strategies. This evolution highlights the importance of aligning advertising efforts with consumers' values and lifestyles, compelling industry stakeholders to adapt their approaches and foster deeper connections with their audience to remain competitive and relevant.

Local special circumstances: In Chile, the Retail Platform Advertising Market is shaped by the country's unique blend of rich cultural heritage and a growing emphasis on sustainability. The geographical diversity, from urban centers like Santiago to remote areas, influences advertising strategies, necessitating localized content that resonates with distinct consumer segments. Additionally, stringent environmental regulations encourage brands to adopt transparent practices, appealing to eco-conscious shoppers. The integration of digital technology also fosters innovative advertising, targeting younger, tech-savvy consumers who prioritize ethical consumption and personalized experiences in their shopping journeys.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Chile is significantly influenced by macroeconomic factors such as consumer spending patterns, inflation rates, and technological advancements. The country's steady economic growth, coupled with rising disposable incomes, fosters increased expenditure on advertising as brands seek to capture the attention of a burgeoning middle class. Additionally, favorable fiscal policies that encourage digital innovation and e-commerce are reshaping advertising strategies, enabling more targeted and data-driven campaigns. Global trends towards sustainability and ethical consumption further compel brands to align their advertising efforts with socially responsible practices, ultimately shaping the competitive landscape.

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.