Retail Platform Advertising - South America

In South America, ad spending in the Retail Platform Advertising market market is projected to reach US$3.23bn in 2024.
This region is expected to experience an annual growth rate (CAGR 2024-2030) of 11.60%, leading to a projected market volume of US$6.24bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market withSouth_America is projected to amount to US$15.77 in 2024.
In a global comparison, the majority of ad spending will be generated the United States, with a forecasted amount of US$57.63bn in 2024.
In South America, the retail platform advertising market is increasingly leveraging social media influences to enhance consumer engagement and brand visibility.

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 South America is witnessing mild growth, influenced by factors such as evolving consumer behavior, increased digital penetration, and the rising importance of personalized marketing strategies in enhancing customer engagement.

Customer preferences: In South America, consumers are gravitating towards highly personalized shopping experiences, prompting retailers to invest in data-driven advertising strategies that cater to individual preferences. The rise of mobile commerce is reshaping how brands connect with consumers, particularly among younger demographics who value seamless, on-the-go shopping. Additionally, cultural shifts towards sustainability and ethical consumption are influencing purchasing decisions, leading to increased demand for transparent and eco-friendly brands that resonate with local values.

Trends in the market: In South America, the Retail Platform Advertising Market is experiencing a surge in the adoption of programmatic advertising, allowing brands to target consumers with precision in real time. This trend is bolstered by the increased availability of consumer data, enabling retailers to create tailored advertising campaigns that resonate with local preferences. Additionally, social commerce is gaining momentum, with brands leveraging social media platforms to drive sales directly. As sustainability becomes a central theme, advertisers are focusing on eco-conscious messaging, fostering brand loyalty among consumers who prioritize ethical practices in their purchasing decisions.

Local special circumstances: In South America, the Retail Platform Advertising Market is shaped by diverse cultural influences and economic disparities across the region. Countries like Brazil and Argentina have a vibrant digital landscape, where localized content resonates strongly with consumers. Additionally, the regulatory environment varies significantly, with varying degrees of data protection laws impacting how brands collect and use consumer information. The prevalence of mobile payment solutions also facilitates seamless shopping experiences, driving the growth of mobile-centric advertising strategies that cater to the region’s tech-savvy population.

Underlying macroeconomic factors: The Retail Platform Advertising Market in South America is significantly influenced by macroeconomic factors such as fluctuating consumer spending, inflation rates, and currency stability. Economic growth in countries like Brazil and Argentina leads to increased disposable income, enhancing consumer engagement with retail platforms. Additionally, fiscal policies aimed at stimulating digital innovation and e-commerce contribute to market expansion. The rise of e-commerce, driven by changing shopping habits, coupled with a growing middle class, further fuels demand for targeted advertising solutions. Global economic trends, including shifts towards online shopping and mobile technology adoption, also play a crucial role in shaping the advertising landscape, compelling brands to adapt their strategies accordingly.

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.