Search Advertising - Chile

Chile

Highlights

In Chile, ad spending in the Search Advertising market is forecasted to reach US$282.90m in 2024.
The expected annual growth rate (CAGR 2024-2030) is 10.37%, leading to a projected market volume of US$511.30m by 2030.
When compared globally, the United States is anticipated to have the highest ad spending, reaching US$137.00bn in 2024.
Within the Search Advertising market, 71% of total ad spending is estimated to come from mobile in 2030.
The average ad spending per internet user in the Search Advertising market is projected to be US$15.56 in 2024.
Chile's Search Advertising market is seeing a shift towards mobile-first strategies to target tech-savvy consumers in the digital landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Search Advertising market in Chile is experiencing significant growth and development.

Customer preferences: Chilean consumers are increasingly turning to online platforms for their purchasing decisions. With the rise of e-commerce and the increasing use of smartphones, customers are relying more on search engines to find information about products and services. This has led to a growing demand for search advertising, as businesses seek to capture the attention of these online consumers.

Trends in the market: One of the key trends in the Search Advertising market in Chile is the increasing competition among businesses. As more companies recognize the importance of online advertising, they are investing more in search advertising to ensure their products and services are visible to potential customers. This has led to a higher demand for search advertising services and a more competitive landscape in the market. Another trend in the market is the growing importance of mobile search advertising. With the majority of Chileans owning smartphones, mobile search has become a crucial channel for businesses to reach their target audience. As a result, companies are focusing more on optimizing their search advertising campaigns for mobile devices and creating mobile-friendly landing pages to enhance the user experience.

Local special circumstances: Chile has a well-developed digital infrastructure, with a high internet penetration rate and a large number of internet users. This provides a favorable environment for the growth of the Search Advertising market. Additionally, the country has a strong culture of entrepreneurship, with many small and medium-sized businesses looking to expand their reach through online advertising. This has contributed to the increasing demand for search advertising services in the country.

Underlying macroeconomic factors: The growing Search Advertising market in Chile can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, which has resulted in an increase in consumer spending power. As a result, businesses are willing to invest more in advertising to attract customers and gain a competitive edge in the market. In conclusion, the Search Advertising market in Chile is developing rapidly due to changing customer preferences, increasing competition among businesses, the growing importance of mobile search advertising, favorable local circumstances, and underlying macroeconomic factors. As more businesses recognize the potential of online advertising, the market is expected to continue its upward trajectory in the coming years.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

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.