Search Advertising - Mexico

Mexico

Highlights

Ad spending in the Search Advertising market in Mexico is forecasted to reach US$1.65bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 10.31%, leading to an estimated market volume of US$2.98bn by 2030.
When compared globally, the majority of ad spending will originate from the United States (US$137.00bn in 2024).
Within the Search Advertising market, 42% of the total ad spending is projected to come from mobile devices in 2030.
The average ad spending per internet user in the Search Advertising market in Mexico is expected to be US$15.02 in 2024.
Mexico's Search Advertising market is booming, with companies leveraging targeted strategies to reach the country's growing online user base effectively.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Search Advertising market in Mexico has been experiencing significant growth in recent years, driven by customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Mexican consumers have increasingly turned to the internet for their shopping needs, leading to a rise in online advertising. With the growing popularity of e-commerce platforms and online marketplaces, businesses are recognizing the need to invest in search advertising to reach their target audience. Additionally, consumers in Mexico have become more tech-savvy and are actively using search engines to find products and services, making search advertising an effective way for businesses to connect with potential customers.

Trends in the market: One notable trend in the Mexican Search Advertising market is the increasing adoption of mobile advertising. With the widespread use of smartphones and the availability of affordable mobile data plans, more people are accessing the internet through their mobile devices. This shift in consumer behavior has prompted businesses to optimize their search advertising campaigns for mobile devices, ensuring that their ads are visible and engaging on smaller screens. Another trend in the market is the growing importance of local search advertising. Mexican consumers often prefer to support local businesses and seek out products and services within their communities. As a result, businesses are targeting their search advertising campaigns to specific regions or cities, tailoring their messaging to resonate with local consumers. This localized approach helps businesses establish a stronger connection with their target audience and drive more relevant traffic to their websites.

Local special circumstances: Mexico has a large and diverse population, with varying cultural and linguistic preferences. This presents a unique challenge for businesses operating in the Search Advertising market, as they must adapt their campaigns to effectively communicate with different segments of the population. By understanding the local customs, traditions, and language nuances, businesses can create more impactful search advertising campaigns that resonate with Mexican consumers.

Underlying macroeconomic factors: The Mexican economy has been growing steadily in recent years, creating a favorable environment for businesses to invest in search advertising. With a growing middle class and increasing disposable income, consumers in Mexico have more purchasing power, driving demand for products and services. This economic growth has also led to increased competition among businesses, making it crucial for companies to invest in search advertising to stand out from the crowd and capture the attention of potential customers. In conclusion, the Search Advertising market in Mexico is experiencing growth due to customer preferences for online shopping, the adoption of mobile advertising, the importance of local search advertising, local special circumstances, and underlying macroeconomic factors. As businesses continue to recognize the value of search advertising in reaching their target audience, the market is expected to further expand 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.