Search Advertising - Peru

Peru

Highlights

Ad spending in the Search Advertising market in Peru is forecasted to reach US$213.80m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 10.39%, leading to an estimated market volume of US$386.90m 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, 40% of total ad spending is projected to come from mobile sources in 2030.
The average ad spending per internet user in the Search Advertising market is expected to be US$7.41 in 2024.
Peru's Search Advertising market is experiencing a surge in competition among digital agencies vying for a share of the growing online advertising budget.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Search Advertising market in Peru has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Peruvian consumers are increasingly turning to the internet to search for products and services, leading to a rise in demand for search advertising. This can be attributed to several factors, including the growing popularity of e-commerce and the increasing use of smartphones. With more people accessing the internet on their mobile devices, businesses are recognizing the importance of advertising on search engines to reach potential customers. Additionally, Peruvian consumers are becoming more tech-savvy and are actively seeking information online before making purchasing decisions. As a result, businesses are investing more in search advertising to ensure their products and services are visible to these potential customers.

Trends in the market: One of the key trends in the Search Advertising market in Peru is the increasing adoption of programmatic advertising. Programmatic advertising allows businesses to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend is driven by the growing number of digital advertising platforms and the availability of data-driven targeting options. As businesses in Peru become more sophisticated in their advertising strategies, they are embracing programmatic advertising to optimize their campaigns and reach their target audience more effectively. Another trend in the market is the rise of voice search. With the increasing popularity of voice assistants like Siri and Google Assistant, more people in Peru are using voice commands to search for information online. This has led to a shift in the way businesses approach search advertising, as they need to optimize their campaigns for voice search queries. This includes using conversational keywords and creating content that is more conversational in nature. As voice search continues to gain traction in Peru, businesses will need to adapt their search advertising strategies to ensure they remain visible to this growing audience.

Local special circumstances: One of the unique characteristics of the Search Advertising market in Peru is the dominance of Google as the preferred search engine. Google holds a significant market share in Peru, making it the go-to platform for businesses looking to advertise online. This has led to a high level of competition among businesses vying for ad space on Google's search results pages. As a result, businesses in Peru need to invest in search engine optimization (SEO) strategies to improve their organic search rankings and increase their visibility on Google.

Underlying macroeconomic factors: The growth of the Search Advertising market in Peru is also influenced by underlying macroeconomic factors. Peru has experienced steady economic growth in recent years, leading to an expansion of the middle class and an increase in disposable income. This has resulted in higher consumer spending and a greater demand for products and services. As businesses in Peru compete for the attention of these consumers, search advertising has become an essential tool for reaching and engaging with potential customers. Additionally, the increasing internet penetration rate in Peru has provided businesses with a larger audience to target through search advertising, further driving the growth of the market.

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.