Search Advertising - South America

South America

Highlights

In South America, the ad spending in the Search Advertising market is forecasted to reach US$6.16bn by 2024.
The anticipated annual growth rate (CAGR 2024-2030) is 6.07%, leading to a projected market volume of US$8.77bn by 2030.
When compared globally, the United States is expected to have the highest ad spending (US$137.00bn in 2024).
By 2030, 73% of the total ad spending in the Search Advertising market will come from mobile.
The average ad spending per internet user in the Search Advertising market is estimated to be US$19.00 in 2024.
In Brazil, the increasing popularity of programmatic advertising is driving growth and efficiency in the search advertising market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Search Advertising market in South America is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this expansion. Customer preferences play a crucial role in the development of the Search Advertising market in South America. As internet penetration continues to increase in the region, more consumers are relying on online platforms to find information, products, and services. This shift in consumer behavior has led businesses to invest more in Search Advertising to reach their target audience effectively. Additionally, customers in South America are becoming more tech-savvy and are increasingly using search engines to research products and make purchasing decisions. This has created a strong demand for Search Advertising services. Trends in the market further contribute to the growth of Search Advertising in South America. One of the key trends is the increasing adoption of mobile devices in the region. With the proliferation of smartphones and tablets, consumers are accessing the internet more frequently and spending more time on mobile apps. This has led to a surge in mobile search volume, creating new opportunities for advertisers to reach their target audience through mobile-focused Search Advertising campaigns. Another trend in the market is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend has gained traction in South America, as advertisers are looking for ways to optimize their advertising budgets and improve campaign performance. Programmatic Search Advertising offers precise targeting capabilities, enabling advertisers to reach their desired audience with relevant ads. Local special circumstances also contribute to the development of the Search Advertising market in South America. One such circumstance is the increasing competition among businesses in the region. As more companies enter the market, the need to differentiate and stand out becomes crucial. Search Advertising provides a cost-effective way for businesses to increase their visibility and reach potential customers, making it an attractive marketing strategy. Underlying macroeconomic factors also play a role in the growth of the Search Advertising market in South America. The region has experienced steady economic growth in recent years, leading to increased consumer spending power. This has created a favorable environment for advertisers, as consumers are more willing to engage with brands and make purchases. Additionally, the growing middle class in South America has contributed to the expansion of the online population, further fueling the demand for Search Advertising services. In conclusion, the Search Advertising market in South America is developing due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As more consumers rely on the internet for information and purchasing decisions, businesses are investing in Search Advertising to reach their target audience effectively. The increasing adoption of mobile devices, the rise of programmatic advertising, and the need for businesses to differentiate in a competitive market all contribute to the growth of the market. Furthermore, the region's steady economic growth and growing middle class create a favorable environment for advertisers.

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.