Social Media Advertising - Chile

Chile

Highlights

In Chile, ad spending in the Social Media Advertising market market is projected to reach US$311.20m in 2024.
This ad spending is anticipated to exhibit an annual growth rate (CAGR 2024-2030) of 10.28%, leading to a projected market volume of US$559.80m by 2030.
In a global context, the majority of ad spending will be generated China, amounting to US$84.65bn in 2024.
Within the Social Media Advertising market market in Chile, it is expected that 74% of total ad spending will be derived from mobile devices by 2030.
Furthermore, the number of users in the Social Media Advertising market market in Chile is projected to reach 19.1m users by 2030.
In Chile, the rise of digital engagement has led brands to increasingly prioritize social media advertising as a vital component of their marketing strategies.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Social Media Advertising market in Chile has been experiencing significant growth in recent years, driven by changing customer preferences and increasing digitalization.

Customer preferences: Chilean consumers have shown a strong preference for social media platforms as a means of communication and information sharing. With a high smartphone penetration rate and a young population that is highly active on social media, advertisers have recognized the potential of reaching their target audience through these platforms. Additionally, the rise of influencer marketing has further fueled the demand for social media advertising in Chile. Consumers are increasingly seeking recommendations and endorsements from trusted influencers, making social media an effective channel for brand promotion.

Trends in the market: One of the key trends in the Social Media Advertising market in Chile is the shift towards video content. With the increasing availability of high-speed internet and the popularity of platforms like YouTube and TikTok, video advertising has gained significant traction. Advertisers are leveraging the engaging nature of video content to capture the attention of consumers and convey their brand messages effectively. Moreover, the use of interactive and immersive formats, such as augmented reality (AR) and virtual reality (VR), is also on the rise, providing advertisers with new opportunities to engage with their target audience. Another trend in the market is the growing focus on personalized and targeted advertising. Advertisers are leveraging the vast amount of data available on social media platforms to segment their audience and deliver tailored messages. This approach allows them to maximize the effectiveness of their campaigns and improve the return on investment. Additionally, the use of artificial intelligence and machine learning algorithms is enabling advertisers to automate and optimize their social media advertising strategies, further enhancing their targeting capabilities.

Local special circumstances: Chile has a relatively small population compared to other countries in the region, which presents both opportunities and challenges for social media advertising. On one hand, the smaller market size allows advertisers to target their campaigns more effectively and reach a higher proportion of the population. On the other hand, the limited scale of the market can make it challenging for advertisers to achieve the same level of reach and impact as in larger markets. As a result, advertisers in Chile need to be more creative and innovative in their approach to stand out and make an impact.

Underlying macroeconomic factors: The growth of the Social Media Advertising market in Chile is also influenced by underlying macroeconomic factors. Chile has been experiencing steady economic growth, which has led to an increase in disposable income and consumer spending. This has created a favorable environment for advertisers, as consumers are more willing to engage with brands and make purchasing decisions. Additionally, the government has been investing in improving digital infrastructure and promoting digital literacy, which has further accelerated the adoption of social media and digital advertising in the country. In conclusion, the Social Media Advertising market in Chile is witnessing significant growth due to changing customer preferences, including a strong preference for social media platforms and the rise of influencer marketing. The market is also characterized by trends such as the shift towards video content and personalized targeting. However, the smaller market size presents unique challenges and advertisers need to be creative and innovative to make an impact. The growth of the market is supported by underlying macroeconomic factors, including steady economic growth and government initiatives to promote digitalization.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). 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, social media 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.