Market Insights Advertising & Media Advertising

Social Media Advertising - Peru

Peru

In Peru, ad spending in the Social Media Advertising market is projected to reach US$138.30m in 2024.
The ad spending in this market is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 10.41%, leading to a projected market volume of US$226.90m by 2029.
In a global context, the majority of ad spending will be generated China, which is expected to reach US$84,650.00m in 2024.
In Peru's Social Media Advertising market, it is estimated that 71% of total ad spending will be generated through mobile by 2029.
Additionally, the number of users in Peru's Social Media Advertising market is expected to amount to 34,870.0k users by 2029.
In Peru, social media advertising is increasingly becoming a pivotal tool for brands seeking to engage with a digitally savvy and connected consumer base.

Key regions: United States, France, Japan, Europe, Germany

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Analyst Opinion

The Social Media Advertising market in Peru has been experiencing significant growth in recent years. Customer preferences have shifted towards digital platforms, driving the demand for social media advertising. This trend is expected to continue as more businesses recognize the importance of online advertising and the potential reach it offers.

Customer preferences: Peruvian consumers are increasingly turning to social media platforms for entertainment, information, and social interaction. This has created a vast audience for advertisers to target. With the rise of smartphones and affordable internet access, more people are accessing social media platforms on a daily basis. As a result, businesses are investing in social media advertising to reach these consumers effectively.

Trends in the market: One of the key trends in the social media advertising market in Peru is the growing popularity of video content. Videos have become a preferred format for consuming content on social media platforms, and advertisers are capitalizing on this trend. They are creating engaging video ads that capture the attention of users and deliver their message effectively. This trend is likely to continue as video consumption continues to rise. Another trend in the market is the increasing use of influencer marketing. Influencers, who have a large following on social media platforms, are being leveraged by brands to promote their products or services. This form of advertising is seen as more authentic and relatable to consumers, leading to higher engagement and conversion rates. As a result, more businesses are partnering with influencers to expand their reach and increase brand awareness.

Local special circumstances: Peru has a growing middle class with increasing disposable income. This has led to a rise in consumer spending and a greater demand for products and services. Businesses are capitalizing on this by investing in social media advertising to target this expanding market. Additionally, the Peruvian population is relatively young, with a high percentage of internet users. This demographic is more likely to engage with social media platforms, making it an attractive market for advertisers.

Underlying macroeconomic factors: Peru has experienced steady economic growth in recent years, which has contributed to the growth of the social media advertising market. A stable economy and favorable business environment have encouraged businesses to invest in advertising to expand their customer base and increase sales. Additionally, the government has implemented policies to promote digital innovation and entrepreneurship, further driving the growth of the social media advertising market. In conclusion, the Social Media Advertising market in Peru is growing rapidly due to customer preferences shifting towards digital platforms, the rising popularity of video content, and the increasing use of influencer marketing. Special circumstances such as the growing middle class and young population contribute to this growth. The underlying macroeconomic factors, including economic stability and government support, also play a significant role in driving the development of the market.

Methodology

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.