Social Media Advertising - South America

In South America, ad spending in the Social Media Advertising market market is projected to reach US$4.29bn in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 10.03%, resulting in a projected market volume of US$7.62bn by 2030.
In a global context, the majority of ad spending will be generated China, which is anticipated to reach US$84.65bn in 2024.
Within the Social Media Advertising market market, it is estimated that 80% of total ad spending will be generated through mobile by 2030.
Furthermore, the number of users within the Social Media Advertising market market in South America is expected to amount to 359.2m users by 2030.
In South America, social media advertising is increasingly prioritizing localized content to engage diverse cultural identities and enhance brand resonance among consumers.

Definition:
Social Media Advertising is a form of online digital marketing in which paid banner and video ad campaigns are run on social media platforms to reach the target audiences. Marketers can promote brands, products, and services and increase purchase intention.

Additional information:
Social Media Advertising comprises advertising spending, users, average revenue per user, and key players. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Social Media Advertising include Facebook, Instagram, Twitter, TikTok, LinkedIn, Weibo, Naver, and Kakao. For more information on the data displayed, use the info button right next to the boxes.

All ad spending generated by social networks
Sponsored posts

Ads within online games playable on social networks
Revenue generated from membership subscriptions or premium fees

Social media advertising in South America has seen significant growth in recent years, driven by changing customer preferences and the increasing popularity of social media platforms.

Customer preferences: South American consumers have shown a strong preference for social media platforms as a means of communication and entertainment. With a large and growing population of internet users, social media has become an integral part of people's daily lives. This has created a vast audience for advertisers to reach and engage with.

Trends in the market: One of the key trends in the South American social media advertising market is the increasing use of influencer marketing. Influencers, who have a large and engaged following on social media, are seen as trusted sources of information and recommendations. This has led to brands partnering with influencers to promote their products or services, leveraging their influence to reach a wider audience. Another trend is the rise of video advertising on social media platforms. With the popularity of video content on platforms like YouTube and TikTok, advertisers are increasingly using video ads to capture the attention of users. Video ads allow for more engaging and interactive content, which can help to increase brand awareness and drive conversions.

Local special circumstances: One of the unique characteristics of the South American market is the diversity of languages and cultures. Each country in the region has its own language and cultural nuances, which can impact the effectiveness of social media advertising campaigns. Advertisers need to take into account these local special circumstances and tailor their campaigns accordingly to resonate with the target audience.

Underlying macroeconomic factors: The growing middle class in South America has contributed to the growth of the social media advertising market. As more people gain access to the internet and smartphones, the potential audience for social media advertising expands. Additionally, increasing disposable incomes enable consumers to make purchasing decisions based on the information they find on social media platforms. Furthermore, the increasing digitalization of businesses in South America has also fueled the growth of social media advertising. Companies are recognizing the importance of having a strong online presence and are investing in digital marketing strategies, including social media advertising, to reach and engage with their target audience. In conclusion, the South American social media advertising market is experiencing significant growth due to changing customer preferences, including the popularity of social media platforms and the use of influencer marketing. The rise of video advertising and the need to consider local special circumstances further contribute to the development of the market. The underlying macroeconomic factors, such as the growing middle class and increasing digitalization, also play a crucial role in driving the growth of social media advertising in South America.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Social media is no longer just for connecting with friends; now brands meet customers, and trends are born in these platforms. As social media advertising spending is projected to continue to grow during the second half of the decade, buying behavior is consistently impacted by likes, comments, and shares. Social influence has led marketing strategies to align with platforms that promote video content. In 2024, TikTok and social media ranked among the top three leading consumer trends according to marketers surveyed around the globe, making such channels unavoidable for most advertising strategies. The social media advertising market is not limited to one region; countries across all continents are investing in social media advertising, with the United States and China recording the highest expenditures worldwide.