Advertising - South America

South America

Ad spending in the Advertising market in South America is forecasted to reach US$28.26bn in 2024.
The largest market within the region is TV & Video Advertising, with a market volume of US$10.98bn in 2024.
When compared globally, the United States is expected to lead in ad spending, reaching US$425.90bn in 2024.
Within the Advertising market in South America, 62% of total ad spending will come from digital advertising by 2029.
The average ad spending per capita in the TV & Video Advertising sector is projected to be US$26.58 in 2024.
By 2029, Advertising market of the 81% revenue in South America will be generated through programmatic advertising.
In Brazil, the advertising market is embracing influencer collaborations to engage with a digitally savvy audience, driving brand visibility and consumer engagement.

Key regions: United States, China, Europe, Asia, Japan

Market

Region

Region comparison

Currency

Analyst Opinion

The Advertising market in South America is experiencing significant growth and development in recent years. Customer preferences in South America have shifted towards digital advertising, as consumers increasingly spend more time online. With the rapid growth of internet access and smartphone penetration in the region, advertisers are recognizing the need to reach consumers through digital channels. This has led to a surge in online advertising spending, as companies strive to engage with their target audience in a more personalized and interactive manner. Trends in the market show a strong focus on mobile advertising. With the increasing popularity of smartphones in South America, advertisers are investing heavily in mobile advertising to reach consumers on-the-go. Mobile apps and social media platforms are becoming key channels for advertising, as they offer a direct and engaging way to connect with consumers. Advertisers are also leveraging location-based targeting to deliver relevant and targeted ads to consumers based on their geographic location. Another trend in the South American advertising 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 is driven by the need for advertisers to reach their target audience in real-time and deliver personalized ads at scale. Programmatic advertising also offers better measurement and tracking capabilities, allowing advertisers to optimize their campaigns and improve return on investment. Local special circumstances in South America play a role in shaping the advertising market. The region is culturally diverse, with different languages, customs, and consumer behaviors. Advertisers need to tailor their messages and creative content to resonate with the local audience. Additionally, economic and political factors can impact advertising spending in the region. Periods of economic instability or political uncertainty may lead to fluctuations in advertising budgets, as companies adjust their marketing strategies to navigate challenging business environments. Underlying macroeconomic factors also contribute to the development of the advertising market in South America. As the region experiences economic growth and rising disposable incomes, companies have more resources to invest in advertising. This creates opportunities for advertisers to expand their reach and tap into new consumer segments. Moreover, the increasing urbanization and middle-class population in South America are driving consumption and consumer demand, further fueling the growth of the advertising market. In conclusion, the Advertising market in South America is evolving to meet the changing preferences of consumers. The shift towards digital advertising, particularly mobile and programmatic advertising, reflects the increasing importance of online channels in reaching target audiences. Local special circumstances and underlying macroeconomic factors also play a role in shaping the market dynamics. As South America continues to experience economic growth and technological advancements, the advertising market is expected to further expand and innovate to meet the needs of advertisers and consumers alike.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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 some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).