Market Insights Advertising & Media Advertising

TV & Video Advertising - Costa Rica

Costa Rica

Costa Rica is projected to reach an ad spending of US$130.90m in the TV & Video Advertising market by 2024.
The largest market within this industry is Digital Video Advertising, with a market volume of US$73.43m in 2024.
When compared globally, the United States is expected to lead in ad spending, reaching US$144.60bn in 2024.
The average ad spending per user in the Digital Video Advertising market is projected to be US$16.52 in 2024.
By 2029, in Costa Rica is expected to have around 4.6m users TV Viewers.
Costa Rica's TV & Video Advertising market is seeing a shift towards digital platforms, reflecting the country's tech-savvy audience and increasing internet penetration.

Key regions: United States, India, China, Japan, United Kingdom

Definition:
TV & Video Advertising includes advertising in the form of moving visual images instead of traditional broadcast television and all ad formats within digital video channels. Traditional TV Advertising includes non-digital formats and excludes all forms of digital TV advertising. Traditional TV Advertising also covers all ad spending on pay-TV operators and networks, free-to-air networks, and free-to-air spin-off digital channels from terrestrial network operators. In comparison, Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps that appear on computer screens, smartphones, tablets, and other internet-connected devices.

Structure:

Traditional TV Advertising includes all ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV).
Digital Video Advertising formats are displayed as instream and outstream video ads. Instream video ads include advertising that appears before, during, or after the streamed video (pre-roll, mid-roll, and post-roll video ads) and video overlays (text- or image-based overlays that appear while watching a video). Outstream video ads include video advertising that appears in non-video environments, e.g., in-feed on social media or text-based content (so-called native advertising).

Additional information:
The TV & Video Advertising market comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users for the market. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional TV Advertising and Digital Video Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The TV & Video Advertising market in Costa Rica is experiencing significant growth and development.

Customer preferences: Costa Rican consumers have shown a strong preference for TV and video advertising, making it an effective medium for reaching a wide audience. TV remains the most popular form of media in the country, with a high viewership rate across different demographics. Additionally, the rise of digital platforms and streaming services has further increased the demand for video advertising, as consumers are increasingly accessing content through online channels.

Trends in the market: One of the key trends in the TV & Video Advertising market in Costa Rica is the shift towards targeted and personalized advertising. Advertisers are increasingly leveraging data analytics and audience insights to deliver tailored messages to specific consumer segments. This allows them to maximize the impact of their advertising campaigns and improve the return on investment. Another trend is the integration of online and offline advertising channels. Advertisers are recognizing the importance of a multi-channel approach, where TV and video advertising are complemented by digital platforms and social media. This integration allows for a more cohesive and consistent brand message across different touchpoints, increasing the overall effectiveness of the advertising campaign.

Local special circumstances: Costa Rica has a relatively small population compared to other countries in the region, which presents both opportunities and challenges for the TV & Video Advertising market. On one hand, advertisers can reach a large percentage of the population through TV and video advertising due to the high viewership rates. On the other hand, the smaller market size means that there is limited advertising inventory available, which can drive up advertising costs.

Underlying macroeconomic factors: The growing economy of Costa Rica has played a significant role in the development of the TV & Video Advertising market. As the country experiences economic growth, consumer spending power increases, leading to higher demand for products and services. This, in turn, drives up advertising budgets and fuels the growth of the advertising industry as a whole. Furthermore, the government's efforts to attract foreign investment and promote tourism have also contributed to the growth of the TV & Video Advertising market. As more international companies enter the Costa Rican market and the tourism industry expands, there is a greater need for advertising to reach these new audiences. In conclusion, the TV & Video Advertising market in Costa Rica is witnessing growth and development due to customer preferences for TV and video advertising, the rise of targeted and personalized advertising, the integration of online and offline channels, the local special circumstances of a small market size, and the underlying macroeconomic factors such as economic growth and government initiatives.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on TV and video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional TV advertising (non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV) and digital video advertising (video ad formats: web-based, app-based, on social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, internet users, consumer spending, and digital consumer spending.

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.