Digital Video Advertising - South America

Ad spending in the Digital Video Advertising market in South America is forecasted to reach US$3.51bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 5.71%, leading to a projected market volume of US$4.90bn by 2030.
With a projected market volume of US$85.39bn in 2024, the majority of revenue will be generated the United States.
Within the Digital Video Advertising market, 84% of total ad spending is expected to come from mobile in 2030.
The average ad spending per internet user in the Digital Video Advertising market is projected to be US$10.84 in 2024.
Connected TV ad spending in the Digital Video Advertising market is forecasted to reach US$416.80m in 2024.
The Connected TV market is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 3.20%, resulting in a projected market volume of US$503.50m by 2030.
Ad spending on short-form videos in the Digital Video Advertising market is projected to reach US$1.50bn in 2024, with an anticipated annual growth rate (CAGR 2024-2030) of 9.53%, leading to a projected market volume of US$2.60bn by 2030.
In Brazil, the surge in programmatic buying is reshaping the digital video advertising landscape, offering targeted and efficient ad placements to brands.

Definition:
Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps on computer screens, smartphones, tablets, and other internet-connected devices. Videos that seamlessly match the form and function of the environment (e.g., news websites, video platforms) in which they appear (so-called native advertising) are also included in Digital Video Advertising.

Additional information:
Digital Video Advertising comprises advertising spending, connected-TV advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending. Figures are based on Digital Video Advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Digital Video Advertising include Comcast Corp., The Walt Disney Company, YouTube, TikTok, and Facebook. For more information on the data displayed, use the info button right next to the boxes.

All ad formats within webpage-based videos, app-based video players, social media networks, or social media apps
Pre-roll, mid-roll, and post-roll video ads
Text- or image-based overlays that appear in video players
Native advertising
Connected TV advertising
Ad spending on short-form videos

Traditional TV advertising video formats broadcasted over traditional transmission channels (e.g., DTT, cable, satellite)
Addressable TV ads, targeted advertising to individual households via set-top boxes; including cable and satellite using addressable technologies such as Dynamic Ad Insertion (DAI)

Digital Video Advertising in South America is experiencing significant growth and development, driven by changing customer preferences and the increasing popularity of online video platforms. Customer preferences in South America are shifting towards digital video advertising, as consumers increasingly spend more time online and on mobile devices. This shift is driven by the convenience and accessibility of digital video content, as well as the ability to personalize and target advertisements to specific audiences. Additionally, the rise of social media platforms and streaming services has created new opportunities for advertisers to reach their target customers through digital video ads. One of the key trends in the South American digital video advertising market is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of digital ad space, enabling them to reach their target audience more efficiently and effectively. This trend is driven by the growing availability of data and technology, which enables advertisers to better understand and target their customers. Another trend in the South American digital video advertising market is the growth of mobile video advertising. With the increasing penetration of smartphones and mobile internet in the region, consumers are spending more time watching videos on their mobile devices. This presents a significant opportunity for advertisers to reach their target audience through mobile video ads, which can be highly engaging and interactive. Local special circumstances in South America also contribute to the growth of the digital video advertising market. For example, the region has a large and diverse population, with different languages, cultures, and preferences. This creates opportunities for advertisers to tailor their video ads to specific local markets, increasing the effectiveness and relevance of their campaigns. Additionally, South America has a growing middle class and increasing disposable income, which drives consumer spending and demand for products and services advertised through digital video ads. Underlying macroeconomic factors also play a role in the development of the digital video advertising market in South America. Economic growth and stability in the region contribute to increased consumer spending and advertising budgets. Additionally, improvements in internet infrastructure and connectivity, as well as the availability of affordable smartphones and data plans, make it easier for consumers to access and watch digital video content, driving demand for digital video advertising. In conclusion, the South American digital video advertising market is experiencing significant growth and development, driven by changing customer preferences, the increasing popularity of online video platforms, and underlying macroeconomic factors. Advertisers in the region are increasingly adopting programmatic advertising and mobile video advertising to reach their target audience more efficiently and effectively. Local special circumstances, such as diverse markets and growing disposable income, also contribute to the growth of the market. Overall, the future looks promising for digital video advertising in South America as it continues to evolve and adapt to the changing needs and preferences of consumers.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. 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, internet users, 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.

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

From six-second bumper ads to multi-minute compilations, video marketing is constantly evolving, and audiences everywhere never fail to tune in. As the number of digital video viewers keeps rising every year, marketers embrace video as a promotional tool more vividly than ever. In 2023, digital video ad spending amounted to almost 176.63 billion dollars. Unsurprisingly, the United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom. Connected TV (CTV) and social video are among the most popular content marketing tactics worldwide, and the post-pandemic era has only consolidated companies’ dependency on these tools.