Market Insights Advertising & Media AR & VR

AR Advertising - Colombia

Colombia

The AR Advertising market in Colombia is set to witness impressive growth in the coming years.
By 2024, the projected revenue is expected to reach US$23.3m.
This demonstrates the increasing popularity and adoption of AR Advertising market in the country.
Furthermore, the market is expected to maintain a steady growth rate with a compound annual growth rate (CAGR 2024-2029) of 9.26%.
This growth trajectory is anticipated to result in a substantial market volume of US$36.2m by 2029.
Such numbers indicate the potential and opportunities that lie ahead for the AR Advertising market industry in Colombia.
It is worth noting that in the United States currently leads the market with a projected market volume of US$1,224.0m in 2024.
However, with the growth potential in Colombia, it is expected that the country will contribute significantly to the overall revenue generated in the AR Advertising market.
This highlights the importance of Colombia as a key player in the industry.
Colombia's AR Advertising market is rapidly growing, driven by the country's tech-savvy population and increasing demand for immersive brand experiences.

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Analyst Opinion

The AR Advertising market in Colombia is experiencing significant growth and development due to several factors. Customer preferences for interactive and immersive advertising experiences, along with the increasing availability and affordability of AR technology, are driving the adoption of AR Advertising in the country.

Customer preferences: Colombian consumers are increasingly seeking unique and engaging advertising experiences. Traditional forms of advertising are becoming less effective in capturing their attention. AR Advertising offers a solution by providing interactive and immersive experiences that allow consumers to engage with brands in a more personal and memorable way. This aligns with the global trend of consumers preferring experiential marketing over traditional forms of advertising.

Trends in the market: The AR Advertising market in Colombia is witnessing a surge in the adoption of AR technology by businesses across various industries. Companies are leveraging AR to create innovative and interactive campaigns that capture the attention of consumers and differentiate their brands. For example, retail brands are using AR to enable virtual try-on experiences, allowing customers to visualize products before making a purchase. Similarly, the real estate industry is using AR to provide virtual tours of properties, enhancing the buying experience for potential customers.

Local special circumstances: Colombia has a growing tech-savvy population, with increasing smartphone penetration and internet connectivity. This provides a favorable environment for the adoption of AR Advertising. Additionally, the country has a vibrant creative industry, with a strong talent pool of designers and developers who can create compelling AR experiences. This local expertise contributes to the growth of the AR Advertising market in Colombia.

Underlying macroeconomic factors: Colombia is experiencing steady economic growth, which is driving consumer spending and business investments. As businesses seek innovative ways to reach and engage customers, AR Advertising presents a lucrative opportunity. Furthermore, the government of Colombia has been actively promoting the development of the technology sector, including AR, through various initiatives and incentives. This supportive environment encourages businesses to invest in AR Advertising and contributes to the market's growth. In conclusion, the AR Advertising market in Colombia is developing rapidly due to customer preferences for interactive and immersive experiences, the adoption of AR technology by businesses, favorable local circumstances, and underlying macroeconomic factors. As the market continues to evolve, we can expect to see more innovative and impactful AR Advertising campaigns in Colombia.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports 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 consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. 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).