AR Advertising - Mexico

Mexico

Highlights

In Mexico, revenue in the AR Advertising market market is projected to reach US$76.6m in 2024.
The revenue within this market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 9.26%, which will result in a projected market volume of US$119.2m by 2029.
While a projected market volume of US$1.2bn in 2024 indicates significant activity, it is important to note that most revenue is generated the United States.
In Mexico, the burgeoning AR advertising sector is increasingly leveraging local cultural elements to enhance consumer engagement and brand loyalty.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The AR Advertising market in Mexico is experiencing significant growth and development, driven by various factors such as changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Mexico are shifting towards more immersive and interactive advertising experiences.

Consumers are increasingly seeking unique and engaging content that stands out from traditional forms of advertising. Augmented reality (AR) advertising provides an innovative and interactive platform for brands to connect with their target audience. By blending digital content with the real world, AR advertising creates a more memorable and personalized experience for consumers.

Trends in the AR Advertising market in Mexico are also contributing to its development. One of the key trends is the increasing adoption of smartphones and mobile devices. Mexico has a high smartphone penetration rate, and this provides a widespread platform for AR advertising to reach a large audience.

Additionally, the growing popularity of social media platforms and mobile apps further enhances the reach and effectiveness of AR advertising campaigns. Another trend in the market is the integration of AR technology into e-commerce platforms. With the rise of online shopping in Mexico, brands are looking for ways to enhance the virtual shopping experience.

AR advertising allows consumers to visualize products in their own environment, providing a more realistic and immersive shopping experience. This trend is particularly relevant in industries such as furniture, home decor, and fashion, where visualizing products before purchase is crucial. Local special circumstances in Mexico also contribute to the development of the AR Advertising market.

Mexico is known for its vibrant and colorful culture, and AR advertising allows brands to incorporate elements of Mexican culture into their campaigns. By leveraging local traditions, festivals, and landmarks, brands can create more culturally relevant and engaging AR experiences for Mexican consumers. Underlying macroeconomic factors further support the growth of the AR Advertising market in Mexico.

The country has a large and growing middle class, which translates to increased consumer spending power. As disposable incomes rise, consumers are more willing to engage with innovative and immersive advertising experiences. Additionally, Mexico has a strong digital infrastructure and a young population that is tech-savvy and receptive to new technologies, making it an ideal market for AR advertising.

In conclusion, the AR Advertising market in Mexico is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As consumers seek more immersive and interactive advertising experiences, AR advertising provides a unique platform for brands to engage with their target audience. The integration of AR technology into e-commerce platforms and the incorporation of Mexican culture into AR campaigns further enhance the market's growth potential.

With a strong digital infrastructure and a growing middle class, Mexico presents a favorable environment for the continued expansion of the AR Advertising market.

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).