Latin America Digital Ad Spending 2019

Executive Summary

Digital advertising in Latin America remains lower than the global average, inhibited by relatively low digital penetration and the sheer power of TV within the region. However, as more people come online for the first time, brands are making digital an integral part of their media strategy to better connect and engage with consumers across all channels.

How much will advertisers in Latin America spend on digital advertising in 2019?

We expect that digital ad spending in Latin America will grow 14.1% to $9.17 billion. Digital platforms will claim nearly one-third of all media spending.

What formats are driving digital ad spending growth in Latin America?

Display will account for 57.4% of total digital ad spending this year, driven primarily by video and social media, followed by search (37.1%) and classifieds (5.5%). Mobile continues to be a key driver of digital ad spending growth. This year, mobile’s share of digital ad spending will account for 62.7% of digital investments.

How have local politics and economics affected digital ad spending in Latin America?

Overall ad spending trends vary by country. The political environment has had a negative effect in Argentina and Peru, while Brazil has seen positive growth in its ad market after the recent presidential election.

What emerging trends and formats should marketers in Latin America be aware of?

As more consumers go online for the first time, advertisers are focusing on consumer trust, data privacy and video advertising, while emerging formats like digital audio and voice search are top of mind.

WHAT’S IN THIS REPORT? This report features our latest forecast for ad spending in Latin America, including regional and country breakouts in six markets: Argentina, Brazil, Chile, Colombia, Mexico and Peru. It also examines the key drivers fueling market movements and emerging trends.

KEY STAT: We forecast that mobile will account for nearly two-thirds of digital ad spending in Latin America this year. This share will rise from 62.7% in 2019 to 81.3% in 2023, resulting in a market worth $10.47 billion.

What’s Inside:

This report explores ad spending in Latin America, highlighting critical trends and influences. It includes our estimates for the following areas:

• Total media ad spending
• Digital ad spending
• Digital ad spending by country
• Digital ad spending by format
• Mobile ad spending
• Mobile ad spending by country

Behind the Numbers: eMarketer's Forecast Methodology

Our forecasting methodology for Latin America digital ad spending is based upon analysis of 4,138 metrics from 129 sources—including macro-level economic conditions; historical trends of the advertising market; historical trends of each medium in relation to other media; reported revenues from major ad publishers; estimates from other research firms; consumer media consumption trends; consumer device usage trends; and eMarketer interviews with executives at ad agencies, brands, media publishers and other industry leaders. We examine each country-specific metric within the context of other countries in the region.

For our companies’ estimates, we do a bottoms-up analysis of the market, taking into account each company’s ad revenues. This information comes from quarterly earnings releases, annual shareholder documents and statements from the executives in earnings calls. Company-specific data is also evaluated alongside estimates from third-party research firms and interviews with executives at ad agencies, brands, media publishers and other industry leaders covering these companies.