Executive Summary

Latin America is no stranger to turbulent market activity, but the coronavirus is unlike anything the region has seen before. As a result, we substantially revised our March 2020 ad spending forecasts to best reflect the rapidly changing landscape.

How will COVID-19 affect ad spending in Latin America?

Government-mandated stay-at-home orders in several countries brought local economies to a screeching halt. This coupled with the cancellation and postponement of massive sporting events—like the Tokyo 2020 Olympics and the 2020 Copa América soccer championship—will depress total media ad spending in Latin America this year.

What does the road to recovery look like for Latin America’s advertising industry?

Recovery times will greatly vary by country due to each market’s unique set of circumstances, including its government’s ability to contain the pandemic and mitigate potential economic downturns. Overall, we expect total media ad expenditures in Latin America to return to their pre-pandemic levels in 2022.

How much will advertisers in Latin America spend on digital advertising in 2020?

We expect that digital ad spending in Latin America will grow 5.0% to $9.33 billion. Digital platforms will claim 39.1% of all media spending, fueled by an uptick in digital ad dollars from advertisers in the region’s two largest ad markets, Brazil and Mexico.

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

Display will account for 57.2% of total digital ad spending this year, driven primarily by video and social media, followed by search (37.8%) and classifieds (5.0%). Mobile will continue to drive digital ad spending growth and will account for nearly three-quarters (73.7%) of digital investments this year.

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.

KEY STAT: Latin America’s digital advertising market has proven to be an exception to its bleak economic outlook. The region will be home to the world’s three fastest-growing digital ad markets this year: Colombia (11.2%), Chile (5.9%) and Brazil (5.2%).