Market Insights Advertising & Media Advertising

TV & Video Advertising - Central America

Central America

Ad spending in the TV & Video Advertising market in Central America is forecasted to reach US$433.40m in 2024.
The largest market in Central America is Digital Video Advertising, with a market volume of US$224.80m in 2024.
When compared globally, the United States is expected to lead in ad spending, reaching US$143.80bn in 2024.
The average ad spending per user in the Digital Video Advertising market in Central America is projected to be US$5.88 in 2024.
By 2029, the number of TV Viewers in Central America is anticipated to be 45.91m users.
Costa Rica's TV & Video Advertising market is seeing a shift towards influencer collaborations to engage with younger audiences effectively.

Key regions: United States, India, China, Japan, United Kingdom

Definition:
TV & Video Advertising includes advertising in the form of moving visual images instead of traditional broadcast television and all ad formats within digital video channels. Traditional TV Advertising includes non-digital formats and excludes all forms of digital TV advertising. Traditional TV Advertising also covers all ad spending on pay-TV operators and networks, free-to-air networks, and free-to-air spin-off digital channels from terrestrial network operators. In comparison, Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps that appear on computer screens, smartphones, tablets, and other internet-connected devices.

Structure:

Traditional TV Advertising includes all ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV).
Digital Video Advertising formats are displayed as instream and outstream video ads. Instream video ads include advertising that appears before, during, or after the streamed video (pre-roll, mid-roll, and post-roll video ads) and video overlays (text- or image-based overlays that appear while watching a video). Outstream video ads include video advertising that appears in non-video environments, e.g., in-feed on social media or text-based content (so-called native advertising).

Additional information:
The TV & Video Advertising market comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users for the market. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional TV Advertising and Digital Video Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The TV & Video Advertising market in Central America is experiencing significant growth and development.

Customer preferences: Customers in Central America have shown a strong preference for TV and video advertising. This can be attributed to the fact that television is still the primary source of entertainment for many households in the region. Additionally, the popularity of online video platforms such as YouTube and streaming services like Netflix has further increased the demand for video advertising.

Trends in the market: One of the key trends in the TV & Video Advertising market in Central America is the shift towards digital advertising. Advertisers are increasingly investing in digital platforms to reach their target audience more effectively. This trend is driven by the growing internet penetration in the region and the increasing use of smartphones and other mobile devices. Another trend in the market is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend is driven by the need for advertisers to reach their target audience in a more targeted and personalized manner.

Local special circumstances: One of the unique aspects of the TV & Video Advertising market in Central America is the dominance of local broadcasters. Local broadcasters have a strong presence in the region and have a deep understanding of the local culture and preferences. This gives them an advantage in creating advertising content that resonates with the local audience.

Underlying macroeconomic factors: The growth of the TV & Video Advertising market in Central America can be attributed to several underlying macroeconomic factors. Firstly, the region has experienced steady economic growth in recent years, leading to an increase in consumer spending power. This has resulted in higher advertising budgets and increased demand for TV and video advertising. Secondly, the rapid urbanization and increasing middle-class population in Central America have contributed to the growth of the TV & Video Advertising market. Urban areas have higher levels of media consumption and offer a larger audience base for advertisers. In conclusion, the TV & Video Advertising market in Central America is developing due to customer preferences for TV and video advertising, the shift towards digital advertising, the rise of programmatic advertising, the dominance of local broadcasters, and underlying macroeconomic factors such as economic growth and urbanization.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on TV and video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional TV advertising (non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV) and digital video advertising (video ad formats: web-based, app-based, on social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Consumer Insights) 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 GDP, population, media consumption, internet users, consumer spending, 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.