Market Insights Advertising & Media Advertising TV & Video Advertising

Digital Video Advertising - Central America

Central America

Ad spending in the Digital Video Advertising market in Central America is forecasted to reach US$224.80m in 2024.
The market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 4.89%, leading to a projected market volume of US$285.40m by 2029.
With a projected market volume of US$84,610.00m in 2024, the majority of revenue will be generated the United States.
In Central America, 58.47% of total ad spending in the Digital Video Advertising market will be derived from mobile in 2029.
The average ad spending per internet user in the Digital Video Advertising market is expected to be US$5.88 in 2024.
Connected TV ad spending in the Digital Video Advertising market is projected to reach US$11.87m in 2024, with an annual growth rate (CAGR 2024-2029) of 4.48%, resulting in a projected market volume of US$14.78m by 2029.
Ad spending on short-form videos in the Digital Video Advertising market is forecasted to reach US$97.88m in 2024, with an annual growth rate (CAGR 2024-2029) of 9.99%, leading to a projected market volume of US$157.60m by 2029.
In Costa Rica, Digital Video Advertising is rapidly growing as companies shift focus to online platforms for targeted marketing strategies.

Key regions: Australia, Europe, India, China, Asia

Market

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Region comparison

Currency

Analyst Opinion

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

Customer preferences: Customers in Central America are increasingly turning to digital video advertising due to its effectiveness in reaching a wide audience and engaging viewers. The convenience and accessibility of digital platforms have made it easier for consumers to access video content on their smartphones, tablets, and computers. This has led to a shift in consumer preferences towards digital video advertising, as it allows for more personalized and targeted messaging.

Trends in the market: One of the key trends in the Central American digital video advertising market is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad space, enabling them to reach their target audience more efficiently and effectively. This trend is driven by the growing availability of data and advanced analytics, which enable advertisers to make data-driven decisions and optimize their campaigns in real-time. Another trend in the market is the rise of mobile video advertising. With the increasing penetration of smartphones in Central America, mobile video consumption has witnessed significant growth. Advertisers are capitalizing on this trend by investing in mobile video advertising, which allows them to reach consumers on the go and engage them with interactive and immersive ad formats.

Local special circumstances: Central America is a region characterized by a young and tech-savvy population. This demographic profile presents a unique opportunity for advertisers to target a digitally native audience that is receptive to digital video advertising. Additionally, Central America has a growing middle class and an expanding digital infrastructure, which further fuels the adoption of digital video advertising.

Underlying macroeconomic factors: The Central American economies have been experiencing steady economic growth, which has contributed to the development of the digital video advertising market. As the economies continue to grow, businesses have more resources to invest in advertising, including digital video advertising. Additionally, the increasing internet penetration and access to mobile devices have created a conducive environment for the growth of the digital video advertising market. In conclusion, the Digital Video Advertising market in Central America is thriving due to customer preferences for personalized and targeted messaging, the adoption of programmatic advertising, the rise of mobile video advertising, the region's young and tech-savvy population, and the underlying macroeconomic factors such as economic growth and increasing internet penetration. As the market continues to evolve, advertisers in Central America will need to stay abreast of the latest trends and technologies to effectively reach and engage their target audience.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. 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, internet users, 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.