Brazil’s advertising expenditure for 2014 reached 18.76 billion U.S. dollars. By 2019, this figure is expected to increase to just over 29 billion U.S. dollars. Broadcast TV is the most dominant medium in the Brazilian market, accounting for 55 percent of all advertising spending in 2015. TV was followed by newspapers with a smaller share of 13 percent, while internet held a share of 7 percent. While television continues to be the main outlet for advertisers worldwide, digital advertising spending is expected to grow in next few years. Brazil is projected to follow this global trend, as both digital ad spending and mobile internet ad spending are forecast grow at a fast pace in the coming years.
Advertising spending in Mexico is expected to increase from 5.92 billion U.S. dollars in 2013 to 8.11 billion U.S. dollars in 2016. The distribution of advertising spending in Mexico reveals similar patterns to the regional leader, Brazil. Television takes the lead with about 65 percent of the share, followed by digital and radio. According to forecasts, digital advertising spending is projected to nearly double in a time span of five years, and amount to 2 billion U.S. dollars by 2019. In terms of devices, mobile ad spending is forecast to pass the one billion mark and become a distant leader by 2018.
With projected ad spending of 11.66 billion U.S. dollars for 2019, Argentina’s advertising market is fairly similar to the Brazilian market. Studies estimate that television accounted for about 50 percent of the total ad spending in the country in 2015. While digital held a similar share of around 7 percent in both Argentina and Brazil, newspapers have a stronger presence in Argentina than in Brazil. Newspapers’ share of all advertising spending was estimated at 28.5 percent in 2015. These market shares imply that both Argentina and Brazil still preferred to invest in the traditional mediums of television and newspaper advertising. Despite this overall trend, mobile ad spending is still projected to grow in the country, and reach a total of 1.35 billion U.S. dollars by 2019.
In 2014, advertising spending in Chile rounded up to 1.21 billion U.S. dollars. In line with Brazil and Argentina, television is the most popular medium for advertisers in Chile, while newspapers and online outlets take the second and the third place respectively. In 2014, advertising spending on TV in Chile was at 493 million U.S. dollars, while ad spending on online outlets stood at 143 million U.S. dollars.
Overall, these four markets in Latin America show similar patterns as well as peculiarities on their own. Television is the most popular medium for advertisers in Latin America, accounting for 50 percent to 65 percent of the market share. This is a particularly high figure in the global context. Worldwide, TV advertising is projected to generated 32 percent of all advertising revenue. Newspapers are particularly strong in both Argentina and Chile, and radio mostly stands out in Mexico. While global forecasts suggest that, by 2018, digital advertising spending will dominate all other mediums, including TV, it is a matter of time to see if Latin America’s advertising spending will align with the rest of the world’s preference for the digital, despite the strength of TV in the region. Brazil is expected to take the lead, as the country has one of the highest Internet penetration rates in the world.