Advertising industry in Latin America - Statistics & Facts
The advertising industry in Latin America shows promising figures for the coming years. Advertising revenue in Latin America is projected to increase by 5.4 percent in 2016, a higher growth figure than the leading region, North America. Latin America’s share of global advertising spending has been gradually increasing since 2011, and is forecast to account for 8.4 percent of the global spending in 2018. North America has the largest share of global ad spending, around 35 percent, followed by the Asia Pacific region.
By 2016, total advertising expenditure in Latin America is projected to round up to nearly 50 billion U.S. dollars. Brazil is projected to maintain its leadership in the region, increasing its share of the Latin American ad market to almost 57 percent by 2017. Mexico is expected to hold 11.4 percent of the market share by 2017, while Argentina is projected to account for nearly 9 percent. Brazil is an industry leader not only in the region, but also worldwide. The country is listed amongst the largest advertising markets in ad spend growth projections, with expected growth of 1.56 billion U.S. dollars by 2018. This is a relatively small figure when compared to global industry leaders. The U.S. ad market, for example, is expected to grow by nearly 20 billion U.S. dollars in the same period.
Mexico 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.
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