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MARKET OVERVIEW

The Latin America digital advertising market size reached USD 37,540.70 Million in 2024. It is expected to grow to USD 164,186.20 Million by 2033, reflecting a compound annual growth rate (CAGR) of 15.90% during 2025-2033. The market expansion is driven by factors such as high smartphone penetration and increased internet access. Mobile advertising dominates the region, supported by strong social media engagement and e-commerce growth. Brands are adopting mobile-first strategies with innovative technologies to connect with consumers dynamically.

STUDY ASSUMPTION YEARS

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

LATIN AMERICA DIGITAL ADVERTISING MARKET KEY TAKEAWAYS

• Current Market Size: USD 37,540.70 Million in 2024
• CAGR: 15.90% from 2025 to 2033
• Forecast Period: 2025-2033
• Increasing in-game advertising leverages immersive and non-disruptive ad placements within games, enhancing user engagement.
• E-commerce expansion fueled by COVID-19 accelerated online shopping and digital services investments.
• Mobile advertising is dominant due to high smartphone use and social media interaction.
• Popular marketplaces like Mercado Libre and Amazon are expanding, enhancing advertising and product placement opportunities.
• The market is categorized by platform, format, offering, type, end user, and region, with detailed segmentation.

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MARKET GROWTH FACTORS

Smartphone penetration rates increase. Internet penetration in Latin America also increases. These factors ease the growth of the digital advertising market inside Latin America. The Latin America digital advertising market is estimated at USD 37,540.70 Million in 2024 and is projected for reaching USD 164,186.20 Million by 2033, thereby growing at a CAGR of 15.90% from 2025 until 2033. With this greater connectivity came mobile advertising, prompting brands to move to mobile-first strategies, and roll out new and unique formats in response to high levels of social media usage.

In-game advertising is another growth area. For example, Stagwell and Anzu announced a partnership in June 2024 to develop advanced in-game advertisement solutions that embed advertisements into the gameplay experience, using non-intrusive ways and engaging experiences, backed by the high levels of engagement that characterize the gaming audience, especially mobile gamers. It is further supported through behavioral advertising, making it a means for brands to market their products and engage consumers.

E-commerce industry is one of the major growing market trends. E-commerce in Latin America had rapid growth during the COVID-19 pandemic. Lockdown and social distancing measures were implemented then. E-commerce in Brazil grew by 14.3% It is expected to exceed the USD 200 billion mark by 2026. Social media also contributes to Brazilian e-commerce because the majority of Brazilian consumers navigate social media platforms when searching for products. Instagram has the most users at 67%. YouTube use is 51%. Facebook is at 37%. TikTok use is 13%. In e-commerce, the platforms are expanding that business, inclusive of the digital marketplace Mercado Livre, as well as e-commerce websites such as Amazon.

MARKET SEGMENTATION

Platform Insights:

• Computer: Includes digital advertising accessed via desktop and laptop computers.
• Smartphone: Dominates the market due to high penetration; represents mobile-based digital advertising.
• Others: Covers other platforms not categorized under computer or smartphone.

Format Insights:

• Text: Advertising delivered in textual content form.
• Image: Visual advertisements using static images.
• Video: Dynamic advertising through video content.
• Others: Includes other forms of advertisement formats not classified as text, image, or video.

Offering Insights:

• Solution: Digital advertising tools and technologies offered to clients.
• Services: Support and consultancy services related to digital advertising.

Type Insights:

• Search Advertising: Ads appearing on search engine results.
• Banner Advertising: Graphic advertisements displayed on websites.
• Video Advertising: Ads conveyed through video content.
• Social Media Advertising: Promotions on social media platforms.
• Native Advertising: Advertisements integrated seamlessly into platform content.
• Interstitial Advertising: Full-screen ads that appear at transition points.

End User Insights:

• BFSI: Banking, financial services, and insurance sectors utilizing digital ads.
• Automotive: Advertising targeting the automobile industry.
• IT and Telecommunication: Digital promotions within tech and telecom sectors.
• Healthcare: Advertisement efforts in medical and health industries.
• Consumer Electronics: Marketing focused on electronic gadgets and devices.
• Retail: Digital advertising for retail businesses.
• Media and Entertainment: Promotion within entertainment and media outlets.
• Education: Advertising aimed at the education sector.
• Others: Includes all other end-user categories.

REGIONAL INSIGHTS

Brazil stands out as the dominant regional market in Latin America’s digital advertising sector. The country’s e-commerce market is growing at 14.3%, expected to surpass USD 200 billion by 2026. A majority of consumers in Brazil prefer Instagram (67%), YouTube (51%), Facebook (37%), and TikTok (13%) for product searches, supporting strong digital advertising opportunities and mobile advertising dominance.

RECENT DEVELOPMENTS & NEWS

In April 2024, Vistar Media partnered with PRODOOH to launch programmatic DOOH advertising in Latin America, starting with Mexico and Brazil and planning expansion to other countries. This initiative aims to transform outdoor advertising by improving audience targeting and measurement.

In March 2023, Publicis expanded in Latin America by acquiring Argentina-based Practia through Sapient, its digital arm. This move was to strengthen digital transformation capabilities across nine countries, serving clients in Latin and North America. Financial details were not disclosed.

KEY PLAYERS

• Vistar Media
• PRODOOH
• Publicis
• Practia

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