Latin America: The World’s Fastest-Growing Ad Market

Latin America: The World’s Fastest-Growing Ad Market

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Recently we noted the positive growth that both eMarketer and MagnaGlobal projected for ad spend in Latin America. Zenith Optimedia has joined these two sources with its own strong projections for the region.

Zenith Optimedia predicts that in 2013, Latin America will grow by 10.1% in ad spend, which is more than any other region in the world and nearly three times the rate of growth of the United States (3.6%) and double the rate of growth of the entire world (4.6%).

In terms of specific figures, Zenith Optimedia forecasts that 2013 ad spend in Latin America will reach nearly US$42 billion and then grow another 8.7% in 2014 to total US$45.6 billion.

Of course, these are projections. To get a sense of how accurate these projections may be, we researched actual ad spend figures for Latin American markets for 2012. Here’s a look at what we found.

Argentina
According to the Cámara Argentina de Agencias de Medios, ad spend value seems to have increased in Argentina during the first half of 2012. Overall, the ad spend value is up by nearly 20% compared to 2011, with the biggest increases in Internet ad spend (56%), radio (47%), newspapers (35%), pay TV (29%) and newspapers in the capital (22%)

Brazil
According to Projeto Inter-Meios, in Brazil ad spend in the first half of 2012 increased by 11% compared to the first half of 2011 to reach 14 billion reais (US$6.8 billion). Free TV continues to dominate the Brazilian ad market, commanding nearly 65% of the ad spend and growing by 13% compared to the first 6 months of 2011. However, the two forms of media that grew the most in the first half of 2012 in Brazil were Internet and pay TV, each of which registered growth of 18% in this period. It’s also interesting to note that Brazilian newspapers grew by 4% in ad spend during the first half of 2012.

Colombia
Overall ad spend grew by 5% in Colombia during the first half of 2012, according to figures from Asomedios, Andiarios and IAB Colombia. The total reported by these organizations —which reflects ad spend in regional and local TV, magazines, newspapers, national TV, radio and Internet— is one trillion Colombian pesos, which is about US$555 million. During the first half of 2012 Internet grew the most of all Colombian media in ad spend: 12%. However, national TV still commanded the largest share of ad spend, with 45.8%, followed by newspapers (21%), radio (20%) and magazines (4.5%).

More Markets
While we could not find 2012 ad spend numbers for other Latin American markets, the figures from last year suggest that Zenith Optimedia’s positive projections make sense. For example, in 2011 ad spend grew by 11.9% in Mexico, by 10% in Chile, by 16% in Peru, by 6.5% in Ecuador, by 7.% in Uruguay and by 7.8% in Venezuela.
As such, it’s likely that we’ll be reporting strong 2012 ad spend figures for all of these markets during the first quarter of 2013.

To explore how we can help you reach Latin America’s growing consumer market through a campaign in any type of media, please contact us.

About Veronica Lizama@US Media Consulting

Veronica Lizama is the Ad Sales Director for the Offline Department—which handles Latin American media campaigns for TV, newspaper, magazine, radio and out-of-home advertising—at US Media Consulting.

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