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8 Reasons Why Latin America’s Media Market Is Set to Skyrocket

This post is also available in: Spanish

While overall economic growth for Latin America is not projected to be stratospheric, it’s clear that there has been a historic rise of the middle class taking place. That shift is leading to lots of purchases by a whole new set of consumers. As a result, there will be a very positive impact on Latin America’s media market, good news for advertising, marketing and media agencies.

This month PriceWaterhouseCoopers (PwC) released its latest report, Global Entertainment and Media Outlook 2014-2018. A number of the firm’s predictions suggest a very favorable outlook for the Latin American media and advertising industry, including:

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#1 The ‘BRIM’ Markets Will Drive Growth

This refers to Brazil, Russia, India and Mexico, all of which will contribute significantly to the world’s media growth over the next few years. In fact, these 4 markets will account for 8.5% of global entertainment revenue, a big increase from 2009 (in which they accounted for 5.2%). By 2018 these BRIM media markets should strengthen considerably:

  • By 2018 the Mexican media market will see revenues of US$34 billion
  • By 2018 the Brazilian media market will see revenues of US$66 billion

In comparison, the Indian media market will produce US$39 billion in revenues in 2018, while Russia’s media market will produce US$42 billion in revenues.

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#2 Argentina’s Media Market about to Join the Major Global Media Markets
According to PwC, Argentina, South Africa, Turkey and Indonesia are the four countries that will be transitioning into higher-growth, large-scale markets over the next few years. The forecast growth rates for these markets are between 7% and 11% over the next 4 years.

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#3 Argentina and Venezuela Are the Fastest-Growing Radio Markets in the World

According to PwC, Argentina’s radio market will grow by an average of 14% a year between 2014 and 2018. Venezuela’s radio market will grow by an average of 13.7% a year between 2014 and 2018. While other countries like Mexico will have good growth in their radio markets in the next few years, Argentina and Venezuela are the leaders in this area. For its part, Brazil’s radio market will grow by 3.4% a year between 2014 and 2018.

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#4 Five Latam Markets to Have High Growth in Out of Home (OOH) Advertising

The firm’s report indicates that the following five Latin American countries will experience annual growth of 5% or more in their OOH markets between now and 2018: Argentina, Brazil, Chile, Colombia and Peru.

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#5 Six Latin American Markets to See Growth in Magazine Advertising
PwC predicts annual growth of nearly 5% a year for Brazil’s magazine market between 2014 and 2018, and positive growth for the magazine markets of Argentina, Chile, Colombia, Mexico, Peru and Venezuela.

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#6 Seven Latin American Markets to See Growth in Newspaper Advertising
Despite the challenges with newspaper advertising in markets like Canada, the United States, Germany and Italy, several markets in Latam will see growth in the coming years. According to PwC, Brazil and Mexico are among the higher-growth, larger-scale newspaper markets in the world. The Brazilian and Mexican newspaper markets will have positive annual growth between 2014 and 2018 and each will be worth  more than US$2 billion by 2018. In addition, the newspaper markets of Argentina, Chile, Colombia, Peru and Venezuela will all post growth between 2014 and 2018.

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#7 Seven Latin American Markets Will Post Strong Growth TV Advertising

Brazil’s TV advertising market will grow by more than 5% annually between 2014 and 2018 and be worth more than US$4 billion by 2018. For their part, the TV advertising markets of Argentina, Chile, Colombia, Mexico, Peru and Venezuela will also grow by 5% or more per year between 2014 and 2018.

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#8 Seven Latin American Markets will Post Significant Growth in Internet Advertising

The growth in advertising in Latin America that is predicted won’t just be for traditional media. PwC projects that between 2014 and 2018 the Internet advertising market will grow by 11% or more per year in Brazil, Mexico, Argentina, Colombia and Venezuela. In Chile and Peru the online advertising market will grow well between 2014 and 2018 but will be less than 11% a year.

To find out more about how we help agencies in Latin America maximize their efficiencies through media services and technology, please click here.

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