According to new projections from eMarketer, in 2013 online ad spend in Latin America will grow by 23%, more than any other region in the world except for the Middle East. And although Brazil remains the region’s largest online market, Mexico will lead Latin America in online ad spend growth in 2013: the country will post an increase of 32.1% in digital ad spend. Argentina will be in second place in 2013, growing by 30% in online ad spend, while Brazil will grow by 20%.
Emarketer also notes that in 2012, these three markets grew robustly in their online ad spend: Mexico’s 2012 online ad spend grew by 34%, while the online ad spend of Brazil and Argentina in 2012 grew by 40% in each country.
That said, online’s share of overall ad spend in Latin America will not grow as robustly. In 2012, online’s share of ad spend was 9.7% in Latin America and eMarketer projects online’s share of overall ad spend will reach 14% in Latin America by 2016. In contrast, online’s share of ad spend in North America will go from 22% in 2012 to 29% in 2016. Of course, the obvious reason for this is the stark difference in Internet penetration between the two regions: 40% for Latin America and 78% for North America.
Despite this, several factors could cause online’s ad spend share in Latin America to grow faster than projected. First, it’s projected that Internet penetration in the region will reach 60% by 2015, resulting in 359 million Internet users in Latin America, a gain of 127 million compared to the amount in 2012. In addition, e-commerce continues to grow spectacularly in Latin America: it grew by 44% in Argentina in 2012, by 40% in Mexico in 2012 and is projected to grow by 28% in Brazil during 2013. And 2012 statistics from e-bit indicated that 65% of Chilean Internet users shop online. This affects online advertising because both search and banner advertising influence the purchases of Latin American online shoppers. Finally, as both mobile and social media increase their reach in Latin America, advertisers will need to increase their spend in these areas to continue to reach their customers.
To find out how we can help you reach Latin America via Internet advertising or any other type of media, please contact us.
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