The predominance of the video format in the mix of digital media by advertisers in Latin America, compared to other parts of the world, is one of the highlights of the eMarketer/Insider Intelligence study on advertising investment in the region in 2023.
The study shows that Brazil will be among the highest levels of investment in video advertising among ten global advertising markets, reaching US$ 2.88 billion, a volume greater than the sum of the markets of Germany and France (US$ 1 .93 billion).
In fact, digital video will overtake TV in advertising spend as audience habits shift to digital. This will happen for the first time in 2025 in Colombia and Mexico, and two years later in Brazil.
The internet as a whole will concentrate more than half of advertising investment in Latin America. The eMarketer/Insider Intelligence analysis points out that the region surpassed the mark of 50% of advertising investment in the digital environment for the first time last year. By the end of 2023, this proportion should reach 52.7%, that is, the so-called “traditional media” now represents less than half of the total advertising pie.
In values, the digital advertising segment in the region alone will move US$ 17.68 billion, more than the US$ 15.69 billion invested by advertisers in digital in Latin America in 2022. Mexico was the first market to cross the barrier of 50%, in 2021, followed by Brazil and Colombia, last year. Argentina and Chile are expected to reach this mark in 2024.
Application to digital advertising in Latin America will slow down in 2023 after two years of record growth. The uncertainties in the economic scenario, including a slowdown in growth and persistently high inflation, should have a negative impact on advertising budgets this year. Despite this, the region will continue to be one of the fastest growing markets in the area.
Five of the six Latin American countries tracked by eMarketer/Inside Intelligence will be among the top ten fastest growing digital advertising markets worldwide: Argentina (16%), Colombia (13%), Mexico (13%), Brazil ( 11.3%) and Chile (10.2%), all above the predicted global average, around 9.5% growth.
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