With the advent of smartphones, the programmatic advertising market in Latin America is undergoing significant changes. Countries such as Argentina, Brazil, Colombia and Mexico are seeing a surge in mobile video consumption, making it a major source of entertainment and information.
The Latin American programmatic advertising market is responsive to this trend. Despite moderate competition, market players are actively taking strategic measures such as mergers, acquisitions, and innovations in service delivery.
This reflects the collective efforts of companies to strengthen their position and effectively meet the growing needs of this dynamic market.
Incidentally, five of the top 10 countries in terms of growth rate of digital advertising spending in 2023 will be from Latin America:
In fact, Latin America is taking a progressive approach to advertising, seamlessly integrating mobile video and programmatic advertising to meet the growing expectations of today’s audiences.
Today we will take an in-depth look at the digital market in South America. We will analyze the state of mobile advertising in different countries and explain why it is crucial for advertisers to invest in mobile programmatic now.
General data about Latin America
Programmatic advertising market share in Latin America
Programmatic advertising is gaining traction in South America, securing the third position with a significant market share of 55.9%.
This underscores the dynamic nature of digital marketing in the region. Programmatic advertising not only solidifies its relevance but also exhibits consistent growth.
The analysis indicates a growing interest in automated advertising placement strategies, serving as a key factor for companies aiming to stay at the forefront of the evolving landscape of digital marketing in South America.
According to Mordor Intelligence, the programmatic advertising market in Latin America is expected to grow at an average rate of 8.31% during the forecast period (2022–2027).
This growth is a result of accelerated digitization among consumers and an increasing demand for a more connected experience.
The analysis indicates stable trends of expansion in this market in the coming years, emphasizing its strategic importance in the evolution of the advertising segment in the region.
In 2021, companies in Latin America spent $8.24 billion on programmatic advertising, and it’s expected to nearly double by 2026, reaching $15 billion. Brazil, Mexico, and Colombia stand out as the major programmatic markets in the region.
This growth is crucial for advertisers as it presents new opportunities for more effective audience targeting. The increased investment in programmatic advertising reflects companies’ confidence in its effectiveness and their readiness to adapt strategies to the evolving digital landscape in Latin America.
More than half of Latin America’s population, specifically 264.8 million people, plan to make a digital purchase this year. This is impacting the strategies of programmatic advertising and in-app advertising in the region.
According to the latest forecast from data.ai, spending on gaming applications is set to increase, underscoring the growing importance of mobile platforms. Advertisers should take note of this trend and consider the rise in expenditures on mobile applications.
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According to forecasts, digital advertising expenditures are set to reach $14.3 billion in the South American market by 2024, indicating significant growth in the sector.
For advertisers, this presents a lucrative opportunity, and active engagement in digital channels is crucial. Strategic audience targeting will enhance the effectiveness of campaigns, and a forward-looking approach to innovative advertising formats will be key to maximizing returns in this rapidly expanding market.
Data from Statista forecasts that the average advertising expenditure per user in the Latin American In-App Advertising market will be $18.5 USD in 2024, in stark contrast to the level in France, where it will reach $62.9 USD.
This trend underscores the significance that companies place on advertising within mobile applications in Latin America. Advertisers, by tailoring their strategies to the unique characteristics and preferences of the mobile app audience, can maximize the efficiency of their advertising campaigns.
By 2028, 73% of Latin America’s advertising budget will be allocated to mobile advertising, a key platform for advertisers. Equally significant is the growth of programmatic advertising, which is projected to account for 78% of digital advertising revenue.
This highlights the close relationship between mobile and programmatic advertising, allowing advertisers to optimize campaigns for mobile users. Recognizing this trend allows advertisers to improve strategies and better capitalize on digital advertising opportunities in Latin America.
Now that you’ve learned more about the programmatic market in Latin America, you can see why it’s such a promising sector. If you’re convinced, don’t miss your chance to launch a mobile campaign with us.
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