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In Latin America, Digital's Share of Total Ad Spend to Remain Small

Digital ad spending will rise fast, but share of dollars devoted to digital will remain small

Latin America clocks the third-smallest total ad expenditures of any region in the world, and its digital outlays are similarly depressed, ahead of only the Middle East and Africa. As a result, digital ad spending in Latin America will make up among the smallest share of total media ad spending of any region throughout the forecast period, according to eMarketer’s worldwide ad spending forecast.

In Latin America, the share of total ad spending going toward digital will rise by only 3.2 percentage points between 2013 and 2016, just barely edging out Eastern Europe’s growth in share of 2.9 percentage points, the smallest gain worldwide. Latin America’s rising share will also trail the Middle East and Africa, the region where the least ad resources are devoted to digital spending. As a result, the Middle East and Africa will narrow its gap with Latin America in terms of share of spending allocated to digital. In 2016, the Middle East and Africa will put 13.3% toward digital vs. 14.1% in Latin America.

One country will see a much greater gain in share, however: In Mexico, spending devoted to digital will grow from 14.5% to 22.1% within the next three years.

Despite digital’s small imprint on total spend in Latin America, digital ad dollars will nonetheless rise robustly, eMarketer estimates. The region will post the second-fastest growth worldwide: 23% in 2013, second only to the Middle East and Africa. Last year, digital ad spending saw gains of 40% in both Argentina and Brazil, while Mexico recorded a 34% jump.

This year, the region’s digital ad dollar allocation will surpass Eastern Europe, eMarketer estimates, with $4.15 billion going to the channel. Brazil will account for 57.6% of that total. By 2016, the region will exceed Eastern Europe by $1.43 billion.

And while Latin America will also have among the lowest digital spending per internet user this year, by 2016, the region will tie with Eastern Europe, each spending $22 per internet user.

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Check out today’s other articles, “Digital Households Keep Kids Connected” and “Latest Feature in Mobile Banking: Smartphone Cameras.”

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