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Brazil Wins at Something: Digital Ad Spending in Latin America

Investments in mobile and online ads will grow nearly 30% this year

Digital ad spending in Latin America will increase 28.5% this year—the second-fastest growth rate out of all regions worldwide, trailing only the Middle East and Africa—to hit $5.29 billion, according to eMarketer’s latest estimates of global digital ad spending.

Double-digit gains will continue throughout our forecast period, pushing total investments in Latin America to $9.36 billion by 2018. Thanks to this growth, the region will rise from second-to-last place in digital ad spending worldwide in 2016, when it is set to surpass Central and Eastern Europe. However, it will still see far lower spending compared with North America, Asia-Pacific and Western Europe, and will claim just 4.4% of the digital ad spend market in 2018.

Brazil will maintain the highest levels of digital ad spending out of the Latin American countries for which eMarketer produces estimates, at $2.88 billion—or 54.4% of all digital ad spend in the region. Meanwhile, second- and third-place Mexico and Argentina will see far lower digital ad investments of $900 million and $310 million, respectively.

Despite higher gains in Mexico than in Brazil, the former will still rank second for digital ad spending in Latin America throughout our forecast period. Argentina will continue to pull up the rear, with increases at 7.0% or lower expected through 2018, compared with double-digit gains in the other two nations.

eMarketer bases all of its forecasts on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

In addition, every element of each eMarketer forecast fits within the larger matrix of all of its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.

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