In Chile, Out-of-Home Ad Spending Grows Among Traditional Media - eMarketer
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In Chile, Out-of-Home Ad Spending Grows Among Traditional Media

TV and newspaper media lead in market share, but both saw declines in ad spending

May 12, 2016 | Ad Spending

While nearly every medium in Chile suffered declines in advertising spending from 2014 to 2015, out-of-home spending and cinema spending grew over the course of the year, with out-of-home growth modest, at 7.6%, while cinema spending grew by 48.1%.

Traditional Media Ad Spending in Chile, by Media, 2014 & 2015 (billions of Chilean pesos and % change)

That’s according to research from Asociación Chilena de Agencias de Medios (AAM), which indicates magazine spending saw the biggest decline over the year, at 13.5%. Other media saw less substantial spending decreases, with radio shrinking 2.2%, TV 2.9% and newspapers 5.7%. Overall, spending was down 2.4%.

Despite TV’s downturn in spending, the medium still made up 54.8% of the total share in February 2016. While that’s slightly down from its 2015 figure, it’s also slightly up from its 2014 figure, which means that it’s too early to tell if advertisers in Chile are cooling off on TV for good, or if this is just a temporary blip on the radar.

Traditional Media Ad Spending Share in Chile, by Media, Feb 2014, Feb 2015 & Feb 2016 (% of total)

Out-of-home advertising, meanwhile, has encroached upon the market shares of TV and newspapers. For all its remarkable growth, though, cinema continues to make up a minuscule share—just 0.1%.

eMarketer estimates that advertisers spent $1.04 billion on advertising in 2015, and projects a total media ad spending figure of $1.05 in 2016, a figure that will expand slowly but steadily until 2020, when total ad spending reaches $1.13 billion. Growth per year will hover around 2.0% starting in 2017.

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