Overall ad spending in Latin America will jump more than 10% in 2015, outpacing all other regions, according to new data.
The study, from eMarketer indicates that worldwide ad spending will reach $719.20bn by the end of 2019.
The pace of growth will vary widely across regions—with Western Europe seeing the slowest growth and Latin America experiencing the fastest, based on a variety of factors, including economic growth and the level of digital media maturity.
North America has the highest ad spending worldwide, with $195.26 billion predicted in 2015. However, by 2019 Asia-Pacific will overtake North America as the leading advertising market by $1.35 billion.
“Advertising investments in traditional media like TV, newspapers and magazines have been negatively affected by increased spending in digital formats, such as online editions for magazines and newspapers, and digital video replacing traditional TV,” said eMarketer analyst Shelleen Shum.
Latin America breakdown by region- Brazil dominates
Total media ad investments will rise faster in Latin America than in any other region worldwide through 2019, eMarketer forecasts.
The growth is the result of a rising middle class and increased advertiser spending on global events like the 2016 Rio Olympics.
Spending on paid media in Latin America will total $41.85 billion in 2015, a 10.1% increase from last year. eMarketer expects ad spending in Latin America to continue to grow at a faster rate than any other region worldwide through 2019.
For the first time, eMarketer has included estimates for total media, digital and mobile ad spending for Colombia, Chile and Peru in its breakdown of regional spending.
Of these three countries, Colombia will have the largest total, digital and mobile advertising markets, and will maintain this position throughout the forecast period. Total media spending in Colombia is valued at $1.46 billion in 2015 and growth is expected to decline in 2015 and 2016, as subdued exports caused by declining oil prices weigh down the overall economy.
Ad spend by format- display and search lead way
Digital ad investments in Latin America will reach $6.82 billion in 2015, accounting for 16.3% of paid media ad spending in the region.
However, traditional media, such as TV, remains the dominant media platform. Advertisers have been slow to shift to digital advertising, keeping traditional media strong.
“In general, advertisers in Latin America have been slow to invest in digital advertising formats because of the lack of reliable measurement metrics when it comes to digital. Advertising in traditional media remains attractive, as it is still able to reach a broad audience,” said eMarketer analyst Shelleen Shum.
Latin America’s mobile internet ad spending will rise from $1.29 billion to $7.92 billion between 2015 and 2019. Spending will increase 107.3% this year alone, and post double-digit gains annually through the end of the forecast period, as the region’s mobile internet audience grows rapidly.