Digital advertising expenditure in Latin America (LATAM) has been on an upward trajectory, mirroring global trends. In 2020, LATAM's digital ad spend was approximately $8.88 billion USD, marking a nearly 40% increase from the previous year—a surge partly attributed to the COVID-19 pandemic's acceleration of online engagement. Statista
Focusing on digital audio advertising within LATAM, the sector is experiencing notable growth. In 2020, spending on streaming radio and podcast advertising in the region's largest markets totaled $25.5 million USD. This figure is projected to nearly quadruple, reaching an estimated $95 million USD by 2026. Statista
In South America specifically, digital audio advertising spending is projected to reach $271.5 million USD in 2024, with an expected annual growth rate (CAGR 2024-2029) of 4.55%, culminating in a market volume of $339.1 million USD by 2029. Notably, 51% of this ad spending is anticipated to be generated through mobile platforms by 2029. Statista Digital audio advertising South America, Statista Digital Audio Advertising Worldwide, Statista Digital Audio Advertising - Americas
The rise in digital audio advertising aligns with increasing digital audio consumption in LATAM. For instance, the average daily time spent listening to online radio in Brazil grew from 127 minutes in 2017 to 175 minutes in 2020. Additionally, the region has seen a growing user base on music streaming platforms like Spotify and a rapid increase in podcast listeners. Statista
These trends indicate a robust expansion of digital audio advertising in LATAM, driven by heightened digital audio consumption and the proliferation of mobile platforms.
As a digital audio publisher in Latin America (LATAM), it's essential to stay informed about the evolving market dynamics to effectively capitalize on emerging opportunities. Here are key areas to focus on:
1. Surge in Programmatic Advertising
Programmatic advertising is gaining traction in LATAM, driven by the region's high smartphone penetration and increasing mobile device usage. The LATAM programmatic advertising market is expected to grow at a CAGR of 8.31% from 2022 to 2027. OnAudience
Action Item: Invest in programmatic advertising capabilities to enhance targeting precision and efficiency, aligning with the trend towards automated ad placements.
2. Rising Popularity of Podcasts
Podcasts are becoming increasingly popular in LATAM. As of 2023, the region had approximately 135.2 million podcast listeners, with Brazil leading at 51.8 million listeners. Projections suggest that by 2025, LATAM will surpass North America in total podcast listenership. Podnews
Action Item: Expand your content offerings to include podcasts, catering to the growing audience and exploring new monetization avenues.
3. Mobile-First Consumption
The high smartphone penetration in LATAM is creating vast opportunities for mobile and video programmatic advertising. OnAudience, Mordor Intelligence
Action Item: Optimize your content and advertising strategies for mobile platforms to align with user behavior and maximize reach.
