According to a Cenp study, R$ 57.5 billion was invested in media in 2023, a 10% increase compared to the previous year. Mainly due to digital advertising, the data shows that the sector is being increasingly scrutinized by Brazilian companies. And, throughout Latin America, the trend has been the same.
Bruno Almeida, CEO ofUS Mediamedia solutions hub emphasizes that this acceleration began to occur after the Covid-19 pandemic. "When digital became the main communication and marketing channel, many local companies quickly began to adapt to sustain continuous growth and innovate in their strategies," he says.
Looking at this scenario, the executive listed the 5 biggest impacts of digital advertising in Latin America. Check it out
- Cultural adaptation and flexibility
The cultural diversity of Latin America requires digital advertising campaigns to be culturally relevant and tailored to local preferences. For this reason, the adaptation of messages, images, and even platforms to reflect the nuances of each country began to intensify, including collaboration with partners and regional teams.
"Every successful advertising strategy depends on understanding the cultural values of each country," emphasizes Almeida. "Many Latin American brands realized that they could only achieve this goal if they were flexible, allowing quick adjustments in response to changes in consumer habits and the environment they are in," he/she/they concludes.
- Significant returns in various sectors
Several different sectors have been significantly benefiting from digital advertising in the Latin American territory. The CEO cites some examples: "E-commerce experienced explosive growth, driven by the ability of digital ads to connect consumers to products and services quickly and personally. The entertainment market, such as music, movies, and series, is also thriving due to the boom in digital video formats and CTV. We can also talk about tourism and retail, which optimize the return of their campaigns through targeted audience segmentation," he states.
- SME growth
Another characteristic of digital advertising is the democratization of market access, allowing Small and Medium-sized Enterprises (SMEs) to compete on equal footing with large corporations. This has been positively impacting Latin American economic growth, improving entire GDPs.
"As SMEs adopt digital strategies, they are able to optimize their resources and reach consumers who, in theory, would be out of their reach," the executive points out.
- Digital multimedia
Digital multimedia, that is, all channels are in one way or another digital, combining digital advertising with traditional media. This integration helps brands achieve a stronger and more consistent presence.
Almeida exemplifies: “A digital campaign can be complemented by digital TV or radio ads, or even by strategically positioned digital billboards/OOH, amplifying the impact and engagement of the target audience.”
- Development of new technologies
According to the 2024 State of Marketing Report, over 60% of marketing professionals plan to increase their investments in artificial intelligence. The number highlights that the enhancement of new technologies must continue happening in the advertising market, including in Latin America.
“New formats are emerging all the time, from global apps like Uber and Netflix to regional platforms, so innovation is only set to grow,” concludes Almeida.
