5 Impacts of digital advertising in Latin America

According to a Cenp study, R$ 57.5 billion were invested in media in 2023, an increase of 10% compared to the previous year. Mainly due to digital advertising, the data shows that the area is being increasingly closely looked at by Brazilian companies.

Bruno Almeida, CEO of US Media, hub of media solutions, points out that this acceleration began to occur after the Covid-19 pandemic. “When digital became the main communication and marketing channel, many local companies began to adapt quickly to sustain continuous growth and innovate in their” strategies, he says.

Looking at this scenario, the executive listed the 5 largest impacts of digital advertising in Latin America. Check:

• Cultural adaptation and flexibility

The cultural diversity of Latin America requires that digital advertising campaigns be culturally relevant and adapted to local preferences.For this reason, the adaptation of messages, images and even platforms to reflect the nuances of each country has begun to intensify, including working with regional partners and teams.

“Every successful advertising strategy depends on understanding the cultural values of each country”, says 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 in which they are inserted”, he adds.

• Expressive returns in various sectors

Several different sectors have benefited significantly from digital advertising in Latin America. The CEO cites some examples: “O e-commerce has experienced explosive growth, driven by the ability of digital ads to connect consumers to products and services quickly and personalized. Already the entertainment market, such as music, movies and series, is also heated by the boom of digital video formats and CTV. Or we can talk about tourism and retail, which optimize the return of their campaigns with the targeting of specific audiences”, he says.

• SME Growth

Another feature of digital advertising is the democratization of market access, allowing Small and Medium Enterprises (SMEs) to compete on an equal footing with large corporations.

“As SMEs adopt digital strategies, they are able to optimize their resources and reach consumers who, in theory, would be out of their reach”, he said. 

• 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 to achieve a stronger and consistent presence. 

Almeida exemplifies: “A digital campaign can be complemented by digital TV or radio ads, or by strategically positioned digital billboards/OOH, amplifying the impact and engagement of the target audience.”

• Developing new technologies

According to the State of Marketing Report 2024, more than 60% of marketers intend to increase their investments in artificial intelligence. The number points out that the improvement of new technologies should continue to happen 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 only tends to grow”, concludes Almeida.