Market Trends of Latin America OOH And DOOH Industry
The Ongoing Shift Toward Digital Advertising is Expected to Boost the Market's Growth
- In recent years, Latin America has experienced significant digitalization, driven by technological advancements, internet development, increased consumer awareness, and growing globalization. Emerging technology trends due to digitalization, such as the Internet of Things, AI, big data analytics, and augmented reality (AR), have considerably impacted business operations, society, and the working environment.
- Latin America is witnessing substantial growth in mobile penetration. According to the GSMA, Latin America recorded nearly 465 million unique mobile subscribers in 2023, which is expected to increase and reach 523 million by 2030. The rise in mobile subscribers is expected to boost the demand for digital advertising.
- Moreover, in recent years, mobile promotions have surged in popularity, particularly in Latin American countries. For instance, Brazil is experiencing a significant rise in programmatic advertising, which is emerging as a highly promising solution for advertisers and developers.
- In 2023, Brazil witnessed a notable surge in its internet user base, especially on mobile platforms. This uptick has significantly favored advertisers leveraging digital channels for their campaigns. With a widening audience base, advertisers have a greater scope to reach and engage with fresh users. According to CETIC, during the period from March to July 2023, nearly 99% of surveyed internet users in Brazil reported that they accessed the internet primarily through their mobile phones.
- During the "Digital Government and Inclusion" workshop, a segment of the G20 Digital Economy Working Group, the Gov.br portal operated by the Brazilian federal government, stood out. With a staggering 156 million registered users and a digital portfolio of over 4,000 public services, it exemplified a robust Digital Public Infrastructure (DPI). These developments underscore the region's commitment to fortifying its digital foundations.
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Brazil is Expected to be the Fastest-growing Segment in the Market
- The rising use of digital technology drives the Brazilian OOH advertising and digital OOH market. Digital billboards and screens are becoming more common, enabling advertisers to showcase dynamic and interactive content. This trend is driven by technological advancements and the increasing demand for more engaging and interactive advertising experiences.
- According to Dentsu, a marketing and advertising agency, Brazil's advertising spending is expected to reach approximately USD 15.7 billion in 2024, representing an 8% increase from the USD 14.5 billion spent the previous year. Advertisers in Brazil are increasingly shifting their budgets from traditional media to digital platforms, increasing the demand for DOOH in the studied market.
- Moreover, a survey by Cenp-Meios, the self-regulatory forum of the Brazilian advertising market in 2023, revealed that advertising agencies in Brazil spent BRL 23.4 billion (USD 4.7 billion) on ads, reflecting a 10.4% increase from the previous year.
- Furthermore, increased urbanization and infrastructure development in the region are expected to drive the market's growth during the forecast period. Additionally, growing expenditure on outdoor advertising by various industry players is propelling market expansion.
- For instance, in September 2022, JCDecaux won a 10-year contract with ViaQuatro, which is responsible for the operation and maintenance concession of Line 4-Yellow of the São Paulo metro, to take over the advertising concession of this Line. The contract covers more than 120 wall wraps, 385 digital screens in platforms and corridors, and 747 internal TVs inside metro train carriages.
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