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Latin America poised for standout digital ad spending and ecommerce sales growth

The news: Latin America will outpace the world in digital ad spending and ecommerce sales gains this year, as both metrics rise by double digits.

Changing search habits: In much of the region, search engines have been supplanted by retailers’ websites as the starting point to find deals—a trend that doesn’t bode well for Google.

  • In Brazil, for example, a report from Opinion Box and Americanas Advertising showed digital buyers preferred retailer brand websites over search engines by a margin of 62% to 50% when hunting for deals.

The physical store as an ad vehicle: Our report concludes reliance on search engines and linear TV will wane as Latin American marketers invest in ad formats that are likely to deliver higher returns.

  • Brick-and-mortar will be retail media’s next frontier as in-person shopping returns and the pandemic fades. Retailers like Walmex and Cencosud are turning their physical stores into media assets, allowing brands to place ads on digital screens, shopping carts, and even in parking lots.

Opportunity for Netflix: Economic turmoil could open a door for Netflix—Latin America’s most popular streaming service—to gain more customers for its ad-supported offering.

  • Though most of Netflix's subscribers in Latin America prefer ad-free services, its biggest opportunity lies with the region’s lower and middle classes. These two cohorts have been pummeled by higher prices and lower disposable income.

Go further: For more on changes that are likely to come south of the border, read our report, Latin America Trends to Watch for 2023.