LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT

LATIN AMERICA

DIGITAL SIGNAGE MARKET RESEARCH REPORT

2022

• TECHNOLOGICAL TRENDS FOR DIGITAL SIGNAGE • DIGITAL SIGNAGE, GROWTH PROSPECTS AND CURRENT CHALLENGES • LATIN AMERICAN ECONOMIES, A GRADUAL RECOVERY • BUSINESS PERSPECTIVES

© Latin Press, Inc., 2022 All rights reserved. No part of this work may be reproduced or incorporated into a computer system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the copyright holders. Infringement of such rights may constitute an intellectual property offense.

Original title: Latin America Digital Signage Market Research Report • 2022 1st edition: June 2022 Research and writing: Andrea Ochoa Restrepo Editorial Direction: Duván Chaverra Layout: Jhonnatan Martínez Avalo Graphics: Jhonnatan Martínez Avalo Photos: Pixabay

Table of Contents Latin America Digital Signage Market research Report: How is it done?.................................................... 5 Introduction ............................................................................................................................................... 6 Chapter 1: Technology trends for digital signage .................................................................................... 10 Main segments of digital dignage projects in 2021 ..........................................................................................13 Evolution of the digital signage market 2019-2021 ...........................................................................................14 Top Digital Signage Brands in 2021 ...................................................................................................................15 Comparative Top Digital Signage brands in Latin America 2019- 2021 ............................................................17 Most used Digital Signage solutions in Latin America 2021 ..............................................................................19 Imports by region............................................................................................................................................... 21 Chapter 2: Company Perspectives ........................................................................................................... 22 Mexico and Central America ..............................................................................................................................23 Andean Region ...................................................................................................................................................25 Southern Cone ...................................................................................................................................................29 Consultants’ Perspectives ..................................................................................................................................30 Chapter 3: Ranking Top 50 Digital Signage Companies 2022 .................................................................. 36 Mexico and Central America ..............................................................................................................................38 Andean Region ...................................................................................................................................................40 Brazil ...................................................................................................................................................................41 Southern Cone ...................................................................................................................................................42 Chapter 4: Digital Signage, growth prospects and current challenges .................................................... 44 Competitive landscape ......................................................................................................................................47 Progress and challenges in the digital transformation of Latin America and the Caribbean ............................48 Digital infrastructure investment, connectivity ..................................................................................................50 Growth of digital signage in Latin American countries ......................................................................................52 Chapter 5: Rising freight and cargo prices, why and what are the forecasts?.......................................... 66 High freight rates cast a shadow over economic recovery ................................................................................68 Chapter 6: Digital Signage: trends, opportunities and transition in LATAM ............................................ 70 Market investment opportunities .......................................................................................................................73 Chapter 7: Latin American economies, a gradual recovery ...................................................................... 76 Volatility in financial markets ..............................................................................................................................78 Impact on trade and value chains ......................................................................................................................79 Balance of financial flows to the region .............................................................................................................81 Evolution of GDP in Latin America .....................................................................................................................82 Future outlook ....................................................................................................................................................84 Inflation expectations 2021-2022....................................................................................................................... 87 Index of references ................................................................................................................................ 106

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4

Top 50 Digital Signage companies in Latin America: how is it done?

Next, we introduce the 2022 issue of the Latin America Top 50 Digital Signage Companies Market Research Report. In addition, AVI Latin America again presents the Top 50 Ranking of Digital Signage companies in Latin America. In order to highlight the work of the region in favor of the growth of the industry.

This ranking was created as an initiative that other international economic media have also successfully carried out, which, through information collected, feature the most important companies in the region.

This time, we consulted different segment markets, including manufacturers, distributors, associations and experts throughout our Latin American region, who were responsible for legitimizing the work and contributing to the recognition of these companies.

Methodology For the election, a complete compilation of information was made in order to consolidate a list with 50 of the most outstanding companies in Latin America, divided into four subregions (Mexico and Central America, the Andean Region, Brazil and the Southern Cone). For this point, the recommendations of the experts and associations were taken into account, which identified the companies with the highest position within the Digital Signage industry, as well as a detailed follow-up by the journalistic team of AVI Latin America.

Subsequently, by collecting information through the EncuestaDatos platform and direct communication with the companies, the data corresponding to the number of managed screens was collected, which allowed us to place them hierarchically in the ranking. The companies that did not provide the data appear in the ranking for their recognition in the sector. However, since they cannot be measured, they do not occupy prominent positions.

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Introduction

The world economic outlook continued to weaken during the last two years, the crisis has triggered a contraction in international trade, and in turn, has caused strong fluctuations in (high) prices as a consequence of volatility in the financial markets, which has resulted in lower profitability and higher risk aversion.

Thus, investment has been losing dynamism in the world despite liquidity and low interest rates. This is directly related to the current level of uncertainty.

These disparities and asymmetries affect not only the dynamics of short-term growth, but also the capacity to sustain medium-term growth.

According to International Monetary Fund (IMF) estimates, “the group of advanced economies is the only one that in 2022 would resume the growth trajectory

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registered before the pandemic, and even surpass it.

The other groups of countries will remain, in the medium term (until 2025), on a much lower growth trajectory than projected before the pandemic, highlighting the lasting nature of the damage to growth that the pandemic inflicted on these economies”.

With regard to the current outlook, this industry also faces major obstacles, mainly due to the economic and social circumstances in several Latin American countries. However, as will be seen in this report, entrepreneurs have been able to sustain and move forward with their businesses, adapting to a new normality and facing the harsh measures imposed by governments to try to contain the pandemic, also facing the volatility of markets, the decrease in demand, the fall in trade, capital flows, economic deficits, financial instability and investment risks due to the current situation.

According to the Economic Commission for Latin America and the Caribbean, “the group of developed economies would have grown by 5.2% in 2021. The United States is estimated to have grown by 6.0% and the eurozone by 5.2%, while Japan is estimated to have grown by 2.4% and the United Kingdom by around 6.8%. In the group of emerging and developing economies estimated to have grown by 6.4 % this year, China, with growth of 8.0 %, and India, with 9.5 %, stand out. On the other hand, the dynamism would have been lower in some emerging sub-regions, such as the Middle East and North Africa (whose growth was 4.1%) and Sub-Saharan Africa (3.7%)”.

On another front, the International Monetary Fund expects global growth to moderate from 5.9% in 2021 to 4.4% in 2022; that is, half a percentage point lower in 2022 than projected in the October issue of the World Economic Outlook (WEO), largely because of the cut in the projections for the two largest economies.

The smaller exchange rate corrections recorded in 2021 were also accompanied by lower exchange

rate volatility, relative to the average absolute value of inter-day exchange rate changes during the first three quarters of the year.

Trade volume growth is projected to be accompanied by market-weighted GDP growth of 5.3% in 2021 and 4.1% in 2022 (instead of the previously projected 5.1% and 3.8%). GDP growth has been driven by a determined monetary and fiscal policy and by the resumption of economic activity in countries that have been able to distribute COVID-19 vaccines on a large scale.

Growth dynamics in 2021 were led by domestic demand. Private consumption was a key driver, contributing about half of second-quarter growth.

The commission stated that “there was also a notable rebound in investment, in a context of recovering demand and a higher level of construction activity. On the other hand, although exports grew significantly, the net external sector (exports minus imports) made a negative contribution to output growth, due to the sharp increase in imports”.

VOLUME OF WORLD MERCHANDISE TRADE 2015Q1 - 2022Q4 Index, 2015=100 125 120 115 110 105 100 95 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4

2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3

90

Volume Of World Merchandise Trade 2015Q1 - 2022Q4 Current forecast

Source: WTO and UNCTAD for trade volume data; WTO for forecasts.

Merchandise trade volume Trend 2011 - 2019 Previous forecast

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In the case of the digital signage industry and ProAV, according to Florian Rotberg, expert consulted, “recovered from two difficult years of pandemic, is much better than expected. Order books are at a record level, but due to problems in the supply chain, most project are delayed. Certain vertical markets, such as hotels and transportation, are still well behind pre-pandemic levels. But overall, the industry is in surprisingly good shape”.

On that note, he added: “The invasion of Ukraine at the end of February . Currently, it is too early to determine the impact, but business confidence is falling”.

Notably, the Latin American Digital Signage Companies Market Study 2022 analyzes how this economic outlook would impact the industry, country by country, from the perspective of entrepreneurs who are part of this Top 50 conducted by AVI Latin America.

In addition, it addresses key industry information, such as import figures that run companies in each country, the brands of equipment most used in the region, the segments with the highest investment in digital signage, even sales figures of several of the companies, along with detailed contact details about the companies that are part of the ranking of 2022 are also in this report.

TARGET AUDIENCE • Businessmen of the Digital Signage industry.

• Digital Signage equipment manufacturers and distributors.

• Market analysts and researchers.

• Government and financial institutions.

• Investors.

• End users with projects that include Digital Signage services.

Readers will also know about a complete overview of digital signage companies in Latin America, as well as comments and recommendations for optimistic outlook on technology trends and investment opportunities.

The new report brings with it a deeper analysis of the current situation and future prospects of a key industry for the region. Additionally, for this 2022, the market study addresses new chapters: “Digital Signage, Country-by-Country Growth Prospects and Current Challenges”; “Rising freight and cargo prices, what is the reason and what are the forecasts?”;

“Latin American economies, a gradual recovery”; “Digital Signage: Trends, opportunities and transition in LATAM”.

In addition, the document develops other key aspects of the industry raised from market growth during the last year, originated by technological trends for digital signage, the main segments served in relation to Digital Signage projects, market developments (comparative of the last two years between segments), top brands of digital signage used during the last year, digital signage solutions in Latin America implemented and imports of equipment during 2021.

MAIN SEGMENTS OF DIGITAL SIGNAGE IN LATIN AMERICA

10,4% 27,2% 17,5%

19,6%

TRADE AND RETAIL BANKS AND CORPORATE AIRPORTS AND TRANSPORTATION EDUCATION AND HOSPITALS RESTAURANTS

25,3% Source: Survey carried out on an online platform among Digital Signage companies with a Deadline of March 18, 2022.

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CHAPTER 1

TECHNOLOGY TRENDS FOR DIGITAL SIGNAGE It is observed that the innovation and the future of the D.S. and especially in 2022, is given by the Interactivity and augmented reality, integration with other POS platforms, irregular Videowall, servers to the Nub, 4 and 8K screens, interactive experience and integration with mobile devices.

It is worth noting that technological tools predominate in innovation and future trends, as businessmen stated that not many are within the “obsolete and traditional” range.

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TECHNOLOGY TRENDS FOR DIGITAL SIGNAGE INNOVATIVE SCREEN AND FORMAT TRENDS 2022 Interactivity and augmented reality

LED Panels

Integration with other POS platforms

Integration with mobile devices

Irregular Videowall

Exploitation of Data Lakes

Servers to the Cloud

Interactive experience

4 and 8K displays

TOOLS Big Data and Business Intelligence

Facial Detection and Recognition

Internet of Things (IoT)

Remote support

Manual content admin of content

Content Personalization (Artificial Intelligence) TRADITIONAL

OBSOLETE

INNOVATIVE

FUTURE TRENDS

Source: Survey conducted on the EncuestaDatos platform between February 18, 2022 and March 18, 2022.

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MAIN SEGMENTS OF DIGITAL SIGNAGE PROJECTS IN 2021 Compared to 2020, we see that the segments proportion remains very similar across Latin America, with Retail & Commercial, and Banking & Corporate having the largest market share.

However, it should be noted that in Mexico and Central America, the Banking and Corporate segment continued to lead in terms of market share.

In the case of the Andean Region, the education and health, banking and commerce sectors are evenly distributed in terms of project execution; it is perhaps this region that shows the greatest homogeneity.

It is important to highlight that the Commerce and Retail segment has also been growing significantly, particularly in Brazil and Southern Cone, with more Digital Signage companies providing their services to this type of organizations.

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MAIN SEGMENTS OF DIGITAL SIGNAGE PROJECTS IN 2021 MEXICO & CENTRAL AMERICA

ANDEAN REGION

10,0%

10,0% 23,3%

28,0%

14,0%

20,0%

20,0%

23,3% 28,0%

23,3%

BANKING AND CORPORATE

EDUCATION AND HEALTH

TRADE AND RETAIL

BANKING AND CORPORATE

AIRPORTS AND TRANSPORTATION

TRADE AND RETAIL

EDUCATION AND HOSPITALS

AIRPORTS AND TRANSPORTATION

RESTAURANTS

RESTAURANTS

BRAZIL AND SOUTHERN CONE

ALL LATIN AMERICA

11,3%

10,4% 30,2%

15,1%

18,9% 24,5%

27,2% 17,5%

19,6%

25,3%

TRADE AND RETAIL

TRADE AND RETAIL

BANKING AND CORPORATE

BANKING AND CORPORATE

AIRPORTS AND TRANSPORTATION

AIRPORTS AND TRANSPORTATION

EDUCATION AND HOSPITALS

EDUCATION AND HOSPITALS

RESTAURANTS

RESTAURANTS

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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EVOLUTION OF THE DIGITAL SIGNAGE MARKET 2019-2021 MÉXICO Y CENTROAMÉRICA 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%

2019 2021

AIRPORTS AND TRANSPORTATION

BANKS AND CORPORATE

TRADE AND RETAIL

RESTAURANTS AND HOTELS

EDUCATION AND HOSPITALS

REGIÓN ANDINA 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%

2019 2021

AIRPORTS AND TRANSPORTATION

BANKS AND CORPORATE

TRADE AND RETAIL

RESTAURANTS AND HOTELS

EDUCATION AND HOSPITALS

BRASIL Y CONO SUR 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%

2019 2021

AIRPORTS AND TRANSPORTATION

BANKS AND CORPORATE

TRADE AND RETAIL

RESTAURANTS AND HOTELS

EDUCATION AND HOSPITALS

TODA AMÉRICA LATINA 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%

2019 2021

AIRPORTS AND TRANSPORTATION

BANKS AND CORPORATE

TRADE AND RETAIL

RESTAURANTS AND EDUCATION AND HOTELS HOSPITALS

Fuente: Comparativo de las encuestas realizadas en EncuestaDatos entre empresarios de Digital Signage entre diciembre 2019/ marzo 2020 y entre febrero/ marzo de 2022.

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TOP DIGITAL SIGNAGE BRANDS IN LATIN AMERICA 2021

4,2% 4,2% 4,2%

SCREENS AND DISPLAYS SAMSUNG LG UNILUMIN *BARCO, LEYARD, BOE, PROMO ESPACIO, LIGTHLINK, MULTILASER PLANAR ABSEN LED BENQ PANASONIC PHILIPS

28,7%

6,4% 6,4% 8,4% 10,8%

26,4%

6,3%

SUPPORTS PEERLESS AV CHIEF VOGEL´S SAMSUNG OWN BRAND NENHUMA BTECH AV MOUNTS

4,3%

8,3% 38,3%

9,3%

16,7% 16,7%

13,6%

REPRODUCERS INTEL NUC ACO DS PC PLAYER SCALA MEMORY STICKS MINIX

14,7%

40,3%

14,6% 16,6%

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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TOP DIGITAL SIGNAGE BRANDS IN LATIN AMERICA 2021

OPERATING SYSTEM WINDOWS ANDROID TIZEN LINUX S.O. PROPIO WEBOS

4,1% 5,1% 6,1% 8,1%

39,7%

36,7%

5,2% 6,2%

MANAGEMENT SOFTWARE ONSIGN SOFTWARE PROPIO SCALA MAGIC INFO BROADSIGN ME.WIPLAY ACO DS CMS

21,4%

7,2% 7,2% 16,2%

9,2% 13,3%

14,3%

Source: Survey conducted in EncuestaDatos among entrepreneurs in the Top 50 of Digital Signage between February 15 and March 18, 2022.

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COMPARATIVE TOP DIGITAL SIGNAGE BRANDS IN LATIN AMERICA 2019- 2021 SCREENS AND DISPLAYS 2019 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%

Samsung

LG

BenQ

Panasonic

Unilumin

Philips

Absen

Planar

2021

*Barco, Leyard, Boe, Promo Espacio, Ligthlink, Multilaser

SUPPORTS 2019

35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Peerless AV

Chief

Vogel’s

Own brand

BTech AV Mounts

2021

* Samsung, Nenhuma

REPRODUCERS 2019 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%

NUC Intel Software propio

Memory Sticks

Samsung SBB

Ibase

IAdea

BrightSign

Scala

Giada

2021

Otros *

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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COMPARATIVE TOP DIGITAL SIGNAGE BRANDS IN LATIN AMERICA 2019- 2021 OPERATING SYSTEM 2019

40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0%

Windows

Android

Tizen

Linux

Brightsign

S.O. propio

iOS

2021

WebOS

MANAGEMENT SOFTWARE 2019

30,0%

2021

25,0% 20,0% 15,0% 10,0% 5,0% S D

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* ACO Digital Signage, Bitrix, Cayin, CoolSign, Doohmain, Exactus, Gsuite, Kramer Media Manager, MediaSignage, Monday, Nonius, Nova, Onelan, Ryarc, Wegener

Source: Survey conducted in EncuestaDatos among entrepreneurs in the Top 50 of Digital Signage between February 15 and March 18, 2022.

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DIGITAL SIGNAGE SOLUTIONS MOST USED IN LATIN AMERICA 2021

2,4% 5,6%

APPLICATIONS VIDEO WALL STANDARD TOTEM INTERACTIVE PANORAMA TRANSPARENT MIRROR

13,0%

30,0%

13,0%

20,0%

16,0%

6,8%

TYPES OF SCREENS LED HIGH BRIGHTNESS LCD MULTITOUCH TOUCH OLED AMOLED

8,5%

23,7%

13,6% 17,0% 15,3% 15,3%

23,53% 38,2%

RESOLUTIONS FULL HD 4K HD

38,2%

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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DIGITAL SIGNAGE SOLUTIONS MOST USED IN LATIN AMERICA 2021

3,6% 7,1%

DISPLAY SIZES MORE THAN 80” 65 TO 80” 30 TO 40” LESS THAN 30” 40 TO 50” 50 TO 65”

28,6% 17,9%

17,9%

25,0%

LOCATION OF SCREENS INTERIORS FOREIGN

42,0%

58,0%

2,0%

CONTENT MANAGEMENT OWN SERVER ON THE CLOUD EXTERNAL SERVER

46,9%

51,0%

Source: Survey conducted in EncuestaDatos among entrepreneurs in the Top 50 of Digital Signage between February 15 and March 18, 2022.

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ORIGIN OF IMPORTS DIGITAL SIGNAGE EQUIPMENT 2021

MEXICO & CENTRAL AMERICA CHINA MEXICO USA KOREA PANAMA TAIWAN VIETNAM

10,0%

0,8% 1,2% 4,2%

40,7% 20,2%

23,1%

ANDEAN REGION CHINA MEXICO USA SPAIN KOREA PANAMA

5,0% 5,3% 8,3%

13,0%

52,0%

16,4%

4,75% 11,0%

BRAZIL AND SOUTHERN CONE CHINA MÉXICO ESTADOS UNIDOS VIETNAM

15,0%

69,25%

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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CHAPTER 2 22

OUTLOOK OF LATIN AMERICAN COMPANIES

Mexico and Central America

Sia Interactive

Promo Espacio

Fabio Roytman CEO Mexico

Jaime Vázquez Mellado CEO • Describe the services your company provides:

• Describe the services your company provides: Digital Signage, Software Development, Integrations, Monitoring and Control Systems.

Indoor and Outdoor Media specialized in Digital Signage, Augmented Reality, B2B Solutions, Digital In Store, Merchandising and Content generation, 2D, Motion Graphics, Virtual, 3D.

• In which cities/countries are the screens installed you manage?

In the main cities of Argentina, Uruguay, Brazil, Paraguay, Chile, Peru, Colombia, Panama and Mexico.

• In which cities/countries are the screens installed you manage?

Mexico, Guatemala, Honduras, Panama, Jamaica, Curaçao, Dominican Republic and soon in the USA.

• Share with us an approximate sales figure (in dollars) for the managed screens as of November 1, 2021. $ 2.500.000.

• Share with us an approximate sales figure (in dollars) for the managed screens as of November 1, 2021. $ 20.000.000.

• Share with us details of the most outstanding screen´s project you currently manage.

Digital boards menu in McDonald’s Latam, more than 5,000 screens with remote content production and management, point of sale integration and synchronization of screens running on SoC Tizen, without installing a single media player.

• Share with us details of the most outstanding screen´s project you currently manage.

We developed a multi-platform network (Screen, Tablet, Smartphones for a client with an Ad-hoc service) All equipment communicates and generates information and content in real time through a Data Lake.

• What type of content is mainly broadcasted on the networks you manage?

Informative, advertising, interactive applications, centralized shift systems, dashboard publishing.

• What type of content is mainly broadcasted on the networks you manage?

2D, Motion Graphics, Video, Augmented Reality and 3D.

• Do you install the screens directly or is it outsourced? If it is the second option, please mention the integrator you work with.

Directly.

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THE PERSPECTIVES OF BUSINESSMEN

Publichannel Tv, S.A Patricio Burban General Manager

• Describe the services your company provides: We are a digital signage integrator for the entire Central American region, we include screen management services, radio, queue control, Wi-Fi, marketing, among others.

• In which cities/countries are the screens installed you manage?

All of Central America and Colombia.

• Share with us details of the most outstanding screens project you currently manage.

Currently, we are managing a regional project with more than 200 equipment and 600 screens distributed throughout Central America, the same stands out, as it contains different services such as screens and radio for each of its locations.

• Do you install the screens directly or is it outsourced? If it is the second option, please mention the integrator you work with.

We integrate and provide all the services.

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Vosmedia

Sergio Galindo General Manager Guatemala • Describe the services your company provides: Building and Room Automation. Audio, Video, Lighting, Networks, BMS, VMS, Domotics, Inmotics, Security Cameras, Pedestrian and Vehicular Access Control, Auto Guidance, LED Display.

• In which cities/countries are the screens installed you manage?

Guatemala.

Andean Region

En medio Comunicación Digital Ricardo Sotelo Duque Marketing Manager Colombia

• Describe the services provided by your company: Implementation, administration and management of digital screens for DS channels for both internal and external communication for advertising and corporate purposes.

• In which cities/countries are the screens installed you manage?

Colombia, Mexico, Peru, Chile, Ecuador, Argentina.

• Please share with us an approximate sales figure (in dollars) for the managed screens as of November 1, 2021. $ 4.000.000.

• Share with us details of the most outstanding screen’s project you currently manage.

The most outstanding project is the installation of giant LED screens in open OUTDOOR spaces for advertising, also the creation and installation of multiform at digital screens in one of the largest retailers in Colombia, HOMECENTER. • What type of content is mainly broadcasted in the networks you manage?

Advertising, corporate content and information, value added content.

Visualmedia Technology

Andrés Mauricio Botero Mejía Manager • Describe the services your company provides: Digital Signage, audiovisual production, project integration, hardware and audiovisual equipment sales, maintenance and technical support.

• In which cities/countries are the screens installed you manage?

In 32 cities in Colombia.

• Share with us an approximate sales figure (in dollars) for the managed screens as of November 1, 2021. $15,000 per month.

• Share with us details of the most outstanding screens project you currently manage.

The main cement company in the country, we have installed screens in 21 cities in Colombia, a digital signage channel aimed at drivers who transport cement, we emphasize road safety, we have been producing unlimited material for 9 years.

• What type of content is mainly broadcasted in the networks you manage?

Corporate and educational content.

• Is the installation of the screens done directly or is it outsourced? If it is the second option, please mention the integrator you work with.

We do everything ourselves.

• Is the installation of the screens done directly or is it outsourced? If it is the second option, please mention the integrator you work with.

Directly.

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THE PERSPECTIVES OF BUSINESSMEN

Innvector

Ciel Ingeniería SAS

• Describe the services your company provides: Innvector is a specialist in design, consulting, development and implementation of cutting-edge technologies.

• Describe the services your company provides: Digital Signage: software, hardware, production and content management.

Xiomara Castro Commercial Director

• In which cities/countries are the screens installed you manage?

Colombian territory.

• Share with us an approximate sales figure (in dollars) for the managed screens as of November 1, 2021. $ 30.000.

• Share with us details of the most outstanding screens project you currently manage.

Health sector client with several locations, we manage two types of communication and content approaches.

• What type of content is mainly broadcasted on the networks you manage?

Internal customer information related to their programs, for retail product presentation as sales promotion.

• Do you install the screens directly or is it outsourced? If it is the second option, please mention the integrator you work with.

All supply, installation, commissioning, maintenance, and content is done directly by Innvector.

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Angie Guio CSO

• Shift systems and non-face-to-face solutions.

Sports scoreboards.

High precision industrial clocks.

• In which cities/countries are the screens installed you manage?

Colombia: Bogota, Medellin, Cali, Pereira, Armenia, Barranquilla, Cartagena, among others.

Neomedia SA

Imvinet

• Describe the services your company provides: HW and SW sales for digital billboards.

• Describe the services your company provides: Digital Signage Integrator (Digital Signage Integrator).

• Share with us an approximate sales figure (in dollars) for managed screens as of November 1, 2021. $ 800.000.

• In which cities/countries are the screens installed you manage?

Mainly throughout Venezuela, but we have installations in other countries such as the United States, Colombia, Panama, Canada, Spain, Curacao, Trinidad and Tobago.

Diego Sarrade General Manager Ecuador

Juan Carlos García CEO Venezuela

• Share with us details of the most outstanding screen’s project you currently manage.

We implemented the project for Banco del Pichincha, where we implemented professional monitors, large format LED screens and projections.

• What type of content is mainly broadcasted on the networks you manage?

Our clients’ own campaigns.

• Is the installation of the screens done directly or is it outsourced? If it is the second option, please mention the integrator you work with.

Directly

• Please share with us an approximate sales figure (in dollars) for the managed screens as of November 1, 2021.

Licensing, Management and Production Services of the managed circuits $28,400 per month.

• Share with us details of the most outstanding screen’s project you currently manage.

Polar Company, with more than 56 locations and more than 45 channels customized to each type of company.

• What type of content is mainly broadcasted on the networks you manage?

Most of the content is produced by ourselves

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THE PERSPECTIVES OF BUSINESSMEN

VTT

Augusto F. Cruz CEO Brazil • Describe the services your company provides: Complete solutions to digitize points of sales and improve customer experience with interactions that influence the purchase decision, improve business results, individualize brand-consumer relationships, measure data/results and personalize offers in real time.

WiPlay

Rodrigo Sá Brazil • Describe the services your company provides: We are a digital communication company with solutions in Corporate TV, digital signage, digital retail, menu board.

• Share with us an approximate sales figure (in dollars) for managed screens as of November 1, 2021. $ 150.000.

• In which cities/countries are the screens installed you manage?

More than 4,000 points of sale in operation throughout Brazil.

• Share with us details of the most outstanding screens project you currently manage.

Centauro, SulAmérica, DSV, Habib ‘s, Norsul, DHL, Banco de América, Bradesco Seguros, Frango Assado.

• Share with us details of the most outstanding screens project you currently manage.

Bob’s is not only a reference in quick service restaurants, but also a successful VTT project. Today, Bob’s has more than 1,100 points of sale in all Brazilian capitals.

In addition, VTT helped the brand to align its operations to new technologies that meet the expectations of customers, who are looking for agility, both to find product information and to quickly place and receive their order.

• What type of content is mainly broadcast on the networks you manage?

Internal marketing content, entertainment content, commemorative dates, content for menu board, internal communication, events, company results, company values and much more.

• What type of content is mainly issued in the networks you manage?

Attraction content; content to increase revenue (upselling and cross-selling); interactive content that engages and retains the consumer.

• Is the installation of the screens done directly or is it outsourced? If the latter, please mention the integrator you work with.

We work with approved equipment nationwide to allow for implementation and maintenance costs.

28

Southern Cone Promatic Media S.A. Jorge Fernández Campos General Manager Chile

• Describe the services your company provides: We are a company with 12 years of experience in the digital signage market, being representatives of major brands in the national market.

We are a multi-functional company where we aim at turnkey solutions and we face projects from their development, implementation that contemplates the equipment and following in time its content management, maintenance and customer service in design generation and technical improvements as the times demand.

Currently, Promatic Media manages content and controls the day-to-day operation of more than 120 LEDs of large formats of public roads and more than 250 stores between retail and private companies, generating content, administration and preventive and emergency maintenance at each point.

• In which cities/countries are the screens installed you manage?

All of Chile.

• Share with us details of the most outstanding screen’s project you currently manage.

The answer is very broad as Promatic Media vertically attacks all segments. In retail, we work both in sales rooms and in internal back office communication. In public roads we work with more than 150 locations of bilboards and intelligent bus stops, combining content and information relevant to public use and integration of external sources.

• What type of content is mainly broadcast on the networks you manage?

Advertising, internal communications and information from public utility databases.

• Is the installation of the screens done directly or is it outsourced? If the latter, please mention the integrator you work with.

Directly, Promatic Media represents a wide range of audio and video brands and we have import, operations and design/programming departments.

• Share with us an approximate sales figure (in dollars) for the managed screens as of November 1, 2021. $ 1.000.000.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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EXPERTS / CONSULTANTS OUTLOOK 2022

30

“TO THRIVE IN THE MARKET AND SURVIVE, DIGITAL SIGNAGE INTEGRATORS NEED TO OFFER SOMETHING MORE THAN TECHNOLOGY. GETTING OUT OF THE TECHNOLOGICAL COMFORT ZONE, ANALYZING THE NEEDS OF THE CUSTOMER AND THEIR BUSINESS AND DEVELOPING CONCEPTS WILL BE FUNDAMENTAL”.

Florian Rotberg

invidis consulting based in Munich Germany

• WHAT IS YOUR PERCEPTION OF THE INDUSTRY AT THE PRESENT TIME FOR LATIN AMERICA? The digital signage and ProAV industry recovered from two difficult pandemic years, much better than expected. Order books are at a record level, but due to problems in the supply chain, most project launches are very delayed. Certain vertical markets, such as hotels and transportation, are still well behind pre-pandemic levels, but overall, the industry is in surprisingly good shape.

The invasion of Ukraine in late February may quic-

kly change the rosy picture. Currently, it is too early to determine the impact, but business confidence is falling.

• HOW DO YOU ANALYZE THE DIGITAL SIGNAGE DISPLAY MANAGEMENT COMPANY SECTOR IN EUROPE AND THE GROWTH IMPACT FOR LATAM? In Europe, the market is consolidating rapidly.

Some European champions are emerging, while smaller integrators are exiting the market. Size, skills and financial strength are important, especially international tenders that require a large and professional organization.

Many Spanish integrators and ISVs are starting to focus more on Latin America with local subsidiaries or with local partners. The Latin American market could enter a bright period after the elections in some of the larger economies. In addition, digitalization is catching up fast: flagship stores like Falabella in Santiago de Chile are an incredible project.

Software vendors (ISVs) are finding it difficult to

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

31

EXPERTS / CONSULTANTS migrate to the public cloud fast enough. Staying competitive in the market requires constant releases of new features and more and more datadriven services. Tasks better developed with SaaS architecture based on AWS, MS Azure or Google Cloud.

• HOW WOULD YOU DESCRIBE THE EVOLUTION OF THE INDUSTRY IN THE LAST 3 YEARS? For many years, the industry was dominated by small to large ProAV integrators. Recently, IT integrators and professional services organizations (PSOs) like Accenture or Deloitte Digital have become more active. Also, large architecture groups like Gensler or NBBJ discover the potential of digital signage.

expertise than before. We are seeing a collapse of mid-sized integrators who will need to grow or become niche.

• WHICH COUNTRIES IN LATIN AMERICA ARE HAVING MORE GROWTH IN THE DIGITAL SIGNAGE INDUSTRY? WHAT GLOBAL TRENDS ARE BEING KEY IN THE INDUSTRY IN TERMS OF CONNECTIVITY? The most relevant markets are Mexico, Chile and, in normal times, Brazil and Argentina. Also Colombia and Panama are more mature than most of the neighboring markets. We observe that the higher the e-commerce penetration, the better digital signage grows.

Overall, a good sign that the market has become relevant for the big market players. The market is becoming more professional, data-driven, but also more competitive.

At first glance, you would expect e-commerce to replace physical commerce. But digital and online signage are data-driven and require a digital mindset, both on the consumer and business side.

• DO YOU THINK THAT DIGITAL SIGNAGE CUSTOMERS AND USERS ARE BECOMING MORE AND MORE INFORMED ABOUT NEW TECHNOLOGIES IN THE MARKET? HOW CAN THIS AFFECT COMPANIES? In general, customers are better informed about the benefits and added value of digital signage.

But the concepts are becoming more data-driven and therefore more complex.

• WHAT MESSAGE OR ADVICE WOULD YOU LIKE TO GIVE TO BUSINESSES FOR THIS 2022?

To strive in the market and survive, digital signage integrators need to offer more than just technology. Getting out of the technology comfort zone, analyzing customer and business needs and developing concepts will be critical. Ideally, digital signage integrators become trusted partners, not just service providers.

The market for easy-to-deploy digital signage packages is growing rapidly: it has become easy to manage digital signage in most CMSs. But more complex concepts need more professional

• WHAT ARE THE MAIN TECHNOLOGICAL TRENDS THAT PREVAIL IN THIS 2022?

LED is still the main trend, but also digital experience and everything with data.

32

“THE GREATEST CHALLENGE FOR THE SECTOR IS TO MAKE DIGITAL SIGNAGE SERVICES INTO SOMETHING ESSENTIAL FOR ORGANISATIONS, THIS WOULD ENCOUNTER A VERY STRONG ORGANIC GROWTH FOR THE BUSINESS”.

Joaquim Lopes Director 4yousee

• WHAT IS YOUR PERCEPTION OF THE INDUSTRY?

It is an industry that seeks to make up for the delay, which is moving at a fast pace that I have rarely seen.

As if much of what was held back during the most difficult times of the Covid-19 pandemic now needs to be accelerated and implemented quickly.

However, despite increased movement, the sector continues to be impacted by rising equipment costs, reflecting reduced production capacity, exchange rate devaluation in the Latin American region and a significant increase in logistics costs for imports.

• HOW DO YOU ANALYZE THE COMPANIES THAT

MANAGE DIGITAL SIGNAGE SCREENS? It is a growing sector. It is evident in recent years the increase in the number of screens in different environ-

ments, either to inform, enhance the shopping experience and product experience, or sell advertising.

In my opinion, the biggest challenge of the sector is to turn digital signage services into something essential for organizations, this would mean a very strong organic growth of the business. Let me explain: a few decades ago the use of CCTV was something new and has long since become essential. No one opens a store today without installing a basic security and monitoring package. So it must also be with digital signage, we need to educate the market and demonstrate the ROI in digital signage, professionalize services and content, so that no new business is started or reformulated without a planned budget for digital signage.

• HOW WOULD YOU DESCRIBE THE EVOLUTION OF

THE INDUSTRY IN THE LAST 3 YEARS? I think in the last three years we can talk more about survival than evolution. I think the digital signage business has proven to be important.

Companies suspended business or postponed contracting solutions during the pandemic, however, projects were not permanently closed and, as things got closer to normal, services were reactivated and new implementations were made.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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EXPERTS / CONSULTANTS We often hear that crises bring opportunities. This time was no different. The corporate communication business in industries, for example, grew a lot, as there was a need to create a lot of specific content on health safety, more specifically on rules on how to return to work during the Covid-19 pandemic without getting contaminated.

• DO YOU THINK THAT DIGITAL SIGNAGE CUSTOMERS AND USERS ARE BECOMING MORE AND MORE INFORMED ABOUT NEW TECHNOLOGIES IN THE MARKET? HOW CAN THIS AFFECT COMPANIES? I agree. They are professionals with a high level of knowledge about market solutions and interact with different suppliers before deciding to buy. It is quite common, in larger procurement processes, for solutions to be effectively tested in pilot projects.

• WHICH COUNTRIES IN LATIN AMERICA ARE HA-

VING MORE GROWTH IN THE DIGITAL SIGNAGE INDUSTRY? WHAT GLOBAL TRENDS ARE BEING KEY IN THE INDUSTRY IN TERMS OF CONNECTIVITY? What I see is a very strong resumption of business in Brazil and Mexico. These are countries with an extremely strong consumer market, which are very strategic for global brands looking to expand. I can cite the rise

34

of end-consumer-facing services, such as fast delivery platforms and streaming services.

Before the pandemic, there were 2 or 3 very large companies in Brazil in each of these segments, for example.

During the pandemic, a lot of big players came in, and they invested a lot in outdoor advertising, for example.

In addition, very strong consumer markets usually demand massive investments at the point of sale, where it is necessary to differentiate and constantly improve the shopping and product tasting experiences.

In terms of connectivity, I often compare it to a very important road. As the road improves and becomes safer, the traveler experience improves.

On the other hand, there is the high-availability Internet that ensures data security and privacy that creates an ideal scenario for new applications and new digital services to be added.

This, then, means that we are doing it right and we will see more, and more of the smartphone and portable experience extend to digital signage screens: interactivity, real-time distributed content, virtual customer service.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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36

CHAPTER 3

DIGITAL SIGNAGE 2022

RANKING BY REGION

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

37

Mexico and Central America

No.

COMPANY

CONTACT

WEBSITE

COUNTRY

NO. SCREENS MANAGED

1

SSL DIGITAL

William Narchi Karam 52 1 55 73 54 13 34 wnarchi@ssl.com.mx

www.ssldigital.mx

MEXICO AND CENTRAL AMERICA

18.000

2

PROMOESPACIO

Jaime Vázquez Mellado Carbajal 5525756487 jvazquezm@promoespacio.com.mx

www. promoespacio.com.mx

MEXICO AND CENTRAL AMERICA

16.000

3

MÁXIMA SERVICIOS PUBLICITARIOS, S.C. (RENTABLE)

Oscar Padilla 5272 0018 contacto@rentable.mx

www.rentable.mx

MEXICO

10.000

4

MULTIMEDIA CORPORATIVA

Luis Cadena 52 55 44 17 22 luisc@multimediacorp.ne

www.multimediacorp.net

MEXICO

7.165

5

SIA INTERACTIVE / DEX MANAGER

Fabio Roytman 5255 4356 7682 fabior@siainteractive.com

www.siainteractive.com

MEXICO

7.000

6

ENMEDIO

Ricardo Sotelo 57 3176682185 ricardo.sotelo@enmedio.com.co

www.enmedio.com.co

MEXICO

5.500

7

PUBLICHANNEL TV SA

Patricio Burban 50688165151 patricio@mediachannel.net

www.mediachannel.net

CENTRAL AMERICA

3000

8

TEDI MEDIA

Leslie Castañeda 502 2333 3933

www.tedimedia.com

GUATEMALA

600

9

ISA CORPORATIVO

Gabriela Inclán (52) 55 5661 4731 ginclan@isa.com.mx

www.isa.com.mx

MEXICO

576

10

ULTRA ACOUSTICS

Gerardo Díaz de León 800 286 9494 ventas@uacoustics.com.mx

www.uacoustics.com.mx

MEXICO

400

Source: Data provided by the companies.

Ranking positions are related to # of screens and the last year of data supplied. (**) Data provided by the companies to Latin Press, INC. dated until 2020.

NA: Data not available.

38

Mexico and Central America

No.

COMPANY

CONTACT

WEBSITE

COUNTRY

NO. SCREENS MANAGED

CENTRAL AMERICA

240

COSTA RICA

200

11

IMC MEDIOS

Karin Villacorta 504 2220-7979 info@imcmedios.com

www.imcmedios.com

12

MASCO

Gilberto Chaves Mesen 506 2223 2201 info@masco.la

www.masco.la

13

PIXEL WINDOW

Roberto Percastegui (52) 442 962 1040 gerencia@pixelwindow.com.mx

www.pixelwindow.com.mx

MEXICO

**6.095

14

PLAXMA COMUNICACIONES, S.A DE C.V

Arturo Chávez (52) 81 8000 5722 info@plaxma.tv

www.plaxma.tv

MEXICO

** 2000

15

CLEAR CHANNEL

David Becerril (52) 55 3488 5989 davidbecerril@clearchannel.com.mx

www.clearchannel.com.mx

MEXICO

** 270

16

ADVANCED TECHNOLOGY RESEARCH (ZUNI)

Hector Alberto Bulnes (33) 30 40 56 00 CONTACTO@ATR.COM.MX

www.atr.com.mx

MEXICO

**200

17

DISPLAY TECH

Manuel Reyes 55 2624 0930 52 55 2624 0930

www.displaytech.com.mx

MEXICO

**80

18

COMUNICACIONES GLOBALES S.R.L

Alejandro Carbajal (504) 2540 0444 acarbajal@comunicacionesglobales.com

www.comunicacionesglobales.com

HONDURAS

**49

19

FACTORÍA DIGITAL SIGNAGE

Jairzinho S 506 6071 5168 hola@factoria.cr

www.factoria.cr

COSTA RICA

ND

20

CODEC

Miguel Rabanales 502 40008330 info@codec-ds.com

www. codec-ds.com

GUATEMALA

ND

Source: Data provided by the companies.

Ranking positions are related to # of screens and the last year of data supplied. (**) Data provided by the companies to Latin Press, INC. dated until 2020.

NA: Data not available.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

39

Andean region No.

COMPANY

CONTACT

SITIO WEB

COUNTRY

NO. SCREENS MANAGED

1

ENMEDIO

Ricardo Sotelo 57 3176682185 ricardo.sotelo@enmedio.com.co

www.enmedio.com.co

COLOMBIA

5.500

2

CIEL INGENIERÍA

Angie Guio 57 1 327 9000 aguio@cielingenieria.com

www.ciel.com.co

COLOMBIA

5.000

3

NEOMEDIA

Diego Sarrade 319 4527830 diego.sarrade@neomedia.ec

www.neomedia.com.co

ECUADOR

1.674

4

IMVINET

Juan Carlos García 58 414 3238017 garciajc@imvinet.com

www.imvinet.com

VENEZUELA

1.440

5

INNVECTOR

Xiomara Castro 57 321 2068925 comercial@innvector.com

www.innvector.com

COLOMBIA

750

6

JCDECAUX

Andrea Faria 51 1 715 0208 andrea.faria@jcdecaux.com

www.jcdecauxlatam.com/pe

PERU

350

7

VISUALMEDIA TECHNOLOGY S.A.S

Andrés Mauricio Botero Mejía 57 310 838 6201 mauricio.botero@visualmediatec.com

COLOMBIA

300

8

IMC MEDIOS

Jaime Garcia Bolivar 57 601-704-4866 info@imcmedios.com

www.imcmedios.com

COLOMBIA

240

9

ENFOKO

Lukasz Jurgas 57 312 576 9458 lukasz.jurgas@enfoko.co

www.enfoko.co

COLOMBIA

** 580

DIFUSIÓN TECNOLÓGICA

Guillermo Gutiérrez 51 1 616 0800 guillermo.gutierrez@difusion.com.pe

www.difusion.com.pe

PERU

** 538

10

Source: Data provided by the companies.

Ranking positions are related to # of screens and the last year of data supplied. (**) Data provided by the companies to Latin Press, INC. dated until 2020.

NA: Data not available.

40

Brazil No.

COMPANY

CONTACT

SITIO WEB

NO. SCREENS MANAGED

1

VTT

Augusto F. Cruz 55 11 96229-4906 augusto@vtt.com.br

www.vtt.com.br

19.520

2

SIA INTERACTIVE / DEX MANAGER

Fabio Roytman 5543567682 fabior@siainteractive.com

www.siainteractive.com

11.000

3

HELLOO

Patricia Pereira Oliveir patricia.lebovits@helloo.com.br

www.hello.com.br

5.113

4

WIPLAY DIGITAL SIGNAGE

Rodrigo Sá 11 3646-2994 rodrigo@wiplay.com.br

www.wiplay.com.br

5.000

5

SINTONIA COMUNICAÇÃO

Antonio José Canjani (55 11 3542 5264 antonio@sintonia.com.br

www.tvsindigitalsignage.com.br

900

6

WTW DIGITAL SIGNAGE

Osvaldo Morales 55 11 3554 2302 omorales@wtwdigital.com.br

wtwdigital.com.br

250

7

ARVORE DIGITAL

Diego Aguiar 55 11 5171-7600 dgo08@ig.com.br

www.arvore-digital.com

250

8

ELETROMIDIA

Paulo Badra 55 11 3065 7522 paulo@eletromidia.com.br

www.eletromidia.com.br

**6100

9

YMIDIA

Carlos Eduardo Rodrigues 55 11 3050 7070 kadu@ymidia.com.br

www.ymidia.com.br

ND

JCDECAUX

Ana Celia Biondi 55 11 2313 5229

www.jcdecaux.com.br

ND

10

Source: Data provided by the companies.

Ranking positions are related to # of screens and the last year of data supplied. (**) Data provided by the companies to Latin Press, INC. dated until 2020.

NA: Data not available.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

41

Southern Cone No.

COMPANY

CONTACT

SITIO WEB

COUNTRY

NO. SCREENS MANAGED

1

CONVERGENCIA DIGITAL

Luis Maria Gonzalez 0221 4108410 info@convergenciadigital.com.ar

www.convergenciadigital.com.ar

ARGENTINA

13.500

2

SIA INTERACTIVE / DEX MANAGER

Fabio Roytman 5411 41158000 fabior@siainteractive.com

www.siainteractive.com

ARGENTINA

9.000

3

PROSIGNAGE

Jorgelina Valmarrosa 54 11 5031 8784 ventas@prosignage.com.ar

www.prosignage.com.ar

ARGENTINA

2.560

4

LIATIN S.A. (IMPULSO CREATIVO)

Bruno Caldarelli 92509599 bruno@reimpulso.uy

www.reimpulso.uy

URUGUAY

1.300

5

PROMATIC MEDIA

Jorge Fernández Campos 56990516864 jfernandez@promaticmedia.cl

www.promaticmedia.cl

CHILE

1.137

6

SARMIENTO LATAM

Leticia Gibezzi 011 7700-0040 fmignani@sarmiento.net

www.sarmiento.net

ARGENTINA

**300

7

SERVIMÁTICA

Juan Beunza 598 99708475 jbeunza@gmail.com

www.servimatica.com.uy

URUGUAY

**250

8

CLEAR CHANNEL

Lydia Vazquez 562 2430 5800 contacto@clearchannelint.com

www.clearchannel.cl

CHILE

**84

9

INNOVA DS

Data not available

www.innovads.com.ar

ARGENTINA

ND

MASSIVA

Karen Soto (56) 2 2956 3200 ksoto@massiva.cl

www.massiva.cl

CHILE

ND

10

Source: Data provided by the companies.

Ranking positions are related to # of screens and the last year of data supplied. (**) Data provided by the companies to Latin Press, INC. dated until 2020.

NA: Data not available.

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LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

43

CHAPTER 4 44

DIGITAL SIGNAGE, GROWTH PROSPECTS AND CURRENT CHALLENGES

According to the report “Digital technologies for a new future” prepared by the Economic Commission for Latin America and the Caribbean (ECLAC) “the productive ecosystem found in digital technologies an opportunity to reach consumers and give continuity to the supply of their products and services”.

The associated impacts were evidenced in an average regional growth of 157% in trade through electronic media, based on two variables: on the one hand, the increase in the presence of companies on the Internet (800% in Colombia and Mexico and about 360% in Brazil and Chile) and, on the other hand, the explosion of new e-commerce sites (450% in Brazil and Mexico).

It is said that the Digital Signage market can still continue to strengthen the growth and profitability for Latin America, which would generate a greater opportunity in the sale of equipment, content generation and analytical services.

It is estimated that in 2022 the global market for Digital Signage will reach $ 32,000 million USD and reach $ 44,700 million in 2026, as stated through the report 2021 Industry Outlook and Trains Analysis (IOTA).

In Latin America, during the 2021, Digital Signage applications rank sixth in revenue in the AV industry in the region, although with a sustained growth of about 10% per year, well above the 4.56% average growth of the AV industry in the world.

According to the study “Digital Signage: a high growth market” prepared by amplitude net, “the indicator of the compound annual growth rate (CAGR), will be 8.0% between 2019 and 2025, there it is proposed that the global market for Digital Signage will grow from 20,000 million USD in 2019 to 31,710 million in 2025”.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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Digital signage market value, 2016-2027 (revenue millions of dollars)

35,000

8%

CAGR

30,000 25,000 20,000 15,000 10,000 5,000 2016 2017 2018 North America

Europe

2019 2020 2021 2022 2023 2024 2025 2026 2027 Asia Pacific

South America

Middle East and Africa

Fuente: Grand View Research - Digital Signage Federation, Digital Screenmedia Association, Digital Signage Magazine, DSEG, NDMC, IMDA, ACMA, USCBC, IAB, PC Magazine, entrevistas primarias y Grand view Research

On the other hand, the report “Latin American Digital Signage Market Outlook” states that, “numerous brands are making digital an important part of their media strategy to expand and interact with consumers across all channels. There is also an evolution from traditional stores to smart stores to maintain and attract a potential customer base”.

The outlook report adds, “In addition, increasing technological advancements in display products and growing investment in digital advertising are driving the Digital Signage market in the region.

Growing demand for 4K and 8K displays with ad-

46

vanced features such as sharp images, high resolution, and enhanced motion rendering is also contributing to the industry”.

Additionally, other significant elements influencing the growth of the market are given by the development of infrastructure and increased commercial use of digital signage. With regard to demand, the increasing purchase of energy-efficient display panels, demand for Ultra-HD devices and the emergence of micro-LED display technology are expected to generate growth opportunities for the digital signage industry.

Competitive landscape Challenges for the digital transformation of Latin America Panel A: comparison of the CAF digital development index between Latin America and the OECD, 2019.

Digitization of homes

Public Policies

Digital Economy

TACC IDED x pilar 2004 - 2019

12%

Digital infrastructure

Human capital

Panel B: Digital transformation: growth, current state and gaps.

Digitization of homes 23,6

Digital infrastructure

10%

26,7

8%

Digital Economy 32,4

6%

Human capital 21,5

4%

11,6

2% Digitization of the State

20,8

0% OCDE LAC

0

Digitization of the State

Public policy and regulation

10

20

30

40

50

IDED x pilar 2004

Notes: Compares the level of digitization by Latin America and the Caribbean and the OECD in 2019 in each of the pillars that make up the digital ecosystem, with its compound annual growth rate (CAGR) for a period of 16 years. In panel B, the size of the bubbles show the gap in the level of digitization compared to the OECD in 2019; the inner number shows the magnitude of the gap.

The Latin American Digital Signage market is moderately fragmented. With a few players dominating market share, companies continue to innovate and establish strategic partnerships to retain market share.

During the last year there was much talk about the pandemic and how it affected business activities and which also did not escape the IT industry, so the players engaged in the placement of digital solutions in order to fill an advertising space, saw new business avenues that increased to the extent that people required information, but were not willing to approach another due to the health situation.

According to the magazine AVI Latin America, “during last year, Digital Signage applications in Latin

America, including Mexico, ranked sixth in revenue in the audiovisual AV industry, with a growth of 10% per year, higher than the 4.56% average increase in the AV industry in the world, according to The Audiovisual and Integrated Experience Association, AVIXA”.

To which added AVI Latin America in the article “Digital Signage suitable for current needs”: “With the hybrid work scheme, the Digital Signage will be increasingly used in corporations as a system to book rooms and flexible work desks “Hot desking” in the factories. In the food industry, to provide real-time information regarding work processes and safety; in hospitals for medical staff to count through small screens with medical history, staff schedules, among more information of material resources (ambulances, clinics, laboratories)”.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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The digital economy and knowledge-based digital industries Advance of digital transformation in Latin America and the Caribbean Panel A: Growth of digitization in Latin America compared to other regions 6%

Arab States

TACC IDED 2004 - 2019

5% 4%

Panel B: Gap in the digital ecosystem development index between Latin America and the Caribbean and other regions 33,19

Asia and Pacific Sub-Saharan Africa

3%

Eastern Europe LAC

22,78

32,71

19,73

World

22,75

20,61

Western Europe

2% 1%

North America

0% 0

10

20

30

40

50

2004

60

IDED al año 2004

OCDE

North America

2019 Western Europe

Note: The value of the digital ecosystem index (IDED) varies from a range of 0 to 100, where 100 represents the most advanced level of digitization. CAGR: Compound Annual Growth Rate.

Source: Prepared with data from the Digital Ecosystem Observatory (CAF, forthcoming) based on various sources.

The study “The digital economy and knowledge-based digital industries” also shows that, at the aggregate level, the region is making moderate progress in digital transformation. Therefore, the gaps with advanced digitization regions are still considerably wide.

As indicated by the Economic Commission for Latin America and the Caribbean, “at the end of 2019, Latin America and the Caribbean was, as a region, at intermediate digital development (42.4 points out of 100) according to the Digital Ecosystem Development Index (IDED). It was, therefore, significantly behind the average of OECD countries and other advanced regions in this area”.

Growth in the region’s digitalization index is in line with the world average and slightly below expectations given the initial level in 2004. It is also noteworthy that other regions of the emerging world seem to have higher digitization rates than those presented by Latin America, raising the need to implement public policies that accelerate the digital transformation of the region.

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Therefore, the analysis “The digital economy and knowledge-based digital industries” states that, “despite the intermediate position achieved by Latin America, it is possible to highlight significant progress in its digitization process. Between 2010 and 2019, the demand for internet in Latin America and the Caribbean, measured by the number of users of this service, increased by 119%, reaching a penetration of 69.3%, based on which, 239.8 million new users accessed services derived from digital connectivity”.

During the same period, the percentage of companies with Internet access increased from 77.4 % to 91.1 %, showing an increase in the demand for this service by the productive sector. Meanwhile, fourth generation (4G) mobile networks reached a population coverage of 87 % by the end of 2019, representing one of the main means of internet access, 55 % of the region’s inhabitants have a mobile broadband connection and smartphone penetration stands at 75 % It is expected that, by 2025, 4G connections will total 468 million, reaching a penetration of 67 %.

It can be described that in countries such as Chile, Uruguay, Colombia and Costa Rica, the formulation of a broadband plan or digital agenda, combined with changes in the structure of public policy decision-making, has led to an acceleration in the rate of development of digitization. Meanwhile, the countries that simultaneously show a better institutional and regulatory quality are those with more investment (64% higher) than those with weak institutional and regulatory frameworks.

Beyond these advances, the digital transformation process in the region, understood as the adoption of technologies and use of digital services by households, production and governments in new areas, such as online access to financial services, e-commerce, digitization of production and industry 4.0, shows moderate progress, distanced from econo-

mies with more developed levels of digitization.

Likewise, the Development Bank of Latin America (CAF) argues that “progress in the development of digital infrastructure is due to marked progress in the deployment of 4G networks and the significant increase in the speed of fixed and mobile broadband.

Finally, human capital reveals divergent trends: improvement in the production of graduates in Science, Technology, Engineering and Mathematics and limitations in the digitization of the workforce”.

In general, the countries of the region are lagging behind in the digitization of their productive processes, although in some variables of basic digital adoption there is a process of convergence with the Organization for Economic Cooperation and Development (OECD).

Basic digital adoption in companies OECD vs LAC 2010

2019

OCDE

ALC

OCDE

ALC

Internet use (% of companies)

88,1

77,4

97,1

91,1

Purchase of supplies online (% of companies)

41,4

24,1

49,4

44

Employees who use the internet (% of company employees)

48,2

29,7

57,4

42,9

Spending on software per capita USD

64,5

7,6

69,2

6,335

Employees who use a computer (% of company employees)

55,4

36,9

64,9

45,7

Electronic banking (% of companies that use it)

84,6

63,7

93,3

74,6

Electronic commerce (% of companies that use it)

21,3

23,3

28,2

20,1

Note: highlighted lines indicate areas of lesser development.

Source: CAF, Ecosystem and Digital Economy Observatory (2020) based on UNCTAD, OECD, Eurostat, local Statistics Institutes.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

49

Investment in digital infrastructure, connectivity Investment, coverage and quality of digital infrastructures in Latin America Panel A: CAF digital infrastructure index by region. OECD

80 60 40

OCDE

Africa

Western Europe

North America

Latin America and the Caribbean

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0

2004

20

World Asia and Pacific

Panel B: Comparison of LAC vs. OECD by area

80 60 40

73,8 55,7

43,1

29,0

20 0

58,4

50,1

15,0

13,7 INDEX

Investment

Coverage

Quality of service

Note: The digital infrastructure index is calculated on three components: investment, coverage and quality of service. The investment includes telecommunications capital expenditures per capita (USD smoothed over 5 years) according to ITU, and investment in big data, data centers, the cloud, the IoT; coverage includes fixed and mobile networks, and quality includes network speed and development of critical infrastructure such as IXPs and secure servers.

Source: Ecosystem and Digital Economy Observatory (2020).

For CAF, “digital infrastructures must have sufficient capacity to reach the entire population at affordable prices, with sufficient capacity and quality. The percentage of households connected to fiber optics in Latin America and the Caribbean in 2019 was estimated at 12.4%, well below the average for Spain (54.3%) or the OECD (34.0%).”

According to the report “Technological Revolution and Social Inclusion” presented by the United Nations and ECLAC, the challenge is to reach 31% of the population that is excluded from information and knowledge services. To which they propose that: “the policies to be developed in this area include the development of

50

universal broadband, with a prospective focus on ultrafast broadband (accesses of more than 30 Mbps)”.

Notes: The digital infrastructure index is calculated on three components: investment, coverage and quality of service.

The primary objective for the commission is to provide greater coverage, capacity and quality by improving backbone, access and international connectivity infrastructures. Funding for the deployment of these infrastructures can be provided in various ways, depending on their specific nature: multilateral financing of public initiative projects;

Indices of investment in advanced digital technologies 147,3

50,1% 13,7% Investment in digital infrastructure (index)

35,1

5,6% 3,6%

Investment in Investment in big telecommunications data (index) (USD per capita at current prices, average 5 years)

5,6% 1,9%

4,4% 1,4%

Cloud investment (index)

Investing in the cloud (Index)

2,8% 1,0% investment in idC (index)

Source: CAF (forthcoming) with data from Huawei - Oxford Economics, UTI (2021) and GSMA Intelligence.

provision of public funds, either through subsidies or financing, or through public-private partnerships (PPPs); and promotion of private investment.

other infrastructure (sanitation, water and energy).

It is therefore critical to promote the development of connectivity at various levels, since countries must improve national, interregional and international connectivity infrastructure, as well as expand access networks to provide greater capillarity to telecommunications services.

ECLAC estimates that in Latin America, Internet of Things connections for individuals will represent 56% of connections by 2025, while IoT connections will triple by that year. Emerging digital services that may be adopted by economic sectors are demanding in terms of speed and latency (for solutions based on real-time connections between devices, IoT or drones, the latency factor is critical).

Economic sources emphasize the need to promote the adaptation of regulations to prioritize ICT infrastructure in urban planning, so that it has the same priority as

The deployment of 5G networks is expected to ensure high quality for solutions based on this type of technology, allowing latencies of 10 milliseconds.

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51

Growth of Internet Coverage and Digital Signage in Latin American Countries

Mexico Studies conducted by in-Store Media on real campaigns indicate that Digital Signage also improves the results of the advertised brands, with a 49% increase in the sale of planned products and a 78% increase in new items. Ninety-two percent of consumers say Digital Signage improves store image, and 85% say it improves their perception of advertised products.

Last year in Mexico a total of 2.42 billion USD was invested in digital advertising, distributed respectively in the following channels: 684.6 million USD in

search engine advertising (SEM), 762.3 million USD in social media advertising, 491.4 million USD in banner advertising, 374.2 million USD in video advertising, 106.9 million USD in classifieds.

Digital advertising agencies in Mexico were able to cope with the COVID-19 crisis in 2020, adapting to the new commercial dynamics demanded by the pandemic. According to the Interactive Advertising Bureau (IAB) Mexico, 41% of Mexican companies said they will increase their advertising investment by 2021.

Value of the digital advertising market Advertising market spend in USD in 2020, broken down by individual subcategories.

Total spending on digital ads in 2020

Spending on search ads in 2020

Spending on social media ads in 2020

$2.42

$684.6

$762.3

Spending on advertising banners in 2020

Search ad spending in 2020

Spending on classified ads in 2020

$491.4

$374.2

$106.9

Million

Million

Million

Million

Source: Branch- Statistics of the digital situation in Mexico in 2020-2021.

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Million

Million

Costa Rica According to Procomer, “with more than USD 1.394 billion in total ICT exports (2020), Costa Rica has a diversified offer that can take advantage of these new applications, in line with our main trading partners such as the United States (main export destination for 4.0 technologies) and other highly demanding value-added markets.”

Against this, it can be argued that communication services are the category that concentrates the largest expenditure by companies, and that in 2020 they fell 1.4 % as a result of the pandemic. However, it was projected to grow by 3.5% in 2021 to reach USD 1.4 trillion, the most significant absolute expan-

sion. According to variation, it is spending on devices (+13.9%) and enterprise software (+3.2%) that closed 2021 with the greatest dynamism.

The data compiled in the Boston Consulting Group and Huawei study shows that the digital economy has been growing consistently faster than the traditional economy for several years. “Infrastructure such as fixed broadband, mobile broadband and cloud computing have become crucial to economic performance. By 2030, 5G is expected to contribute 2-5% of global GDP, AI will contribute around 15%, while IoT will contribute 12-15%. Blockchain is expected to contribute around 4%.”

Loss in profit in relation to GDP due to the delay in the instruction of the spectrum assignment processes (millions of USD) 321

609

868

­-10%

1.134

­-19% ­-27%

3.166

2020

­-36%

2.845

2021 Profit

2.556

2022 Loss in Profit

2.297

2023

2.032

2024 Relative Loss

Source: Bnamericas.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

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El salvador According to the annual report prepared by the IDB and the global ranking of the Broadband Development Index, El Salvador ranks 58th out of 65 countries and moved back two places. At the Central American level, it is only above Nicaragua. “In terms of digital infrastructure, El Salvador ranks 60th out of 65 and for this report it moved back one place”.

The study also reveals that “although the coverage of LTE (4G) technologies has developed in many Latin American countries, the scope is still deficient

when compared to that of OECD (Organization for Economic Cooperation and Development) countries for deployment and may be elements to expand network coverage to currently disconnected areas”.

In 2019, around 98.6% of the investment carried out by supermarkets and convenience stores in the country was attributed to the company in three of its different formats. The Walmart supermarket chain was the brand with the highest percentage of investment, with 39.14 %, followed by the Maxi Dispense format with 37.98 %.

Essential headlines for mobile, internet and social media use

Changes to data sourcesfor internet users and social media users that values are Not comparable with previous report

Total Populations

Mobile Connections

Internet Users

Active Social Media Users

6.50

6.50

6.50

6.50

Urbanisation:

vs. Population:

vs. Population:

vs. Population:

Million

73.8%

Million

145.6%

Source: We are Social- Statistics of the digital situation in El Salvador 2021.

54

Million

50.5%

Million

66.1%

Panama Panama is the third country in the region with the highest digital penetration, according to the analysis “State of digital adoption of the industrial sector in Panama” is “something that directly impacts the way people buy and the way companies market and sell”.

The outlook for the advertising industry faces the

challenge of making the respective changes to remain at the forefront and continue to be the strategic ally in the growth of brands.

It is worth noting that the share of print advertising has declined and reached a historic low of 18%, according to eMarketer.

Annual Digital Growth The year-on-year change in key indicators of digital adoption Changes to data sourcesfor internet users and social media users that values are Not comparable with previous report

Total Populations

Mobile Connections

Internet Users

Active Social Media Users

+1.6%

-2.5%

+7.0%

+16.7%

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

+67 Thousand

-120 Thousand

-183 Thousand

+400 Thousand

Source: We are Social- Statistics of the digital situation in Panama 2021.

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Dominican Republic According to the Microsoft study, 61 % of the Dominican MSMEs considered that the streamlining of the operation and/or productivity is the main opportunity provided by technology, followed by 39 % that recognize an opening to new markets, 29 % that identify the incorporation of new products or services, as well as 26 % that see a possible cost reduction.

According to the Inter-American Development Bank, the “Dominican Republic will improve connectivity to accelerate access, adoption and continuity of digital services for citizens thanks to the support of a US$115 million project approved by the Inter-American Development Bank (IDB). The project will finance investments to expand broadband infrastructure, including

the expansion of backbone, aggregation, and access networks, to improve connectivity for citizens”.

The operation contemplates collaboration with the private sector, ensuring the maximization of resources by supporting the deployment of infrastructure in areas that would not be economically profitable. In this way, both the public and private sectors will contribute to the reduction of the digital divide and the sustainability of this type of infrastructure in the country.

The IDB estimates that this project will contribute to a 1.46% increase in annual GDP and a 1.2% improvement in productivity, as well as the generation of more than 33,000 jobs.

Value of the digital advertising market

Total spend (in U.S. Dollars) on digital advertising in 2020 by AD format

Total digital AD spend in 2020

Spend on digital search ADS in 2020

Spend on social media ADS in 2020

$291.4

$108.3

$119.0

Spend on digital banner ADS in 2020

Spend on digital video ADS in 2020

Spend on digital classified ADS in 2020

$32.49

$17.67

$13.93

Million

Million

Million

Source: Statistics of the digital situation in the Dominican Republic 2021.

56

Million

Million

Million

Guatemala Gremial de Comercio Electrónico de la Cámara de Comercio de Guatemala observed a considerable increase in companies selling through social networks.

“It is estimated that 2020 led almost 9 thousand companies to the digital modality, which represents an increase of around 220 %”.

(FDI) in the telecommunications sector in Guatemala has remained around US$130 million per year in the last five years, which represents about 11% of total FDI in the country in this period. These averages are notably higher than those of the previous five years (US$80 million and 9%, respectively)”.

Guatemala presented one of the highest growth rates in internet users in Central America, accumulating almost a third of the digital population of the entire region. According to available information, there is also a growing availability of delivery platforms that have experienced a significant development of more than 30 %.

Internet use also shows notable deficiencies, largely due to the digital infrastructure and affordability deficiencies described above. In Guatemala, only 20% of households have Internet access and only 34% of the population is an Internet user. For the OECD “these figures are far below those of Central American countries (44% and 51%), LAC (53% and 59%) and the OECD (82% and 84%)”.

According to ECLAC, “foreign direct investment

Annual Digital Growth The year-on-year change in key indicators of digital adoption Changes to data sourcesfor internet users and social media users that values are Not comparable with previous report

Total Populations

Mobile Connections

Internet Users

Active Social Media Users

+1.9%

-1.9%

+1.9%

+17.7%

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

+333 Thousand

-404 Thousand

+217 Thousand

+1.4 Million

Source: We are Social- Statistics of the digital situation in Guatemala 2021.

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Andean Region

Bolivia The Telecommunications and Transport Regulation and Tax Authority (ATT) indicated that of the 4,981,684 internet connections registered in the country, there are 4,801,498 (96.38 %) users with mobile connections (2G, 3G and 4G technology, dongles and terminals).

In addition, it specified that there are 169,126 (3.39 %) users of wired technologies (connections made through cables) and 11,061 (0.22 %) consumers with wireless technologies (connections that are not linked by cables and among their networks are Bluetooth, Wi-Fi,, WIMAX and others).

Mobile connections grew by 4.0 % since last year, meaning more than 471,000 new mobile connections.

Internet users had an increase of 8.7 % meaning more than 447,000 new users and social network users grew by 9.3 % meaning more than 700,000 new consumers of these platforms.

On the other hand, the analysis “Digital situation, Internet and social networks Bolivia 2021” “The total number of active users in social networks is 8.20 million, comparing this amount with the total population representing 69.8%”.

It had an annual growth of 9.3 %, meaning more than 700,000 new users, 810 million users access social networks through their cell phones, which represents 98.8% of them.

Annual Digital Growth The year-on-year change in key indicators of digital adoption Changes to data sourcesfor internet users and social media users that values are Not comparable with previous report

Total Populations

Mobile Connections

Internet Users

Active Social Media Users

+1.4%

+4.0%

+8.7%

+9.3%

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

+160 Thousand

+471 Thousand

+447 Thousand

+700 Thousand

Source: We are Social- Statistics of the digital situation in Bolivia 2021.

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Colombia In recent years, there have been numerous surveys and studies that provide a cross-sectional view of access, use and adoption of technologies in the business environment. One of those analyzed is the first major ICT survey of 2017, conducted by the Government of Colombia, in which more than 3,000 companies were asked about the use and challenges they found in the incorporation of ICT into their production processes.

According to the National Association of Colombian Entrepreneurs (ANDI) the entrepreneurs responded: since 2018 more than half of them (66.5%) executed investments in the appropriation of digital transformation. The incentives chosen as the most important to start a digital transformation process where to create new business models (39.1 %) and customer expectations (25.3 %).

The report of Statistics of the Digital Situation of Colombia in 2019 -2020 showed that the percentage of Internet users increased by 4.0 %, over a year, adding

1.3 million new Internet users. At the same time, the number of users connected to social networks had a significant increase of 11.4%, representing a total of 4.0 million new profiles.

The statistics evidenced: “From a total of 382.6 million USD invested in digital advertising in 2020, it is shown that: 153.8 million USD were invested in advertising within social networks”. With respect to 2019, there was an increase in investment by 4.8%, 153.8 million USD were allocated to campaigns in search engines; investment that increased, compared to last year, by 3.8%, 34.20 million USD were allocated in banner advertising”.

In addition, there was a 0.9 % growth in investment in relation to last year, USD 23.36 million was invested in advertising videos, increased by 3.9 % with respect to 2019 and USD 17.46 million was allocated in classifieds, there was a decrease in its investment by 7.6 % in 2020.

Value of the digital advertising market

Advertising market spend in USD in 2020, broken down by individual subcategories.

Total spending on digital ads in 2020

Search ad spending in 2020

Spending on social media ads in 2020

$382.6

$153.8

$153.8

Spending on advertising banners in 2020

Spending on video in 2020

Spending on classified ads in 2020

$34.20

$23.36

$17.46

Million

Million

Million

Million

Million

Million

Source: Branch- Statistics of the digital situation of Colombia in 2021.

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Ecuador As reported by the newspaper El País; in Ecuador only 16 % of rural households have the internet and free signals in public places have been a solution to the digital divide in the country.

The report “Statistics of the digital situation of Ecuador in 2020 - 2021” states that “access to virtual education is a challenge for the 4.4 million students in Ecuador, who abruptly saw how the coronavirus pandemic closed their schools and study moved home”.

In terms of digital growth, the population increased by 1.5%, adding 257,000 inhabitants, while mobile connections have declined by 10.1%, meaning that by 2021 we will find 1.6 million fewer connections on mobile devices.

However, we see an increase in internet users of 1.5 %, integrating 147,000 users. As well as an increase in social network users of 16.7 %, which adds up to 2 million new profiles.

Digital growth indicators

Changes in the key indicators of digital adoption

Total population

Mobile phone connections

Internet users

Active users on social networks

+1.5%

-10.1%

+1.5%

+16.7%

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

+257 thousand

-1.6 million

+147 million

+2.0 million

Source: Branch- Statistics of the digital situation of Ecuador in 2021.

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Venezuela In Venezuela, 79.6 % of a population of 28.57 million people have some type of device such as cell phones, tablets and laptops connected to the Internet.

The total number of people connected to the internet is 20.57 million. With 14 million active profiles in social networks, which represents 49 % of the total population.

Last year, Venezuela presented a growth of 0.3 %, adding 94 thousand new people. However, the connection of mobile devices decreased 2 %, losing 471 thousand connections and the number of internet users increased 0.3 %, incorporating 68 thousand Venezuelans.

Digital growth indicators

Changes in the key indicators of digital adoption

Total population

Mobile phone connections

Internet users

Active users on social networks

+0.3%

-2.0%

+0.3%

+16.7%

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

Jan 2021 VS Jan 2020

+94 thousand

-471 thousand

+68 thousand

+2 thousand

Source: Branch- Statistics of the digital situation of Venezuela in 2021.

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Peru According to a report prepared by Comscor, Peru is one of the three countries with the highest digital economic growth in the region, where Argentina, Peru and Chile show the most pronounced leap in terms of digital consumption, highlighting Peru with 3% growth above the other two countries.”

In Peru, a total of USD 139.1 million was invested in digital advertising, distributed respectively in the following channels: USD 45 million in search engine

advertising (SEM), USD 62.48 million in social media advertising, USD 13.30 million in banner advertising, USD 10.96 million in video advertising and USD 6.83 million in classifieds.

Despite Covid, digital advertising investment in Peru grew 6 % in 2020. The increase in the use of video, social ads, performance buying, among others, is part of the main findings of the report prepared for the Interactive Advertising Bureau Peru.

Value of the digital advertising market Advertising market spend in USD in 2020, broken down by individual subcategories.

Total spending on digital ads in 2020

Search ad spending in 2020

Spending on social media ads in 2020

$139.1

$45.56

$62.48

Spending on advertising banners in 2020

Spending on video in 2020

Spending on classified ads in 2020

$13.30

$10.96

$6.83

Millions

Millions

Source: Branch- Statistics of the digital situation in Peru in 2021.

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Millions

Millions

Millions

Millions

Southern Cone

Brazil Statista reported that “in 2020, digital advertising spending in Brazil was estimated at approximately USD 5.13 billion. An increase of approximately 47% compared to the figure recorded in 2018.”

Brazil’s population increased by 1.5 million (+ 0.7 %) between January 2020 and January 2021. Mobile connections showed a decrease of 1.3 % (2.7 million people). However, the percentage of Internet users rose by 6.4 %, adding 9.6 million new users. With an increase of 7.1 % Brazil adds 10 million new active users on the different social network platforms.

From January 2020 to January 2021 in Brazil a total of USD 5.17 billion was invested in digital advertising, distributed as follows in the following channels: USD 2.36 billion in search engine advertising (SEM), USD 1.27 billion in social media advertising,

USD 752 million in banner advertising, USD 455.3 million in video advertising and USD 344.5 million in classifieds.

According to the second edition of the Interactive Advertising Bureau (IAB Brasil) surveys, 45% of Brazilian advertisers and agencies intend to increase their investment in digital advertising.

With respect to last year, Venezuela presented a growth of 0.3 %, adding 94 thousand new people.

Likewise, the connection of mobile devices decreased 2 %, losing 471 thousand connections. However, the number of Internet users increased 0.3 %, adding 68 thousand Venezuelans.

The use of social networks grew by 16.7 %, representing 2 million new users.

Value of the digital advertising market Advertising market spend in USD in 2020, broken down by individual subcategories.

Total spending on digital ads in 2020

Search ad spending in 2020

Spending on social media ads in 2020

$5.17

$2.36

$1.27

Spending on advertising banners in 2020

Spending on video in 2020

Spending on classified ads in 2020

$751.1

$455.3

$344.5

Millions

Millions

Millions

Millions

Millions

Millions

Source: Branch- Statistics of the digital situation of Brazil in 2021.

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Argentina Argentina’s population grew by 0.9% compared to last year, adding 412,000 new people. On the other hand, the connection of mobile devices showed a decrease of 2.6 %, losing 1.5 million connections.

At the same time, the percentage of Internet users increased by 3.5 %, adding 1.2 million new users. In the case of social networks, their use grew by 5.9 %, representing 2 million new users.

channels: 197.9 million USD in advertising in social media”. Compared to last year, it increased its investment by 0.4 %, 161.1 million USD in advertising within search engines (SEM); 7.2 % less than 2019-2020, 100.8 million USD in banner advertising; value that decreased by 7.8 % compared to the previous year, 64.99 million USD in video advertising; 2.8 % less according to 20192020 data and 36.44 million USD in classifieds; channel that lowered its investment by 14.7 %.

The report “Statistics of the digital situation of Colombia in 2020-2021” evidences that “in 2020, a total of 561.2 million USD was invested in digital advertising in Argentina, distributed respectively in the following

Although the investment presented a decrease of 4.8%, Argentina continues to be one of the countries in Latin America where brands allocate more resources to digital marketing.

Value of the digital advertising market Advertising market spend in USD in 2020, broken down by individual subcategories.

Total spending on digital ads in 2020

Search ad spending in 2020

Spending on social media ads in 2020

$561.2

$161.1

$197.9

Spending on advertising banners in 2020

Spending on video in 2020

Spending on classified ads in 2020

$100.8

$64.99

$36.44

Million

Million

Million

Source: Branch- Statistics of the digital situation of Argentina in 2021.

64

Million

Million

Million

Chile With respect to last year, Chile presented a growth of 0.7 %, adding 130 thousand new people.

Likewise, the connection of mobile devices decreased 4.3 %, losing 1.1 million connections. However, the number of internet users increased 0.7 %, incorporating 1.2 million Chileans. The use of social networks grew by 6.7 %, representing 1 million new users.

According to the Latam Insights 2021 study by PageGroup, Chile was positioned as the country with the second highest digital growth in Latin America with 71 %.

A total of USD 351.9 million was invested in digital advertising in Chile, distributed respectively in the following channels: USD 114 million in search engine advertising (SEM), USD 134 million in social media advertising, USD 60.52 million in banner advertising, USD 25.17 million in video advertising and USD 18.19 million in classified ads.

Digital advertising investment in Chile continues on a strong growth trajectory, which, adapting to changing consumer habits during the pandemic, achieved an increase of 4.1% over the last report.

Value of the digital advertising market Advertising market spend in USD in 2020, broken down by individual subcategories.

Total spending on digital ads in 2020

Search ad spending in 2020

Spending on social media ads in 2020

$351.9

$114.0

$134.0

Spending on advertising banners in 2020

Spending on video in 2020

Spending on classified ads in 2020

$60.52

$25.17

$18.19

Million

Million

Million

Million

Million

Million

Source: Branch- Statistics of the digital situation of Chile in 2021.

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CHAPTER 5 66

RISING FREIGHT AND CARGO PRICES - WHAT’S THE REASON?

FREIGHT AND CARGO MOVED ON DIFFERENT ROUTES FROM LATIN AMERICA (PERCENTAGE) 10.0% 5.0%

8.0% 2.3% -0.2%

0.0% -5.0%

2.2%

1.5%

-2.5% -2.3% -6.0%

-10.0%

-20.0%

Variation exports

-11.8%

-6.0%

-9.9%

-9.80% -16.2%

Europe

1.5% 1.0%

0.2%

-3.5%

-15.0%

7.0%

Asia

North America

Freight Variation exports

Variation imports

-18.9% Middle east + indian

Within Latin America

Freight Variation imports

Comex

Source: Economic Commission for Latin America and the Caribbean (ECLAC) based on information from Drewry.

The increase in product prices, the scarcity of raw materials and the high costs of container shipments are other concerns for industry businessmen in terms of distribution and logistics. In addition, it is possible that the supply of some integrated systems, equipment, among others, may decrease. In relation to this, if there is an increase in demand in this scenario, the price increase would be much higher.

Alessandro Nicita, economist at the UN trade agency (UNCTAD), explains that it is the strong recovery of exports in the world that is generating a real shock: “If trade were depressed, there would be no crisis”.

According to Javier Diaz, president of Analdex, “this situation has generated a shortage of containers, defaults in itineraries and an accelerated increase in transportation costs. Thus, the average freight rates of 20-foot units from China to Latin America, for example, are now almost five times higher than the average of the last 12 years”.

Before the pandemic, shipping a container from Asia to Latin America and vice versa cost an average of $2,000 USD and sometimes as much as $1,500 USD,

and today it is hardly possible to get sea freight on that route for less than $8,000 USD. The Asia-Europe corridor, on the other hand, reaches rates in excess of $10,000 USD and up to $14,000 USD for a single voyage.

This is in addition to the increase in freight rates from Asia to the Americas. According to data available from the Freight Baltic Index (FBX), freight rates have been increasing over the last year. Such is the case from the East Coast of North America to China/ East Asia (10% increase) while from the East Coast of North America to Northern Europe there is a decrease of 18%. Thus, the price volatility for freight rates is 2.3%. The prices for these areas remain at $10,519 USD, which is equivalent to an increase of 2 %.

From another point, as shown by the SFCI index, which is the most used indicator to measure ocean freight rates and analyzes the costs of routes with China for 20-foot containers, this has gone from just over 700 points at this time in 2019, to more than 4,500 points at the end of August, i.e., a growth of almost 530%. This figure is higher on some routes.

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Increase (annual) in prices relative to the Global Index container loading From

03-Sep-2020

to

03-Sep-2021

$10.000 $7.500 $5.000 $2.500

01-Nov-20

01-Jan-21

01-Mar-21

01-May-21

01-Jul-21

01-Sep-21

Fuente: Freight Baltic Index (FBX).

Note: The price increases (annual: September 2020 to September 2021) shown in the graph are related to the Global Container Freight Index (USD values).

High freight rates overshadows the economic recovery The United Nations Conference on Trade and Development (UNCTAD) warned that “global consumer prices will increase significantly by 2023 until supply chain disruptions, port constraints and port terminal deficiencies are addressed.

The impact of high freight rates will be greatest in Small Island Developing States (SIDS), which could see import prices rise by 24% and consumer prices by 7.5%. In the Least Developed Countries (LDCs), consumer price levels could increase by 2.2%.

Thus, the current increase in container freight rates, if sustained, could increase world import price levels by 11% and consumer price levels by 1.5% by 2023.

Supply chains will be affected by the rising costs of maritime trade. Low value-added goods produced in smaller economies, in particular, could suffer a serious erosion of their comparative advantages.

“The current increase in freight rates will have a profound impact on trade and undermine socio-economic recovery, especially in developing countries, until shipping operations return to normal,” said UNCTAD Secretary-General Rebeca Grynspan.

“Getting back to normal would mean investing in new solutions, including infrastructure, freight technology and digitization, and trade facilitation measures,” she said.

68

A 10 percent increase in container freight rates, coupled with supply chain disruptions, is expected to lower industrial output in the United States and the euro area by more than 1 percent, while in China output is expected to decline by 0.2 percent.

UNCTAD urges countries to consider a package of measures covering tangible and intangible infrastructure. Improving the quality of port infrastructu-

re would reduce average global shipping costs by 4.1%, while costs would be reduced by 3.7% with trade facilitation measures and by 4.4% with improved liner shipping connectivity.

Forecast

ECLAC estimated that the value of regional exports of goods would grow by 25% during the current year, following a 10% drop in 2020, driven by a 17% growth in prices and 8% in quantities shipped out of the region.

The UN agency stresses that the increase in exports of goods was mainly due to higher commodity prices, especially minerals, hydrocarbons and agroindustrial products, rather than an increase in the volume exported.

It also indicates that regional exports of services continue to fail to recover from the drop they suffered due to the coronavirus pandemic.

“In particular, regional dependence on tourism far exceeds the world average, so the uncertainty about the reopening of this sector negatively conditions the prospects of several economies, especially in the Caribbean,” ECLAC warns. “In sum, the recovery of regional trade in 2021 shows important weaknesses”.

In relation to this last point, the agency calculates that the global average cost of container freight by sea has risen by more than 660% from June 2019 to date.

On the other hand, the value of regional imports of goods would register an increase of 32% with an expansion of 20% in volume and 12 % in prices.

Looking ahead to 2022 forecasts, the agency projects growth in the value of regional exports and imports of 10% and 9%, respectively.

The highest trade activity was recorded with China and at the regional level. The projected annual variation in regional exports to the Asian country is 35%, followed by 33% intra-regional, and a growth in shipments of 23% to the European Union and 19% to the United States.

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CHAPTER 6 70

DIGITAL SIGNAGE TRENDS IN CORPORATIONS AND SCHOOLS

Digital signage has become a technology whose flexibility develops better ways to help companies and institutions to implement effective and creative messages, digital signage systems have been imposed as a trend capable of encouraging interaction, which is a fundamental aspect for the development of the hybrid model of work and educational instruction.

According to the Mexican Association of Corporate Interior Design (AMIC) “Today’s touch screens encourage interactivity: they are no longer just attractive spaces that provide information, but a dynamic communication tool for the user”.

Faced with this, the association added: “Today, anyone can transmit content to a digital signage screen in real time and, as this evolves, allow display content of all kinds: from still images and slides, to video highlights and promotional content it is the high definition and internet connectivity united in a display to transmit content from multiple sources, which exhibits a stimulating landscape for courses, diplomas and distance learning classes”.

Regarding cloud management, the entity emphasized that just as companies have opted to invest in

cloud-based services, digital advertising is the option for solutions in this area, without investing in physical infrastructure. “It is enough software that allows access to a server in the cloud through an internet connection to do the magic, with the extra of requiring little maintenance and attending their updates remotely this task being the responsibility of the service provider,” said the AMIC.

Regarding the need for more personalized content, this will become more important and, thanks to resources such as the use of machine learning algorithms, it will be possible to develop unique and/or multipurpose content strategies.

From retail to financial and healthcare, the association states that company “opted for this in their digital signage system, making it possible, for example, facial recognition, to generate personalized content for the user”.

On the other hand, according to different analyses of the digital signage industry, both companies and schools can connect to enable central content management systems, extract data and make even more

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materials for display. Then originates the possibility of having the devices connected and provide information on brand awareness, promotion of services and products, deepen and monitor learning.

In the case of modern outdoor digital signs, they are designed to display enough brightness, pixel density and contrast to stand out even in bright light, such as the midday sun.

However, frame rates among digital signage are increasing. Several companies have expressed that “future digital signage displays could also include technologies that use electrostatic fields to stimulate nerve endings in the fingers in a way that tricks the brain into thinking they are touching different textures.” In conclusion, this technology could transform the way digital signage displays are interacted with.

Broadband internet speed in MBPS* for Latin America In Latin America, Chile and Panama are the only countries that exceed the world average for broadband Internet speed.

Chile Panama Promedio mundial Belice Mexico Argentina Costa Rica Colombia Peru Dominican Republic Honduras El Salvador Nicaragua Guatemala *(Megabits per second)

Source: Speedtest Intelligence, February 2021, Ookla. llifebet.com

72

Market investment opportunities

2016

2017

2018

Retail

2019

2020

2021

Hospitality Banking

2022

Entertainment Healtcare

Education

2023

2024

2025

Stadiums & Playgrounds

2026

2027 Corporate

Transportation

Fuente: Grand View Research

According to the article “Digital Signage in 2021: Is this a good time to invest?” “Companies were hit hard by the COVID-19 pandemic. One of the industries hardest hit by the new coronavirus crisis was that producing display and display technology. Interactivity, personalized content data analytics and artificial intelligence are just some of the trends dominate digital signage”.

The same analysis evidenced that the display and visualization technology, is linked to other industries and can not function without them; it depends heavily on the closures and their results. On the other hand, digital signage is very flexible and can handle crises well due to its technological nature and future orientation.

of its telecommunications networks. In fact, according to figures from FBA Latam Chapter, in collaboration with IDATE Digiworld, during 2020 there were 81.7 million homes connected through Fiber Optic (FTTH/B), which represents a 48 % growth compared to 2019”.

This expansion, as explained by the FBA Latam study, responds to the growing demand of households for more data and higher bandwidth, this to meet the new digital consumption habits driven by isolation and the Covid-19 pandemic.

Predictions are also positive, according to Meticulous Research it is estimated that “the digital signage market will grow at a CAGR of 4.3% from 2020 to 2027 to reach USD 19.44 billion by 2027. The recovery scenarios depend largely on the ability of governments.

In the case of Colombia, and according to data from CRC (Communications Regulation Commission of the Republic of Colombia), “the country is the third largest telecommunications market in the region, closed September with 8.25 million fixed Internet customers, 560,000 more in a year, but with no major variation with respect to the end of August. Of the total, fiber to the home (FTTH) accounted for 21.3%, compared to 16.7% in September 2020”.

From another point of view, the Colombian Association of Systems Engineers (ACIS) stated: “Latin America is moving rapidly towards the optimization

The Colombian Association also points out that the “evolution from traditional companies, with all their workers gathered in the same location, to distribu-

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

73

ted companies, where employees carry out their activities from different locations, especially from their homes, stimulated telecommunications providers to accelerate investments in fiber optics”.

It is worth noting that with respect to specific technology categories, investments are aimed at: Con-

nectivity (mostly cellular technology), sensors for data capture in machines, fleets and loads, Services and Software. In particular, investments in software are mainly in applications for manufacturing operations, asset management, cargo management, operations, air traffic monitoring, in-store contextualized marketing, and investments in analytics software.

Digital competitiveness in Latin America 2020 Digital Competitiveness Index Score (100 = Most Competitive) Position in the ranking Position in the ranking

41

Chile

61,52

51

Brazil

52,10

54

Mexico

51,51

55

Peru

59

Argentina

61

Colombia

63

Venezuela

50,12 48,78 46,45 23,99

It measures the ability of 63 economies to adopt and explore digital technologies and assesses three pillars: knowledge, technology, and future readiness.

Source: IMD World Digital Competitiveness Ranking

74

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75

CHAPTER 7 76

LATIN AMERICAN ECONOMIES TO RECOVER GRADUALLY BY 2022

América Latina y el Caribe (33 países): proyección de la tasa de crecimiento del PIB, 2022 (En porcentajes) Guyanese

46,0

St. Lucia

15,8

Caribbean

11,0 8,5

Bahamas Barbados Panama

7,5 7,3

Belize The Caribbean (excl. Guyana)

6,2 6,1 5,7 5,7

Trinidad and Tobago Jamaica Dominican Rep Dominica

5,5 4,6 4,6

Central America Honduras Guatemala Antigua and Barbuda

4,5 4,3 4,2 4,0 3,9

Grenade Saint Kitts and Nevis El Salvador

3,8

Paraguay

3,8 3,7

St. Vincent and the Grenadines Costa Rica Colombia

3,7 3,7 3,5 3,3

Cuba Central America and Mexico Bolivia (Plur. State of) Uruguay

3,2 3,1

Nicaragua Venezuela (Bol. Rep. of) Peru

3,0 3,0 3,0 2,9 2,6 2,2

Mexico Ecuador Argentina

2,1

Latin America and the Caribbean Latin America

2,0 1,9

Chile Suriname South America

1,5 1,4

Haiti Brazil

1,4 0,5 0

5

10

15

20

25

Source: Economic Commission for Latin America and the Caribbean (ECLAC) on the basis of official figures.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

77

In 2022, following the contraction of world GDP in 2020 as a result of a generalized fall in economic activity in both developed and emerging economies, the effects of the war between Russia and Ukraine, the rise in prices and the impact on trade chains in Europe, will also be reflected in some Latin American countries.

Likewise, the crisis has triggered a contraction in international trade and, in turn, has led to sharp fluctuations in (high) prices as a result of volatility in the financial markets, which has translated into lower profitability and greater risk aversion.

In addition, the measures taken in the vast majority of countries around the world to contain the pandemic have had a significant impact on tourism and commercial aviation activities and restaurant and hotel services.

However, such measures implemented by some of the governments of Latin American countries to deal with the effects of the pandemic have helped to mitigate the economic impact on the social and business fabric of the region. The case of the fiscal monetary packages, for amounts close to USD 12 trillion in fiscal actions and USD 7.5 trillion in monetary action announcements, have cushioned the fall in economic activity, but this has also led to high levels of liquidity, which has had repercussions in the increase of indebtedness at a global level.

These disparities and asymmetries affect not only the dynamics of short-term growth, but also the capacity to sustain medium-term growth. According to International Monetary Fund (IMF) estimates, “the group of advanced economies is the only one that in 2022 would resume the growth trajectory registered

78

before the pandemic, and even surpass it. The other groups of countries will remain, in the medium term (until 2025), on a much lower growth trajectory than projected before the pandemic”.

It is worth noting that during 2021, commodity prices continued the upward trend that began in May 2020, and are estimated to have grown by 42% over the 2020 average level. In 2022, prices are expected to remain high, although a slight decline (-3.2 %) compared to 2021 would be observed.

For the global economy, 2022 starts in weaker conditions as a result of higher energy prices and supply disruptions, inflation is higher and more widespread than expected, especially in the United States and in many emerging markets and developing economies.

In addition, the ongoing contraction in China’s real estate sector and the unexpectedly slow recovery in private consumption have limited growth prospects.

Volatility in financial markets

International financial markets performed favorably in 2021, despite some brief episodes of increased volatilities linked not only to the evolution of the pandemic, but also to uncertainty about the inflation outlook and the possibility of early withdrawals of monetary stimulus. This has increased the likelihood that central banks in developed economies will reduce their monetary stimulus, which may have adverse effects on emerging markets.

The lower exchange rate corrections recorded in 2021 were also accompanied by lower volatility in the exchange rate, relative to the average absolute value of inter-daily exchange rate variations during the first three quarters of the year.

Volatility index in financial markets (January 2018- October 2021) VIX, V2X and VXEEM indices of financial volatility, January 2018 to October 2021 70 60 50 40 30 20

2018

2019

2020

VXEEM Index VIX index EURO STOXX V2X Index

Oct

Jul

Apr

Jan

Oct

Jul

Apr

Jan

Oct

Jul

Apr

Jan

Oct

Jul

Apr

0

Jan

10

2021

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on Bloomberg.

Note: The VIX index, compiled by the Chicago Board of Options (CBOE), measures the expected volatility for the next 30 days based on the prices of the call and put options of the S&P 500 index. CBOE also produces the VXEEM index, which measures volatility in emerging markets, and Deutsche Börse, together with Goldman Sachsa, produces the V”X index, which measures volatility in the euro zone.

Impact on trade and value chains In line with global GDP growth dynamics, the volume of world trade in goods would also grow less in 2022 (by 4.7 %, compared to a figure of almost 11 % in 2021), according to estimates from the outlook for Latin American and Caribbean countries, the region’s

exports grew by 25 % in value in 2021, with a 17 % increase in export prices and an 8 % increase in the volume exported. Meanwhile, imports would have grown by 32% in value, representing the largest increase since 2010, when they expanded by the same amount.

North America CIS b Asia

South America parts Africa

Europcar Middle East

North America CIS b Asia

South America parts Africa

2022T4

2022T3

2022T2

2022T1

2021T4

2021T3

2021T2

2021T1

2020T4

2020T3

2020T2

2020T1

70

2019T4

70

2019T3

75 2022T4

75 2022T3

80

2022T2

85

80

2022T1

85

2021T4

90

2021T3

90

2021T2

95

2021T1

100

95

2020T4

100

2020T3

105

2020T2

105

2020T1

110

2019T4

115

110

2019T3

115

2019T2

120

2019T1

120

2019T2

Imports

2019T1

Exports

Europcar Middle East

Note: a. Comprises Central and South America and the Caribbean. B. Comprises the Commonwealth of Independent States (CIS), including certain former member states and associate member states.

Fuente: WTO and UNCTAD. LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

79

After the collapse of 2020, it is estimated that import volumes grew by 20%, in line with the expansion of domestic activity in the region, both consumption and investment, and that import prices rose by 12%.

Although the favorable evolution of commodity prices in 2021 translated into an estimated increase in the terms of trade of around 5% in the region, there are differences at the subregional level.

Notably, the terms of trade fell by 5% in the Caribbean (excluding Guyana, Jamaica and Trinidad and Tobago) and by 1% in Central America, partly as a result of the large weight of energy in the import basket of these countries. According to the Economic Commission for Latin America and the Caribbean, “the group of countries whose terms of trade increased the most is precisely that of hydrocarbon exporters (15%). Remittances continue on an upward trajectory and, after having increased by 8% in 2020, they would have increased by almost 30% in 2021”.

According to ECLAC, “they continue to be a very important source of external resources for the countries of the region, particularly for Central America,

Mexico and some Caribbean countries. The services balance deficit worsened in 2021, influenced mainly by a deterioration in the transport and other services account, whose imports increased in line with the rise in goods imports”.

The World Trade Organization (WTO) forecasts world merchandise trade volume growth of 10.8% in 2021, up from 8.0% forecast in March, followed by a 4.7% increase in 2022. Supply-side challenges, such as semiconductor shortages and port delays, affect in certain areas, but are unlikely to have a material impact on global aggregates. The greatest downside risks come from the pandemic itself Against this, Director-General Ngozi Okonjo-Iweala argued, “Trade has been an essential tool in combating the pandemic, and this strong growth underscores the importance of trade in underpinning global economic recovery.”

The high annual growth rate of merchandise trade volume recorded in 2021 primarily reflects the sudden drop in the previous year, which bottomed out in the second quarter of 2020. Starting from a low point,

World merchandise trade volume, 2015Q1- 2022Q4 Index, 2015=100 125 120 115 110 105 100 95

Forecast Trend 2011-2019

Current forecast

Previous forecast

2022Q4

2022Q3

2022Q2

2022Q1

2021Q4

2021Q3

2021Q2

2021Q1

2020Q4

2020Q3

2020Q2

2020Q1

2019Q4

2019Q3

2019Q2

2019Q1

Merchandise trade volume Current

Source: WTO and UNCTAD for trade volume data; WTO for forecasts.

80

2018Q4

2018Q3

2018Q2

2018Q1

2017Q4

2017Q3

2017Q2

2017Q1

2016Q4

2016Q3

2016Q2

2016Q1

2015Q4

2015Q3

2015Q2

2015Q1

90

year-on-year growth in the second quarter of 2021 was 22.0 %, but the figure is forecast to fall to 10.9 % in the third quarter and 6.6 % in the fourth quarter, due in part to the rapid recovery of trade in the last two quarters of 2020. Only 0.8 % quarter-on-quarter growth averaging 0.8 % each quarter in the second half of this year, equivalent to an annualized rate of 3.1 %, is needed to meet the forecast for 2021.

Indeed, debt issuance in the international markets by the region continued to rise and, in the first ten months of 2021, increased by 12.3 % compared to the same period in 2020, although this time with greater prominence of private debt and lower growth in sovereign issuance. Non-bank private sector issuance grew by 77 %, while sovereign issuance increased by 14 %, after experiencing strong dynamism in 2020.

Trade volume growth is expected to be accompanied by market-weighted GDP growth of 5.3% in 2021 and 4.1% in 2022 (instead of the 5.1% and 3.8% previously forecast).

The recovery in financial flows has, however, been accompanied by a deterioration in credit ratings in several countries in the region, with 12 credit rating downgrade actions in 2021, in addition to downward outlook revisions for almost all countries in the region, as well as a slight increase in sovereign risk, which even so still remains well below the figures recorded during much of 2018 and 2019.

Balance of financial flows to the region

The income balance deficit, on the other hand, increased in 2021 mainly due to higher profit remittance by foreign investment companies, in a context of rising commodity prices. As a result of the aforementioned trends, after exhibiting a small surplus in 2020 (0.2 % of GDP), the current account of the balance of payments turned into a deficit again in 2021 and stood at 0.6 % of GDP.

Growth dynamics in 2021 were led by domestic demand. Private consumption was a key driver and contributed around half of second-quarter growth.

On the other hand, although exports grew significantly, the net external sector (exports minus imports)

Cumulative 12-month net portfolio capital flows to emerging markets and financial volatility in emerging markets, March 2011 to September 2021 (In millions of dollars)

2011

2012

2013

2014

2015

2016

2017

2019

2020

Sep

Mar

Sep

Mar

Sep

Sep

2018

Mar

Mar

Sep

0

Mar

-100

Sep

10

Mar

-50

Sep

20

Mar

0

Sep

30

Mar

50

Sep

40

Mar

100

Sep

50

Mar

150

Sep

60

Mar

200

Portfolio capital flows Financial volatility index in emerging markets

2021

Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of information from the International Monetary Fund (IMF), 2021 and Bloomberg LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

81

presents a negative contribution to output growth, due to the sharp increase in imports.”

According to ECLAC, “from a sectoral perspective, the expansion of economic activity was led by the recovery of the sectors of economic activity most affected by the pandemic (construction, commerce, manufacturing, and transport and communications), all of which showed a generalized increase. The rest of the sectors of economic activity also recorded recoveries during the second quarter”.

GDP evolution in Latin America

In this context, the projected growth of the world economy for 2021 was 5.8 % and, for 2022, a slowdown to 4.9 % is expected. In the cases of the United States and China, substantially lower growth rates are expected in 2022 than those observed in 2021.

According to the Economic Commission for Latin America and the Caribbean, “the group of developed economies would have grown by 5.2% in 2021.

The United States is estimated to have grown by 6.0% and the euro zone by 5.2%, while Japan is estimated to have grown by 2.4% and the United Kingdom by around 6.8%. In the group of emerging and developing economies estimated to have grown by 6.4 % this year, China, with a growth of 8.0 %, and India, with 9.5 % stand out”.

From another point, and in a less optimistic scenario, the negative developments since the release of

82

the October 2021 WEO report mean that the world economy is starting the year in weaker conditions than expected.

Supply disruptions continued during the fourth quarter, sowing obstacles for international manufacturing, particularly in the United States and Europe. A resurgence of COVID cases (particularly in Europe) also hinders a broader recovery. In China, disruptions caused by COVID outbreaks, disruptions to industrial production caused by power outages, falling real estate investment and the unanticipated acceleration of public investment retrenchment contributed to a cooling of the economy in the second half of the year.

In sectoral terms, ECLAC states that although the current economic situation has had a negative impact on all sectors, it has done so with varying intensity depending on the sector. The most affected were manufacturing, construction, commerce and transportation, and the least affected were agriculture, essential services, financial services and mining.

The analysis presented by ECLAC at the country level indicates that Chile and Brazil are the most indebted economies in the region (263% and 229% of GDP for the third quarter of 2020, respectively).

This is why liquidity expansion policies have succeeded in lowering the cost of financing for the nonfinancial corporate sector. The interest rate spread for the corporate sector has narrowed substantially since the beginning of the pandemic for high yield and investment grade bonds.

Selected regions and countries GDP growth rate for 2020 and projections for 2021 and 2022 (In percentages)

13 6,8 5,8

4,9

5,2

6,0 4,2

3,9

3

5,0 2,4 3,0

5,2 4,6

-2 3,1 -7

-3,4

6,4

5,1

5,7

-2,1

7,9 5,9 3,8

2,3

-0,8

-2,0

4,1 4,1

-2,8

3,7 3,8

-1,7

-4,7 -6,3

-7,3

2020

2021

Sub-saharan Africa

Middle East and North Africa

Emerging and developing countries in Europe

India

China

Emerging and developing countries in Asia

Euro zone

United Kingdom

Japan

United States

Advanced economies

-9,7 World

-12

-4,5

6,4

9,5

8,0

7,2

Emerging and developing economies

8

2022

Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of Organization for Economic Cooperation and Development (OECD), OECD Economic Outlook, Interim Report, Keeping the Recovery on Track, September 2021; International Monetary Fund (IMF), World Economic Outlook (WEO), October 2021; European Central Bank (ECB), “Eurosystem staff macroeconomic projections”, September 2021 and Capital Economics. a Figures for India are for the fiscal year, beginning in April and ending in March of the following year.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

83

World Economic Outlook Update, January 2022 growth projections

World economy

5,9

2021

4,4

2022

Advanced economies

3,8

2023

5,0

2021

Emerging market and developing economies

6,5 3,9

2022

4,8

4,7

2022

2023

2,6

2023

2021

Source: International Monetary Fund

Future perspectives From another perspective, the growth projections for the economies of Latin America and the Caribbean in 2021 are positive (subject to changes due to the current situation). An average regional growth rate of 3.7% is estimated. In fact, 3.1 points of the projected growth rate for the region in 2021 correspond to statistical carryover, which means that 3.7% would make it possible to recover 44% of the GDP loss recorded in 2020.

of 1.8%. In this scenario, recovery to the 2019 GDP level would be reached in 2024.

In the Economic Survey of Latin America and the Caribbean, 2020, ECLAC projected a scenario in which the region picks up in 2021 and then returns to its average growth trajectory of the last decade

The forecast is based on poor health indicators falling to low levels in most countries by the end of 2022, assuming immunization rates will improve internationally and more effective therapies will emerge.

84

From another angle, the International Monetary Fund expects global growth to moderate from 5.9% in 2021 to 4.4% in 2022; that is, half a percentage point lower in 2022 than forecast in the October edition of the WEO report, largely due to the cut in the projections of the two largest economies.

ESTIMATES 2020-2021 AND PROJECTIONS 2022 - 2023 Estimates

Projections

Difference with Update of the WEO report of October 2021 1/ 2022 2023 -0.5 0.2 -0.6 0.4 -1.2 0.4 -0.4 0.5 -0.8 0.9 -0.4 0.0 -0.4 0.6 -0.6 1.2 0.1 0.4 -0.3 0.4 -0.8 0.2 -0.1 0.0

2021 5.9 5.0 5.6 5.2 2.7 6.7 6.2 4.9 1.6 7.2 4.7 4.7

2022 4.4 3.9 4.0 3.9 3.8 3.5 3.8 5.8 3.3 4.7 4.1 3.6

2023 3.8 2.6 2.6 2.5 2.5 1.8 2.2 3.8 1.8 2.3 2.8 2.9

-2.0

6.5

4.8

4.7

-0.3

-0.9 -7.3 -3.4

7.2 9.0 3.1

5.9 9.0 5.6

5.8 7.1 6.0

-1.8

6.5

3.5

-2.7 -6.9 -3.9 -8.2 -2.8 -4.1 -1.7 -1.8 -6.4

4.5 6.8 4.7 5.3 4.2 2.9 4.0 3.0 4.6

-3.5

Projections

2021 4.2 4.4 5.3 4.8 1.9 5.0 6.2 4.9 0.4 6.3 3.5 3.8

2022 3.9 3.5 3.5 3.2 4.2 1.9 2.5 5.0 3.6 3.8 3.9 3.4

2023 3.4 1.8 2.0 1.8 1.6 1.7 1.7 2.5 1.1 0.5 1.9 2.5

0.1

4.0

4.3

4.8

-0.4 0.5 -0.2

0.1 0.5 0.0

3.7 4.3 3.5

5.4 5.8 5.6

5.7 7.5 5.9

2.9

-0.1

0.0

5.8

2.2

3.0

2.8 2.4 0.3 2.8 4.3 4.8 3.7 2.7 1.9

2.1 2.6 1.6 2.7 3.6 2.8 4.0 2.7 1.4

-0.1 -0.6 -1.2 -1.2 0.2 0.0 -0.1 0.0 -0.3

0.1 0.1 -0.4 0.5 -0.2 0.0 -0.1 0.1 0.0

4.2 3.7 0.6 2.9 ...

5.2 ...

2.4 1.3

2.1 1.8 1.5 3.4 ...

5.3 ...

2.1 2.6

1.8 2.6 1.4 1.9 ...

2.8 ...

2.3 0.9

5.6

4.2

3.4

-0.5

0.3

4.2

3.9

2.8

0.1

3.1

5.3

5.5

0.0

0.0

...

...

...

Volume of world trade (goods and services) 6/

-8.2

9.3

6.0

4.9

-0.7

0.4

...

...

...

Advanced economies advanced economies Emerging market and developing economies Commodity prices (US$ USA.) Petroleum 7/ Non-combustible (average based on world import weights of raw Materials) Consumer prices Advanced Economies

-9.0

8.3

6.2

4.6

-0.7

0.6

...

...

...

-6.7

11.1

5.7

5.4

-0.7

0.0

...

...

...

-32.7

67.3

11.9

-7.8

13.7

-2.8

79.2

-4.7

-6.8

6.7

26.7

3.1

-1.9

4.0

-0.4

17.2

1.5

-1.6

0.7

3.1

3.9

2.1

1.6

0.2

4.8

2.8

2.0

world product Advanced economies USA Euro zone Germany France Italy Spain Japan United Kingdom Canada Other advanced economies 3/ Asian emerging market and developing economies China India 4/ ASEAN-5 5/ Emerging and developing economies of Europe Russia Latin America and the Caribbean Brazil Mexico Middle East and Central Asia Saudi Arabia sub-saharan africa Nigeria South Africa informative items World growth according to market exchange rates Low-income developing countries

2020 -3.1 -4.5 3.4 -6.4 -4.6 -8.0 -8.9 -10.8 -4.5 -9.4 -5.2 -1.9

Estimates

Note: Real effective exchange rates are assumed to remain constant at current levels between December 10, 2021 and January 7, 2022. Economies are listed by size. Aggregate quarterly data is seasonally adjusted. WEO = World Economic Outlook.1/ Difference based on rounded figures in both forecasts in this update and the October 2021 World Economic Outlook. Countries whose forecasts have been revised as of the October 2021 WEO correspond to about 90% of annual global production weighted by purchasing power parity.2/ For global production, quarterly estimates and projections correspond to around 90% of annual world production weighted by purchasing parity.

For emerging market and developing economies, the quarterly estimates and projections correspond to about 80% of the group’s annual output weighted by purchasing power parity.3/ Excludes the Group of Seven (Canada, France, Germany, Italy, Japan, UK, US and US) and euro area countries.4/ For India, data and forecasts are based on fiscal year, with fiscal year 2021/22 as of April 2021.

In the January 2022 WEO Update, India’s growth is projected at 8.7% in 2022 and 6.6% in 2023 on a calendar year intensive basis. The 2021 column of the table includes the impact of the omicron variant. 5/ Philippines, Indonesia, Malaysia, Thailand, Vietnam.6/ Simple average of growth rates of export and import volumes (goods and services).7/ Simple average of U.K. crude oil prices.

Brent, Dubai Fateh and West Texas Intermediate. The average price of oil was USD 69.07 in 2021; the assumed price based on futures markets (as of January 10, 2022) is USD 77.31 in 2022 and USD 71.29 in 2023.8/ The inflation rate for the euro zone is 3.0% in 2022 and 1.7% in 2023, for Japan it is 0.7% in 2022 and 2023, and for the United States it is 5.9% in 2022 and 2.7% in 2023, respectively.9/ Excludes Venezuela.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

85

GDP GROWTH RATE (2020) AND PROJECTIONS (2021-2022) Countries

December 2020

2021 projections %

2022 projections %

Growth Difference (2020-2021)

Growth Difference (2021-2022)

Paraguay

-0.6

4

4

-85

100

Panama

-17.9

2.6

7.8

788.4

66.66

Brazil

-1.2

3.7

6.5

132.4

43.07

Costa Rica

-4.5

2.9

4

-55.17

27.5

Honduras

-9

4.5

5.2

300

13.46

Uruguay

-5.9

2.7

3.1

318.51

12.9

Guatemala

3.6

3.1

3.4

-16.12

8.82

Dominican Republic

-6.7

4.8

4.5

239.583

-6.66

El Salvador

-7

5

4.4

240

-13.63

Bolivia

-6.2

4.4

3.5

-40.9

-25.71

Colombia

6.1

5.1

3

-19.6

-70

Mexico

3.1

5

2.5

38

-100

Chile

3.2

6.2

3

48.38

-106.6

Peru

0.51

8.5

3.9

94

-117.9

Argentina

-9.9

5.8

2.5

270.68

-132

Ecuador

-7.8

8.8

1.3

11.36

-576.9

Source: based on official information from the region’s central banks. Own calculations and graph.

Note: The difference in growth expressed in percentage units is obtained by estimating the current GDP (projection with the previous GDP).

86

Inflation expectations 2021-2022 ECLAC estimated in 2020 that year-on-year (December-December) average inflation in CARD countries stood at 2.3%, 0.4 percentage points below that recorded in 2019 (2.7%). This slowdown was the result of a significant contraction in domestic demand, due to the temporary closure of economic activities.

The August 2020 expectations surveys conducted by the region’s Central Banks indicate that the simple average of growth expectations for 2020 decreased 0.1 percentage points from -5.9 % to -6.0 % and the simple average of inflation expectations increased 0.1 percentage points from 3.1 % to 3.2 % with respect to the July surveys. Changes in both inflation and growth expectations are heterogeneous among the countries analyzed.

In the case of expectations for 2021, the August 2020 surveys indicate that the simple average of growth expectations increased 0.1 percentage points from 3.8 % to 3.9 % and the simple average of inflation decreased 0.1 percentage points from 3.8 % to 3.7 % with respect to the July surveys.

The countries where growth expectations for 2021 increased were Brazil, Mexico, Paraguay and Peru.

In the case of inflation, Brazil, Paraguay and Uruguay recorded a drop in inflation expectations.

High inflation is expected to continue higher than

anticipated in the October edition and supply chain disruptions and high energy prices are expected to persist in 2022. Inflation would remain elevated in the near term, averaging 3.9% in advanced economies and 5.9% in emerging markets in the 2022.

Futures markets indicate that oil prices will rise by about 12% and natural gas prices by about 58% in 2022 (both increases being considerably lower than those seen in 2021), before falling back in 2023 as supply-demand imbalances are further corrected.

Similarly, food prices are projected to advance at a more moderate pace of around 4% in 2022 and reverse in 2023.

In many countries, nominal wage growth remains subdued, even though employment and participation have almost recovered to pre-pandemic levels).

In the United States, however, the situation is different: the dramatic fall in unemployment is accompanied by a vigorous rise in nominal wages. This suggests a degree of saturation of U.S. labor markets not seen elsewhere.

Consequently, in December 2021, the Federal Reserve announced that it would accelerate the gradual tapering of asset purchases and hinted that the federal funds rate would likely rise to 0.75-1.00% by the end of 2022; that is, about 50 basis points higher than previously suggested.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

87

EXPORT GROWTH AND TRADE BALANCE IN MEXICO AND CENTRAL AMERICA 2020 - 2021 % EXPORT GROWTH 2020 - 2021

2,24% -9,04%

-12,05%

-8,55%

Nicaragua

-22,58%

El Salvador

-4,49%

-9,45%

Source: ECLAC

TRADE BALANCE 2020* Mexico 24.422

(Surplus)

Costa Rica 2.768 (Deficit)

In US Dollars. *Estimate by ECLAC * Note: latest available data (2020 - 2021).

88

Guatemala 6.637 (Deficit)

Honduras 2.138 (Deficit)

Nicaragua 1.521 (Deficit)

Panama 5.002 (Deficit)

El Salvador 5.563 (Deficit)

Mexico, Central America and the Caribbean

Mexico The Organization for Economic Co-operation and Development (OECD) lowered its growth forecast for the Mexican economy from 3.3% to 2.3% for 2022.

MEXICO: GDP AND UNEMPLOYMENT, 2018-2020 6

4 2

5

0 -2

4

-4

In its “OECD Economic Survey of Mexico”, the international organization also estimated that the gross domestic product will grow by only 5.3 % in 2021, after a previous estimate of 5.9 %.

-6

3

-8 -10

2

-12 -14

1

-16

On the other hand, the OECD anticipated a 2 % growth in private consumption in Mexico for this year, in addition to a 6.5 % increase in exports and 6 % in imports. At the same time, the organization estimated that the unemployment rate will stand at 4 %, which in comparison would not make much difference with the 4.1 % of 2021.

I S

-18 -20

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

0

T3

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

During January 2022, the National Institute of Statistics and Geography (Inegi) informed that the National Consumer Price Index (NCPI) presented a variation of 0.59 % with respect to the previous month.

In this way, annual general inflation in the first month MEXICO: GDP AND of the year reached 7.07 %, which represents a slight UNEMPLOYMENT, 2018-2020 decrease compared to December 2021, when it reached 7.36 %, this was reported on Wednesday. 6 4

S

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

2 0 The Bank of Mexico (Banxico) warned that by 2022, 5 -2 Mexican economy will continue to face an uncerthe 4 -4 tain environment, so it recommended that the coun-6 try has an environment conducive to investment 3and -8 boost economic growth after the health crisis.

-10

2

-12 -14

1

-16 -18 -20

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0 70,4% CHINA

4,9% USA

GDP, VARIATION RATE OVER 4 QUARTERS.

8,8% MEXICO

3,5% KOREA

INFLATION, VARIATION RATE OVER 12 MONTHS.

7,8% TAIWAN

2,7% VIETNAM

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

1,9% JAPAN

BY JANUARY 2022

Source: Descartes Datamyne - Inegi.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

89

Costa Rica The Costa Rican economy has continued to grow at a faster-than-expected pace. Since the second quarter of 2021, economic activity surpassed the levels observed prior to the pandemic, and the strong rebound continued in the second half of the year. As a result, the Central Bank of Costa Rica (BCCR) revised upwards again the estimated growth for 2021, to 7.6%, from 5.4% in the projection presented last October.

The Central Bank projects a continued expansion, with a Gross Domestic Product (GDP) variation of 3.9% in 2022 and 4.0% in 2023. These rates reflect a gradual normalization of economic growth, but remain above the long-term trend.

The unemployment rate moved visibly downward throughout 2021 to stand at 14.4 % in the moving quarter ending in November, but that rate is still 2.2 percentage points (p.p.) higher than observed before the pandemic.

Like economic activity, GDP the fiscal accounts show COSTA RICA: AND much more favorable results, not only compared to UNEMPLOYMENT, 2018-2020 2020, but also compared to the forecast. As of December 2021, the Central Government accumulated 5 24 a primary deficit (excluding interest payments) equi4 22 3 valent to 0.3 % of GDP (0.9 % projected in October), 2 20 considerably lower than that recorded in the same 1 18 0 16 period of the previous year (3.4 %), while the finan-1 14 cial-2 deficit was 5.0 % of GDP (5.8 % projected in Oc12 -3 tober and 8.0 % recorded a year earlier).

-4 10

COSTA RICA: GDP AND UNEMPLOYMENT, 2018-2020 5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 -8 -9 -10

T1

T2

T3

T4

2018

T1

T2

T3

T4

T1

2019

T2 2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

-5 8 -6 4 as These results helped to contain indebtedness, but -7 4 -8 a consequence of the still high financial deficit, the 2 -9 Central Government debt to GDP increased in 2021 -10 0 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3

by 1.1 p.p. with respect to December 2020, to close 2018 2019 2020 at 68.3 %.

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

90

T3

24 22 20 18 16 14 12 10 8 4 4 2 0

54,0 % CHINA 30,0 % MEXICO

15,0 % USA 1,0 % PANAMA

BY JANUARY, 2022

Source: Descartes Datamyne - National Customs Service.

El Salvador

EL SALVADOR: GDP AND INFLATION, 2018-2020

After a sharp contraction in 2020, the Monetary Fund projected that the economy would grow by approximately 10% of GDP in 2021, and 3.2% in 2022.

This has much to do with the rebound in external demand and El Salvador’s response to the pandemic. The country recorded one of the lowest rates of COVID-19 infections and deaths in the region, and has a relatively high vaccination rate.

Medium-term growth rates in El Salvador will slow to about 2% as stimulus policies in the United States are withdrawn.

IMP SIG 3

4 2

2

0 -2

1

-4 -6 -8

0

-10 -12 -14

-1 -2

-16 -18 -20

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

-3

38

19

On the other hand, the 64.8 % growth of gross fixed capital formation during the second quarter of 2021 was related to the continuity of investment in infrastructure of buildings, roads, improvement of hospitals and schools, among others; and by investment in machinery and equipment through the acquisition of communications equipment, mainly computers related to teleworking and online service provision; transportation equipmentGDP for services; EL SALVADOR: ANDequipment for electricity generation, among others.

INFLATION, 2018-2020

17

GDP, VARIATION RATE OVER 4 QUARTERS.

BY DEC

INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Source

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

Additionally, exports grew 113.5 % in the second 3 4 quarter of 2021, in response to the higher demand 2 coming from Central American trading partners2and 0 -2 the United States; while private consumption, which 1 -4 constitutes the most important expenditure compo-6 0 nent -8 within GDP, grew 39.2 % in the period thanks to -10 the higher income that households are obtaining -1 -12 through family remittances and wages; the latter -14 show wor-16 as of June 2021 a growth of 7.3 % among -2 -18 kers contributing to the Salvadoran Social Security -20 -3 Institute T1 (ISSS).

T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 2018

2019

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

38,2% USA

13,8% CHINA

19,4% FINLAND

7,8% PANAMA

17,1% MEXICO

3,7% COLOMBIA

BY DECEMBER, 2021

Source: ITC - Central Reserve Bank of El Salvador.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

91

Panama

PANAMA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 3

The World Bank forecasts real GDP growth of 9.9% in 2021 and then a convergence to a potential growth rate of about 5%. The budget deficit will remain high in 2021, but will be below the deficit reduction path established in the revision of the Social and Fiscal Responsibility Law (7.5% of GDP by 2021).

5 0

2

-5 1

-10 -15

0

-20 -1

-25

On the other hand, Panama’s statistical institute reported that the performance of the economy in the third quarter of 2021, measured through the Quarterly Gross Domestic Product (GDPT), showed an increase of 25.5 %, with respect to the period of the previous year.

The GDP, valued at 2007 prices, registered an amount of $103.4 billion USD for the compiled quarter, which corresponds to an increase of $210.07 billion USD. They also indicated that the behavior observed in the different economic activities was a reflection of thePANAMA: economic reactivation since the elimination GDP, INFLATION AND of the sanitary restrictions imposed by the health UNEMPLOYMENT, 2018-2020 3 authorities due to the COVID-19 pandemic.

-30

-2

-35 -40

T1

T2

T3

T4

T1

T2

T3

T4

T1

T2

T3

-3

2020

3

GDP, VARIATION RATE OVER 4 QUARTERS.

2

INFLATION, VARIATION RATE OVER 12 MONTHS.

1

2018

2019

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

0

Imports of Digital Signage equipment to Panama 2as -5 of December 2020.

1

-15

0

-20 -1

-25 -30

-2

-35 -40

T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

-3

2020

GDP, VARIATION RATE OVER 4 QUARTERS.

24,0% CHINA

INFLATION, VARIATION RATE OVER 12 MONTHS.

17,2% USA

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

92

35,0% COLON ZONE

BY D

Source

5

-10

IMP SIG

15,5% MEXICO 4,0% OTHERS (COSTA RICA, SPAIN, SWEDEN AND CANADA) 2,5% TAIWAN 1,6% PANAMA

BY DECEMBER 2020

Source: Descartes Datamyne - National Customs Authority

Dominican Republic According to estimates by the Economic Commission for Latin America and the Caribbean (ECLAC), the Dominican economy would register 8.0% growth in 2021. “The recovery would be due in part to the successful vaccination campaign and the expected growth of the U.S. economy, the main source of income from family remittances and tourists.”

Increased economic activity would result in higher revenues, which, together with the gradual elimination of tax exemptions, would reduce the non-financial public sector fiscal deficit to 3.0% of GDP. The current account deficit is expected to narrow to the equivalent of 1.4% of GDP, close to its pre-pandemic level. Inflation would close the year at around 5%, close to the upper end of the target range.

As of April 2021, total exports grew at a year-onyear rate of 22.9%. Imports also recorded a positive variation of 21.2%. Remittances maintained their dynamism, with an increase of 17.9% year-on-year compared to June 2020.

DOMINICAN REP: GDP, INFLATION

AND UNEMPLOYMENT, 2018-2020

10 8 6 4 2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 -20

IMP SIGN

DOMINICAN REP: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 10 8 6 4 2 0 -2 -4 -6 -8 -10 -12 -14 -16 -18 -20

8 7 6 5 4 3 2 1 T1

T2

T3

T4

2018

T1

T2

T3

T4

T1

2019

T2

T3

0

2020

5

GDP, VARIATION RATE OVER 4 QUARTERS.

3

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Source:

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

8 7 6 5 4 3 2 1 T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DE

52,5% CHINA

8,3% MEXICO

32,7% USA

6,5% KOREA

BY DECEMBER 2021

Source: (ITC) - National Statistics Office, Dominican Republic.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

93

Honduras

HONDURAS: GDP AND INFLATION 2018-2020

In the first quarter of 2021, total central government revenues registered a real year-on-year growth of 10.9%, in the face of an increase in tax revenues (13.5% real year-on-year). This was due, in part, to the collection of the December 2020 installment of income tax payments on account, which was postponed to January 2021.

IMP SIGN

5

6

4 2 2

5

-2

4

-4 -6

3

-8 -10

2

-12 -14

1

-16

Expenditure rose by 4.5% (0.5% real) year-on-year, due to higher spending on wages and salaries and an increase in current transfers. As of March 2021, the public sector external debt balance contracted by 0.6% (USD 58.5 million) compared to the December 2020 balance, due to a net amortization of USD 22.0 million and a favorable exchange rate variation.

In March, the Government acquired new debt of USD 220 million with the World Bank’s IDA and USD 44.7 million with the IDB. Exports of services reached USD 722 million, 38.7% below the value accumulated in 2019. In addition to the notable contraction inGDP travelAND revenue (-65.8 %), HONDURAS: there was a drop in the export of communications INFLATION 2018-2020 services (-18.9 %) and business services (-6.2 %).

5

-18 -20

T1

T2

T3

T4

2018

T1

T2

T3

T4

T1

2019

T2

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

6

5 As of April 2021, exports had decreased by 13.1%, compared to the same period in 2020.

This behavior -2 4 -4 is associated with the drop in exports of bananas, -6 3 melons, watermelons and sugar, four crops that, -8 -10 improved prices, negatively affected by trodespite 2 pical -12 storms.

Imports increased at a year-on-year -14 1 rate of -16 27.6% to April 2021. Consumer goods grew -18 by 29.5%, especially non-durable goods.

T1

T2

T3

T4

T1

T2

T3

T4

T1

T2

T3

0

2018 2019 2020 Imports of capital goods totaled USD 553.4 million, up 42.2 % from April 2019, as a result of increased purchases of transport vehicles and machinery for RATEindustry.

OVER 4 QUARTERS. the textileGDP, andVARIATION agricultural

INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

94

0

2020

4 2 2

-20

T3

60% MEXICO 32% CHINA 7,70% USA

BY DECEMBER 2020

Source: Descartes Datamyne - National Customs Authority.

7

BY DE

Source:

Guatemala

GUATEMALA: GDP AND INFLATION, 2018-2020

ECLAC estimates that Guatemala’s GDP will grow by 4.6% in 2021. The central government deficit will close the year at around 3.5% of GDP, as a result of a gradual recovery of revenues. The current account surplus is expected to be around 2.5% of GDP, mainly due to the recovery of imports as a result of the reactivation of consumption and investment.

IM SI

6

6 5

5

4

4

3

3

2

Year-on-year inflation (December to December) would close at around 3.8%, within the central bank’s target range (4%, with a one percentage point tolerance in both directions), due to fewer restrictions on the supply of goods and services. The open unemployment rate is expected to decrease in 2021, to the extent that progress is made in vaccination and the dynamism of economic activity recovers.

For 2021, a fiscal policy with a strong execution of public spending is expected towards the second half of the year, so that, as of the first four months of the year, a surplus is recorded. Total public revenues experienced a real year-on-year GUATEMALA: GDPgrowth ANDof 12.3% as of April 2021.

INFLATION, 2018-2020

2

1 0

1 T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Sou

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

Tax revenues expanded by 13.3 % in real terms, whi6 le non-tax revenues fell by 5.2 %, also in real terms.

6 As5of the first four months of 2021, total expenditu5 res recorded a real annual decline of 3.4%. Capital 4 expenditures, on the other hand, showed an increa4 se 3of 0.4% in real terms.

3

2

2

1 0

1 T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0 30,4% USA 23,2% CHINA

INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

15,0% PANAMA 8,2% SPAIN

23,2% MEXICO

GDP, VARIATION RATE OVER 4 QUARTERS.

B

BY DECEMBER 2021

Source: (ITC) - Central Bank of Guatemala.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

95

EXPORTS AND TRADE BALANCE IN THE ANDEAN REGION AND THE SOUTHERN CONE 2020 - 2021 % EXPORT GROWTH 2020 - 2021

23,10%

Venezuela

TRADE BALANCE 2020 - 2021

-4,60%

Bolivia 64.800 (Deficit)

Colombia

Colombia 12.481 (Deficit)

2,29%

Ecuador

Brazil 3,07%

3,02%

Peru

Ecuador 2.267 (Surplus) Peru 6.314 (Surplus) Venezuela 1. 530 (Deficit)

0,18%

Bolivia

Brazil 43.602 (Surplus) 5,02% Chile

Source: IADB and ECLAC

96

3,22%

Argentina

Argentina 12. 530 (Surplus) Chile 12.695 (Surplus) In US Dollars *Estimation by ECLAC

Andean Region

Bolivia

BOLIVIA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

In the first months of 2021, the economy has shown important signs of recovery due to the improvement of the international environment and the relaxation of the isolation measures adopted at the beginning of the pandemic.

According to ECLAC, “high public indebtedness and modest international reserves could limit efforts to invigorate the economy through expansionary policies alone, especially if the private sector does not play a more active and sustained role.”

In 2021, Bolivia’s average inflation rate was projected to register one of its highest points, at over 3.8%.

Additionally, from 2024 onwards, the inflation rate is also expected to remain stable at 3.5% until 2026.

6

6

5

2 -2

4

-6

3

-10

2 -14

1

-18 -20

T1

T2 T3 2018

T4

T1

T2

T3 2019

T4

T1

T3 T2 2020

0

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BOLIVIA: GDP, INFLATION AND

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

6

6

5

2 -2

4

-6

3

-10

2 -14

1

-18 -20

T1

T2 T3 2018

T4

T1

T2

T3 2019

T4

T1

T3 T2 2020

0 67,2% CHINA

GDP, VARIATION RATE OVER 4 QUARTERS.

9,3% BRAZIL

INFLATION, VARIATION RATE OVER 12 MONTHS.

8,5% SPAIN

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DE

Source:

The 2022 General State Budget (PGE) establishes an economic growth of 5.1%, inflation of 3.4%, public investment of USD 5,015 million and a fiscal deficit of -8%.

Imports will approach USD 8 billion, with USD 7.424 UNEMPLOYMENT, 2018-2020 billion reported for October 2022.

IMP SIGN

8,2% MEXICO 6,8% USA

BY DECEMBER 2021

Source: ITC - Pro-Bolivia

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

97

Colombia

COLOMBIA: GDP, INFLATION AND IMP UNEMPLOYMENT, 2018-2020 SIGN

The Colombian economy grew by 10.6% in 2021, after plummeting 7% in 2020 due to the ravages of the pandemic, according to official data from the National Administrative Department of Statistics (DANE).

Both figures are historic. Last year’s is the largest increase in gross domestic product (GDP) in the country, at least since the statistical authority has been keeping records, in 1975.

In the region, Colombia’s growth is only below the current projections of the Organization for Economic Cooperation and Development (OECD) for Chile (12%), and is above Argentina (8%) or Mexico (5.9%). The OECD also updated its projections for Colombia, and expects it to grow 5.5% in 2022 and 3.1% in 2023.

4

20

2

18

0

16

-2

14

-4

12

-6

10

-8

8

-10 -12

6

-14

4

-16

2

-18

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

Source: ECLAC, based on official data

16

-2

Investment, despite growing 13.1% in 2021, will14not -4 12 be able to recover its pre-pandemic levels. In 2022, -6 10 investment will grow 4.5%.

-8 8 6

-12 By 2022, the moderation of domestic demand,4 the -14 reactivation of services exports and higher oil 2pro-16 duction defi-18 will help moderate the current account 0 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 cit to 4.5% of 2018 GDP. 2019 2020 60,0% MEXICO

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

98

0

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS.

COLOMBIA: GDP, INFLATION AND IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

GDP, VARIATION RATE OVER 4 QUARTERS.

T3

3

INFLATION, VARIATION RATE OVER 12 MONTHS.

In turn, consumption, especially private consumpUNEMPLOYMENT, 2018-2020 tion, has been leading the recovery: it will grow 12.2%4 in 2021 and 4.1% in 2022, with a gradual 20 rebalancing from spending on goods to services. 18 2

-10

T2 2020

GDP, VARIATION RATE OVER 4 QUARTERS.

In terms of unemployment, the year 2021 closed with an unemployment rate of 13.7%, a reduction compared to 15.9% in 2020. The informality rate for 2021 reached 48.4%.

0

T1

33,58% CHINA 6,0% USA

BY JANUARY 2022

Source: Descartes Datamyne - DIAN.

BY JA

Source:

Ecuador

ECUADOR: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

According to the latest report of the International Monetary Fund (IMF), “the latest growth expectations for the region at the end of 2021 rose to 6.3%, compared to July’s estimates (5.8%) mainly due to the reopening and progress in vaccination. Ecuador would have an economic growth of 2.8% by the end of 2021 and 3.5% by 2022”.

Similarly, the inflation projection for 2022 is 2.1%, which evidences a potential recovery of prices. Similarly, the IMF estimates a 0.4 p.p. reduction in unemployment between 2021 (4.6 %) and 2022 (4.2 %). This scenario is explained by the increase in oil prices, the easing of restrictions and the boost in the export of raw materials.

On the other hand, foreign direct investment (FDI) reached USD 364 million between January and June 2021, i.e. 19.9 % (USD 91 million) lower than in the same period of 2020, according to the Central Bank of Ecuador. The sectors that received the highest FDI were: business services (USD 143 million); consECUADOR: GDP, INFLATION AND truction (USD 85 million); and manufacturing (USD UNEMPLOYMENT, 2018-2020 52 million).

5

5

3

4

1

3

-1 -3

2

-5

1

-7 -9

0

-11

-1

-13 -15

T1

T2

T3

T4

2018

T1

T2

T3

T4

2019

T1

T2

T3

-2

2020

53

GDP, VARIATION RATE OVER 4 QUARTERS.

32

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

Despite3 the performance in this first semester,4 the 1 government mentioned its interest in increasing FDI, 3 -1 progress is shown in the willingness to invest in in-3 2 ternational companies, mainly from Peru, Colombia -5 and Mexico. These companies highlight Ecuador’s 1 -7 low inflation, current political stability, economic re-9 0 activation, commitment to fiscal adjustment and le-11 -1 gal security.

-13 -15

T1

T2

T3

2018

T4

T1

T2

T3

T4

2019

T1

T2

-2

T3

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY JA

Source:

5

5

IMP SIGN

53,4% CHINA

7,4% MEXICO

32,9% USA

6,3% KOREA

BY JANUARY 2022

Source: Descartes Datamyne - National Customs Service.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

99

Venezuela ECLAC estimates that the Venezuelan economy will grow by 1% in 2022, as a result of a greater availability of external assets that imply increases in both crude oil prices and exported volumes, due to the normalization of Venezuelan crude oil commercialization processes as a result of the greater growth of the main destinations of said product, and a possible relaxation of the sanctions imposed by the United States.

GDP graph not available due to lack of data.

Private consumption could recover as a result of a greater dynamism in remittances and the end of restrictions on mobility within the country. In this scenario, the Venezuelan economy would put an end to an episode of contraction that has lasted eight years and that, by the end of 2021, would bring Venezuelan GDP to represent just over 24% of what it was in 2013.

Venezuelan exports of goods and services fell by nearly 50 % in 2020, after falling by 33 % in 2019.

This further plunge in exports in 2020 reflects the considerable decline in the average price of the Venezuelan crude oil basket, which fell by 50 % compared to the average value in 2019 (USD 56.6 per barrel).

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

Similarly, the reduction in the volume exported, estimated at 36 %, also contributed to the sharp decline in Venezuelan exports during 2020. Imports of Venezuelan goods and services decreased by more than 40% in 2020, reflecting the sharp contraction in aggregate demand, as well as the lower availability of foreign currency implied by the drop in exports and the sharp decline in remittances sent by Venezuelans working abroad during 2020.

47,0% COLOMBIA 35,0% CHINA

13,0% USA 5,0% PANAMA

BY JANUARY 2022

Source: Descartes Datamyne with information from partner countries

100

Peru

PERU: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

For 2021, the Economic Commission for Latin America and the Caribbean (ECLAC) projected a growth of 10.6%. With the data available for 2021, it can be seen that in the first half of the year, domestic production accelerated and presented a growth of 20.9%, registering positive results in practically all sectors, although it is necessary to take into account the low base of comparison.

10

4 1

8

-2 -5 -8

6

-11 -14

4

-17 -20 -23

2

-26

The reopening of all productive sectors and the recovery of aggregate demand, particularly domestic demand, contributed to this rebound.

In July, the fiscal account showed a primary deficit of 4.5% of GDP in the 12-month accumulated period, a progressive decline from a deficit of 7.3% at the end of the previous year. This was due to the gradual recovery of tax revenues at a higher rate than the increase in spending after the application of tax relief measures, higher taxes from the mining sector and the gradual recovery of activity.

PERU: GDP, INFLATION AND

The central bank also projected that in 2021 the UNEMPLOYMENT, 2018-2020 public deficit will be halved and public debt will remain stable at 34.4% of GDP (compared to 34.8% 10 in 4 2020).1

IMP SIGN

-29 -32

T1

T2

T3

2018

T4

T1

T2

T3

T4

T1

2019

T2

T3

0

76

2020

13

GDP, VARIATION RATE OVER 4 QUARTERS.

9

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Source:

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

8

-2

Revenues rebounded to 19.2% of GDP due to a re-8 6 bound -11 in activity and higher tax and royalty collec-14 tions from the mining sector. Non-financial expendi4 tures-17 declined to 23.9% of GDP as a result of lower -20 current -23 expenditures, which more than offset higher 2 -26 capital expenditures. The fiscal deficit narrowed to -29 4.9%-32of GDP. 0 -5

T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T2

T3

76,7% CHINA

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

13,5% MEXICO 9,8% USA

BY JANUARY 2022

Source: Descartes Datamyne - National Customs Service.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

BY JA

101

Cono Sur

Brazil The first six months of 2021 saw a significant reversal in public accounts, in the face of the suspension of special spending to offset the impacts of COVID-19 and the rapid recovery of federal tax revenues. The consolidated nominal deficit in the first half of 2021 was 3.7% of GDP, when in the same period of 2020 it had been 16.2% of GDP, and the primary deficit fell from 11.3% to 0.13% of GDP.

GDP graph not available due to lack of data.

The evolution of the fiscal accounts and lower interest rates meant that, after the expansion of public gross debt from 74.3 % of GDP at the end of 2019 to 88.8 % of GDP in December 2020, the results of a lower-than-expected fall in GDP and lower deficits in the fiscal accounts in 2021, the ratio of public gross debt to GDP stabilized at 84.0 %.

The current account result of the balance of payments in the first half of 2021 showed the first signs of recovery in international trade in goods. Exports grew by 35.8 % compared to the same half of 2020 and imports increased by 33.5 %. Thus, the trade surplus continued with the upward trend and increased by 51.6 % compared to the same period of 2020, with an accumulated amount in the semester of USD 19.8 billion.

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

In addition, the services account continued to have smaller deficits, mainly due to the continuity of restrictions on tourism by Brazilians in several countries around the world, as well as people coming from some countries to enter Brazil. In the first half of 2021, the deficit in services was USD 7.9 billion, 25% lower than the figure recorded in the same period of 2020.

70% CHINA

5% TAIWAN

6% HONG KONG

5% VIETNAMESE

6% JAPAN

4% KOREA

BY JANUARY 2022

4% TADJIQUISTAO

Source: Descartes Datamyne - General Direction of Customs.

102

Argentina In the first half of 2021, the Argentine economy showed a recovery after the gradual lifting of the restrictions on circulation implemented since the end of the previous year. The Monthly Estimator of Economic Activity (EMAE), published by the National Institute of Statistics and Censuses (INDEC), grew by 9.7% year-on-year in the accumulated of the first six months of the year, placing 3.9% below the value of the same period of 2019, before the irruption of the pandemic.

Inflation in the first seven months of the year accelerated to 45.7 % year-on-year, in the context of the increase in international commodity prices, the unfreezing of a set of regulated prices and the economic recovery.

In the same period, the trade surplus in goods narrowed, as a result of an increase in imports (51 %) that was greater than that of exports (31 %). In any case, the high foreign exchange liquidation of the exportARGENTINA: sector and the crediting special drawing GDP, ofINFLATION rights (SDRs) issued by the International Monetary AND UNEMPLOYMENT, Fund (IMF) resulted in international reserve s(a key 2018-2020 variable6 in the context the external crisis afflicting 55 4 50 the country)since the beginning of 2018 increasing 2 45 to about USD 46.2 billion at the end of August 2021.

0

ARGENTINA: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 6

55

4 2

50 45

0 -2

40 35

-4 -6 -8

30 25

-10 -12 -14

20 15 10 5

-16 -18 -20

T1

T2 T3 2018

T4

T1

T2 T3 2019

T4

T1

T2 2020

T3

0

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

35

-4 -6 -8

In the first half of 2021, the central bank kept un30 changed the annual nominal monetary policy inter25 -10 20 est rate (38 %), the minimum guaranteed rate for -12 15 30-day-14time deposits of individuals up to 1 million 10 pesos -16 (37 %) and the minimum guaranteed rate 5for -18 all other -20 time deposits (34 %). During this period, 0 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 the interest rate for personal loans also remained 2018 2019 2020 stable at 52.7% nominal annual rate.

GDP, VARIATION RATE OVER 4 QUARTERS.

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

70,8% CHINA

6,9% JAPAN

10,0% VIETNAM

3,3% BELGIUM

7,2% BRAZIL

BY D

Source

40

-2

IMP SIG

1,8% USA

BY DECEMBER 2021

Source: Descartes Datamyne - National Customs Service.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

103

Uruguay The markets for Uruguay’s main products have shown favorable signs, and the reactivation measures in the central countries have generated a context of high international liquidity. The Uruguayan economy is expected to grow by 4.1% in 2021, driven by a recovery in the level of activity in the manufacturing industry, gross fixed capital formation, and goods exports.

URUGUAY: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020 4

12

2 0

8

-2 -4 -6

4

-8

The IMF projected economic growth of 3.4% in 2021 and 3.2% in 2022. The reopening of borders and the resumption of tourism could support growth in 2022, although the outlook remains uncertain. Inflation is expected to close 2021 at around 7.2% and to remain on a downward trajectory, reaching 5.8% by the end of 2022.

External demand also had a negative contribution to growth (-2.1 %) due to the sharp drop in exports (-16.2 % YoY) above the drop in imports (-10.8 % YoY). The services sector, led by tourism, was one of the hardest hit by the sanitary emergency and the URUGUAY: GDP, INFLATION continued border closure will continue to severely AND affect thisUNEMPLOYMENT, branch of activity.

2018-2020

-10 -12

T1

T2

T3

T4

2018

T1

T2

T3

T4

T1

2019

T2

T3

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

12

Given the temporary closure of businesses and in4 dustries and the consequent reduction in income, 2 consumption in the country fell 6.9% in 2020, but a 0 recovery is expected for 2021, reaching 1.7%. 8 -2

-4 Investment will maintain positive indicators in 2021, -6 a result of the progress of the third pulp mill 4proas ject in the country (UPM II) and the FFCC works. This -8 would place investment at 11.7% versus 8% in 2020.

-10 -12

T1

T2

T3 2018

T4

T1

T2

T3 2019

T4

T1

T2

T3

0

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

104

0

66,0% CHINA 26,0% MEXICO 8,0% TAIWAN

BY JANUARY 2022

Source: Descartes Datamyne - National Customs Service.

Chile

CHILE: GDP, INFLATION AND UNEMPLOYMENT, 2018-2020

For 2022 and 2023, the growth ranges are corrected downwards, given the higher base of comparison, the gradual decline in the impulse to consumption and a limited dynamism of investment.

7 5 3 1 -1 -3

In the central scenario, GDP will grow between 2 and 3 % in 2022, and between 1.75 and 2.75 % in 2023.

The annual increase in private consumption will moderate significantly over the next two years, largely reflecting the temporary nature of the current income support measures.

In investment, significantly lower rates of expansion are expected for 2022-2023 than in 2021. This is mainly due to the low dynamism of construction and works, the slow incorporation of new projects to the cadastres, the maintenance of uncertainty at high levels, the higher indebtedness of companies and the evolution of local financial conditions.

Underlying inflation will close the year slightly below 4CHILE: % annually.

RisingINFLATION energy prices will continue GDP, AND to dominate the volatile component. Thus, after reUNEMPLOYMENT, 2018-2020 aching higher values in the second half of the year, 7 14 total annual CPI inflation will be 4.4% in December 13 5 12 2021. 3

-5 -7 -9 -11 -13 -15

T1

T2

T3

T4

2018

T1

T2

T3

T4

T1

2019

T2

T3

IMPO SIGN

14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

2020

7

1

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Source: D

IMPORTS OF DIGITAL SIGNAGE EQUIPMENT

11 10 9 -1 and 2023, as the fiscal and monetary impulIn 2022 8 -3 se normalizes, inflation will converge towards 3%, 7 to -5 6 remain at that value by the end of the policy horizon, -7 5 in the-9second quarter of 2023.

4 3 -11 2 -13 1 -15 0 1

T1

T2

T3

2018

T4

T1

T2

T3

2019

T4

T1

T3

T2

2020

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY JAN

71% CHINA

4% VIETNAM

18% MEXICO

3% GERMANY

4% USA

BY JANUARY 2022

Source: Descartes Datamyne - National Customs Service.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

105

Index of reference Sources cited:: Asociación Nacional de Industriales (ANDI), “COLOMBIA: BALANCE 2020 Y PERSPECTIVAS 2021”, 2021.

AVI Latin America, “Digital signage adequate for today’s needs”, January 21, 2022.

Banco de la República de Colombia, “Informe de política monetaria”, February 11, 2022.

Central Reserve Bank of El Salvador, “Salvadoran economy grew 24.5% in the second quarter of 2021”, October 01, 2021.

Development Bank of Latin America, “The digital economy and knowledge-based digital industries”, 2021.

Inter-American Development Bank (IDB), “Broadband policies for Latin America and the Caribbean”.

Inter-American Development Bank (IDB), “Dominican Republic to improve digital connectivity with IDB support of $115 million” , July 13, 2021.

Inter-American Development Bank (IDB), “SUPPLY CHAIN 4.0”.

World Bank, “Panama: overview” , October 6, 2021.

World Bank, “Bolivia: overview”, October 11, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “The Paradox of Recovery in Latin America and the Caribbean. Growth with persistent structural problems: inequality, poverty, low investment and low productivity” ,July 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Preliminary Overview of the Economies of Latin America and the Caribbean”, 2021 (LC/PUB.2022/1-P), Santiago, 2022.

Economic Commission for Latin America and the Caribbean (ECLAC), “Financing for Development in the era of the HIV/AIDS pandemic-19 and beyond: Priorities for Latin America and the Caribbean in the global policy agenda on financing for development”, March 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “La paradoja de la recuperación en América Latina y el Caribe Crecimiento con persistentes problemas estructurales: desigualdad, pobreza, poca inversión y baja productividad”, July 8, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Economic Survey of Latin America and the Caribbean” ,Santiago, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Informe Macroeconómico- Honduras”, 2021.

106

Economic Commission for Latin America and the Caribbean (ECLAC), “Informe Macroeconómico-Perú”, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Informe Macroeconómico-Venezuela”, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Informe Macroeconómico- Brasil”, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Informe Macroeconómico-uruguay”, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Perspectivas del Comercio Internacional de América Latina y el Caribe”, 2021.

Economic Commission for Latin America and the Caribbean (ECLAC), “Digital Technologies for a New Future”, 2021.

El País, “El PIB de Colombia creció 10,6% en 2021, la mayor subida anual desde que hay registros”, February 15, 2022.

Infobae, “OECD reduced to 2.3% its forecast for Mexico’s GDP growth in 2022”, February 21, 2022.

International Monetary Fund (IMF), “WORLD ECONOMIC OUTLOOK UPDATE” January 2022.

International Monetary Fund (IMF), “El Salvador’s recovery constrained by rising risks” , February 16, 2022.

International Monetary Fund (IMF), “Uruguay: Final Staff Statement on the 2021 Article IV Consultation Mission to Uruguay” ,October 6, 2021.

Revista Semana, “FMI redujo perspectiva de crecimiento de la economía mundial para 2022”, January 25, 2022.

World Trade Organization (WTO), “La recuperación del comercio mundial supera las expectativas, aunque con divergencias regionales”, October 4, 2021.

World Trade Organization (WTO), “Trade can help put UN Sustainable Development Goals on track: DirectorGeneral Okonjo-Iweala” ,July 6, 2021.

Portafolio, “Comercio internacional crecerá 10,8 % este año, según la OMC”, October 4, 2021.

Presidency of Costa Rica, “BCCR ESTIMATES ECONOMIC GROWTH FOR 2021 AT 7.6% AND PROJECTS 3.9% FOR 2022 AND 4.0% FOR 2023”.

Procomer, “IT SPENDING IS PROJECTED TO GROW 9% BY THE END OF 2021,” July 16, 2021.

Colombian Ministry of Communication and Information Technologies (MInTIC), “PLAN DE TRANSICIÓN A NUEVAS TECNOLOGÍAS”, 2020.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

107

Databases: International Trade Center (ITC). With information from UN Comtrade (United Nations Organizations Trade Statistics Database) and official sources: • El Salvador: Central Reserve Bank.

• Guatemala: Central Bank of Guatemala.

• Paraguay: General Directorate of Customs.

• Dominican Rep.: UN Comtrade.

Descartes Datamyne. With information from official sources and partner countries: • Argentina: General Directorate of Customs.

• Brazil: Latin American Integration Association (Aladi).

• Chile: National Customs Service.

• Colombia: National Tax and Customs Directorate (Dian).

• Costa Rica: National Customs Service.

• Ecuador: National Customs Service.

• Honduras: General Directorate of Customs Franchise Control.

• Mexico: National Institute of Statistics and Geography of Mexico (Inegi).

• Panama: National Customs Authority.

• Peru: National Superintendence of Customs and Tax Administration (Sunat).

• Uruguay: General Directorate of Customs.

Harmonized Tariff Classification Codes (HS-code) analyzed*: * Para las tablas y gráficos de importaciones por empresas y equipos del Capítulo 1 se tomaron únicamente los códigos de clasificación arancelaria de productos relacionados con equipos audiovisuales para el Digital Signage (pantallas, displays, dispositivos de transmisión, computadoras) para transacciones realizadas hasta diciembre de 2019.

HS-Code 85 8521 8521.90 8528 8528.51 8528.52 8528.59 8528.72

108

Description Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television picture and sound recorders and reproducers, parts and accessories thereof.

Video recording or playback devices.

Video recording or reproducing apparatus; other than magnetic tape.

Monitors and projectors, not incorporating television reception apparatus; Television reception apparatus, whether or not incorporating radio broadcast receivers or sound or video recording or reproducing apparatus.

(Mexico and Panama) Monitors; of a kind used solely or principally in an automatic dataprocessing system of heading 84.71.

Monitors; other than cathode ray tube monitors; capable of direct connection and designed for use with an automatic data processing machine of heading 84.71.

Monitors other than cathode ray tube monitors; whether or not colored, other than those of subheading 8528.52.

Reception apparatus for television, whether or not incorporating radio broadcast receivers or sound or video recording or reproducing apparatus; incorporating a color video screen or display.

8529 8529.90 8543 8543.70

8543.70.95

Transmission apparatus; parts suitable for use solely or principally with the apparatus of headings 8525 to 8528.

Reception and transmission apparatus; for use with apparatus of headings 8525 to 8528, excluding aerials and aerial reflectors.

Electrical machinery and apparatus; having individual functions, not specified or included elsewhere in this chapter.

Electrical machinery and apparatus; having individual functions, not specified or included elsewhere in this chapter, n.e.s. in heading 8543.

Touch-sensitive input devices (referred to as “touch screens”) without display capability, for incorporation into devices having a display, which operate by detecting the presence and location of a touch within the display area (such detection may be obtained by means of resistance, electrostatic capability, acoustic pulse recognition, infrared lights, or other touch-sensitive technology).

* For the tables and graphs of imports by companies and equipment of Chapter 1, only the tariff classification codes of products related to audiovisual equipment for Digital Signage (screens, displays, transmission devices, computers) were taken for transactions carried out until December 2019.

Technical Sheet Survey “TOP BRANDS IN LATIN AMERICA”.

Data collection dates: February 18, 2022 to March 18, 2022.

Data collection technique: Online survey on the Encuestadatos.com platform.

Method: ten multiple-choice questions.

Subjects covered: Selection of one or several of the most used brands of equipment and software, and types of solutions in Digital Signage.

Target group: Latin American Digital Signage companies.

Survey developed by Latin Press, Inc.

LATIN AMERICA DIGITAL SIGNAGE MARKET RESEARCH REPORT • 2022

109

110

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