18 minute read
Growth of digital signage in Latin American countries
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
Million
Spending on advertising banners in 2020
$684.6
Million
Search ad spending in 2020
$762.3
Million
Spending on classified ads in 2020
$491.4
Million
$374.2
Million
Source: Branch- Statistics of the digital situation in Mexico in 2020-2021.
$106.9
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 expansion. 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)
3.166 321
-10%
2.845 609
-19%
2.556 868
-27%
2.297 1.134
-36%
2.032
2020
Source: Bnamericas.
2021
Profit 2022
Loss in Profit 2023 2024
Relative Loss
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
Million
6.50
Million
Urbanisation: 73.8%
vs. Population: 145.6%
Source: We are Social- Statistics of the digital situation in El Salvador 2021.
6.50
Million
vs. Population: 50.5%
6.50
Million
vs. Population: 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.
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%
Jan 2021 VS Jan 2020 +67 Thousand
-2.5%
Jan 2021 VS Jan 2020 -120 Thousand
+7.0%
Jan 2021 VS Jan 2020 -183 Thousand
+16.7%
Jan 2021 VS Jan 2020 +400 Thousand
Source: We are Social- Statistics of the digital situation in Panama 2021.
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
Million
Spend on digital banner ADS in 2020
$108.3
Million
Spend on digital video ADS in 2020
$32.49
Million
$17.67
Million
Source: Statistics of the digital situation in the Dominican Republic 2021.
$119.0
Million
Spend on digital classified ADS in 2020
$13.93
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 %”.
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 %.
According to ECLAC, “foreign direct investment (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)”.
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%)”.
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%
Jan 2021 VS Jan 2020 +333 Thousand
-1.9%
Jan 2021 VS Jan 2020 -404 Thousand
+1.9%
Jan 2021 VS Jan 2020 +217 Thousand
+17.7%
Jan 2021 VS Jan 2020 +1.4 Million
Source: We are Social- Statistics of the digital situation in Guatemala 2021.
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.
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%
Jan 2021 VS Jan 2020 +160 Thousand
+4.0%
Jan 2021 VS Jan 2020 +471 Thousand
Source: We are Social- Statistics of the digital situation in Bolivia 2021.
+8.7%
Jan 2021 VS Jan 2020 +447 Thousand
+9.3%
Jan 2021 VS Jan 2020 +700 Thousand
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.
Search ad spending in 2020
Spending on video in 2020
Total spending on digital ads in 2020 Spending on social media ads in 2020
$382.6
Million
Spending on advertising banners in 2020
$153.8
Million
$153.8
Million
Spending on classified ads in 2020
$34.20
Million
$23.36
Million
Source: Branch- Statistics of the digital situation of Colombia in 2021.
$17.46
Million
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.
Total population
Digital growth indicators
Changes in the key indicators of digital adoption
Mobile phone connections Internet users Active users on social networks
+1.5%
Jan 2021 VS Jan 2020 +257 thousand
-10.1%
Jan 2021 VS Jan 2020 -1.6 million
Source: Branch- Statistics of the digital situation of Ecuador in 2021.
+1.5%
Jan 2021 VS Jan 2020 +147 million
+16.7%
Jan 2021 VS Jan 2020 +2.0 million
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.
Total population
Digital growth indicators
Changes in the key indicators of digital adoption
Mobile phone connections Internet users Active users on social networks
+0.3%
Jan 2021 VS Jan 2020 +94 thousand
-2.0%
Jan 2021 VS Jan 2020 -471 thousand
+0.3%
Jan 2021 VS Jan 2020 +68 thousand
+16.7%
Jan 2021 VS Jan 2020 +2 thousand
Source: Branch- Statistics of the digital situation of Venezuela in 2021.
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.
Total spending on digital ads in 2020
Value of the digital advertising market
Advertising market spend in USD in 2020, broken down by individual subcategories.
Search ad spending in 2020 Spending on social media ads in 2020
$139.1
Millions
Spending on advertising banners in 2020
$45.56
Millions
Spending on video in 2020
$62.48
Millions
Spending on classified ads in 2020
$13.30
Millions
$10.96
Millions
Source: Branch- Statistics of the digital situation in Peru in 2021.
$6.83
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.
Total spending on digital ads in 2020
Value of the digital advertising market
Advertising market spend in USD in 2020, broken down by individual subcategories.
Search ad spending in 2020 Spending on social media ads in 2020
$5.17
Millions
Spending on advertising banners in 2020
$2.36
Millions
Spending on video in 2020
$1.27
Millions
Spending on classified ads in 2020
$751.1
Millions
$455.3
Millions
Source: Branch- Statistics of the digital situation of Brazil in 2021.
$344.5
Millions
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.
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 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 %.
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.
Total spending on digital ads in 2020
Value of the digital advertising market
Advertising market spend in USD in 2020, broken down by individual subcategories.
Search ad spending in 2020 Spending on social media ads in 2020
$561.2
Million
Spending on advertising banners in 2020
$161.1
Million
Spending on video in 2020
$197.9
Million
Spending on classified ads in 2020
$100.8
Million
$64.99
Million
Source: Branch- Statistics of the digital situation of Argentina in 2021.
$36.44
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.
Total spending on digital ads in 2020
Value of the digital advertising market
Advertising market spend in USD in 2020, broken down by individual subcategories.
Search ad spending in 2020 Spending on social media ads in 2020
$351.9
Million
Spending on advertising banners in 2020
$114.0
Million
Spending on video in 2020
$134.0
Million
Spending on classified ads in 2020
