Online Marketing in Latin America

In 2016, digital marketing in Latin America is expected to grow twenty-two percent to $16.4 billion and become a $22.7 billion market by 2020. According to the Global Web Analytics & Spending Report, digital marketing expenditures in the region are projected to grow from $7.1 billion in 2016 to $16.4 billion in 2021.

Despite all the growth and innovation in digital marketing, online marketing in Latin America still has a long way to go. Only eleven percent of businesses in the region reported that they used digital marketing to attract customers, and just seven percent said that they used digital marketing to communicate with customers.

While there’s plenty of room for digital marketing growth in Latin America, the industry faces some significant barriers. Only six percent of businesses in the region plan to expand their digital marketing departments in the next two years. A lack of qualified employees, competition, and an overall shortage of marketing professionals hamper the industry.

Why Are Companies Hesitating to Move to Digital Marketing?

The fact is that not all companies are born equal; some are destined to succeed and thrive, while others have to struggle just to get by. In Latin America, many have tried and failed to implement digital marketing, while others have mastered the technique and used it to great effect.

A few companies have embraced the change and grown with it. For instance, VEIC Group, the fifth-largest beer company in the world, sees great potential in digital marketing and has doubled down on their commitment to the practice. In 2016, they launched a massive digital marketing campaign to promote their new beer, Red Ventures. One of the campaign’s goals is to increase traffic to their websites by ten million visitors by the end of the year. To achieve this, they launched a suite of digital marketing tools, including automated email campaigns, webinar invitations, and landing pages.

Since 2015, the digital marketing agency, BuzzyPro, has worked with the VEIC Group, implementing strategies and executing marketing activities for the brand. BuzzyPro’s Senior Manager, Shaila Khan, shares, “Creating awareness and engaging with prospective buyers on a digital platform are crucial for any brand, large or small. Being present on a variety of channels, whether that’s SEO, social media, or even radio is critical in today’s digital world.”

These businesses that have stuck with the practice and grown with it are the exception, not the rule, when it comes to the adoption of new marketing techniques in Latin America.

The Growth Of Digital Marketing In The Region

Even in the face of these challenges, Latin America has seen an impressive rise in digital marketing. According to the Global Web Analytics & Spending Report, between June 2021 and March 2021, digital marketing expenditures in the region increased by twelve percent year-over-year to $19.5 million.

One of the main drivers of this growth is the increasing demand for digital marketing agencies and in-house marketing departments. In 2020, ninety-eight percent of businesses in Latin America said that they either hired or were considering hiring a digital marketing agency, versus eighty-nine percent who said the same in 2019.

In an interview with BusinessNewsDaily, MarketingCharts President, Eduardo Levy, said, “There’s been an explosion of marketing technology and digital marketing agencies that offer strategic and technological advice to companies seeking to grow their businesses online. As a result, the need for in-house marketing departments has decreased.”

The marketing industry in Latin America is responding with innovative strategies and new businesses to meet the growing demand. In the near future, we can expect to see even more growth from digital marketing in Latin America.