Latin America: Development of a major media market
In recent years, Latin American has gained a lot of prominence in the media industry and experts have noted its potential to become a major media market. Regional economic growth and consumer demand for media have been remarkable; this has caught the attention of Industry professionals who are focusing their efforts upon the market and evaluating the right approach to enter the flourishing market. There are a number of factors that are contributing the region’s growth, a large pool of creative talent and predicted increase in media consumption are two main factors that are leading the transformation. Digital marketing especially has grown leaps and bounds and the size of the market is such that Latin America can no longer be ignored by major digital brands.
The economic growth and resulting development of Latin America (1) established a burgeoning middle class whose interest in media is higher than their peers in any other region worldwide. Digital media growth in Latin America has been tremendous; social-media penetration is higher in the region than anywhere else in the world and 5 nations from the region are amongst the top 10 worldwide in terms of Facebook penetration. Notably, there are 217 million internet users in Latin America and the number will grow to 285 million according to estimates (2). For these reason, marketers and advertisers have developed a keen interest in the Latin American nations.
Increasing mobile-phone penetration and consumer habit of watching videos and TV content on mobile devices is widespread. Yet, a majority of Latin American’s population still do not have access to broadband internet but steps are being taken to expand internet use due to the important role is can play for economic growth.
The optimistic outlook has had a positive impact on the region’s image amongst the corporate world. World famous digital brands are gearing to invest and expand into these nations improving economic prospects of the previously struggling countries. The popularity of media, especially digital media, will have broader economic and political impact on the nations in the American continents. Ultimately, the confirmation of Latin America as a major media market and broadly an economic giant depends on the governments in place. However, the development path being taken is working well in establishing Latin America as a mature consumer market.
1. Latin America’s Economic Growth, New York Times.
2. Latin America’s Social Networking Report, eMarketer.