The Revolution of Marketing in Latin America
Martech Outlook | Monday, May 01, 2023
In Latin America, more and more people are using digital media services and the internet; hence their popularity is growing immensely.
FREMONT, CA: TV has opened the doors to streaming, and radio has opened the doors to podcasts. On various social platforms, opinion leaders have become content creators. In Latin America, this represents a paradigm shift in media consumption. 59.5 percent of Mexican adults are concerned about the reliability of online news. The percentage is higher in Chile (64.6 percent), while Brazil is the country most concerned about fake news (84 percent).
Additionally, marketing experts face new standards of communication and new ways to impact their audiences.
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Latin America's traditional media consumption continues to decline: According to the Media Consumption LatAm Report by Sherlock, only 22 percent of Latin American consumers read the newspaper in 2021, down 10 percent from 2020. Three out of four Latin Americans listened to the news on the radio in 2021, 14 percent fewer than in 2020.
In television, the decline is minimal: in 2021, 2 percent fewer Latin Americans watched TV news than in 2020. Ninety-three percent of Latin American households watched television news in 2021. Nevertheless, GWI data indicates in 2021 that television is second to social networks as the medium Latin Americans spend the most time consuming for both news and other programming.
Mobile video's irreversible rise: Latin America is on track to reach a digital peak with an average Internet penetration of 73 percent. As of 2021, Argentina has the highest Internet penetration rate in the region, with 93 percent. Due to its 85 percent smartphone penetration level in 2021, Brazil is undoubtedly the most interesting market for marketing experts.
Marketing experts need this data on penetration to better reach their target audiences. Latin Americans, for instance, prefer watching videos on their cell phones rather than connected televisions or computers, according to a report.
Streaming is replacing television as the most popular form of entertainment: Latin American communities have outright embraced streaming as a medium. The most popular type of SVOD is SVOD (subscription video-on-demand). According to Sherlock Communications' report, Latin American SVOD audiences grew 40 percent between 2019 and 2021. Statista estimates there will be 68.81 million paid streaming subscriptions in Latin America by 2023. Latin America will have 116 million paid SVOD subscribers by 2026.
Latin America's paid streaming or SVOD market will continue to be dominated by Netflix. Netflix's 41.02 million subscribers in 2021 will grow to 49.07 million in 2026, according to Digital TV Research. In contrast, Disney+ is expected to reach 33.28 million subscribers by 2026, an increase of 17 percent over 2021. In Latin America, Netflix's market share will decline 15 percentage points between 2021 and 2026 due to the growth of rivals like Disney+, dropping from 58 percent to 43 percent. By 2026, Disney+ market share will increase from 17 percent to 29 percent.
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