COVID-19’S

IMPACT IN
LATIN AMERICA
How the Coronavirus Will Change
Digital Advertising in Argentina,
Brazil, Chile, Colombia, Mexico
and Peru
MAY 2020
Matteo Ceurvels
Contributors: Eric Haggstrom, Oscar Orozco, Nicole Perrin, Zach Goldner
With the coronavirus pandemic leading to significant
economic slowdowns across Latin America, we’re
providing updated guidance to our clients about what
we expect for digital ad spending during H1 2020, based
on current information about how regional advertisers
are responding to the pandemic and current market
conditions. We finalized our most recent digital ad
spending forecast for Latin America on March 6, 2020,
before the cascade of drastic social distancing and market
declines began to unfold in Argentina, Brazil, Chile,
Colombia, Mexico and Peru. We will update our full-year
forecast for Latin America digital ad spending in June. We
also issued guidance for ad spending in Canada, China,
France, Germany, the UK and US.
KEY TAKEAWAYS
■■ Digital ad spending in Latin America continues
to grow, despite the coronavirus causing market
volatility. From 2015 to 2020, digital’s share of total
media ad spending in Latin America doubled from
18.0% to 36.3%. Given the current circumstances,
this share should further improve in 2020. If a wider
audience of consumers goes digital, it is highly likely
that advertisers will follow suit by shifting their ad
spending dollars toward digital formats on a more
permanent basis.
■■ Display is still the region’s most popular digital ad
format. As advertisers experiment and incorporate a
wide variety of formats into their digital media mix,
social media and video will continue to drive digital
ad spending growth in Latin America this year. But
advertisers should also keep their eyes on search as
another viable ad format to invest in as ecommerce
adoption surges in countries like Colombia, Chile,
Mexico and Peru.
■■ Growing mobile phone usage will prompt
advertisers to shift their ad budgets. With digital’s
impressive growth ahead, advertisers must fully
embrace the prominent role mobile devices will play
in the consumer journey. They must also ensure that
mobile becomes an integral part of their media strategy
as time spent with mobile phones increases under
government-mandated quarantines.
COVID-19’S IMPACT IN LATIN AMERICA
■■ COVID-19 poses new challenges for brands
looking to develop messaging and campaigns. It
is imperative for them to be present and agile while
remaining empathetic. However, they must ensure
they do not let their long-term strategies fall by the
wayside. It will be challenging to strike a balance, but
brands should never lose sight of what matters most:
their customers.
Impact the Coronavirus Has Had on Weekly
Valuations for Display* Ads in Latin America**,
Feb 2020-April 2020
millions and % change
$43.9
$41.8 $42.2
$40.2
$36.0 $36.5
$34.7
15.8%
1.4% Mar 4-10
4.1%
0.9%
4.1%
0
Feb 19-25 Feb 26- Mar 11-17 Mar 18-24 Mar 25-31 Apr 1-7
Mar 3
-4.9%
Weekly valuations % change
Note: represents activity tracked by Admetricks, broader industry metrics
may vary; *includes display and video on desktop and mobile; excludes ads
on Facebook, YouTube and search engines; **includes Argentina, Brazil,
Chile, Colombia, Mexico and Peru
Source: Admetricks; eMarketer calculations, April 17, 2020
254880 www.eMarketer.com
Due to the rapidly changing economic conditions,
we’re providing updated guidance to our clients
about what we expect for ad spending in Latin
America during H1 2020, based on current information
about how regional advertisers are responding to the
COVID-19 pandemic and economic downturn. With our
estimates for 2019 as a baseline, we have taken a range
of possibilities into consideration for how advertisers
across Latin America will react—and have reacted—to
the new environment in terms of their digital ad budgets.
In June, we’ll update our complete Latin America ad
spending forecast, including digital, based on our
bottom-up methodology that will directly account for Q1
results at major digital ad sellers.
©2020 EMARKETER INC. ALL RIGHTS RESERVED 2
 IMPACT ON DIGITAL AD SPENDING
Digital is quickly becoming the channel of choice
for many advertisers in Latin America. From 2015 to
2020, we expected digital’s share of total media ad
spending in Latin America to double from 18.0%
to 36.3%.
For example, urban internet users in Colombia were 1.5
times as likely to find product and service information
via search engines (74%) compared with social media
(50%), according to a March 2019 Cámara Colombiana
de Comercio Electrónico (CCCE) survey conducted by
the Centro Nacional de Consultoría (CNC) in collaboration
with the Ministerio de Tecnologías de la Información y las
Comunicaciones (MinTIC).

In our March 6 ad spending forecast, Mexico was

What Digital Sources Do Urban Internet Users in
projected to boast the region’s greatest share of digital Colombia Use to Find Product/Service Information?
ad spending as a percentage of total media ad spending. % of respondents, Dec 2018
This year, advertisers in Mexico were expected to allocate
Search engines 74%
45.8% of media spending to digital channels. Brazil was
Social media 50%
ranked second (36.8%), followed by Argentina (32.5%)
and Colombia (32.3%). Marketplaces 37%

Retailer's websites 23%

Latin America continues to trail global counterparts in 8% Digital advertising/pop-up ads
digital transformation. However, as local governments
announced stay-at-home orders, the coronavirus Note: n=1,596 ages 15-75
Source: Cámara Colombiana de Comercio Electrónico (CCCE), "Estudio de
pandemic became a catalyst for consumers’ rapid pivot Consumo del Comercio Electrónico en Colombia" conducted by Centro
Nacional de Consultoría (CNC) in collaboration with Ministerio de
toward ecommerce. This shift in the near term could Tecnologías de la Información y las Comunicaciones (MinTIC), March 27,
influence spending habits in the long term. 2019
246846 www.eMarketer.com

Given the current circumstances, digital’s share of total
media should further improve this year. If consumers go
digital, advertisers will likely follow suit by shifting their
ad spending dollars toward digital formats on a more
permanent basis.
Similar trends were found among digital buyers in
Mexico. In an Interactive Advertising Bureau México (IAB
México) survey conducted by Kantar Millward Brown and
published in October 2019, 76% of digital buyers used
ecommerce websites, such as Amazon or MercadoLibre,
to research products and services before making a
purchase vs. 46% of those who used social media.

IMPACT ON DIGITAL AD FORMATS

Sources that Digital Shoppers in Mexico Use to
Research Products/Services Before Deciding to Make
As advertisers experiment and incorporate a variety a Purchase, March 2019
of formats into their digital media mix, social media % of respondents
and video continue to be the main drivers of digital Ecommerce websites (Amazon, MercadoLibre, etc.)
ad spending growth in Latin America. This makes 76%
Brick and mortar stores' websites (Walmart.com, Lacomer.com,
sense, given that 82.3% and 76.3% of internet users etc.)
in the region will use social networks and watch 62%

digital video this year, respectively, according to Social media

46%
our estimates.
Video pages
29%
Review websites
DISPLAY VS. SEARCH Forums and blogs
23%

In Latin America, digital ad spending tilts toward display, 16%

but advertisers should keep search on their radar as
ecommerce adoption continues to surge in emerging
markets, such as Colombia, Chile, Mexico and Peru.
Note: n=308 ages 18-70
Source: Interactive Advertising Bureau México (IAB México) and Kantar
Millward Brown, "Estudio de Consumo de Medios y Dispositivos Entre
Internautas Mexicanos 11º Edición: Corte Retail" sponsored by Televisa
Publishing + Digital, Oct 2, 2019
251382 www.eMarketer.com

COVID-19’S IMPACT IN LATIN AMERICA ©2020 EMARKETER INC. ALL RIGHTS RESERVED 3
In turn, search advertising will be an effective way for
brands to target consumers with relevant ads. Advertisers
that adapt their digital strategies and formats accordingly
will be able to influence consumers’ purchase decisions
at the discovery and consideration stages of the
consumer journey.
MOBILE ADVERTISING
Given mobile devices’ increasing prevalence in the
consumer journey, advertisers should ensure mobile
becomes an integral part of their media strategy.
Latin America has made great strides in boosting its
mobile investments but still lags other regions. In March,
we forecast that mobile would be 26.5% of total media
ad spending in Latin America this year compared with
38.5% worldwide. As mobile quickly becomes the
device of choice among advertisers, these figures were
expected to climb to 37.8% and 49.3%, respectively,
by 2024.
However, since the coronavirus has forced many
consumers to stay home, growing mobile phone usage
could prompt advertisers to increase mobile advertising in
an effort to target their audiences with relevant ads in real
time at a fast-than-expected rate.
IMPACT ON BRANDS AND
AD PRICING
Admetricks is a web service that monitors online
media in Latin America and Spain. By analyzing the
company’s real-time data, we were able to gain better
insight into how the coronavirus was impacting Latin
America’s display ad market and uncover several
trends that began to unfold as the coronavirus
wreaked havoc across the region.
It is important to note that the figures in this analysis
exclude digital platforms, such as Facebook or YouTube,
which are both major drivers of display advertising in
Latin America.
COVID-19’S IMPACT IN LATIN AMERICA
BRANDS
Shortly after Brazil reported Latin America’s first
confirmed case of COVID-19 on February 26—soon
followed by Mexico on February 28—Admetricks’ data
indicated that 21,582 brands were actively using display
advertising during the week of March 2. It was also during
the same week that Argentina, Chile, Colombia and Peru
reported their first confirmed cases of the virus.
Impact the Coronavirus Has Had on the Number of
Brands Using Display* Advertising in Latin America**,
March 2020-April 2020
number of brands and % change
21,582
19,005 19,129
18,254
March 30- April 6-12
April 5
0
March 2-8 March 23-29 0.7%
-4.6%
-11.9%
Number of brands % change
Note: represents activity tracked by Admetricks, broader industry metrics
may vary; *includes display and video on desktop and mobile as well as on
platforms such as Facebook, YouTube; excludes search engines; **includes
Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador,
El Salvador, Guatemala, Honduras, Mexico, Panama, Peru and Uruguay
Source: Admetricks; eMarketer calculations, April 17, 2020
254876 www.eMarketer.com
As the number of confirmed COVID-19 cases grew,
brands quickly pulled their display ad campaigns during
the ensuing weeks. By the week of April 6, 18,254 brands
were using advertising display advertising, a 15% drop vs.
the week of March 2.
The Dominican Republic suffered the greatest loss of
brands using display advertising, at 44%, followed by
Argentina (23%), Central America (21%) and Uruguay
(20%). In Colombia, Ecuador and Mexico, these
decreases were not as drastic as expected given the
rapid spike in the number of confirmed coronavirus
cases. Meanwhile, Peru was the only country that posted
growth, at 1%.
©2020 EMARKETER INC. ALL RIGHTS RESERVED 4
Impact the Coronavirus Has Had on the Number of Impact the Coronavirus Has Had on Weekly Display*
Brands Using Display* Advertising in Latin America, Ad Impressions vs. CPMs in Latin America**,
by Country, April 6, 2020 & March 2, 2020 Feb 2020-April 2020
% change % change vs. previous week
Dominican Republic
-44% 16.8%
Argentina
-23%
Central America**
7.5%
-21% 6.9%

Uruguay 4.0%
-20% 1.7%

Brazil 0
-17% -0.7%
-0.9% -0.8%
Chile -2.5% -2.6%
-3.2%
-16% -4.3%

Mexico Feb 26-Mar 3 Mar 4-10 Mar 11-17 Mar 18-24 Mar 25-31 Apr 1-7
-9% Impressions CPMs
Ecuador Note: represents activity tracked by Admetricks, broader industry metrics
-3% may vary; *includes display and video on desktop and mobile; excludes ads
on Facebook, YouTube and search engines; **includes Argentina, Brazil,
Colombia Chile, Colombia, Mexico and Peru
-3% Source: Admetricks; eMarketer calculations, April 17, 2020
254878 www.eMarketer.com
Peru
1% As display ad impressions decreased during the week of
Latin America*** February 26, CPMs increased. As display ad impressions
-11% increased during the weeks of March 11, March 18,
Note: represents activity tracked by Admetricks, broader industry metrics March and 25, CPMs fell—but not as sharply as the rate
may vary; *includes display and video on desktop and mobile as well as on that brands stopped using display advertising. The week
platforms such as Facebook, YouTube; excludes search engines; **includes
Costa Rica, El Salvador, Guatemala, Honduras and Panama; ***includes of March 4, a volatile period in which numerous countries
Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador,
El Salvador, Guatemala, Honduras, Mexico, Panama, Peru and Uruguay reported their first confirmed cases of COVID-19, was the
Source: Admetricks; eMarketer calculations, April 17, 2020 exception. CPMs stabilized by the week of April 1.
254877 www.eMarketer.com

Impact the Coronavirus Has Had on Weekly CPMs for

AD PRICING Display* Ads in Latin America**, Feb 2020-April 2020

Despite waning advertiser demand for display advertising,

ad prices (CPMs) in our core six markets (Argentina,
Brazil, Chile, Colombia, Mexico and Peru) were fairly
resilient given the sheer magnitude of the situation and $3.69
$3.64 $3.63
the bleak economic outlook for those countries. $3.79
$3.48
$3.59
Usually, as the number of ad impressions increases—due $3.45
to consumers spending more time with digital media—
advertisers’ demand for advertising decreases. In turn,
CPMs should drop quite significantly. Per Admetricks’ Feb Feb Mar Mar Mar Mar Apr
19-25 26-Mar 3 4-10 11-17 18-24 25-31 1-7
data, the same held true in Latin America during March
and the first week of April.
Note: represents activity tracked by Admetricks, broader industry metrics
may vary; *includes display and video on desktop and mobile; excludes ads
on Facebook, YouTube and search engines; **includes Argentina, Brazil,
Chile, Colombia, Mexico and Peru
Source: Admetricks; eMarketer calculations, April 17, 2020
254879 www.eMarketer.com

COVID-19’S IMPACT IN LATIN AMERICA ©2020 EMARKETER INC. ALL RIGHTS RESERVED 5
CPMs did not drop as much as expected because Rather than suffering severe decreases, as one would
publishers can control the ad load on their media initially presume, the valuation of Brazil’s and Mexico’s
properties and change their floor prices. Rather than display ad markets exhibited a compound weekly growth
letting CPMs drop organically to adjust for the decline in rate of 7.8% and 1.7%, respectively, over the course of
display ad dollars, publishers can opt to show fewer ads February 19 to April 7. Meanwhile, Peru, Argentina and
on their desktop and mobile sites instead. In doing so, Chile saw contractions in their display ad valuations.
they could keep prices stable and are better positioned for Therefore, Brazil’s and Mexico’s strong compound weekly
when Latin America’s economy normalizes again. growth helped negate these contractions and allowed
for display ad valuations in Latin America to post a 3.4%
As a result, the valuation of Latin America’s display ad compound weekly growth rate, in turn.
market continued to grow. Display ad valuations rose
from $36.0 million, during the week of February 19, to
Impact the Coronavirus Has Had on the Compound
$43.9 million during the week of April 1. Market volatility Weekly Growth Rate of Display* Ad Valuations in
during the week of March 4 caused a minor drop. Latin America, by Country, Feb 19-April 7, 2020
compound weekly growth rate (CWGR)
Brazil
Impact the Coronavirus Has Had on Weekly
Valuations for Display* Ads in Latin America**, 7.8%
Feb 2020-April 2020 Mexico
millions and % change 1.7%
$43.9 Colombia
$41.8 $42.2
$40.2 0.8%
$36.0 $36.5
$34.7 Chile
-2.1%
Argentina
-3.8%
Peru
-4.5%
15.8% Latin America**
3.4%
4.1% 4.1%
1.4% Mar 4-10 0.9%
0 Note: represents activity tracked by Admetricks, broader industry metrics
Feb 19-25 Feb 26- Mar 11-17 Mar 18-24 Mar 25-31 Apr 1-7 may vary; *includes display and video on desktop and mobile; excludes ads
Mar 3 on Facebook, YouTube and search engines; **includes Argentina, Brazil,
-4.9% Chile, Colombia, Mexico and Peru
Weekly valuations % change Source: Admetricks; eMarketer calculations, April 17, 2020
254881 www.eMarketer.com
Note: represents activity tracked by Admetricks, broader industry metrics
may vary; *includes display and video on desktop and mobile; excludes ads
on Facebook, YouTube and search engines; **includes Argentina, Brazil,

IMPACT ON
Chile, Colombia, Mexico and Peru
Source: Admetricks; eMarketer calculations, April 17, 2020

CONSUMER MESSAGING
254880 www.eMarketer.com

The regional figures paint a rosy picture, but keep in

mind that these valuations and growth rates greatly
varied by country due to each market’s unique set
of circumstances, including its government’s ability
to contain the pandemic and mitigate potential
economic downturns.
As Latin America’s two largest economies, Brazil and
Mexico were expected to account for 75.0% of the
region’s display ad market this year, per our estimates.
Therefore, any major disruptions in either country will
have a huge impact on media buys and growth in Latin
America. According to our analysis of Admetricks’ data,
both countries continued to occupy a similar share during
the period of February 19 to April 7.
As uncertainty surrounding the coronavirus continued
to mount, most consumers in Latin America believed
that brands should go beyond what is required by
law and commit themselves to the well-being of
their community.
According to a survey fielded by GfK at the end of March
2020, nearly three-quarters (73.4%) of internet users ages
18 and older in Latin America “agreed” or “completely
agreed” with this assertion.

COVID-19’S IMPACT IN LATIN AMERICA ©2020 EMARKETER INC. ALL RIGHTS RESERVED 6
Internet Users in Latin America Who Believe Brands Most Important Things Brands Should Do in Light of
Should Contribute to the Demands/Measures the Coronavirus Pandemic According to Internet
Associated with Coronavirus, by Country, March 2020 Users in Mexico, March 2020
% of respondents in each group % of respondents
Argentina Commit themselves to improving the environment
9.8% 16.5% 73.7% 43%
Brazil Stop thinking only about business and have a role in society
14.2% 17.5% 68.3% 41%

Chile Contribute to improving people's health

11.4% 11.1% 77.6% 31%
Support the development of communities
Colombia
31%
8.6% 14.0% 77.4%
Offer more affordable prices
Peru
29%
14.1% 17.3% 68.5%
Facilitate access to products and services through digital
Total channels
11.6% 15.1% 73.4% 28%
1-2—completely disagree/disagree 4-5 —completely agree/ Offer better products and services
3—neutral agree 23%
Note: n=2,174 ages 18+; on a scale of 1-5 where 1=completely disagree Contribute to increasing levels of optimism and trust in society
and 5=completely agree; numbers may not add up to 100% due to 20%
rounding
Source: GfK, "Consumo en tiempos de COVID-19"; eMarketer calculations, Support people in their daily life
April 9, 2020 19%
254867 www.eMarketer.com
Support political and legislative changes in the countries
Similar trends were also uncovered in Mexico in a 16%
separate poll conducted by advertising agencies DDB Promote socialization and connections among people
México and DDB Latina at the end of March 2020. The 9%

results indicated that internet users in Mexico expect Other

brands to have not just a functional role to play, but rather
a social one too. Forty-three percent of respondents said
that brands should commit themselves to improving the
environment while nearly as many believed that they
should stop thinking only about business and focus on
having a role in society.
2%
Note: ages 18+; respondents chose their top 3
Source: DDB México and DDB Latina, "¿Cómo será el nuevo mexicano?"
April 23, 2020
255063 www.eMarketer.com
Even if internet users in Latin America want brands to
take a stand, they are still quite cautious of the type
of products they are buying. As citizens grapple with
staggering unemployment and lost wages, only 25.7% of
respondents surveyed by GfK felt “comfortable” or “very
comfortable” with purchasing nonessential products
during the coronavirus outbreak.

COVID-19’S IMPACT IN LATIN AMERICA ©2020 EMARKETER INC. ALL RIGHTS RESERVED 7
Level of Comfort in Purchasing Nonessential Products
During the Coronavirus Pandemic According to
SOURCES
Internet Users in Latin America, by Country,
March 2020 Admetricks
% of respondents in each group
Cámara Colombiana de Comercio Electrónico (CCCE)
Argentina
29.5% 22.2% 48.3% Centro Nacional de Consultoría (CNC)
Brazil DDB Latina
20.5% 14.2% 65.2%
DDB México
Chile
24.0% 13.8% 62.2% GfK
Colombia Interactive Advertising Bureau México (IAB México)
24.0% 19.0% 57.0%
Kantar Millward Brown
Peru
30.8% 13.4% 55.8% Ministerio de Tecnologías de la Información y las
Comunicaciones (MinTIC)
Total
25.7% 16.4% 57.9% Televisa Publishing + Digital
1-2—comfortable/very comfortable
3—neutral
4-5—very uncomfortable/uncomfortable
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Note: n=2,174 ages 18+; on a scale of 1-5 where 1=very comfortable and
5=very uncomfortable; numbers may not add up to 100% due to rounding
Source: GfK, "Consumo en tiempos de COVID-19"; eMarketer calculations,
April 9, 2020
254868 www.eMarketer.com Anam Baig Senior Editor
Joanne DiCamillo Senior Production Artist
While it is unclear how long the pandemic will last,
Donte Gibson Chart Editor
this scenario poses new challenges for brands looking
Katie Hamblin Chart Editorial Manager
to develop messaging and campaigns. Brands should
Dana Hill Director of Production
be present and agile, while remaining empathetic, but
Erika Huber Copy Editor
they must also ensure they do not let their long-term
Ann Marie Kerwin Executive Editor, Content Strategy
strategies fall by the wayside.
Stephanie Meyer Senior Production Artist
Although it may be challenging to strike a balance, Heather Price Deputy Editor
brands should never lose sight of what matters most: Magenta Ranero Senior Chart Editor
their customers. Companies must focus on the needs of Amanda Silvestri Senior Copy Editor
consumers, who are anxious in the face of uncertainty.
By being empathetic, brands can ensure their messaging
resonates and remains aligned with their long-term
marketing goals and objectives.

eMarketer is working hard to provide you with the most

up-to-date coverage on how the coronavirus pandemic
will impact your industry, as well as what you can do to
stay ahead. Read all our coronavirus coverage here.

COVID-19’S IMPACT IN LATIN AMERICA ©2020 EMARKETER INC. ALL RIGHTS RESERVED 8
 The leading research firm for marketing in a digital world.

Coverage of a Digital World

eMarketer data and insights address how consumers spend
time and money, and what marketers are doing to reach them in
today’s digital world. Get a deeper look at eMarketer coverage,
including our reports, benchmarks and forecasts, and charts.
Receive daily insights to your inbox. Subscribe to eMarketer’s
complimentary newsletters.

Confidence in the Numbers

Our unique approach of analyzing data from multiple research
sources provides our customers with the most definitive
answers available about the marketplace.
Learn why.

Customer Stories
The world’s top companies across every industry look to
eMarketer first for information on digital marketing, media and
commerce. Read more about how our clients use eMarketer
to make smarter decisions.

Your account team is here to help:

Email research_requests@emarketer.com to submit a request for research support, or contact
accounts@emarketer.com or 866-345-3864 to discuss any details related to your account.
To learn more about eMarketer advertising and sponsorship opportunities, contact
advertising@emarketer.com.