Digital marketing investment in Latin America grows by 67%: banks and tech lead the trend in 2024
October 3, 2024
Digital marketing in Latin America is experiencing unprecedented growth. According to a recent report by NTT Data, investment in digital marketing across the region has surged by 67% over the past year, reaching $9.9 billion in 2024. But what’s driving this boom, and how are the major industries reacting?
The industries leading the growth
Two sectors are standing out in this landscape of expansion: banking and technology. Financial institutions have significantly increased their efforts to digitize their marketing processes, responding to the demand for a more seamless and personalized user experience. In the tech sector, continuous innovation and the launch of new products and services have fueled greater investment in digital marketing strategies, solidifying their leadership in the field.
What’s driving this growth?
The pandemic played a critical role in accelerating digitalization across the region. Companies that once heavily relied on traditional channels have now shifted much of their investment to digital platforms to stay relevant and competitive. Additionally, the growth in social media usage and the rise of e-commerce have pushed brands to recognize the importance of a strong digital presence.
The E-Commerce surge
E-commerce has been one of the main drivers behind the increase in digital marketing investment. According to the report, e-commerce in the region has grown by 50% over the past two years, prompting businesses to invest in online advertising strategies, SEO optimization, and email marketing campaigns to attract and retain customers.
Digital platforms gaining ground
In terms of platforms, Facebook and Google remain the top choices for digital marketing investment. However, TikTok has shown significant growth over the past 12 months, especially among younger population segments. Brands have identified TikTok’s potential to connect with audiences and create viral campaigns that generate high levels of engagement.
The role of artificial intelligence
Another factor driving the growth of digital marketing in Latin America is the adoption of artificial intelligence (AI). AI enables companies to personalize their campaigns more effectively, predict trends, and optimize advertising strategies. This not only boosts efficiency but also improves return on investment (ROI), something that companies in the region are increasingly valuing.
Challenges and opportunities
Despite the growth, the NTT Data report highlights several challenges in the region, such as the need to improve digital infrastructure and the training of specialized talent in digital marketing. On the other hand, the increasing internet penetration and massive use of mobile devices present significant opportunities for companies to reach new consumers and expand their market presence.
This outlook suggests that digital marketing investment in Latin America will continue to rise. Companies that can adapt and take advantage of the opportunities offered by the digital landscape will be in a strong position to lead in the marketplace.
