This is the conclusion of a new report from eMarketer called ‘Digital Ad Spending Benchmarks in Peru: A Conservative Market Slowly Coming to Digital Life.’ It shows that digital ad spends in the LATAM country will increase by 25% at the end of this year, reaching some $81 million. Whilst this is a dramatic rise, the report makes the point that throughout the region as a whole, the total spent on digital ads will reach nearly $7 billion during the same period. And one country, Brazil, accounts for nearly half of that total spend.
The report says that there are key reasons for this slower digital ad development in Peru, not least that the country is divided into three natural regions which can be described as coastal (costa), highlands (sierra) and jungle (selva). Each area has its own distinctive socio-economic and technical considerations, governed by the geographical restraints, meaning that much of the population has been slow to take-up digital technologies. This has meant that advertisers have been slow with the digital ad spends.
The coast regions, which are more accessible, account for well over half of the country’s GDP and for almost half of the population. It is here where digital adoption is most marked and eMarketer reckons that at this stage of the year, the number of monthly internet users (of any age) will have reached 16 million. By the end of the year, just over half of the country’s population will be regular users of digital media.
Although Peru will remain one of the smaller markets for digital ad spending, it is estimated it will rise to just over $153 million by the end of the decade, having achieved growth rates of 20% in 2016, 18% in 2017, and 15% in both 2018 and 2019. Not only this is an interesting benchmark for Peru, but for Latin America as a whole, as potential merchants will find the region attractive for digital ad investments.
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