The success behind digital agencies in Latin America: Revealed strategies

por | Ago 31, 2023 | Marketing Zonal | 0 Comentarios

In today’s digital landscape, Latin America has witnessed a remarkable boom in the field of digital marketing agencies. As the online marketplace continues to grow and Internet users multiply, these agencies play an increasingly pivotal role in reshaping the way companies connect with their audiences. In this article, we will explore the rise of digital marketing agencies in Latin America, their growth and the benefits of hiring local experts.

A digital marketing agency is an entity specialized in brand building, product promotion, audience engagement, and sales growth through technological tools, processes, and strategies. These agencies are equipped to provide customized solutions that meet the marketing needs of other companies, ensuring the achievement of short, medium, and long-term goals.

The rise of digitalization in Latin America

Latin America has grown significantly in terms of digitalization, and digital marketing has emerged as an indispensable tool to improve brand positioning and amplify the profitability of companies throughout the region. The rise of digital marketing agencies in this landscape is because of their expertise and also because of their innate understanding of the region’s market and terminologies. As the digital sphere continues to grow, these agencies have quickly become strategic partners to countless companies, driving exponential brand growth and driving increased sales.

«Digital advertising allows brands to reach their audience at the right moment and place, creating more meaningful and measurable connections.» – Sheryl Sandberg, COO of Facebook

There has been a significant increase in investment directed to digital promotion in recent times. The most recent official data indicates that there are 4,551 advertising agencies in Mexico and the total digital advertising spending in Latin America is expected to exceed US$14.5 billion by 2024.

Graph showing the data of money spent on digital advertising in Latin America from 2018 to 2024.
In recent times there has been a significant increase in investment in digital advertising in Latin America and total spending is expected to exceed US$14.5 billion by 2024.

Five out of the six Latin American countries will be among the top 10 fastest-growing digital advertising markets worldwide: Argentina (16%), Colombia (14%), Mexico (13%), Brazil (11.3%), and Chile (10.2%), all above the expected global average growth of 9.5%.

Advertising budgets in Latin America experienced a rapid shift in investment as advertisers capitalized on the increased use of digital devices. Digital advertising revenues increased by 22%.

Unlocking potential: e-commerce’s path in Latin America

In Latin America, where there are approximately 300 million digital shoppers, local agencies have been astutely tapping into this remarkable growth. This boom is especially evident when compared to other regions. It is estimated that online retail will reach $160 billion by 2025 in the region. Brazil and Mexico account for 31% and 28%, respectively, of the Latin American e-commerce market. However, economies such as Argentina, Peru and Colombia have begun to brighten the landscape with their rapid expansion.

Payments and Commerce Market Intelligence (PCMI) predicts substantial growth of 22% of the  e-commerce market in the region between 2023 and 2026.

Out of the total countries in Latin America, only a few of them have managed to develop robust e-commerce markets with substantial transaction volumes. The six most prominent markets are:

  • Brazil: Reaching an e-commerce market valuation of $216 billion by 2022.
  • Mexico: E-commerce market valuation of US$56 billion by 2022.
  • Colombia: Achieved an e-commerce market valuation of $33 billion in 2022.
  • Chile: Demonstrating a thriving e-commerce market valued at $29 billion by 2022.
  • Argentina: With a commendable e-commerce market valuation of $22 billion by 2022.
  • Peru: Embarks on a promising trajectory with an e-commerce market valued at $19 billion by 2022.

In this dynamic environment, the emergence of local agencies capitalizing on this growth is a testament to the burgeoning opportunities in Latin America that set the region apart on the global stage.

Why a local digital agency?

Hiring a local agency in Latin America can be crucial to ensure the success and effectiveness of marketing and expansion strategies for a foreign company in the region:

Local market knowledge

Local agencies have a deep understanding of the culture, customs, and local trends. This allows them to effectively tailor marketing and advertising strategies to resonate with the local audience.

Language and communication

Language is a crucial factor in any marketing campaign. Local agencies can communicate in the local language, avoiding misunderstandings and enabling more effective communication with local customers and partners.

Connections and networks

Local agencies often have an extensive network of contacts and relationships in the local industry. This can be valuable for establishing strategic partnerships, collaborations, and alliances that benefit the foreign company.

Adaptation to regulations and norms

Each country has its own legal regulations and norms that impact operations and marketing campaigns. A local agency will be aware of these aspects and can ensure the foreign company complies with all legal obligations.

Competitor knowledge

Local agencies have valuable insights into the competition in the local market. This allows foreign companies to design more effective strategies to stand out among competitors.

Flexibility and agility

Local agencies tend to be more agile and flexible in their approach. They can quickly respond to market changes and adjust strategies as needed.

Emotional connection

Local agencies can help create a stronger emotional connection between the brand and the local audience by understanding and addressing region-specific concerns and values.

Time and resource savings

Working with a local agency can save time and resources on research and adapting to a new market, as the agency already has the necessary knowledge and experience.

Experience with similar cases

Local agencies likely have worked with other foreign companies in similar situations. They can provide examples of successful cases and apply their previous experience to achieve positive results.

Proximity and accessibility

The local agency is physically close to the audience and can directly assess reactions and responses to implemented strategies, facilitating informed decision-making.

Map of Latin America with many orange lights and a blue background.
It is important to know in depth the market you want to target for an advertising campaign, that’s why the best solution is a local agency.

Digital marketing agencies: Why are they now being hired in Latin America?

With the rise of e-commerce and the growing significance of online presence, companies increasingly require digital marketing services.

An example of this was when the streaming platform Netflix hired a digital marketing agency in Mexico to promote its original series «La Casa de las Flores». The agency focused on an online advertising campaign that included promotional videos and social media ads to increase the number of viewers of the series. The campaign’s success was attributed to the agency’s deep understanding of the mexican market, their adept use of the local language, and their skill in capturing the audience’s attention.

Emergence of digital marketing agencies in Latin America has transformed the way companies promote and position their brands in the digital world. These agencies offer specialized and strategic services that drive growth and success for brands online. 

From positioning strategies to social media campaigns and content marketing, digital marketing agencies play an essential role in helping companies adapt to the new digital era. By choosing a local digital marketing agency as a strategic partner, companies can leverage their expertise and knowledge to achieve exceptional results and continue thriving in the ever-changing digital landscape of Latin America.

At Viral Amplifier, we’re passionate about driving growth, engagement, and revenue for businesses in Latin America and beyond. Whether you’re aiming to conquer social media, dominate search engines, or create captivating content, our expert team is here to make it happen.


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