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Latin America’s ad market will surpass $40 billion this year as it continues to defy economic uncertainty. Rebounds in Argentina and Chile, along with double-digit growth in retail and social media spending, will fuel momentum. Here are the latest trends you need to know.

The news: Brazil’s Supreme Court ruled that social media platforms must be held accountable for illegal user-generated content (UGC), marking a major shift in digital regulation, per Reuters. Six of 11 justices backed fines for non-removal, putting the pressure on platforms to police their content. The decision to place accountability on platform owners could undermine the business and advertising strategies of Meta, YouTube, X, and TikTok. Key takeaway: When governments crack down on platforms, ad environments change fast. If Brazil’s ruling becomes the norm, social platforms may shift from open forums to tightly controlled spaces—risking user engagement, discoverability, algorithmic reach, and ad effectiveness.

The trend: Consumer packaged goods brands are prioritizing profitability as macroeconomic headwinds reshape consumer behavior. For example, Kimberly-Clark is selling a majority stake in its international tissue business to Suzano and P&G is cutting roughly 15% of its global nonmanufacturing workforce. Our take: While short-term headwinds may be driving CPG companies’ actions, portfolio reassessment is a valuable exercise in any economic climate. Those that take the time to find efficiencies that enable them to emerge stronger and more agile will be better positioned for long-term success than companies simply focused on cutting costs.

The outlook for retail media ad spending remains bright throughout most of the world, even as ad budgets are increasingly constrained in the face of economic storm clouds.

Adverse weather and poor crops have driven up staple costs: Coffee is up 58% over the past three years, and cocoa soared 316%—with tariffs further compounding price pressures.

India’s commerce landscape is undergoing rapid transformation, fueled by booming ecommerce, rising mobile shopping, and the growing influence of social media.

Although no single player rivals Mercado Libre’s hold on Latin America’s ecommerce market, nearly 70% of online sales are still fair game for the long tail of retailers.

Latin America’s commerce media ecosystem is rapidly evolving. Financial, travel, and other nonretail players are now looking to monetize their own first-party data—following the path retailers have already paved.

The Latin American consumer banking market is vast, yet over 40% of consumers are currently underbanked. Foreign banks looking to enter the market can tap this audience, but they should learn from and partner with local fintechs to do so.