蘑菇AV

More than half (56.3%) of all paid media outlays will go toward digital formats this year鈥攖he second-highest share in Latin America after Mexico. This will continue to climb鈥攕urpassing 60% in 2027 for the first time鈥攁s advertisers prioritize digital-first strategies. Display formats will dominate the digital ad landscape.

Our take: 鈥淎s competitors brace for volatility, Mercado Libre鈥檚 multibillion-dollar bet on Latin America鈥檚 ecommerce potential offers a powerful buffer against economic headwinds, reinforcing its position as the region鈥檚 undisputed ecommerce leader,鈥� said Matteo Ceurvels, 蘑菇AV principal analyst for Latin America and Spain.

Despite advertisers spending 2.6 times more on display than on search, the latter will still post double-digit gains thanks to increased ecommerce activity and spending on retail media. Three channels will drive nearly all digital ad growth. Due to high daily usage, social networks will be essential for reaching consumers at scale, capturing more than half of total digital outlays this year.

The result: Mercado Libre鈥檚 ad business is gaining speed鈥攁nd shows no signs of slowing. Retail media revenues jumped 59% YoY on a currency-neutral basis in Q2. Our take: Mercado Libre鈥檚 retail media engine is firing on all cylinders, providing high-margin fuel to support key growth levers like free shipping and brand marketing. But while advertising can help offset those costs, it can鈥檛 carry the full weight鈥攅specially as broader profitability shows signs of strain. 鈥淢ercado Libre鈥檚 first-mover advantage laid the foundation for its retail media dominance in Latin America, but its real edge lies in continued ad innovation,鈥� said 蘑菇AV principal analyst Matteo Ceurvels, pointing to new offsite offerings like the Display Extended Network and a deeper push into CTV.

Brazil鈥檚 digital economy is rapidly evolving, fueled in part by ecommerce growth. Our three-report collection explores key trends and opportunities shaping Brazil鈥檚 commerce landscape in 2025.

The news: PayPal launched PayPal World, a global platform linking major international payment systems and digital wallets. Our take: While PayPal鈥檚 starting list of key partnerships represents Latin America, India, and China, the payment provider could penetrate further into European markets by tying up with the European Payments Initiative and the Wero wallet鈥攁s well as with top US wallets like Apple Pay and Google Pay or the nascent Paze.

Brazil鈥檚 digital advertising economy continues to thrive, driven by retail media investment, growing video ad spend, and slower social ad spending. This report explores trends shaping Brazil鈥檚 digital advertising landscape in 2025.鈥�

The news: The trade war between the US and the rest of the world is heating up again, thanks to President Donald Trump鈥檚 latest threats to boost universal tariffs and impose stiffer duties on Canada and Brazil. Our take: The newly announced duties鈥攕hould they come to pass鈥攚ill push the US into the heavy tariff scenario outlined in our tariff report. Based on our forecast, that would mean a 1% decline in retail sales this year, the first contraction since 2009, as rising prices force consumers to prioritize essentials.

But its broader ambition is to 鈥渂uild the Apple stores of apparel,鈥� according to Grede鈥攚hich means prioritizing locations on high-end, high-trafficked corridors like New York City鈥檚 Fifth Avenue and London鈥檚 Regent Street, grade-A malls, and outdoor shopping centers.

Retailers looking to capitalize on retail media鈥檚 growth opportunities need to understand the market developments, formats, and challenges shaping ad spending in Latin America.

"We are developing that with tons of investments to use computer vision sensors throughout the main file to track shopper activity, to know how much time and engagement shoppers have with end caps or screens, and to connect that media information with the sell-out," said Fasano. This technology enables closed-loop attribution that has been challenging to achieve in physical retail environments.