蘑菇AV

Retail media ad spending is booming in Latin America. Brazil and Mexico are leading the charge, with Mercado Libre outpacing in-market rivals. Here are the latest trends you need to know.

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.

TikTok鈥檚 2024 revenues in the UK, Europe, and Latin America surged 38% to $6.3 billion, more than doubling 2022 levels, per filings cited by Forbes. The growth underscores TikTok鈥檚 strength outside the US, where a divest-or-ban standoff continues. Yet regulatory scrutiny in Europe looms large, with over $1 billion reserved for fines, ongoing probes across multiple countries, and potential penalties under the EU鈥檚 Digital Services Act. TikTok鈥檚 UK penetration tops 32%, with ad revenues projected to triple by 2027. Still, layoffs in trust and safety roles and a pivot to AI moderation could test regulators and user trust.

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.

US President Donald Trump鈥檚 shifting trade policies will have ramifications for US brands that do business with Latin America. This FAQ addresses the most pressing questions for companies as they navigate new tariffs, supply chain disruptions, and the potential rise of new competitors.

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.