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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.

Our expanded Latin America retail and ecommerce coverage now includes breakouts for 16 markets across Mexico, Central America, and South America. Brazil and Mexico will drive the bulk of net new ecommerce sales this year with a combined regional market share of 75.2%.

Retail media is taking Latin America鈥檚 digital ad industry by storm, with advertisers spending nearly $2 billion this year, per our inaugural forecast. 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.

Latin America鈥檚 digital economy will undergo significant changes in 2025 as retail innovation and regulatory changes redefine business dynamics for global and local players alike.

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.

Chile is the fourth-largest retail ecommerce market by total sales and will be the No. 4 fastest-growing digital economy in Latin America. Understanding Chile鈥檚 11.0 million digital buyers is essential for brands and retailers looking to capitalize on this resurging ecommerce market.鈥�

Tariff escalation reshapes Latin America trade: New duties disrupt retail margins, inventory flows, and regional growth forecasts.

Retail media is on track to fundamentally revolutionize Latin America鈥檚 digital advertising industry. As economic uncertainty pushes marketers to deliver tangible business results, retail media will play a larger role in their media buys. Here are the latest trends to know.