Market Insights Advertising & Media AR & VR

AR Advertising - Chile

Chile

In Chile, revenue in the AR Advertising market market is projected to reach €17.7m in 2024.
Revenue in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 9.08%, leading to a projected market volume of €27.4m by 2029.
While a projected market volume of €1,123.0m in 2024 indicates significant activity, it is important to note that most revenue is generated the United States.
In Chile, the AR advertising market is rapidly evolving, driven by increased digital engagement and a growing appetite for immersive consumer experiences.

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Analyst Opinion

The AR Advertising market in Chile is experiencing significant growth and development due to several key factors. Customer preferences are shifting towards more interactive and immersive advertising experiences, and businesses are recognizing the potential of AR technology to engage and captivate their target audience. Additionally, local special circumstances and underlying macroeconomic factors are contributing to the growth of the AR Advertising market in Chile.

Customer preferences: Customers in Chile are increasingly seeking out unique and engaging advertising experiences. Traditional forms of advertising are becoming less effective in capturing their attention, leading to a growing demand for innovative and interactive advertising solutions. AR Advertising offers a way for businesses to create immersive experiences that can effectively engage customers and differentiate themselves from competitors. With the ability to overlay digital content onto the real world, AR Advertising provides a new and exciting way for brands to connect with their target audience.

Trends in the market: One of the key trends in the AR Advertising market in Chile is the integration of AR technology into mobile applications. With the widespread adoption of smartphones, businesses are leveraging this technology to deliver AR Advertising experiences directly to consumers through their mobile devices. This trend is driven by the increasing availability of AR software development kits (SDKs) and the growing number of AR-enabled devices in the market. As a result, businesses in Chile are investing in the development of AR-powered mobile apps to enhance their advertising campaigns and engage customers on-the-go. Another trend in the AR Advertising market in Chile is the use of AR in out-of-home advertising. Traditional billboards and signage are being transformed into interactive displays through the integration of AR technology. This allows businesses to create dynamic and engaging advertising experiences that capture the attention of passersby. By combining AR with location-based targeting, businesses can deliver personalized and contextually relevant advertising content to consumers in specific locations, further enhancing the effectiveness of their campaigns.

Local special circumstances: Chile has a growing tech-savvy population with high smartphone penetration rates, making it an ideal market for AR Advertising. The country has a strong entrepreneurial culture and a supportive ecosystem for startups and innovation. This encourages the development and adoption of new technologies, including AR. Additionally, Chile has a vibrant creative industry, with many local agencies and studios specializing in digital advertising and content creation. This local expertise contributes to the growth of the AR Advertising market by providing businesses with the necessary skills and resources to create compelling AR experiences.

Underlying macroeconomic factors: Chile has a stable and growing economy, which provides a favorable environment for businesses to invest in AR Advertising. The country has a strong consumer market with increasing disposable incomes, allowing for greater spending on advertising and promotional activities. Furthermore, Chile has a well-developed telecommunications infrastructure, which supports the widespread adoption of AR technology. These macroeconomic factors create a conducive environment for the growth of the AR Advertising market in Chile, attracting both local and international businesses to invest in this emerging sector. In conclusion, the AR Advertising market in Chile is experiencing significant growth and development driven by customer preferences for interactive and immersive advertising experiences, as well as local special circumstances and underlying macroeconomic factors. Businesses in Chile are leveraging AR technology to engage customers through mobile applications and out-of-home advertising, capitalizing on the country's tech-savvy population, creative industry, and stable economy. As the demand for AR Advertising continues to rise, the market in Chile is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).