Advertising spending in Latin America grew faster than in any other region in the first quarter, according to a new report, in stark contrast to Europe, where marketing budgets are still shrinking.
Latin America saw ad spending growth of 11.9 percent year-on-year in the first three months of the year, according to Nielsen's Global AdView Pulse, with every country in the region experiencing growth.
By contrast, advertising in Europe fell by 4.4 percent over the same period. "It's clear that ad spend is still declining under the weight of the region's economic problems," Nielsen said. "It seems unlikely that the region will recover from these challenges in the short term."
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Leika Kawasaki, media analyst at market research firm Strategy Analytics in the U.S., said an online boom in Latin America was driving advertising.
"Broadband household penetration in the region is growing, in turn driving audience growth and the viability of mass market services underpinned by advertising," she told CNBC.
Internet penetration rates in South America are among the highest in the world outside the European Union and United States. Brazil, the region's largest economy, has an internet penetration rate of 42 percent, while Chile and Colombia are at 59 and 56 percent respectively.
"Latin America is one of the leaders in terms of social networking penetration and time spent online," Leika said. "We expect that Latin America's advertising market will continue to grow… driven by strong online video and social networking advertising spending."
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