Latin America has emerged as a vibrant and dynamic region in the global video game landscape. With a cultural diversity and a young population, video games have become an integral part of the entertainment industry in Latin American countries.
In the last 10 years, the number of gamers in Latin America has experienced a 40% increase, reaching more than 210 million people. This growth is driven by improved connectivity, with a 25% increase in internet penetration in the region over the same period. The video game market in Latin America reached $5.6 billion dollars in 2023, with a growth projection of 8% annually.
In a study by media agency Mindshare, it was found that 48% of respondents, aged 18 to 44, participate in digital communities, more than in real-life communities.
With this in mind, the expert describes four ways brands can take advantage of in-game advertising and why it is important.
1. The rise of In-Game advertising. The social dimension of gaming in Latin America is evident in the expansion of online communities. Social media platforms, such as Twitch and YouTube Gaming, have seen a 45% increase in active users, facilitating interaction between gamers. 70% of gamers regularly participate in online gaming sessions with friends and virtual communities.
In-game advertising has become a prominent avenue for brands seeking to establish a presence within virtual gaming environments. With the rise of free-to-play games and the growing popularity of mobile gaming, advertisers have the opportunity to reach a vast audience through strategic in-game placements, tailored to resonate with the cultural nuances of the region. Opening up endless options to highlight your brands: product placements, branded items and even interactive ads that offer a more natural and immersive way to connect with players.
2. Location and cultural representation. Native advertising has proven to be effective, allowing brands to seamlessly integrate into the gaming experience. Localizing games in Latin America is essential to attract the local audience. More than 80% of players express a preference for games that include cultural elements and narratives relevant to the region. 65% of the most downloaded titles in the region, in 2023, were those that incorporated Latin American elements in their design.
Advertisers must leverage cultural nuances and local preferences to create native campaigns that resonate with gamers, improving brand awareness in a way that feels authentic and relevant to the Latin American gaming community.
3. The Power of influencer marketing. With the popularity of streaming platforms like Twitch and YouTube Gaming, influencer marketing became a game-changer for advertisers. Gamers, known as influencers, build massive followers by livestreaming their gameplay, providing an authentic and relatable avenue for brands to connect with their target audience. In Latin America, Twitch has seen significant growth, with millions of monthly active users and a community of streamers that attract local audiences, recognizing the importance of cultural relevance and authenticity in marketing campaigns aimed at this diverse region.
4. The rise of Esports in Latin America. Esports have experienced substantial growth in Latin America. In 2023, esports tournaments attracted more than 10 million viewers in the region, an increase of 15% compared to the previous yearr. Countries such as Brazil, Mexico and Argentina have become hotbeds for esports competitions, attracting sponsorships and investments. Brazil stands out as a leader in the Latin American esports scene, contributing more than 40% of the revenue generated by video game competitions.
The region has produced skilled esports professionals who have made their mark on the global stage. Partnerships in esports provide brands with a unique avenue to engage with players, aligning with their passion for competitive gaming.
As the video game industry continues to flourish in Latin America, advertisers are finding innovative ways to connect with this dynamic and diverse audience. The economic gap in the region continues to be a challenge for the gaming industry. More than 30% of the population in the region still does not have access to high-speed internet, limiting participation in online gaming. However, this presents a market opportunity, with 20% growth in the sale of low and mid-range gaming consoles.
The gaming community is known for its high interaction and engagement. Unlike the traditional stereotype, gamers span a wide range of ages, genders, and cultural backgrounds. This diversity allows advertisers to reach specific target audiences, adapting their strategies to satisfy different demographic segments.
Gaming is at the forefront of technological innovation, from virtual reality to real-time streaming. Advertisers can leverage these technologies to create immersive and exciting advertising campaigns. Investing in gaming not only allows advertisers to reach an engaged and diverse audience, but also has a variety of channels to choose from, allowing them to adapt their messages and strategies depending on the platform and specific audience, providing fertile ground for innovation and advertising creativity, all in a constantly growing market.
*Stephanie Valdés is Head of Strategy Mexico & Latam at Mindshare.
by Stephanie Valdes
