Digital Marketing’s Rise in Latin America’s Advertising Landscape
The advertising ecosystem in Latin America is undergoing a profound transformation, marked by shifts in digital consumption habits, growing pressure on brands to demonstrate tangible results, and the accelerated impact of artificial intelligence (AI).
In this environment, digital marketing (retail media) has emerged as the third wave of digital advertising, solidifying its position as one of the most effective solutions to connect investment and business results.
Data and Purchase Intent
Currently, nine out of ten product searches in the region begin on Mercado Libre’s e-commerce platform, making digital platforms strategic spaces to impact audiences. Unlike other formats, retail media relies on its own data to capture navigation, purchase, and payment signals.
“The value of digital marketing multiplies when we activate millions of transactional signals with AI. This allows us to build highly relevant audiences and measure impact on brand and business metrics that were previously impossible to track,” said Jesús Moreno, Senior Vice President of Mercado Ads at Mercado Libre.
A Single Ecosystem
One of the current challenges for brands is achieving a balance between performance and branding objectives. With increasingly informed and selective consumers, capturing their attention and achieving brand recall is as important as securing immediate conversions.
“Digital marketing offers this possibility by integrating both objectives into a single ecosystem. With the rise of digital video consumption, integration with Connected TV (CTV) and OTT opens new opportunities to expand reach across home screens. In Latin America, over 96% of the population accesses online TV and streaming, with more than half doing so in ad-supported models,” explained Moreno.
Extended Network
As part of its strategy, in 2025 Mercado Ads launched Extended Network, developed in collaboration with Google Authorized Buyers. This innovation enables display campaigns across more than 30,000 verified external websites and apps while maintaining full traceability.
This expansion reinforces Mercado Ads’ position as one of the top three media players in the region, offering scale and precision simultaneously. The goal is to connect advertising investment with tangible results, even outside the Mercado Libre ecosystem.
Success Cases
Collaboration with Beiersdorf demonstrated the model’s potential. Campaigns like “Eres tu mejor protector” and “Sunsations” achieved a +16.9 increase in awareness, +10.8 in purchase intent, and +8.3 in brand love, reaching over 24 million people.
These results surpassed Kantar references, showcasing a 25% growth in advertising investment efficiency on Mercado Ads.
Cannes Lions 2025
In June 2025, Mercado Ads participated as an official sponsor for the first time at Cannes Lions, the global creative advertising festival. There, they led discussions on the convergence of creativity, data, technology, and commerce.
“Our presence at Cannes reflects how Latin American advertising is no longer on the periphery of the global industry but at the center of conversations about the future,” mentioned Moreno.
B2B Bet
Parallel to this, Mercado Libre launched Mercado Libre Negocios, a unit focused on B2B purchases for companies, entrepreneurs, and governments. With over 4 million registered users and 420,000 products in Mexico, this division aims to professionalize the digital wholesale channel with benefits such as exclusive pricing, standardized invoicing, and financing through Mercado Pago.
Looking Ahead
Mercado Ads’ evolution reflects a broader trend: the convergence of creativity, commerce, and AI. Retail media is poised to be the central piece of the region’s advertising strategy.
“The future of advertising in Latin America hinges on three keys: automation, AI applied throughout the value chain, and deeper integration between creativity, commerce, and media,” concluded Jesús Moreno.
Key Questions and Answers
- What is the current state of digital marketing in Latin America’s advertising landscape? Digital marketing, or retail media, is rapidly growing and becoming one of the most effective solutions to connect investment with tangible business results.
- How does Mercado Ads leverage data and purchase intent? Mercado Ads uses its own data to capture navigation, purchase, and payment signals, enabling highly relevant audience building and measuring impact on brand and business metrics.
- What challenges do brands face in the current advertising landscape? Brands must balance performance and branding objectives while capturing increasingly informed and selective consumers’ attention.
- How does Mercado Ads address these challenges? By integrating both objectives into a single ecosystem, Mercado Ads leverages digital video consumption and Connected TV (CTV) integration to expand reach across home screens.
- What is Mercado Ads’ Extended Network? Launched in 2025, Extended Network allows display campaigns across more than 30,000 verified external websites and apps while maintaining full traceability.
- What success cases demonstrate Mercado Ads’ potential? Collaborations like those with Beiersdorf have shown significant increases in awareness, purchase intent, and brand love.
- What is Mercado Libre Negocios? A unit focused on B2B purchases for companies, entrepreneurs, and governments, aiming to professionalize the digital wholesale channel with exclusive pricing, standardized invoicing, and financing through Mercado Pago.
- What are the future trends in Latin American advertising? The future of advertising in Latin America relies on automation, AI throughout the value chain, and deeper integration between creativity, commerce, and media.
How has Mercado Ads engaged with the global advertising community? Mercado Ads participated as an official sponsor at Cannes Lions 2025, leading discussions on creativity, data, technology, and commerce convergence.
