eMarketer reports that Latin America might be the next interactive marketing frontier.

After years of economic instability, two years of growth in the region have contributed to broadband growth in the key markets of Latin America. The vast population centers of Mexico and Brazil serve as drivers for the entire region. Telmex in Mexico and Brasil Telecom both experienced broadband subscriber growth of over 80 percent in 2005. If relative regional stability continues, Latin America is likely to become an important player in the global digital landscape.

Ben Macklin, eMarketer senior analyst clarifies, "Several countries in Latin America are leapfrogging dial-up altogether, so the region's growth curve in broadband adoption may be far steeper than in the United States and other regions."

Argentina, Brazil, Chile and Mexico accounted for 79 percent of all Latin America's internet users as of 2005 and the number of internet users in all these countries is set for strong growth for at least the next five years.

Latin America still lags behind most regions in terms of the total number of internet users. 

 
However, growth rates are high in the key Latin American markets and, significantly, the rate of broadband adoption is exceptional for such a young internet population.

Online ad spending in Latin America is set to grow far more rapidly than traditional advertising. Another attractive aspect of the market is its demographics: Internet users in Latin America tend to be younger than the population as a whole, and are also more likely from middle or upper socioeconomic groups, a desirable demographic target online.

As in other regions, Latin Americans use the internet for email and communication-- especially instant messaging. This makes word-of-mouth and viral marketing important aspects of reaching online audiences here, be it in Spanish or Portuguese.

James Belcher is a senior analyst at eMarketer. This article is drawn from the new report Latin America Online. Contact eMarketer directly.