$MELI Could Replicate Amazon's Advertising Success Story

$MercadoLibre(MELI)$ e-com platform was used by 121M buyers in 2025.

From 2020 to 2025, advertising revenue grew more than tenfold to $1.55B.

However, that's still only 2% of all that customers spend on the platform, $MELI collects as ad revenue from merchants.

There is a massive opportunity to grow advertising revenues as $MELI:

1) Gains new active buyers

2) Releases new advertising products

3) Increases prices of existing advertising

4) Increases conversions with AI

Investors need to understand that eyeballs are one of the most valuable assets in the world. 👪

But not all eyeballs are created equal as advertisers seek buyers who are the most likely to purchase the exact product they are selling.

In advertising, these are called high-intent customers.

$MELI users are some of the highest-intent customers available! 💸 🛒

Imagine that you are shopping in the local supermarket.

As you select groceries, you see a poster promoting a certain cheese brand. In another aisle, there is a poster advertising a chocolate bar. In this scenario, you are a high-intent customer.

As with your mere presence in the supermarket, you have indicated readiness to spend money and it’s much easier to convince you to spend more. That’s the objective of all the posters in the supermarket.

$MELI platform is a digital supermarket full of high-intent customers.

People searching for TVs are interested in purchasing a TV. Additionally, there is a higher probability that a customer who just bought a TV is also looking for a sound system. Higher purchase intent enables $MELI to charge a higher price for this targeted ad space.