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IAB Mexico and its partners, along with PricewaterhouseCoopers, worked with major online media and advertisers to analyze online ad spend in Mexico for 2011.
As happened with many other markets in Latin America, online ad spend in Mexico went up by 36% in 2011 to reach 4.624 billion pesos (US$343 million). Online ad spend has been showing a steady, strong increase in Mexico for several years and has quadrupled since 2007, when it was 1 billion pesos.
Where Online Spend Goes
In the Mexico market, 60% of the online ad spend in 2011 was for display advertising, with 28% for search and 12% for classified ads. Display ads have gone up 31% in the past 3 years and classified ads have increased by 19%. Ad networks have an 11% share of online ad spend in Mexico.
Where the Online Ad Spend Comes from
In Mexico, media agencies do the buying for 66% of online campaigns, while in 34% of the online campaigns the advertisers buy directly. The trend in Mexico for the past few years has been for agencies to handle more and more of the media buying: in 2007 they did only 41% of the media buys for online campaigns while 59% of the buys were direct.
What Kind of Campaigns are Run
In 2011, 83% of online campaigns in Mexico were on a cost per thousand (CPM) or sponsorship basis, with 12% being cost per click (CPC) or cost per acquisition (5%).
Static and rotating display account for 40% of online ad formats in Mexico, with pop-ups and take-overs accounting for 22% and sponsorships accounting for 5%.
Strong Growth in Different Areas
Mexico’s advertisers are clearly noting the reach and popularity of social media and online video. Ad spend in social media went up by 164% in 2011 and it surged up by 26% with online videos. Both make sense for advertisers, especially since comScore and the Asociación Mexicana de Internet (AMIPCI) have reported that social media have a penetration rate of over 90% among Mexico’s Internet users. In addition, comScore indicated in 2011 that Mexico had the highest consumption of online videos in Latin America.
Top Online Advertisers in Mexico in 2011
There wasn’t one particularly industry that was particularly dominant in Mexico’s online ad spend in 2011. For instance, the automotive sector accounted for the largest amount of the total online ad spend in the country: 11%. Financial services came in second (10%), media was third (9%), government services and telecommunications were tied for fourth place (8%) and technology and retail were in fifth place with 7% each.
However, although these industries didn’t make up a huge overall part of the 2011 online ad spend in Mexico, their investment in online has gone up hugely. For example, since 2007 online ad spend by the auto industry has gone up by 105%. Online ad spend by the financial services industry has shot up by 172% since 2007 and online ad spend by government services went up by 101% in that time period.
In terms of brands, IAB Mexico listed a number of them as top online advertisers during 2011, such as Banamex, GM, Netflix, Telmex, Microsoft, Visit Mexico, Coca-Cola and Clickonero.