This post is also available in: Spanish
Internet advertising is clearly successful in Latin America, but often it’s based on typical profiles of target audiences that visit certain sites. In other words, if your target is men aged 18-34 in Brazil, you buy impressions on web sites whose visitors fit this profile.
But you don’t know if that target knows and is interested in your product.
What if you did know this? What if you knew for a fact which Internet users in Brazil and the rest of Latin America had shown interest in your product? And what if you could reach just those Internet users with your ad? And if your ad could be optimized so that only the best-performing version would be shown to the Internet users you know are interested in your products?
This is all possible through retargeting on Facebook Exchange, a service that’s now available for advertisers targeting Latin America.
What is Facebook Exchange?
Launched in September 2012, Facebook Exchange is a platform that makes available part of Facebook’s social ad inventory. But Facebook Exchange is not open access for anyone like Google AdWords—less than 20 demand side platforms (DSPs) in the world have access to Facebook Exchange. Basically, the clients of these particular DSPs can purchase impressions on Facebook Exchange, and they do it via a real-time bidding (RTB) system, with the market setting the price of impressions of different target audiences.
Precision Targeting via Triggit
US Media Consulting has partnered with Triggit, one of the DSPs that has access to Facebook Exchange. What sets Triggit apart is its dynamic creative optimization technology. Dynamic creative optimization generates the ads in Facebook that the users see and also measures which of these ads deliver the best response. Based on this data, future users only see the ads which have performed the best.
How It Works
Triggit’s software is installed on an e-commerce or travel site and tracks the specific products that each user looks at—but doesn’t buy—when navigating the site. So let’s assume that Rolando from Argentina visits an e-commerce site and looks at a brand of sneaker without buying it. Then later that day he goes into Facebook to check status updates from friends. When he does, he’ll see an ad for that same sneaker brand. In fact, that ad may even offer a special discount for those sneakers. The result? Rolando is a lot more likely to click on that ad…and buy that product. How much more likely? Initial results indicate that CTRs for these types of ads are 8 times higher than a regular banner—and that conversion rates are 10 times higher.
Below we offer some screenshots that show how the process works.
#1 The user views the product on an e-commerce site without buying it.
#2 Later, upon entering Facebook, the user sees an ad for the same product he or she viewed earlier.
What This Means for Latin America
Retargeting via Facebook Exchange is a major development for Latin America for three major reasons.
First, e-commerce is growing spectacularly in the region. According to a study by América Economía and Visa, e-commerce sales in Latin America will grow by 28% in 2013. Key individual markets with powerful growth include Brazil (24% projected growth for 2013), México (30% projected growth for 2013), Peru (20% in 2013) and Argentina (45% in 2013). Chile’s e-commerce growth in 2013 is projected to be around 15%, on top of 20% growth in 2012. While no 2013 e-commerce projections are available yet for Colombia, the country’s e-commerce sales grew from US$1.4 billion in 2011 to more than US$2 billion in 2012.
Second, Facebook rules social media in Latin America. Before discussing Facebook, it’s key to recognize social media’s immense popularity in Latin America: it’s the #2 most popular activity among Internet users (after search) and 5 of the top 10 countries in social media usage are from Latin America.
In other words, if you’re not including social in a campaign to reach Latin American Internet users, you are missing a gigantic opportunity. And if you do plan on including social, Facebook is by far the best choice. The numbers show why: in August 2013, Facebook reported that it had 200 million users in Latin America. More importantly, comScore indicated in its Futuro Digital report that Facebook takes up 94% of the time that Latin Americans spend on social media.
Third, online travel sales have taken off in Latin America. According to a recent study from Barclays Capital, Latin America will lead all world regions in online travel sales growth through 2016. Online travel sales in Latin America will grow by 30% in 2013, by 25% in 2014, by 20% in 2015 and by 18% in 2016. In addition, this year Latin America will surpass the Asia Pacific region in terms of online travel sales as a percentage of the total, 26.8% vs. 26.6%. By 2016, online will represent 39% of the total travel sales in Latin America, not far the 53.9% projected for the United States.
So overall, it’s clear that the surging e-commerce and e-travel firms in Latin America now have a unique, powerful tool to grow their sales even further via the strategic use of the region’s most popular social media site.
The next step? Contact us to see how we can help you leverage retargeting in Facebook Exchange to spike your sales.