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In Latam, the Internet is apparently expanding even more than we thought. Earlier this year we released a report using 2012 figures that indicated that Latin America had 232 million Internet users. But new figures from eMarketer indicated that by the end of 2013 Latin America will have 299.5 million Internet users. The region’s overall population is at around 598 million, suggesting that Internet penetration is now at 50%.
This represents massive growth compared to the previous decade. For instance, according to Venezuelan research firm Tendencias Digitales, in 2005 there were 78.5 million Internet users in Latin America, which indicates that the region’s Internet audience has nearly quadrupled in less than a decade.
According to eMarketer, by 2017 there will be 394 million Internet users in Latin America and overall Internet penetration of 63%. Social media seem to be the best way to reach these Internet users, since 7 of 10 Latam Internet users go on social networks at least once a month. By 2017 the social networking audience in Latin America will reach 324 million, estimates eMarketer. As we’ve discussed previously, Facebook leads the social media pack in Latin America, and beyond ads or promoted posts, a new tactic known as retargeting via Facebook Exchange seems to offer some potential for leveraging Facebook’s audience of 200 million Latin American users. That said, a number of newer social media sites offer potential for brands, as does mobile advertising, especially since mobile devices have become a popular way for Latin Americans to connect to social networks.
Turning Reach into Revenue
Of course, these numbers aren’t just market indicators for advertisers making plans for their digital investment in 2014. They are also important for web brands from the United States and the rest of the world: there is a huge, rapidly growing audience in Latin America for these brands—as long as they know how to reach them.
The quickest and most effective way to do this is by working with an experienced partner that has both the contacts and the know-how to spike regional revenues. To that end, we’re currently working on partnerships with a number of brands to help them turn their Latin American reach into Latin American revenues.
To find out more about how we can help advertisers optimize their digital investment in Latin America or help brands leverage their audiences in the region, please contact us.