future media buying

The Future of Media Buying in Latin America

This post is also available in: Spanish

While tech disruptions in the Latam media world may not move as fast as they do in other markets, there’s no question that changes are underway that will eventually impact our work in media buying and planning. To that end, below we highlight some developments that advertisers, marketers and media professionals in Latin America need to track.

#1: OTT Streaming
While over-the-top (OTT) streaming is far from huge in Latin America, in fall 2014 Netflix reported that it had 5 million subscribers in Latin America. HBO will launch an OTT service in the U.S. this year, and it’s possible that a Latin American launch of that service is not far behind. There are several challenges with OTT, such as measurement of viewership of shows and movies that are streamed, and as of yet Netflix does not sell ads. But with the rise in tablet sales in Latin America, the popularity of online videos in the region and the steady increase in smart TV sales, within the next few years media professionals may have to work OTT inventory onTV shows and movies into their planning.

#2: Programmatic TV Ad Buying
This is still in its infancy in large markets like the United States, but there is growth potential. The idea behind TV programmatic buying is not to buy the highest rated shows that reach your target audience, but to buy the target audience and have the ads run on shows watched by that audience. At this point, unlike with digital programmatic buying, advertisers cannot buy programmatic TV ads in real time. There’s also not a ton of inventory available as most networks have not embraced this approach. There is speculation that there could be an increase in 2015 in which 3% to 5% of TV ad inventory is bought programmatically—up from the 1% in 2014. That said, programmatic TV is another potential media buying disrupter that professionals need to be aware of.

#3 In-App Ads
It’s difficult to find data on app usage in Latin America, though we do know that Brazilian mobile users have an average of 7 apps on their phones and that 61% of mobile users in Latin American have downloaded WhatsApp. We also know that mobile adoption keeps steamrolling forward in Latin America, along with mobile Internet use.   On the advertising side, a recent study from MediaLets showed that in-app ads perform two times better than ads on the mobile web. Another study from InMobi showed that in-app ads performed nearly 2.8 times better than ads on the mobile web.  Given this, we could see more ad spend in Latin America move towards apps as opposed to the mobile web.

Please contact us to find out more how we can increase efficiencies for Latin American agencies through media services like planning or buying or via advertising technology solutions like programmatic buying.

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