Author Archives: Fernando Gimenez

About Fernando Gimenez

Fernando Gimenez is the Country Manager, Mexico, for US Media Consulting.

Man With Smart Phone

The Data Every Latin American Digital Marketer Needs

With oceans of data floating around, all from different sources and sometimes conflicting, it’s key to be able to drill down to the essentials. So in this post we do exactly that with the Latin American online market. A quick scroll down will show you some key numbers you can use for background in preparing proposals or memos or for sharing with colleagues.

Market Size
Emarketer estimates there are 309 million Internet users in Latin America and that by the end of 2015 there will be more than 331 million. Here’s a look at eMarketer’s projections of Latin American Internet users with certain larger markets broken out (click to enlarge):

Internet users in Latam 2013 to 2018

Average CTR for Online Ads in Latin America
Even though comScore and other sources rightfully point out that CTR is not really the best measure for the effectiveness of online ads, just for reference, Sizmek reported the following:

  • Average CTR for a banner ad in Latin America: .12%
  • Average CTR for rich media ads in Latin America: .29%
  • Average CTR for rich media polite video formats: .48%
  • Average CTR for polite banners in Latin America: .15%
  • Average CTR for expandable banners in Latin America: .19%

Email Marketing
While we don’t have recent numbers for all of Latin America, in late 2012 Return Path—an email intelligence company—reported that Latin America had the lowest inbox placement rate of all regions studied: 69%. In September 2014 Return Path noted that Brazil had 60% inbox placement rate for emails, compared to rates of more than 80% in the U.S., Canada, U.K., France, Germany and Italy.

Mobile
According to eMarketer, 194 million Latin Americans access the Internet with mobile phones and of these 126 million do so via smartphones. By the end of 2015 there will be more than 152 million smartphone users in Latin America and Chile will lead the region in smartphone penetration with 55.5%.
While in 2015 Mexico will have the highest tablet penetration in Latin America at 35%, Brazil will have nearly 35 million tablet users in 2015 compared to just under 23 million in Mexico. Overall, by the end of 2015 more than 92 million Latin Americans will own tablets. Given that the Population Reference Bureau reports that the region has a population of 618 million, this means that there will be nearly 15% tablet penetration in Latin America by the end of 2015. Below are some data tables from eMarketer on smartphone penetration and tablet penetration in Latam (click to enlarge):

smartphone penetration latam

tablet penetration Latam
Smartphone Shopping
According to a 2014 study from ING Global Solutions, 54% of Latin Americans have bought a product with their smartphones (click to enlarge):

Smartphone shopping

Online Videos
A couple of sources offer guidance in this regard. The Digilats study from JWT surveyed more than 9,000 Latin American Internet users from 9 countries and found that 67% said they watched online videos (click to enlarge):

Latam study streaming and other online activities
ComScore has a different set of numbers (click to enlarge):

Online video viewers Latam

Now, it’s important to note that comScore lists a smaller amount of Internet users for countries than other sources. For example, if we extrapolate out the numbers above, it would seem that comScore is reporting a total of 75 million Internet users in Brazil, while both IBOPE and eMarketer indicate that their more than 100 million Brazilian Internet users.

In addition, data from Google and TNS indicates that Internet users in Brazil watch online video ads more frequently than those in Argentina or Mexico. In fact, 36% of Brazilian Internet users say they watch online video ads every day. Brazilians are also more likely than other Latin Americans to watch mobile video: 35% of Brazilian smartphone users watch mobile online videos at least daily, compared to 25% of Mexican smartphone users and 19% of Argentine smartphone users.

Online Reviews
The Digilats study of Latin American Internet users by JWT indicated that significant percentages of Latin Americans are reading online reviews of products (click to enlarge):

Digilats product review

Online Research Before Purchase
A recent eCMetrics study of Christmas shoppers in Latin America showed that a majority of Latin Americans tend to research products online before purchasing, including reading product reviews. This dovetails with results from other studies. For example, the Consumer Barometer study from TNS and Google showed that 47% of Argentines researched their last purchase online and offline while 53% of Brazilians AND 53% of Mexicans reported doing the same thing.  In addition, the JWT Digilats study showed the products that Latin American Internet users were most likely to search online (click to enlarge):

Products researched online latam

Social Media
It’s fairly obvious that this is a huge area with Latin American Internet users. Some of the key takeaways with this would be:

>>>Latin Americans spend more time on social media than people from any other region (click to enlarge):

social media engagement latam

 

>>>The overwhelming majority of the time that Latin Americans spend on social media is spent on Facebook (click to enlarge):

Facebook dominance Latam

>>>Mobile is increasingly becoming an important way for Latin Americans to access social media (click to enlarge):

mobile social media users in latam

Contact us to find out more how we can help you reach Latin American Internet users with digital media buying or via MediaDesk, Latin America’s premier programmatic buying platform.

7 facts Mexico internet users

7 Surprising Facts about Mexican Internet Users

Recent research from the World Internet Project offers an in-depth look at Mexican Internet users. This analysis included some unexpected revelations about this audience, and we decided to break down some of the main ones to help media, marketing and advertising professionals develop their future online campaigns in Mexico.

#1 Massive Growth
The World Internet Project reported that there are 59 million Internet users in Mexico, significantly more than the 52 million reported by IAB Mexico in July 2013 and the 45 million indicated by Asociación Mexicana del Internet in May 2013. With a total population of 118 million in Mexico, this means that Internet penetration in Mexico is at 50%, a rate comparable with that of Brazil, Latam’s #1 Internet market in terms of users. In addition, the country seems on track to exceed the 65 million mark of Internet users that was projected for 2015 by the Latin America & Caribbean Network Information Centre.
Taking advantage: Given this rapid expansion of the Internet audience in Mexico, brands clearly should increase their online ad investment. Beyond targeted buys on premium sites, programmatic buys may also be a good solution for reaching this massive audience.

#2 Targeting Teens
The largest age group among Mexican Internet users is 12 to 18. Teens make up 24% of Mexico’s Internet users and total 14.3 million. This is significant for advertisers since studies show that 41% of Mexico’s teens have jobs. Nearly half (49%) spend most of their income on food and drinks for their homes since many are highly involved in helping to support their families.
Taking advantage: Investing more in online when promoting a product that is a strong fit for this demographic, including gaming, acne medications, etc.

#3 Changing Classes
While Internet penetration was virtually unchanged between 2012 and 2013 for ABC+ and C Típico classes in Mexico, the D+ class showed a 7% increase in Internet penetration between 2012 and 2013.
In fact, while classes ABC+ are still the largest socioeconomic group among Mexican Internet users in terms of sheer numbers (17.4 million), D+ has become the largest group from a percentage standpoint: 36% of Mexican Internet users are from this socioeconomic class. In contrast, 27% are from classes ABC+, 19% are from Class C Típico and 17% are from class D-.
Taking advantage: Brands should evaluate the fit between a their products and Class D+ and explore using online campaigns to target this segment if the fit is there.

#4 Make It Mobile
In 2012, only 34% of Mexicans reported using their cell phones to go online. But in 2013 more than 6 out of 10 Mexican Internet users (64%) said that they use cell phones to go online.
Taking advantage: Besides creating mobile-friendly landing pages and sites, adding a strong mobile component to all online ad campaigns in Mexico.

#5 More Time Online
One advantage in targeting Mexican Internet users is the huge amount of time they spend using the medium. According to World Internet Project, Mexican Internet users average 41 hours a week online, nearly 6 hours a day. In contrast, Mexican Internet users only spend 13 hours a week watching TV, 14 hours listening to the radio and 3 hours a week reading newspapers.
Taking advantage: Weighing ad investments targeting the Mexican online audience according to their clear preference for the Internet above all other media.

#6 Multitasking
The study results show more multiscreen use among Mexican Internet users than ever before. More than 4 of 10 (43%) always perform another activity while watching TV, and the two most popular activities are surfing the Internet with a cell phone and going on social media. Mexican Internet users also report going on social media as the #1 activity they engage in while using their cell phones or listening the radio.
Taking advantage: Explore Shazam’s advertising solutions because they integrate TV, social media and mobile.

#7 Social Media Rules
Not surprisingly, the study shows how social media have become the prime reason that Mexicans go online, following a similar pattern that exists in the United States, Europe and the rest of Latin America. Except for using the Internet to make or receive phone calls, other online activities that were once popular have gone down in popularity, including checking email, instant messaging and chatting in forums. In addition, 45% of Mexican Internet users follow a brand on social media and the most popular reason for doing this is to get discounts.
Taking advantage: Brands can try tests with Facebook retargeting to take advantage of the dominance of this social site, as well as ad campaigns using sponsored posts and other options.

To find out more about how we can help you take advantage of these developments in Mexico’s Internet audience via our range of targeted solutions, please contact us.