Author Archives: Jesús Benítez@US Media Consulting

About Jesús Benítez@US Media Consulting

Jesús is the Ad Sales Director & Country Manager for México for US Media Consulting.

Mexico smartphones

Mexico Becomes Latin America’s #1 Mobile Market

A new report from eMarketer indicates that smartphone use in Mexico grew by nearly 50% in 2013 and that in 2014 there will be more than 6 million new smartphone users in Mexico. This surge means that there will be a total of 33.3 million Mexican smartphone users in 2014. Given Mexico’s current population of 117 million, this means that smartphone users now make up 28% of the population. Mexico now leads Latin America in smartphone penetration, since smartphone penetration in Brazil is at 23%, at 19% in Chile, at 17% in Peru and at 20% in Argentina.

When you couple this increasing smartphone penetration with comScore showing that Mexico leads Latin America in Internet traffic from mobile devices and in tablet adoption/usage, it’s no surprise that marketers in Mexico are investing more in mobile advertising. In fact, eMarketer projects that in 2014 mobile ad investment in Mexico will increase by 87% to reach US$173 million. In Mexico, mobile represents 19% of the total digital ad spend. This is much higher than the rest of Latin America, in which mobile represents just 6.5% of digital ad spend. For further comparison, in more mature markets like the United States—where smartphone penetration recently reached 65%—mobile accounted for nearly 30% of digital ad spend in 2013.

To find out more about how we can help you reach Mexico’s 33 million smartphone users via a strategic mobile ad campaign or Mexico’s 50 million Internet users through an online campaign, please contact us.

4 Keys to Reaching Internet Users in Mexico

Recently, IAB Mexico reported that there are 52 million Internet users in Mexico, a higher figure than the 45 million reported earlier this year by Asociación Mexicana del Internet (AMIPCI). Regardless of the figure we use in developing proposals and presentations, it’s clear that the #2 online market in Latin American is posting strong growth and offers strong opportunities for marketers and advertisers.

We recently reviewed data from comScore and other reputable sources with an eye towards offering our industry colleagues some applied solutions based on this intelligence.

Go Social
According to comScore’s Futuro Digital Mexico 2013 report, social media take up nearly 6 hours a month of the time that average Mexican Internet user spends online. This is the #1 site category in terms of time spent online in Mexico, nearly double the #2 category, entertainment, which takes up a little more than 3 hours of the time spent online by the average Mexican internautas each month. The other 2 Web site categories that occupy a significant portion of time online for Mexican Internet users are services (2.45 hours per user per month) and portals (1.65 hours per user per month).

Favor Facebook
A number of social media sites have posted impressive growth in Mexico between 2012 and 2013, including ask.fm (5056% increase in unique users), expresate.com (346%), Quizlet (219%), Neodata (207%) and Pinterest (127%). However, comScore data indicates that Facebook takes up 94.6% of the time that Mexicans spend on social media, with the remaining 5.4% being split by Twitter (0.6%), LinkedIn  (0.4%), Badoo (0.4%), Tumblr (0.9%), Ask.fm (1.5%) and other sites (1.5%).
Given these numbers, a Facebook campaign seems to offer the greatest possibilities of reaching Mexican Internet users. Beyond typical banner advertising, retargeting via Facebook Exchange may offer some intriguing potential for e-commerce and e-travel sites, especially since e-commerce is growing strongly in Mexico.

Mobilize
According to comScore, nearly 14% of page views from Mexico’s online traffic come from mobile devices. This is significantly higher than the percentages listed for Chile (11%), Argentina (7%) and Brazil (6.5%). Mexico’s percentage of page views from mobile devices is also much higher than Latin America’s overall percentage (8%) and not far behind the percentage of the United States (22%) and the UK (22%).
For targeting purposes by operating system, it’s important to note that comScore shows Android accounting for 47% of mobile traffic in Mexico, followed by 32% for iOS and 12% for other types of OS and nearly 4% for Blackberry. That said, Kantar Worldpanel has indicated that Android has a 62% market share compared to just 11% for the nearest competitor, Blackberry.

Segment Strategically
Recently IAB Mexico has produced some excellent research into key segments of Mexico’s Internet users, including executives, teens and digital moms. Below we break down some of the important data points to take into account when targeting these segments:

TEENS

  • Demographics: Ages 13-18; 68% male, 32% female, 52% belong to classes ABC, 20% to Class C and 28% to classes CDE
  • Top devices to go online: laptop (65%), PC (41%), smartphone (34%), cellphone (31%), videogame console (28%)
  • Overall, 64% of Mexican teens use mobile devices go online
  • Average connection time for Mexican teen Internet users: 4 hours, 9 minutes
  • Top web page types for obtaining information: social media (85%), search (78%), email (36%), online encyclopedias (33%), blogs (19%)
  • Photo/video sharing: 84% upload photos, 45% upload videos
  • 86% of Mexican teens are on social media and they belong to an average of 3.6 social media sites
  • 61% of Mexican teens follow brands on social media and 30% have written about brands or services
  • Top 3 reasons Mexican teens follow brands on social media: updates about brands (83%), relevant info on pages (58%), promotions and discounts (55%)
  • Most popular social media sites for Mexican teens: Facebook (98%), Twitter (69%), Hi5 (37%), Google+ (37%) and MySpace (30%)
  • 74% of Mexican teens stop to look at online ads either sometimes or all the time
  • Top ad-related activities by Mexican teens: use search sites to find information about brands (66%), visit brand web sites (55%), download apps from brands (43%), participate in contests (43%) and play games from brands (35%)
  • 35% of Mexican teens make purchases or payments online

EXECUTIVES

  • Demographics: 58% female, 42% male, 45% from classes ABC, 25% from Class C and 29% from classes CDE, with an average age of 37
  • Top online daily activities for Mexican executives: check email (73%), watch videos online (65%), listen to online radio (50%), download videos (43%) and read news (40%)
  • While online, 6 out of 10 Mexican executives send/receive email, download music or videos, watch videos online or go on social media
  • 67% of Mexican executives have visited a blog in the past week
  • Top sources of online info about topics of interest: social media sites (86%), search engines (66%), portals (54%) and online newspapers (33%)
  • 85% of Mexican executives are registered on social media sites and they are registered on an average of 3
  • Top social media sites for Mexican executives: Facebook (94%), Twitter (57%), Hi5 (38%) and Myspace (20%)
  • 85% of Mexican executives stop to look at online advertising
  • The top types of sites where Internet ads grab the attention of Mexican executives: social media sites (60%), search engines (41%), email sites (32%), Internet portals (25%) and blogs (8%)
  • Top ad-related activities by Mexican executives: use search sites to find out brand information (60%), visite a brand’s website (50%), read info about brands on blog sites (50%), download apps from brands (40%)
  • 77% of Mexican executives are willing to receive ads on their mobile phones in exchange for free content
  • 68% of Mexican executives make online purchases or payments

DIGITAL MOMS

  • Demographics: 43% are classes ABC+, 35% are Class C and 22% are classes CDE, with an average age of 34
  • 97% of Mexican digital moms own mobile devices and 83% go online using mobile devices
  • Most popular devices to go online: for digital Mexican moms, these are laptops (72%), smartphones (53%), PCs (50%), cellphones (42%) and tablets (26%)
  • Preferred online content of Mexican digital moms: short videos (71%), music videos (65%), movies (47%), news (46%), concerts (37%), documentaries (36%) and cartoons (29%)
  • Top sources of online info about topics of interest: search engines (82%), social media sites (77%), email (46%), online encyclopedias (39%) and portals (31%)
  • 93% of Mexican digital moms are on social media sites and they belong to an average of 2.74 social media sites
  • Top social media sites for Mexican digital moms: Facebook (97%), Twitter (48%), Hi5 (35%) and Myspace (24%)
  • Nearly half (47%) of Mexican digital moms follow brands on social media
  • 84% of Mexican digital moms stop to look at online ads
  • Top ad-related activities by Mexican digital moms: use search sites to find out brand information (69%), visit a brand’s website (69%), click on Internet ads (58%), participate in online contests (55%) read info about brands on blog sites (50%)
  • 76% of Mexican digital moms make online purchases or payments

To find out how we can help you reach Mexican Internet users from any type of segment, please contact us.

Mexico Internet

6 of the Hottest Online Trends in Mexico

According to the Asociación Mexicana de Internet (AMIPCI), there are 45 million Internet users in Mexico. The #2 online market in all of Latin America—second only to Brazil—shows no signs of slowing down. After reviewing the data from recent studies, we’ve identified a number of key trends that professionals in marketing, media and advertising should focus on.

#1 Internet ad spend continues growing strongly. In June 2013 IAB México announced that online ad spend in Mexico had increased by 38% in 2012, from 4.6 billion pesos (US$350 million) in 2011 to 6.3 billion (US$479 billion) in 2012. Overall, since 2008 online ad spend in Mexico has increased by nearly 150%. While no ad spend figures are yet available for 2012, in 2011 Internet took up 7% of the ad spend in Mexico, a percentage higher than that of magazines (3%) and very close to newspapers (8%), out of home (8%) and radio (9%).

#2 E-commerce continues powerful growth in Mexico. According to AMIPCI, e-commerce grew by 46% in 2012 to reach nearly 80 billion pesos (US$6 billion). In 2008, these sales totaled just under 20 million pesos—meaning that e-commerce in Mexico has quadrupled over the past 4 years. Also of note is that in 2012, the months with the highest volume of online sales in Mexico were August, November and December.

#3 A massive mobile market is emerging. According to Ericsson, by 2018 Mexico will have more than 150 million active mobile subscriptions.  These projections are likely to be driven by surging sales in smartphones (16 million expected to be sold in 2013) and tablets (2.2 million expected to be sold in 2013) and significant gains in mobile broadband adoption. In fact, for the first trimester of 2013, the Comisión Federal de Telecomunicaciones reported an increase of 39% in mobile broadband connections in Mexico.
Looking forward, eMarketer recently estimated that there is 22.6% smartphone penetration in Mexico and that it will reach 43.6% by 2017. In addition, recent data from Ipsos OTX indicates that 48% of Mexican Internet users would prefer to make payments with a smartphone or tablet instead of using their wallets—this was a higher rate of interest than Internet users in Argentina, Brazil, Canada and even the United States.

#4 Online video maintains powerful reach in Mexico. Recent data from comScore indicates that 81% of Mexican Internet users watch online videos. That’s a potential audience of 36 million that advertisers can reach through this cost-efficient, effective solution. Despite this, eMarketer observes that there is a puzzling gap between the audience and the advertising: only 2% of online advertising spend in Mexico is directed toward videos. This discrepancy can well offer an impactful way for brands to connect with audiences—before this practice becomes commonplace and the field gets crowded.

#5 Internet activity is highest during the week. According to the AMIPCI study, 82% of Mexican Internet users connect on Mondays, 77% on Tuesdays, 80% on Wednesdays, 77% on Thursdays and 85% on Fridays. In contrast, only 62% of Mexican Internet users go online on Saturdays and only 47% connect to the Internet on Sundays.

#6 Social media engagement remains high. AMIPCI’s results indicate that 93% of Mexican Internet users report using at least one social network and when asked to rank their main online activities, 82% of the internautas said that going on social media is one of them. Only searching for information (84%) and sending/receiving emails (87%) ranked higher.
Not surprisingly, Facebook has the deepest reach among social sites in Mexico (82%), followed by Blogger with 42% reach and 12.1 million unique users in May 2013. Among the social sites with strong recent growth in Mexico are ask.fm (a massive 10,000% growth since May 2012), Pinterest (124% growth since May 2012), Tumblr (107% growth since May 2012) and LinkedIn (88% growth since June 2012).

To find out how we can help you reach Mexican consumers via media campaigns of all types, please contact us.

4 of the Biggest Myths about Online Advertising in Mexico

There are a number of false beliefs when it comes to digital advertising in Mexico that we have observed over the years. Here we highlight 4 of the main ones and explain the truth of the matter.

Myth #1: Internet Isn’t a Strong Medium in Mexico
While Internet penetration in Mexico (40%) isn’t nearly as strong as it is in the United States (78%), according to eMarketer, Mexico has 46 million Internet users. In Latin America only Brazil (89 million) has more Internet users. In fact, according to InternetWorldStats, Mexico is the world’s #12 Internet market and by 2015 Mexico is projected to have 65 million Internet users, more than France or the United Kingdom.

Myth #2: Online Advertising Isn’t Very Effective in Mexico
A recent study from IAB México—done in partnership with Millward Brown and Televisa.com—showed that 77% of Mexican Internet users stop to look at online advertising. In addition, 41% of internet users in Mexico indicate that they click on online advertising banners.

Myth #3: Social Media Have Little Influence on Purchase Decisions in Mexico
In the IAB Mexico study, 50% of Mexican Internet users indicated that the comments made on social media sites influence their opinions about brands. In addition, nearly half (48%) of internet users in Mexico follow brands on social media and 31% have written comments about brands on social media sites.

Myth #4: Mobile Advertising Offers Few Benefits to Advertisers in Mexico
According to consulting firm IDC, 16 million smartphones will be sold in Mexico in 2013, a significant increase compared to the 12 million sold in 2012. Mexicans will also buy more than 2 million tablets in 2013: this represents a gigantic increase of 986% compared with 2010, when they bought only 184,000 tablets.
And according to the results from the IAB Mexico study, in 2012 50% of Mexican Internet users were using smartphones to go online, compared to just 33% in 2011. Also in 2012, 19% of Mexican Internet users reported using their tablets to connect to the Internet, compared to just 7% in 2011. Finally, according to Hunt Mobile Ads, the average CTR of mobile ads in Mexico is .56% while MediaMind has reported an average CTR of 0.15% for a standard Internet banner in Mexico. Together, these data points indicate clearly that mobile advertising offers a great deal of potential for advertisers who wish to reach Mexican Internet users.

To find out how we can help you Mexicans or Latin Americans in general via Internet or any other type of media, please contact us.

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4 groups clave

How to Reach the 4 Top Segments of Internet Users in Mexico

The Estudio de consumo de medios entre internautas mexicanos (Study of Media Consumption Among Mexican Internet Users) was recently published by IAB México, Millward Brown and Televisa.com. Beyond highlighting important tendencies among Mexican Internet users, this study also identified several key segments in the country’s online audience. Among them were:

  1. Executives: middle and upper management at firms.
  2. Teens: Defined as Internet users between 13 and 18, at 25% this is the largest subgroup among México’s Internet users.
  3. Digital moms: women with children aged o to 12.
  4. Heavy users: people who use the Internet more than 5 hours a day and who find the medium to be indispensable.


Connection Keys
Reaching these different segments is a matter of matching each one with the right media. Here’s how to do it.

EXECUTIVES>>>Not surprisingly, this segment reads business news. US Media Consulting represents The Wall Street Journal in Latin America and this site has good reach with Mexican executives (113,000 unique monthly users). In addition, we work closely with many other online business media in the region, including CNNExpansion (695,000 uniques per month) Bloomberg (101,000 uniques per month), Forbes (132,000 uniques per month), El Economista (328,000 uniques per month), Reuters (204,000 uniques per month), AOL Money (103,000 uniques per month) e International Business Times (143,000 uniques per month): in other words, 9 out of the 10 top finance news sites in México.
As such, we can create an effective campaign with very competitive rates to reach the executive segment of Mexico’s Internet users.

HEAVY USERS>>>This segment not only spends lots of time online but also is very aware of the continual changes in the tech world. This means that this segment spends a lot of time on tech sites. US Media Consulting Works directly with some of the top tech sites in México, including CNET, NetShelter, IDG and Kioskea. As such, we can put together a very effective campaign with highly competitive rates to reach the heavy users segment of Mexican Internet users.
Now, beyond just tech sites, it’s important to note that this IAB México study indicates that heavy users have a greater tendency to go online with smartphones than the average Mexican Internet user. In addition, the study points out that heavy users also have a tendency to watch online videos. As such, to reach this segment of Mexican Internet users we would also recommend a mobile ad campaign on Jumba Mobile Network—a mobile ad network we operate that has more than 150 mobile sites—and another on Jumba Video Network, an ad network focused on online video Web sites.

DIGITAL MOMS>>>This segment tends to favor lifestyle sites to read about topics like family, home, beauty, fashion, etc. In addition, according to study results, this segment also tends to watch TV shows online more than other Internet users in Mexico. US Media Consulting has worked extensively with various web sites with a significant female audience in Mexico, including Enfemenino.com (2.2 unique monthly users), Glam Media’s sites (3.5 million uniques/month), as well as with Web sites with TV shows like tv.com, the insider.com and more.
As such, we can create an effective campaign with highly competitive rates to reach the digital moms segment of Mexican Internet users.

TEENS>>>This segment stands out because of its predilection for online games and for listening to music online. US Media Consulting works extensively with various game sites with strong audiences in Latin America, among them Gamespot and IGN. In addition, US Media Consulting represents last.fm—which has more than 668,000 uniques in Mexico—and also works with a number of other top sites, including Grooveshark (569,000 monthly uniques) and Metrolyrics (620,000 monthly uniques).
As such, we can create an effective campaign with highly competitive rates to reach the teens segment of Internet users in Mexico.

To find out how we can help you reach Internet users in Mexico or in any other market in Latin America, please contact us.

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mexico phone

42 Insights into Mexican Mobile Users

While we’ve received some good data on mobile device use in Mexico from Google’s Our Mobile Planet study and from the Asociación Mexicana de Internet (AMIPCI), IAB Mexico’s most recent study seems to be the largest thus far on the country’s mobile users.

After reviewing the study, we’ve identified some of the key findings to help advertisers, marketers and media professionals better target this audience.

Activities
Mexican mobile device users carry out 4 main types of activities with their mobile devices:

  • 91% use them for basic activities (calls, texting, scheduling, setting an alarm)
  • 70% use them for entertainment activities (watching videos, listening to music, taking photos, playing games)
  • 38% use them for Internet-related activities (search, surf, social media, chat, email)
  • 21% use them for specialized activities (read news, look at files, bank transactions)

Time
Not surprisingly, Mexican mobile device users who go online with their devices tend to spend more time using their devices, since they report that, on average, Internet-related activities take up more time than basic activities. In addition, the device owners who use them to connect to the Internet spend more time using their phones in general, even for offline activities like taking photos, listening to MP3 music files and texting.

Mobile Ads
Nearly half (49%) of Mexican mobile device users receive ads on their devices. This relatively low percentage should change quickly as both smartphones and tablets deepen their penetration in the Mexican market. And this deeper penetration is indeed happening: smartphone sales in Mexico went up by 26% in the first quarter of 2012 and it’s projected that Mexicans will buy 1.5 million tablets in 2012.

Mobile Ad Recall
While 73% of Mexican mobile device users recall SMS message ads, other types of ads have low recall, including email ads (16%), social media ads (13%), mobile Internet portal ads (12%), app ads (7%), MMS message ads (6%).

Types of Ads Recalled

  • 43% content, i.e. ringtones and games
  • 27% telecommunications
  • 19% travel/tourism
  • 18% health/beauty

Ad Interaction
Of the 49% of Mexican mobile users who receive ads on their devices, 88% report seeing them but much smaller percentages report interacting with these ads, such as by clicking on them (8%), registering (5%) or purchasing  through them (3%).

Ad Interest
Over 65% of Mexican mobile device users say they would like to receive ads on their devices in exchange for some type of benefit. The most popular benefit include more minutes (83%), gifts like movie tickets, trips or subscriptions (44%), free texting (43%) and exclusive discounts (25%)

Mobile Promotions
14% of users have participated in a promotion via their cell phones, including trivia contests (30%), sending a certain number of texts to win a content (28%), trading accumulated points (19%) and data transfer (8%).

 

TRENDS AMONG INTERNET USERS
Mexican mobile device users who go online with their phones are a particularly interesting segment of the country’s mobile audience. As smartphone and tablet adoption keep rising in Mexico, before long this will become the dominant segment of consumers in the country’s mobile market.

As such, here are some pertinent facts about this segment to keep in mind:

Activities
The top activities among Mexican mobile devices users who go online with their devices are:

  • Send texts (70%)
  • Take photos (67%)
  • Listen to music (61%)
  • Play games (52%)
  • Go on social media (52%)

Time
This segment of mobile device users also spends an average of 3 hours a day online with their devices. Since the average Mexican Internet user spends 4 hours and 11 minutes a day on the Internet, this suggests that Mexican mobile device users are using mobile devices for 75% of their daily online time.

GPS
44% of Mexican mobile users who go online with their devices have used a GPS, with 80% of them reporting they use Google maps.

Apps
66% of Mexican mobile users who go online with their devices have downloaded apps during the past year. These users have downloaded an average of 3 apps in the past 6 months and use all of them. The top types of apps downloaded recently by these Mexican mobile device users include Facebook (41%), games (20%) Messenger (15%), Twitter (15%) and Angry Birds (15%).
To find out how we can help you reach mobile users in Mexico or all over Latin America via a strategically targeted campaign, please contact us.

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Targeting Mexico’s Internet Users

Recently comScore released its newest study of Mexico’s Internet users, entitled Futuro Digital—México 2012. We analyzed it to break out key takeaways to help digital marketers, advertisers and media professionals target this huge audience of Internet users even more effectively.

Skewing Younger
Nearly 38% of Mexico’s Internet users are between 15 and 24, with another 24.6% being 25-34. Nearly 20% of Mexican Internet users are 35-44. In addition, of all the time spent online by Mexico’s Internet users, nearly half (44.6%) is spent by users aged 15-24. As such, products that skew young—such as tech devices, games, energy drinks, movies and more—are a good fit for an online campaign in Mexico.

Hot Categories
Certain kinds of sites are more likely to draw Mexican Internet users than others. Here’s a look at the top types in terms of reach.

• News sites: 97% reach in Mexico, 80% globally
• Multimedia sites: 96% reach in Mexico, 78% reach globally
• Community sites: 92% reach in Mexico, 72% globally
• Blogs: 82% reach in Mexico, 58% globally
• Games: 72% reach in Mexico, 58% globally

Social Media
Mexico ranks among the top 5 countries in the world in terms of time spent on social media. Each social site visitor in Mexico spends an average of 8.3 hours per month on social media. The only Latin Americans more engaged with social media than Mexicans are Argentines, who average 10.4 hours per month per user on social sites.
Facebook draws the most Mexican Internet users. It has 90% penetration in Mexico and grew by 25% in visitors between June 2011 and June 2012. While other social sites don’t draw nearly the same amount of visitors as Facebook, a number are growing well in Mexico. Between June 2011 and June 2012, LinkedIn grew by 399% in Mexico, Tumblr grew by 277%, Scribd by 74%, Deviant Art by 50% and Twitter by 46%. Both Badoo and Sonico posted significant drops in the same period: 44% and 45%, respectively, as did MySpace, which drop by 13% in visitors.

Entertainment
This site category has 97.5% reach in Mexico and Mexican Internet users spend 3.8 hours per month on entertainment sites, higher than any other Latin Americans except for Peruvians. Multimedia is the subcategory within Entertainment that has the most reach, although music sites (70.4%), TV sites (46.7%) and movie sites (37.1%) all have significant reach with Mexico’s Internet audience.
YouTube reaches 76% of Mexican Internet users and each visitor spends an average of 217 minutes per month on the site. This is not surprising given the established popularity of online videos among Mexico’s Internet users. According to comScore, online videos have 86.1% reach among Mexican Internet users and each viewer in Mexico watches an average of 157.6 online videos per month. Only Internet users in Chile watch more online videos a month: 162. This clear popularity of online videos in Latin America is what led to us creating the Jumba Video Network, which allows advertisers to connect with this huge audience.

Mobile
While smartphone penetration in Mexico is at 20%, slightly less than half the rate it is in the United States (47%), the mobile Internet is growing. In Mexico, 4.6% of all web traffic comes from mobile devices. This is more than double the rate of mobile device traffic in Brazil and Argentina, which are at 2.0% and 2.1%, respectively. In the United States, mobile devices account for about 20% of Internet traffic. Around 59% of the mobile web traffic in Mexico comes from iOS, while nearly 23% comes devices that use Android. In addition, 29% of Mexico’s mobile traffic comes tablets. Brazil is the only country in Latam with a higher percentage of mobile traffic from tablets—43.9%. As such, options such as the Jumba Mobile Network should figure more prominently in web campaigns targeting Mexico’s Internet users.

To find out how you can reach Mexico’s Internet users with a targeted, effective campaign, please contact us.

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mexico movil

The State of Mobile Advertising in Mexico

We’ve written about mobile advertising’s strong growth potential in Latin America. A new study from IAB Mexico offers a detailed look at what’s happening with this particular market.

Mobile Penetration
The IAB Mexico study cites statistics from the Comisión Federal de Telecomunicaciones—the government agency that regulates telecommunications in Mexico—that indicate that there are 94.6 million mobile phone lines in Mexico. Given that Mexico’s population is 112 million, this means that there is an 84% penetration rate for mobile in Mexico.
However, Convergencia Research estimates mobile penetration to reach 94% by the end of 2012 and to hit over 100% by the first quarter of 2013. In addition, Google’s Our Mobile Planet study showed a 20% penetration rate for smartphones in Mexico. As such, there’s clearly a strong mobile market emerging rapidly in Mexico.

Companies and Plans
Telecel seems to be the major mobile operator in the country, with 69% of the mobile subscriptions, followed by Movistar (21%), Iusacell (6%) and Nextel (4%). Most mobile subscriptions (85%) in Mexico are prepaid.

Ad Spend
Overall, in 2011 advertisers invested 402 million pesos (US$29.8 million) in mobile advertising in Mexico. The large majority—83%—of 2011 mobile advertising in Mexico was in what IAB Mexico calls “pauta pura,” which means display ads, SMS/MMS messaging and search. The reaminder was in “desarrollo,” which means creation of mobile sites, mobile apps and advergaming.

Advertising Formats
Display ads in mobile portals were the dominant format in pauta pura in 2011, making up 73% of the possible ad formats. SMS and MMS were a distant second at 11%. Most of the mobile advertising revenues (73%) came directly from advertisers and only 16% from agencies, with only 1% from networks.
In terms of desarrollo-type advertising, 51% of the revenues came from specific apps, 30% from mobile portals, 16% from SMS/MMS app set-ups and just 2% from advergaming.

The Advertisers
In 2011 in Mexico, mobile content aggregators were by far the biggest advertisers: 69% of the advertising spend came from them. Other industries accounted for a much lower portion mobile ad spend in Mexico: media and entertainment (5%), the financial industry (6%), government services (5%), tourism (3%), auto industry (2%).

Share of Online Ad Spend
Mobile accounted for 7.2% of Mexico’s online ad spend in 2011. It may not seem like a lot but in reality, mobile’s share of online ad spend in Mexico is actually larger than mobile’s share in the United Kingdom (4%), the United States (5%) and Spain (1.8%).

Ultimately, the 2011 figures point to a healthy mobile ad market in Mexico that has very strong potential to keep growing. This is why we developed the Jumba Mobile Network, which unites more than 150 mobile sites and offers a wide range of targeting capabilities to reach the growing audience of mobile users in both Mexico and Latin America.

To find out how you can use Jumba Mobile to deliver strong results for your next campaign, please contact us.

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The Latest on Mexico’s Internet Audience

A new study released by the Asociación Mexicana de Internet (AMIPCI) offers some fresh insights into Mexico’s Internet users that can be helpful for marketers, advertisers and media professionals.
We went over the results and break them down here for quick reference to help guide you in developing your next campaign, a report or a client presentation.

Size Matters
According to AMIPCI, Mexico currently has 40.6 million Internet users, up from 34.6 million that it reported in 2011—a 15% increase. This 40.6 million figure is very similar to that of Internet World Stats, which lists 42 million Internet users in Mexico. The only other country in Latin America with more Internet users is Brazil (85 million), which makes Mexico the #2 Internet market in Latin America.

Access Points
It’s not surprising to see that 64% of Mexican Internet users access the Internet via PCs and 61% use laptops to do so. However, one striking statistic is that nearly 60% of Mexican Internet users go online with a smartphone. In fact, the number of Mexicans accessing the Internet with smartphones doubled between 2011 and 2012—only 29% went online with smartphones in 2011 and now 58% report doing so. This reflects the growing power of mobile in Latin America and echoes research results from Google and other sources.

Time Online
In 2012 Mexicans are spending 4 hours and 9 minutes online, nearly an hour more than in 2011.

Top Internet Activities in Mexico
Email is the main thing Mexican Internet users do online (80%), followed closely by social media (77%). Other popular online activities include search (71%) and instant messaging (55%).
However, it’s interesting to note that 29% of Mexican Internet users report shopping online. This is a huge increase for e-commerce in Mexico: a study from IAB Mexico in 2010 reported that only 6% of Mexican Internet users reported that they shopped online. In addition, AMIPCI’s 2011 study of Mexico’s Internet users didn’t even list online shopping as one of their activities.

Here’s a quick breakdown of the main activities among Mexico’s Internet audience:

• Email                                        80%
• Social Media                            77%
• Search                                       71%
• Instant messaging                  55%
• Online banking                       44%
• Shopping online                     29%
• Job searching                           18%
• Create/maintain blogs           16%

Top Online Entertainment Options
Social media are by far the most popular entertainment for Mexican Internet users: 86% list it as a favorite activity. Visiting news sites is second at 61%, followed by downloading music at 37%.

Online Advertising
AMIPCI reports that 83% of Mexican Internet users remember seeing online advertising. When it comes to specific online recall of product types and brands, 50% recall computer products and Dell is one of the top brands. Among the other product types and brands that deliver high recall of online ads in Mexico are the following:

• Movies                                                    46%
• Mobile phones                                      45% (Nokia, Blackberry and Telcel)
• Banks/financial products                    32% (Bancomer, Banamex, Santander)
• Software                                                 30%
• Electronics                                             28% (Sony, Samsung, LG)

Where They Remember Most Seeing Online Ads
Search results are where Mexico’s Internet users primarily recall seeing ads, with 66% reporting this, while 57% report seeing ads on social media. There’s less recall of ads on other types of sites: 18% remember seeing them on e-commerce sites and 17% on news sites.

Social Media
Not surprisingly, social media is highly popular: 92% of Mexico’s Internet users say they go on social networking sites, with 41% reporting they have been on these sites 2-3 years. Interestingly, 39% of Mexican internautas say they have been using social media for 4 years or more. The social media sites that Mexican Internet users report going on the most are:

• Facebook                          90%
• YouTube                           60%
• Twitter                              55%
• GooglePlus                       34%
• Hi5                                     25%

Social Media Advertising
Over half—53%—of Mexico’s Internet users say they like seeing advertising in social media sites, as opposed to the 29% who are neutral and the 17% who don’t like seeing it. The strongest type of recall that Mexican internautas have for social media advertising is for political ads, 77%. However, they do show good recall for other types of ads on social media, including products in general (61%) and services (58%).

To find out how we can help you reach Mexico, the rest of Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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