Author Archives: Santiago Luna@USMediaConsulting.com

About Santiago Luna@USMediaConsulting.com

Santiago Luna is the Country Manager, Argentina, for US Media Consulting.

future media buying

The Future of Media Buying in Latin America

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.

Argentina Internet Concept

The Online Market in Argentina by the Numbers

While numbers may not tell the whole story when it comes to a market, they are definitely the best drivers for making decisions with media buys. At US Media Consulting we review figures all the time so that we can put together the most cost-efficient and effective media campaigns possible. With that in mind, here are some key metrics to keep in mind for reaching Argentine Internet users.

27 million
The amount of Internet users in Argentina in 2014: there will be 29 million Argentine Internet users in 2015 and more than 31 million by 2018
Source: Emarketer

67%

Internet penetration in Argentina in 2015, moving up to 70% by 2018.
Source: Emarketer

2 hours, 34 minutes
The average amount of time that Argentines use PCs every day
Source: Dirección Nacional de Industrias Culturales

5 hours, 11 minutes
is the average amount of time that Argentine Internet users spend using the Internet each day through a laptop or desktop
Source: We Are Social report, January 2014

#2
the rank of Argentina in terms of total page views by Internet users in August 2014, higher than any other country in Latin America except for Brazil
Source: comScore, Futuro Digital Argentina 2014

1.5 million
The amount of Argentines who visit sports web sites every day, #2 in Latin America after Brazil
Source: comScore, Futuro Digital Argentina 2014

81.3%
of online ads in Argentina are flash banners, while 14% are social ads and 3.8% are video ads
Source: adCuality

3.78 million
The overall ad spend across all media in Argentina in 2014: ad spend in Argentina is forecast to go up by 7% in 2015 to reach more than $US4 billion
Source:
eMarketer

.01%
of the ad spend online in Argentina goes to mobile advertising
Source: adCuality

13.1 million
of Argentines are mobile phone Internet users
Source: eMarketer

78%
of the mobile phones sold in Argentina are smartphones
Source: Carrier y Asociados

1.1 million
tablets are projected to be sold in Argentina in 2014, a new record
Source: IDC

84%
of mobile phone Internet users in Argentina use Whatspp
Source: Carrier y Asociados

20%
of Argentines used their smartphones in the purchase process
Source: Consumer Barometer, TNS & Google

48%
of Argentine Internet users will make an online purchase in 2015 and by 2018 50% of Argentine Internet users will buy online
Source:

58%
of Argentines research appliances online to buy them offline, while 52% do the same for TVs
Source: Consumer Barometer, TNS & Google

58%
of Argentines surveyed by TNS and Google said they made their last purchase of flights online, while 32% made hotel reservations online
Source: Consumer Barometer, TNS & Google

40%
The overall growth in e-commerce in Argentina in 2014
Source: Cámara Argentina del Comercio Electrónico

8,317
minutes was the amount of time that Argentines spent on social media sites in August 2014, much more than any other category
Source: comScore, Futuro Digital Argentina 2014

594,000
The average number of fans on the top Facebook pages in Argentina, a 93% increase since January 2014
Source: comScore, Futuro Digital Argentina 2014

17 million
of Argentines are active daily users of Facebook while 23 million use Facebook every month
Source: Facebook Argentina

89%
of Argentine Internet users are on Facebook while only 22% use Twitter, 19% use Google+, 10% use LinkedIn and 2% use Pinterest
Source: Carrier y Asociados

18%
of households with broadband access in Argentina connect their TVs to the Internet and of these, 61% use Smart TVs and most of these (68%) use their connected TVs to stream movies and TV shows
Source: Carrier y Asociados

124
online videos per month are watched by Argentines
Source: comScore, Futuro Digital Argentina 2014

15.6 million
The amount of total online video viewers in Argentina
Source: comScore, Futuro Digital Argentina 2014

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.

TECH TRENDS

The Top 10 Tech Trends in Latin America

Here’s a quick look at the changes in Latam tech usage and habits that agencies and advertisers may find useful to know about:

  1. The average Latin American consumer spends 7 hours a day using multiple digital screens, 5% above the world average
  2. In 2013 online travel booking in Latin America went up by 13%, almost double the U.S. increase (7%)
  3. Latin Americans trust search engines more than traditional media
  4. The Latin American digital games market is worth US$4.5 billion: mobile games account for 43% of revenue, more than social, console and PC games
  5. Chrome is the mobile browser that’s most used in Latin America
  6. The use of mobile devices to go online in Latin America went up by 61% in the past year
  7. Latin America has 185 million gamers and gaming revenues in Latam will reach US$3.3 billion in 2014
  8. Data and note storage tool Evernote now has 8 million users in Latin America and is the fastest-growing region for the product
  9. In Latin America, digital TV went from 18% penetration in 2010 to slightly more than 50% in 2014 and will reach 94% by 2020
  10. 22% of Latin American companies have a mobile app strategy in place

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.

00 millennials

Reaching Millennials with Media in Latin America

Much like Big Data, content marketing and programmatic buying, marketing to Millennials has become a hot topic. It makes sense: Millennials (people aged 13 to 28) are the largest age group in Latin America, according to a report from Tendencias Digitales released in March 2014. According to the report, called Conecta tu marca con los millennials, 30% of the population in Latin America are Millennials, while 27% are Generation X (people 29 to 48), 26% are Generation Z (under 12), 13% are baby boomers (49 to 68) and 4% are veterans (over 69).

Given that Latin America’s population is at around 588 million, this means there are 176 million Latin American Millennials, a pretty significant market. Based on some of the latest research we have reviewed, here are some suggestions for tailoring to your media strategy to Millennials in Latam.

#1 Online Trumps TV
When we look at ad spend in Latin America, clearly TV rules and in most countries free TV takes up the majority of ad spend. For example, free TV takes up 66% of ad spend in Brazil, 53% of the ad spend in Mexico and 49% of the ad spend in Peru, as summarized in our recent media report.
Yet only 68% of Latin American Millennials say they watch TV, compared to 75% of Generation X and 72% of Baby Boomers. A larger percentage (74%) of Millennials in Latin America go online than other age groups, such as generation X (69%) and Baby boomers (72%).*
Beyond overall usage, Millennials in Latin America spend an average of 7 hours a day online, the same amount as those in North America. When asked which form of media provides the credible coverage of news, 45% of Latin American Millennials picked Internet and social media, as opposed to 33% selecting TV news and 18% selecting print news. In addition, when asked to select their favorite entertainment medium, 69% of Latin American Millennials chose Internet, while only 28% chose TV.**
Sources: *Tendencias Digitales, **Telefónica

#2 Invest in Online Video
Research keeps pointing to the heavy consumption of online video in Latin America, and it all likelihood it’s probably driven by Millennials. This is because 59% of Millennials in Latin America watch movies online and 46% watch TV online, much higher percentages than other age groups: in comparison, 47% of Generation Xers watch movies online and 33% watch TV shows. The percentages are even lower for Baby Boomers in Latam: 36% watch movies online and 21% watch TV shows online.
Source: Tendencias Digitales

#3: Socialize
It’s clearly not a shock that 88% of Latin American Millennials have social media profiles, especially since social media is the #1 activity among Latam Internet users. Now, in terms of weighing these investments, of the 88% of Latam Millennials on social media, nearly all (93%) are on Facebook, while much smaller percentages report using Instagram (29%) and Foursquare (10%).*

Beyond use, social media are a stronger influencer on the purchase decisions of Millennials in Latam than they are with other age groups. And when structuring social media marketing, agencies and advertisers should keep in mind that Millennials tend to want specific benefits from brands: 69% want promotions and 45% want activities.**
Sources: *Tendencias Digitales,** Telefónica

#4 Mobilize
As part of any brand’s online strategy to reach Latin American millennials, mobile has to play a huge role because it’s such a huge part of their online behavior and daily lives. Let’s take a look:

  • 80% of Latin American millennials say they connect to social networks with their mobile phones*
  • In general, they prefer using mobile devices to look for product info and prices*
  • 68% of Latin American Millennials surveyed by Telefonica in 2013 said that they own a smartphone**
  • In a Cisco survey, 60% of Latin American Millennial respondents said they check their smartphones compulsively for emails, texts or social media updates***
  • When segmented by gender, 85% of female Millennial smartphone users check their phones compulsively, while 63% of males report this compulsive checking***
  • Among Latam Millennials, smartphones were twice as popular as desktop PCs and three times more popular than tablets***
  • 90% of Latin American Millennials say that checking their smartphones is an important part of their morning routines***
  • 60% of Latin American Millennials use 1 to 9 apps regularly and 20% use 20-25 apps regularly***
  • Nearly 70% say that smartphone apps are important to their daily lives***

Sources: *Tendencias Digitales, **Telefónica, ***Cisco

Contact us to find out more how we can help you reach Latin American Millennials with online media options that include social and mobile.