Latam digital music

Digital Music Cranks Up in Latin America

Both online music downloads and digital music subscriptions are on the rise in Latin America.

According to the most recent digital music report from the International Federation of the Phonographic Industry or IFPI—released in November 2014—Latin America posted 27% digital music revenue growth in 2013. Overall, revenues from digital music grew by 124% in Latin America between 2010 and 2013.

According to the Federation’s report, a number of Latam countries had powerful individual growth, including Peru (149%), Colombia (85%) and Argentina (69%).

But IFPI is not the only source that points to digital music growth in Latin American countries.

Ipsos-Napoleón Franco’s Technology Tracker study, released in 2014, indicated that 37% of Colombian internet users stream music, compared to the 49% that buy CDs.

The Mexican Association of Phonographic Producers (Amprofon) reported a 130% increase in revenues from streaming music services in Mexico during the first half of 2014. Streaming revenues totaled 175 million Mexican pesos in the first half of 2014, while digital music sales went up by 14% to reach 428 million Mexican pesos in the same period. Overall, 59% of the revenues generated by the Mexican music industry in the first half of 2014 came from digital sources, either streaming or purchases.

A recent study from Opinion Box indicated that 28% of Brazilians stream music, though 76% still prefer to listen to music via traditional radio. However, another study from Opinion Box—done in June 2014—surveyed 1,484 Brazilian Internet users and found that 76% listened to music on their cell phones. Of these, 84% listen to MP3 files, 65% listen to the FM radio embedded in the device and nearly 31% use streaming music apps. In addition, while 2014 numbers aren’t available yet, the Associação Brasileira de Produtores de Discos, (Brazilian Association of Record Producers or ABPD) reported that digital music sales in Brazil went up by 22% in 2013 and that digital sales accounted for 36% of total music sales.

What to Do with This Data
While it’s tricky to find large scale spikes in digital music consumption for every Latin American country, there’s enough data for the larger markets to suggest a significant change is taking place. For advertisers and agencies, this means that looking into ad solutions from sites like Deezer may deliver some strong results with campaigns, especially with the younger age groups (15 to 24, 25 to 35) that make up the majority of Latam’s Internet users.

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.

The Hottest Products Among Christmas Shoppers in Latin America

While February may not seem like the right time to cover Christmas shopping, it’s clear that advertisers spend more during the holiday season and that CPMs and conversions also tend to rise.  As such, Q1 2015 can be a good time to fine-tune plans for Q4 2015 campaigns. To that end, we reviewed some data from eCMetrics and eCGlobal on Christmas Shoppers in Latin America. The firms surveyed more than 1,000 Latin Americans from Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. The findings may help agencies and advertisers strengthen their holiday ad campaigns for 2015.

Target Last-Minute Shoppers in Latam
According to the study results, only 43% of Latin Americans had bought gifts by the 5th day before Christmas, i.e. December 20th. This means that advertisers have 5 days to reach the majority (57%) of Latin American Christmas shoppers and they may want to factor this into their media buys during this time.

Have a Strong Online Campaign in Place
More than 8 in 10 (82%) Latin American Christmas shoppers searched on the web before buying Christmas presents. The eCMetrics survey indicated that most shoppers searched for product price (74%), while a significant amount (49%) looked for product comments and smaller amounts looked for store ratings (27%) and store comments (26%).

Driving Store Traffic Still Very Important
Despite their strong penchant for researching products online, only 7% of Latin American Christmas shoppers shop exclusively online. More than half (51%) shop exclusively in brick-and-mortar stores while 42% shop in stores that offer online shopping. That said, 15% of Brazilian Christmas shoppers shop online, reflecting how Brazilians are becoming more and more comfortable with e-commerce.  Overall, however, this suggests brands need a strong online presence combined with special offers to drive consumers to the stores.

Top Hot Products for Latin American Christmas Shoppers
In descending order, here is a look at the products that Latam Xmas shoppers buy the most:

  • Fashion (clothes, shoes): 80%
  • Electronics (tablets, TV, laptops): 50%
  • Entertainment (video games and consoles): 30%
  • Mobile phones: 30%
  • Books:             30%
  • Home appliances: 30%
  • Travel products: 18%
  • DVD/Blue Rays: 9%

Setting Budgets—and Going Over Them
The study also found that 6 out of 10 Latin Americans set a budget for their Christmas shopping and the largest percentage of those who set budgets are Mexican (69%). In addition, nearly 8 out of 10 (78%) Brazilians report going over budget with their Christmas shopping.

Black Friday Big in Brazil
The study also showed that Black Friday has gained lots of ground in Brazil: 54% of Brazilians report buying items during Black Friday events. Nine of 10 Brazilian Black Friday shoppers bought their products online and nearly all searched online before buying. The majority (79%) did price searches but  a smaller amount (30%) also searched for product opinions. With good discounts available, the products that Black Friday buyers in Brazil were most interested in were electronics (57%), clothing (36%) and computer products (36%).

To find out more about what customers know before they enter a store, contact Ivan Casas of eCMetrics.

Contact US Media Consulting if you need help with media buying for a campaign targeting Latin Americans—whether it’s during Christmas or any other time of the year—with any time of media, including programmatic.

return on investment

Driving More ROI from Online Campaigns in Brazil

While targets change with every campaign, having as much of a detailed handle as possible on Brazilian Internet users can help digital planners start optimizing even before they launch. With that in mind, we reviewed fresh data on Brazilian internautas to pick out details about behavior and habits that may help improve results with online ad campaigns.

>>>Consider Price-Sensitive Components for Campaigns
Here’s why:

  • Checking product prices is the #1 reason Brazilians say they use the Internet*
  • 80% of Brazilian consumers say they research product prices before buying them**

>>>Buy More Video Ad Inventory
Here’s why:

>>>Propose Adding an Online Component to TV Campaigns
Here’s why:

  • 40 million Brazilians are multiscreen users, up from 30 million in 2013**
  • Another survey from IAB Brasil indicates that 75% of Brazilians use at least one of their devices (computer, smartphone or tablet) while watching TV

>>>Develop More Landing Pages that Combine Product Information with the Offer
Here’s why:

  • Nearly 6 in 10 Brazilians—58%—look for information online before buying a product: 84% of Classe A does this, 70% of Classe B and 52% of Classe C*

>>>Put Most of Your Mobile Ad Spend toward Mobile Internet Ads (rather than in-app ads)
Here’s why:

  • Nearly 7 of 10 Brazilians (67%) access the Internet with a mobile device—a total of 62 million who are surfing mobile versions of Web sites and be reached with banners*
  • While 42% of Brazilian Internet users go online with computers when at home, more of them (52%) use cell phones*
  • Among the most popular apps among Brazilians (as ranked by App Annie), several don’t allow advertising, including WhatsApp and Instagram

Sources: *FNazca, **Google

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.

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.

mobile ad buy

4 Keys for Mobile Media Buying in Latin America

Study after study indicates that there’s a major mobile migration happening in Latin America, with a big projected growth in device adoption, mobile Internet use and m-commerce. But mobile media buying in the region still offers some challenges. That’s why we put together this basic guide about the key factors to factor in when buying mobile media in Latam.

1 apps
#1: Mobile Web Versus Applications
Mobile ads run in two basic areas: mobile internet and apps. Mobile internet means the mobile versions of Web sites that people go to by using their mobile phones or tablets. And mobile ads are also sold on apps like Facebook, Deezer and Preguntados. It’s a matter of context, i.e. seeing an ad on the mobile version of a Web site like you would when you go to the site with a PC or laptop or seeing an ad while using an app, maybe an interstitial video or banner that comes up before you start a new game of Candy Crush, for example. You also have to factor in different metrics. With mobile Internet the metrics are similar to those of a regular online campaign but with apps you have to look at average daily users, how much time people spend using the app, their demographic group, etc.
Although apps have gained a lot of ground in Latin America, there are some disadvantages for media buyers and planners. First, not all of these apps run ads. For instance, WhatsApp doesn’t run ads, even though it’s used by 61% of mobile users in Latin America, according to GlobalWebIndex.
Second, apps don’t seem to have ultra-heavy penetration (90% or more) among Latam mobile users. We just saw that WhatsApp, though very popular, only reaches 61% of mobile users in the region. And if we look at a specific market like Argentina, we see that the Facebook app is the country’s most popular app—yet it’s only been downloaded by 76% of mobile users. So you have to factor in that penetration issue when buying in-app ads.
Third, if you buy in-app ads from an ad exchange just to get at the most inventory you can, since you’re not buying directly, the spend may not be as cost-efficient as you—or the client—would like.

2 feature vs smart
#2: Feature Phones Versus Smartphones

When you run a mobile campaign in Latin America, you have to factor in the type of device. Feature phones are still used by quite a bit of people. According to eMarketer’s estimates, out of the 400 million mobile users in Latin America, there are 194 million mobile users in Latin America that use their mobile phones to go online…and these are obviously who can see mobile ads.  Of these 194 million, 126 million or so have smartphones, while about 68 million still use feature phones to access the Internet. Given this, you may want to consider putting around 30% of the spend towards ads served on feature phones. Without this, you may not see optimal reach or fulfillment.

3 tablets
#3: Tablets Are Far From Universal

Emarketer estimates that there is a 32% penetration rate for smartphones in Latin America. No surprise here, especially given that smartphone sales have been strong for years. And even if tablets have also sold well in Latam, their sales don’t stack up to those of smartphones. For example, in Q2 2014 tablet sales in Mexico went up by 107% to reach 1.8 million. Great, but in the same period Mexicans bought 6.7 million smartphones. In Q3 2014, Brazilians bought more than 2 million tablets and it’s projected that they will buy more than 10 million in all of 2014. Yet just in Q3 2014 more than 15 million smartphones were sold in Brazil—and it’s projected that 2014 smartphone sales in Brazil will top 55 million. As such, this factor of 4 or 5 in sales volume difference between smartphones and tablets should be considered when you buy mobile ads in Latin America. Unlike smartphones, tablets allow for the same type of display ads that can be viewed on a PC or laptop because tablet screens allow the same web page to be displayed with the same ad formats. This allows for additional segmentation without major modifications of the elements used in a digital campaign.

4 responsive
#4: Not All Sites Are Ready for Mobile

Before running a mobile ad campaign for a brand, it’s important for media agencies to find out the following about the site where the mobile ads will take users:

  • Does the site have a responsive design that allows it to be viewed well with a mobile device?
  • Does the site have short, easy to use forms for users to fill out?
  • How fast is conversion time for the site?

Without a responsive design for a site, a user will click on the mobile ad and find a site that’s difficult to navigate with their device and probably leave quickly. Or if a brand wants subscribers to a service but has a mobile online form with 10,000 fields or that’s difficult to fill out with a smartphone, the user will probably give up and leave. The same applies if a site doesn’t have a quick and easy purchase process for its product once the mobile ad drives the users there. All of these factors can kill mobile ad performance and believe it or not, lots of brands do not factor this in when deciding to run a mobile ad campaign. This makes a big difference with apps and sites, since ultimately what counts is the user experience and this in turn will have a direct relationship with a campaign’s performance.

Ok, so clearly there are a number of factors to consider when running a mobile ad campaign that can quickly become obstacles.

Fortunately, there’s a way to cut through many of these complications. MediaDesk—the leading programmatic buying platform in Latin America—has put together a substantial mobile ad inventory, and there are several advantages with using MediaDesk’s platform to buy mobile ads:

  • A real time bidding (RTB) system that allows for a smarter, more transparent spend
  • The ability to buy ads and observe the real cost of impressions during campaigns and adjust pricing as need to deliver greater fulfillment as needed
  • Reaching mobile users in Latin America with any type of mobile device or operating system
  • Reaching consumers in all levels of their user experience of a brand and being able to compare and analyze in real time the way that consumers react to different messages in different devices (smartphones, feature phones, tablets or PCs)

Contact us to get a free demo of MediaDesk and get a direct sense of the power of mobile programmatic buying.


10 must knows Brazil media

10 Media Must-Knows for Planners Targeting Brazil

The Brazilian government just published the results of its latest survey on media consumption, called Pesquisa Brasileira de Mídia (PBM). Partnering with IBOPE, the government interviewed more than 18,000 Brazilians to discover their media consumption habits. As we kick off 2015, the study offers some good data to factor into plans for campaigns.

#1 TV Still Rules in Brazil
For years, TV has ruled ad spend in Brazil and IBOPE consistently shows TV has having nearly 100% penetration in the country. The PBM confirms the dominance of TV. Brazilians watch TV 4.5 hours a day during the week and 4 hours and 14 minutes a day on weekends. More than 7 in 10 (73%) of Brazilians watch TV every day.

#2 Radio Has Intense but Less Extensive Use than TV
Brazilians listen to radio an average of 3 hours and 42 minutes a day during the week and their consumption drops to around 2.5 hours a day on weekends. The peak time for listening to the radio in Brazil is from 6 a.m. to 9 a.m. However, radio doesn’t have the same level of use as TV in Brazil: 55% of Brazilians report listening to the radio anywhere from 1 to 7 days a week and only 30% listen to the radio every day.

#3 Online Radio Does Not Seem to Have Strong Reach
Despite the attention that online radio has received from the media, 80% of Brazilian radio listeners report using traditional radios and only 1% say they listen to the radio online. A larger percentage of Brazilians (8%) report using cell phones to listen to the radio.

#4 More Than Half of Brazilians are Not Online
The Pesquisa Brasileira de Mídia (PBM) reports that 51% of Brazilians said they do not use the Internet, suggesting 49% Internet penetration in Brazil. This is actually close to estimates by other firms using different methodology. For example, eMarketer estimates that Brazil’s 2014 Internet audience was 107 million—similar to the 105 million reported by IBOPE in 2013. Given that Brazil’s population is estimated to be 202 million, this means that Internet penetration is at 52% in Brazil, close to the figures from the PBM survey.

#5 Brazilian Internet Use Is Intense
Of the Brazilians who do use the Internet, 49% use the Internet 1 to 7 days a week, with 37% using the Internet every day—a higher percentage than Brazilians who listen to the radio every day (30%). Brazilian Internet users report using the Internet 4.5 hours a day during the week and 4 hours and 20 minutes a day on weekends, which makes the Internet the #2 medium after TV in terms of time spent.

#6 The Top Time for Brazilian Internet Use is 8 to 9 PM
Internet use reaches a brief peak in Brazil at 8 p.m. (the highest percentage of users are online at that time) and immediately drops after 9 p.m., reaching the low point between 12 a.m. and 6 a.m. At that point Internet use in Brazil climbs quickly to reach a peak at 10 a.m. and then dips a little after 11 a.m. but remains stable until it starts to rise at around 6 p.m. As such, you may want to experiment with these times when running ads or posting on social media in Brazil.

#7 A Majority of Brazilians Go Online with Mobile Devices
The respondents were asked what kind of device they use to access the internet and allowed to select more than one option. The largest percentage of Brazilians (71%) said they access the Internet via computer, but a large percentage (66%) also selected cell phones, while only 7% selected tablets. These results are in line with other surveys in which more and more Brazilian Internet users report going online with their cell phones.

#8 Facebook and WhatsApp Rule Among Brazilian Internet Users
When asked about their favorite social media or messaging apps, most Brazilians (83%) chose Facebook and WhatsApp was #2 with 58% reported usage among survey respondents. Other social sites seem to have much lower usage rates among Brazilian Internet users, like YouTube (17%), Instagram (12%), Google+ (8%), Twitter (5%). Skype (4%) and LinkedIn (1%).

#9 Less Usage for Print Media
The majority of respondents (76%) to the PSM indicated that they do not read newspapers while 19% reported reading them 1 to 7 days a week. Most Brazilian newspaper readers (79%) prefer to read them in print form, while only 10% prefer reading newspapers online and 4% in both print and online formats. When it comes to magazines, 85% of Brazilians surveyed said that they did not read magazines and only 13% reported reading them from 1 to 7 days a week.

#10 Brazilians Trust Newspaper Advertising the Most
Despite their lower usage of print as indicated in the survey results, 47% of Brazilians trust newspaper advertising most or all of the time, the highest level of trust among advertising in any form of media. Radio and TV advertising came in second (42% trust rate for each), followed by magazines (36% trust rate). Advertising on websites were only trusted by 23% of Brazilians and trust rates for social media ads was also low (22%).

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.



Quick Insights into Brazilian Internet Users

Google Think Insights recently published an interesting infographic on Brazilian Internet users, all based on recent research.

Even though it’s in Portuguese, most of the data is easy to figure out. Some of the highlights are:

  • 48% of Brazilians are connected to the Internet
  • 74% of Brazilians aged 15 to 49 are online
  • Smartphone penetration in Brazil went from 26% in 2013 to 29% in 2014
  • Tablet penetration in Brazil is at 9%
  • 80% of Brazilians compare products online before buying them.

And more. Click on the link below to view the infographic:

Google Think Insights Brasil 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.


7 Top Trends among Colombian Internet Users

A quick review of some key studies reveal key shifts among Internet users in Colombia:

#1 Smartphone Use Spikes
Colombia has surpassed Argentina to become one of the top 3 smartphone markets in Latin America. In 2014 there were 14.4 million smartphone users in Colombia and in 2015 there will be more than 16 million Colombian smartphone users. In comparison, in 2015 there will be 12.6 million smartphone users in Argentina.
The top smartphone markets remain Brazil (nearly 49 million smartphone users in 2015) and Mexico (34 million). Overall, 45% of consumers with a mobile phone in Colombia own a smartphone.
Source: eMarketer

#2 More Time Online
Colombian Internet users average 1,404 minutes a month online, higher than the average for Latin America (1,298 per month) and not far below the monthly Internet usage of Europeans (1,659). Per visit, Colombians consume 37 pages of Internet content, #2 in Latin America after Brazil, with 40 pages per visit.
Source: comScore, 2014 Futuro Digital Colombia

#3 Mobile Internet Use Surges
Nearly 24 million Colombians are now using the mobile Internet. This represents a 58% increase compared to 2013.
Source: Asómovil (an association of top mobile providers in Colombia that includes Claro, Movistar and Tigo-UNE)

#4 E-Commerce Grows
In 2013 e-commerce transactions in Colombia totaled more than US$2.5 billion and it’s projected that in 2014 e-commerce growth in Colombia will be 25% to 30%. In 2014 52% of Colombian Internet users made an online purchase of a good or service.
Source: Cámara Colombiana de Informática y Telecomunicaciones

#5 Social Remains Strong
Colombians spend at least 13 minutes a day on Facebook and total up more than 54 million likes a day on this social network. Colombian Internet users spend 6 minutes a day on YouTube and 68% use Twitter at least every couple of days. More than 93% of the total time that Colombians spend on social media is spent on Facebook.
Sources: Ericcson Consumer Lab, Ipsos Tech Tracker, comScore

#6 Enthusiastic about Entertainment
Per online visit, Colombian Internet users consumer more than 10 pages of entertainment content, more than any other country in Latin America. YouTube is the leader in the entertainment category in Colombia in terms of unique users. The reach of online video is highest in Colombia: 88% of Internet users watch online video, slightly ahead of Brazil (with 87.8%) and ahead of Argentina (85.5%), Chile (84%) and Mexico (81%). Each month, there are 24.6  million unique viewers of online videos in Colombia who spend 216 million hours watching a total of more than 3.1 billion videos. This means that each Colombian Internet user watches 126 online videos per month, on average. Although YouTube is the #1 video site in Colombia and draws more than 21 million unique viewers a month, Facebook is closing the distance and draws more than 16 million unique viewers a month, followed by VEVO with 15.6 million.
Source: comScore, 2014 Futuro Digital Colombia

#7 Top CTR for Banners in Latam
With an average CTR of .12% for banner ads, Colombia is tied with Brazil and is ahead of other countries in Latin America.
Source: comScore, 2014 Futuro Digital Colombia

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.


Girls with Shopping Bags

15 Insights about Latin American Consumers for 2015

In trying to create the most effective media plans possible, understanding consumer behavior is paramount. To that end, we looked at research into Latin American consumers to understand more about their growth, shopping habits, preferences and media use.

Here are 15 key insights to keep in mind during 2015:

  1. In 2020 there will be a total of 640 million consumers in Latin America and private consumption in the region will nearly double compared to 2012
  2. A Kantar Worldpanel study of Latin American consumers showed that 32% had bought an LCD, LED or plasma TV over the past 5 years and that 33% have purchased a better quality refrigerator recently
  3. Radio is the most popular medium in Latin America—consumed more than TV
  4. 46% of Latin Americans say they make online payments
  5. Mexico is the #4 country in the world in terms of mobile advertising traffic, while Brazil is #7 and Argentina is #13
  6. The amount of Netflix subscribers in Latin America grew from 309,000 in October 2011 to more than 4.8 million by September 2014, with 1.2 million in Mexico and 2.1 million in Brazil
  7. 75% of Brazilians surveyed said they watch streaming video, slightly less than the amount that watches regular TV (77%)
  8. 69% of Latin Americans with a bank account say they make online transactions
  9. Nearly 60% of Latin Americans watch TV while surfing the Internet and 67% watch online videos
  10. 41% of Peruvians watch TV while using another device at the same time, mainly a smartphone (22%), but also a laptop or PC (15%) and a tablet (4%)
  11. Chileans spend the most money on sports clothes than other Latin Americans
  12. 81% of Brazilians, 66% of Mexicans and 73% of Argentines research appliances online before buying
  13. Peru is the Latin American country in which social media have the deepest penetration: 96%
  14. 10% of the world’s Internet users are from Latin America
  15. Latin American travelers tend to travel more than those from more established travel markets and report higher levels of enjoyment

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.

Flying dollars banknotes isolated on white

Where Ad Investment in Latin America Should Go in 2015

The challenge that every marketer faces is how to develop a media budget that delivers the best results. Making changes to your approach is hard, not only because of the risk but also because of the need to sell other people in the company on those changes. But as the media landscape changes, it’s actually a bigger risk to make no changes, since you can easily fall out of step with your customers. In reviewing the data, here are some areas that both brands and media agencies need to look more closely at in executing their 2015 campaigns.

#1: Mobile Programmatic
Mexico clearly leads Latin America when it comes to mobile ad investment and is set to reach US$287 million by next year, while Brazil mobile ad investment will reach US$245 million and Argentine mobile ad spend will be a surprisingly small US$14.5 million.

But this modest level of investment doesn’t seem to jibe with the mobile boom happening in Latam. For instance:

And if those numbers aren’t enough to get the point across, see how smartphone penetration, tablet ownership and mobile Internet user are growing in other Latam markets, including Chile, Peru, Colombia, Ecuador and Venezuela.

Now to programmatic. We know that programmatic ad spend is set to spike dramatically in Latin America, so definitely the industry knows this works. The advantages of the tight targeting of programmatic are becoming clearer, in addition to the fact that it may deliver a more efficient spend than manual online ad buying.

Given this, it seems logical that brands need to deepen their mobile spend. And if the concern is that mobile may be a risk, why not look at some trials with mobile programmatic? Sharper targeting could lead to even better results with mobile and allow brands to fully take advantage of an audience that’s using smartphones more and more in the purchase process.

As such, it seems clear that brands need to run programmatic mobile trials and increase their conventional mobile ad spend in 2015. We can help with this: find out more here.

#2: Social
The numbers on social make things pretty clear:

Ok, so we know we have a good audience. Then why is social network ad spending in all of Latin America only estimated to be US$481 million in 2014 and only to increase by 23% in 2015?

Per user, advertisers will spend US$2.52 on social network advertising in Latin America, compared to $46 per user spent in North America and $27 per user in Western Europe.

How does this make sense when comScore reports that the average social media user in Latam spends 8.67 hours a month on social media versus 8.07 hours spent by Europeans and 6 hours a month spent by North Americans?

>>>The Approach with Social
There are several ways brands should leverage this Latam love of social in 2015:

Facebook retargeting. On one hand, we have 200 million Facebook users. On the other, in 2014 we have e-commerce growing by 40% in Argentina, by 23% in Brazil, by 20% in Mexico and by 45% in Colombia. So obviously it makes sense to retarget people who visit e-commerce sites with ads on Facebook. You can find out more on how that works here or just contact us directly since we’re experts in this area and partners with Triggit, a leading company in Facebook Exchange retargeting around the world.

Native advertising and content marketing. Do any of you know how much Latin American marketers are spending on native advertising or content marketing? Many of us don’t know yet, and the reason is because no surveys that report tactical spend by Latam marketers has been released. But it doesn’t seem to be much, if at all.

And what a missed opportunity. Mobile Internet is expanding hugely in Latin America and part of that entails people checking social networks on their cell phones: 30% of Mexicans, 37% of Chileans, 32% of Argentines and 19% of Brazilians, according to one study. But other studies confirm this trend: see here, here and here.

This means that people are checking their Facebook feeds, scrolling down: this makes it the perfect place for you to include a sponsored post that’s part of your content marketing. A recent survey of American marketers showed that 23% are devoting more than half of their 2015 budget to content production. Why? Because posts on topics and videos, for example, are good ways to engage people and sell. A post can lead back to a mini-site where your content lives—along with banners to convert people. Or you can set up a content channel on a portal—something we helped a client do with iG a few years ago and which worked very well. And you can leverage content even further with mobile: 55% of Brazilians recently said that video was their preferred format for mobile ads.

Sponsored social. This trend has taken off in the U.S. and it makes sense: use social media users with strong followings to promote brands. A recent study showed that 52% of American marketers had used this tactic in 2014, nearly as many as those who used online display advertising (58%). This could be a trickier tactic to deploy but it definitely merits some trials considering the potential it has.

Bottom Line
As an industry, we’re skipping around the surface of the potential of digital in Latam with light investments. It’s not about jumping on the bandwagon to be cool. It’s about adjusting our business practices to our audience habits. And that’s just good business.

Contact us to learn more about how we can spike your response in 2015 via mobile, programmatic, mobile programmatic, Facebook retargeting, social and a deeper dive into digital campaigns.