Tag Archives: eMarketer Latin america

4 developments mobile latam

4 New Developments in Latin America’s Mobile Market

Given our focus on delivering the optimal media solutions for our clients, here at US Media Consulting we stay focused on the latest market intelligence. Mobile is one of the areas we always review because it’s growing so rapidly in Latin America. In August we wrote about 8 recent mobile trends in Latam but since then, new data has come out.  After reviewing it, we’ve put together some of the most salient points for our fellow professionals in marketing, media and advertising.

#1 Mobile Advertising in Latin America Set to Grow by 70% Annually Through 2017
This was the projection from Leonardo Hilario, advertising planning manager for Telefónica Digital in Latin America. Hilario projected this growth in an interview with Uruguay newspaper El Observador in October 2013.
While 70% may seem like a huge leap, we’ve seen some very bullish growth projections from other sources. For instance, eMarketer projects mobile ad spend growth of 120% between 2013 and 2014 for Brazil, with mobile ad in spend in the country reaching nearly US$133 million next year and then surging to US$731 million by 2017. Recently IAB Mexico reported 98% growth in mobile advertising revenues between 2011 and 2012. In addition, eMarketer projects strong growth in mobile ad spend in Mexico through 2017, including 74% growth in 2013 and 78% growth in 2014. By 2017 mobile ad spend in Mexico should reach US$382 million. Now, while we haven’t seen such optimistic projections for other Latam markets, the growing adoption of smartphones and tablets in the region is likely to lead to an increase in mobile ad spend in countries beyond Brazil and Mexico.

#2 Multi-Screen Viewing on the Rise

A study by Argentine research firm Business Bureau polled consumers in Argentina, Mexico, Chile and Colombia and found that on average, nearly 8 out of 10 TV viewers watched TV while doing other tasks and these tasks mostly involved using smartphones and tablets. Another 2013 study, this one from Ericsson, polled 12,000 TV viewers from different countries, including Mexico, Brazil and Chile. According to Ericsson’s results, 67% of the TV viewers use tablets, smartphones or laptops in their everyday TV viewing.
More evidence of this trend comes from some individual country studies. In August 2013 Google Brasil reported that 37% of Brazilian internet users watch TV with mobile devices, either a smartphone or a tablet. And a UM survey of Mexicans reported that nearly 50% combine watching TV with smartphones.

#3 Smartphones Get Most of the Mobile Ad Impressions in Latam
Results from StartMeApp’s quarterly report indicate that 63% of the mobile ad impressions it served in Latin America during Q3 2013 were for smartphones, while 27% were for feature phones and 10% were for tablets. However, eMarketer estimates that the overall number of mobile phone users in Latin America will grow 3.2% by 2013 to reach 414 million, compared to nearly 112 million smartphone users in the region. These numbers suggests the proportions may be off—or that advertisers are ahead of the trends. This is because in many Latam markets, smartphones are increasing their market share significantly. For instance, IDC reported that smartphones represented 46% of the mobile phones sold in Brazil during the first half of 2013, and that feature phone sales dropped by nearly 23%. A report from Carrier y Asociados indicated that 52% of the mobile phones sold in Argentina during Q3 2013 were smartphones. In Mexico, eMarketer indicates that smartphone users make up 39% of the total amount of mobile phone users and that they’ll make up 64% of the total by 2017.

#4 Mexico Leads Latin America in Tablet Adoption
A 2013 survey by McAfee indicates that 37% of Internet users in Mexico own tablets, compared to 33% of Brazilian Internet users. In addition, a January 2013 study from Ipsos showed 11% overall tablet penetration in Mexico, compared to 9% in Brazil and 8% in Argentina.
To find out more about how we can help you reach Latin American consumers via mobile advertising or any other type of media, please contact us.

internet

Latin America’s Internet Audience Reaches 300 Million

In Latam, the Internet is apparently expanding even more than we thought. Earlier this year we released a report using 2012 figures that indicated that Latin America had 232 million Internet users. But new figures from eMarketer indicated that by the end of 2013 Latin America will have 299.5 million Internet users. The region’s overall population is at around 598 million, suggesting that Internet penetration is now at 50%.

This represents massive growth compared to the previous decade. For instance, according to Venezuelan research firm Tendencias Digitales, in 2005 there were 78.5 million Internet users in Latin America, which indicates that the region’s Internet audience has nearly quadrupled in less than a decade.

What’s Next
According to eMarketer, by 2017 there will be 394 million Internet users in Latin America and overall Internet penetration of 63%. Social media seem to be the best way to reach these Internet users, since 7 of 10 Latam Internet users go on social networks at least once a month. By 2017 the social networking audience in Latin America will reach 324 million, estimates eMarketer. As we’ve discussed previously, Facebook leads the social media pack in Latin America, and beyond ads or promoted posts, a new tactic known as retargeting via Facebook Exchange seems to offer some potential for leveraging Facebook’s audience of 200 million Latin American users. That said, a number of newer social media sites offer potential for brands, as does mobile advertising, especially since mobile devices have become a popular way for Latin Americans to connect to social networks.

Turning Reach into Revenue
Of course, these numbers aren’t just market indicators for advertisers making plans for their digital investment in 2014. They are also important for web brands from the United States and the rest of the world: there is a huge, rapidly growing audience in Latin America for these brands—as long as they know how to reach them.
The quickest and most effective way to do this is by working with an experienced partner that has both the contacts and the know-how to spike regional revenues. To that end, we’re currently working on partnerships with a number of brands to help them turn their Latin American reach into Latin American revenues.

To find out more about how we can help advertisers optimize their digital investment in Latin America or help brands leverage their audiences in the region, please contact us.

top growth trends latam media 2

Top Growth Trends for Latin American Media

We took a look at some recent figures from a variety of sources and noticed some noteworthy growth in a variety of areas.


Newspapers

According to a new study from the World Association of Newspapers and News Publishers (WAN-IFRA), newspaper advertising revenues in Latin America grew by 9.1% in 2012—the largest growth of anywhere in the world. In contrast, in 2012 many other regions experienced a drop in newspaper ad revenues, including North America (7.6%), Eastern Europe (5.6%), Western Europe (3.4%) and Australia/New Zealand (8.3%).

Magazines
According to PriceWaterhouseCoopers Global entertainment and media outlook 2013-2017, magazines in Brazil will have a current adjusted growth rate of 7% a year for this time period.

Pay TV
A recent report from LAMAC (Consejo Latinoamericano de Publicidad en Multicanales) indicated that 55% of Latin Americans have pay TV, up from 51% in 2012 and 44.8% in 2011. The countries with the deepest pay TV penetration are Colombia (84%), Argentina (83%), Chile (60%), Mexico (44%) and Brazil (40%). That said, Mexico recently posted a significant increase in subscribers in the first quarter of 2013 and is on track to reach 14.5 million, not far behind Brazil’s pay TV audience of 16.97 million.

Internet
In its Futuro Digital Latinoamérica report, comScore indicated that the amount of Internet users in Latin America grew by 12% in 2012, a larger growth than any other region in the world. In addition, Latin American internautas spend an average of more than 10 hours a month per user on social media sites, more than double the world average.

Mobile
First, Informa Telecoms & Media projects that by the end of 2013, Latin America will have 742 million mobile subscriptions and nearly 141 million smartphone connections. At Mobile World Congress in February 2013, César Alierta, president of telecom giant Telefónica, said that he believes smartphone penetration in Latin America will reach 43% by 2016. According to IDC, more than 81 million smartphones will be sold. This rapid adoption of mobile devices will impact Latin America in several key ways:

  • Tata Consultancy Services projects a 35% increase in mobile transactions done in Latin America between 2012 and 2015
  • The Federación Latinoamericana de Bancos reported recently that 18 million Latin Americans engage in mobile banking right now but that by 2015 more than 140 million Latin Americans will use mobile banking
  • eMarketer projects an 85% increase in mobile advertising spend in Latin America in 2013, followed by an additional 95% increase in 2014 so that by 2016 mobile advertising spend in Latin America will total US$374 million: 15.5 times more than what it was in 2011 (US$24 million)
  • Mobile Internet will explode, as Ericcson predicts that by 2018 Brazil will have 350 million mobile subscriptions, Mexico will have 150 million mobile subscriptions, Argentina will have 70 million mobile subscriptions, Colombia will have 65 million mobile subscriptions, Chile will have 50 million mobile subscriptions and Peru will have 40 million mobile subscriptions

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

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