Tag Archives: eMarketer

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Latin America Leads the World in Smartphone Growth

Market research firm GfK recently released its figures for smartphone growth and it looks like Latin America is leading the world in this area.

Smartphone sales in Latin America totaled 68.7 million in 2013 and went up by 59% in 2014 to total nearly 110 million units. In terms of sales value, Latin America is again the leader when it comes to smartphones: US$31 billion in 2014 versus US$20.6 billion in 2013—a 52% increase.

Here’s a graphic to illustrate the numbers and show the numbers in different markets:

Latam leads in smartphone sales

For advertisers and agencies, these numbers clearly point to the advantages of investing more in mobile campaigns and may explain the powerful growth in mobile advertising in Latin America that was recently projected by eMarketer. One challenge is determining exactly how to invest in mobile marketing in Latam: apps vs. mobile internet, for example. We have some advice on that here.

Please contact us to find out more how we can increase efficiencies for Latin American advertisers and agencies through media services like planning or buying or via advertising technology solutions like programmatic buying.

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.

oman pushing virtual button in web interface

Programmatic Buying: The Future of Digital Media Campaigns

Up to now, digital media buying has mostly been dominated by a custom approach in which you work to match up relevant ads with relevant sites to deliver relevant segments.

But what if you could spend your budget on trying to reach the customers you want to reach, not just a rough percentage of them based on your match-up?

What if you could use a system that automatically (and continually) optimizes your campaigns?

And what if you could reach many more sites than with a manual buy, aggregate highly responsive customer segments to reach a mass scale and measure clicks, shifts and conversions with your campaigns in real time?

These are all the advantages of programmatic buying, a new, paradigm-shifting way of buying digital ad space and implementing online ad campaigns.

What It Is
Programmatic buying basically involves using an automated platform to buy ad impressions. You enter in your customer data, budget and campaign objectives. The programmatic buying platform does the media buy for you based on an auction for available impressions, taking into account the data you entered. The platform also matches up the ads each user sees with the available customer data. The idea is that each Internet user will see an ad that fits their specific needs and interests. For buyers, this means that they only pay to reach the clients they want to reach.

How It Works
Programmatic buying is driven by data. For best results, buyers need to enter in as much data as they can about their target audience. Usually, brands have a wealth of data about their customers that they can provide. In addition, through the programmatic buying platform they choose to use, they can also purchase more data provided by third parties on a CPM basis. Third-party data types can be demographic (e.g. gender, age, income, etc.) psychographic (mindset, interests) and behavioral (recent searches, credit card usage, etc.) The programmatic buying platform takes these data points and uses them to run the campaign. The goal is not just to match the right ad with the customer, but also the right context, especially the context that leads to the campaign objective being fulfilled.
As happens with search marketing, there’s bidding. You bid for the impressions you want and the programmatic platform handles the buy with an auction system that decides who gets what in milliseconds—this is known as Real-Time Bidding (RTB). There are two main approaches to buying media programmatically. With Price-Based Trading, you try to buy the impressions for as low a price as you can and benefit your campaign by reducing the cost as much as possible. You can target and optimize with this approach, which in practice tends to be manual and not automated. The other approach with programmatic buying is value-based. With the value-based approach, you take advantage of the system’s ability to learn from customer responses to ads. The system then automatically gives a value to each ad impression so you know which impressions deliver the goal response you want from your customers—and which ones don’t.

How It Plays Out
Let’s say that you purchase your impressions and have the objective of getting women 35-44 to click on a banner for a jewelry product. And Elena, an Internet user that fits your target demographic, visits a smartphone Web site on a Monday and then a soccer blog on a Tuesday. Because of the data the programmatic buying system has about your campaign and your target, when she visits the soccer blog, she sees an ad for jewelry. This fits her behavior and is in the right context to reach her, specifically. Now contrast this with a custom buy for the soccer blog. Given that it’s a soccer blog, it’s likely that a custom buy would result in Elena seeing an ad for an energy drink or a men’s fitness product. So with programmatic buying, you’re not matching product category to publisher category, you’re matching product to customer profile and behavior, thus increasing the probability of response. And this increased probability isn’t a random supposition, it’s based on what has actually happened based on measurement of previous behavior by the Internet users.

What’s Next
According to eMarketer, spending on digital display ads via programmatic buying will grow by 73% in 2013, with double-digit increases every year through 2017. Given this trend and the clear value of this approach in terms of delivering greater ROI, US Media Consulting has created Media Desk, one of the first-ever programmatic buying platforms for Brazil and Latin America. A robust technology platform and user-friendly interface in 3 languages make Media Desk the ideal solution for any digital media planner who wants to deliver the power of programmatic buying for their clients.

To find out more, please visit mediade.sk or write directly to sales@mediade.sk to obtain a free demonstration of this innovative platform.

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Brazil’s Mobile Ad Spend is Set to Spike

In Brazil, as smartphone penetration deepens, tablet sales keep growing and social TV becomes more popular, advertisers are investing more in mobile. In 2012 they spent US$24.6 million on mobile ads in Brazil, around 1.2% of Brazil’s digital ad spending. However, by 2016 eMarketer projects that mobile’s share of online ad spend in Brazil will reach 4.9% by 2016 and total US$198 million.

But increasing mobile ad spend isn’t justified solely by device adoption—mobile is transforming the way that Brazilian Internet users go online and how they consume content.

Here some examples of how.

Research
In May 2012, Google’s Our Mobile Planet study showed that 80% of Brazilian smartphone owners say that they research products with their phones before buying them. In an article in O Globo, Google’s Director of Mobile Platform Content, Peter Fernandez, was quoted as saying that more than 10% of the online searches in Brazil are done via mobile phones. Beyond researching products, Brazilians also use their phones to find their way around: an Ericcson ConsumerLab study showed that using maps to navigate was the #2 activity that Brazilian smartphone owners engage in with their phones.

Watching TV and Movies
The Ericcson study listed watching TV shows and movies online as top activities for Brazilian smartphone users.

Social Media
A recent study by Nielsen showed that 4 out of 10 Brazilian internautas use mobile phones or tablets to access social networks. In addition, the same study showed that 56% of Brazilians report watching TV while using social media.

Shopping
In addition, Brazilian mobile Internet users are using their mobile phones to shop online in record-breaking numbers. In fact, the latest projection from the Câmara Brasileira de Comércio Eletrônico (camara-e.net) is that mobile shopping in Brazil will increase by 657% in 2013 to reach a total of more than R$ 2 billion (US$1 billion). According to camara e-net, in 2012 online sales in Brazil via tablets and smartphones rose to 10%, double the percentage in 2011. More than half of the mobile sales took place with iPads (51%), while 20% of the sales happened with iPhones. In addition, Roni Cunha Bueno, marketing director of online retailer Netshoes, recently indicated that mobile accounted for 4% of the company’s sales in 2012 and will account for 10% of sales in 2013.

To explore how we can help you reach Brazil’s mobile market, please contact us.

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E-Commerce Explodes in Brazil

According to eMarketer, Brazil’s B2C e-commerce sales will total $18.7 billion in 2012—a jump of 21.9% compared to 2011. And the growth goes on from there. By 2015, eMarketer projects that B2C e-commerce sales in Brazil will reach $26.9 billion, with 31.6 million Brazilians making at least one online purchase that year.

According to eMarketer, a number of factors are driving the growth:

Multiple payment options. While 63% of Brazilian online shoppers used credit cards to make their purchases in 2010, the remaining 37% used boletos bancários. These are slips that a buyer prints out from the merchant’s Web site and takes to their bank to physically make the payment for the item. The buyer can also use the boleto bancário to make a payment via online banking. Either way, it’s a secure purchase method for buyers who don’t have credit cards.

Online security. Many potential e-customers in Brazil and Latin America have been hesitant to buy online because of security concerns. However, a 2011 survey from the Câmara Brasileira de Comércio Eletrônico indicates that 70% of Brazilian Internet users feel that online security has improved in recent years.

Further Factors
However, other changes happening in Brazil could very well impact e-commerce in 2012 and beyond.

>>>More users. First, projections suggest that 70% to 80% of Brazilian households could have Internet access by 2015—which means Brazil could go from having 78 million Internet users in 2011 to over 140 million by 2015.

>>>More mobile. The deep Internet penetration projected for 2015 refers to traditional PC connections. However, mobile phone penetration is at over 100% in Brazil and in fact, mobile devices are the #2 way for Brazilians to access the Internet. In addition, a 2011 survey from the Mobile Entertainment Forum revealed that 79% of Brazilians use their cell phones in some phase of the purchase process. Putting these two facts together suggests that mobile commerce (m-commerce) could soon start to take off in Brazil, further growing the country’s e-commerce market.

>>>More credit. According to  the Associação Brasileira das Empresas de Cartões de Crédito e Serviços, credit card ownership among Brazilians went up in 2011. The organization surveyed 4,000 Brazilian consumers and found that 72% had either credit or debit cards, up from 68% in 2010. The survey also showed that nearly half of the class C Brazilians who responded had credit cards, up from 38% in 2010. Obviously, credit cards make e-commerce a lot easier, and if this trend continues, even more Brazilian buyers could enter the country’s online marketplace.

To find out how we can help you reach the Brazilian market with an innovative crossmedia or online campaign, please contact us at info@usmediaconsulting.com.

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