Tag Archives: Ignacio Roizman latinlink.usmediaconsulting.com

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The Impact of Latam’s Mobile Revolution

Apparently, everyone in Latin America seems to have a cell phone these days. The region’s population is at 597 million but it has 630 million mobile phone connections. That’s a cellphone penetration rate of 105%, higher than the U.S. rate of 103%. The data is from the GSMA—a group of mobile operators that promote the GSM mobile system—in a report that the organization just released.

Its 630 million mobile connections make Latin America the world’s third largest mobile market, just behind Asia Pacific and Africa. However, that 630 million is set to jump even more: by 2015 Latin America will have 750 million mobile connections—a penetration rate of 130%.
But the significance here is not just that Latin Americans are buying lots of mobile phones. For professionals in media, marketing and advertising, it’s also important to consider the type of phones Latin Americans are buying and how they’re using them.

Smartphone Sales Spiking
First off, it’s important to note that 24% of the 13.7 million cellphones sold in Argentina in 2011 were smartphones, and these are obviously better for accessing the Internet. In addition, smartphone sales spiked by 165% in Brazil in the first 6 months of 2011 and IDC projected a 78% increase in smartphone sales in Mexico in 2011. In fact, analysis firm The Competitive Intelligence Unit projects that smartphone penetration should reach 23% in Mexico in 2012 and reach 50% by 2014. As such, the 9% penetration that smartphones had in all of Latin America in 2010 should reach 33% by 2014 and GMSA suggests it may reach nearly 60% by 2016.

Mobile Connections
As Latin Americans buy more smartphones and tablets, they use them to go online—skipping landline connections. GSMA reports that in Latin America, mobile broadband subscriptions have gone up by 127% per year over the past 5 years. And over the next five years, these subscriptions could go up by 50% every year. In fact, by 2015, Latin America should have nearly 333 million mobile broadband connections.
In addition, a survey of Internet users in 14 Latin American countries done by research firm Tendencias Digitales revealed that 70% of Latin American Internet users went online with their mobile phones. Further adding to the statistics was Brazil’s Communications Minister, Paulo Bernardo. He recently reported that 99.8% of the Internet service subscriptions in Brazil in 2011 were for mobile access, while only 22% were for service through a landline. This is in line with other studies showing that mobile has overtaken LAN houses to become the #2 way that Brazilians access the Internet.

The numbers suggest 3 developments that will impact the media market in Latin America:

#1) Mobile seems to be opening the door of Internet access in Latin America—so in the near future we will probably see studies from comScore, IAB, AMIPCI and other organizations showing major increases from the current 36.7% Internet penetration in the region.

#2) This Internet increase means a whole new wave of consumers connecting for the first time, making online media even more important for reaching all of Latin America or specific markets. The surge in online ad spend in Latam that we’ve seen in 2010 and 2011 could become even more powerful.

#3) Mobile advertising in Latin America may soon be challenging display and search in the battle for ad dollars.

To find out how we can help you reach the Latin American online market via a display, search mobile or video campaign, please contact us at info@usmediaconsulting.com.

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US Media Consulting Merges with Jumba

This month we officially completed our merger with Jumba Media Group, one of the top online ad networks in Latin America. “While we have worked closely with Jumba since its launch in 2007, we’re proud to make it officially part of the US Media Consulting family,” says Bruno Almeida, Chief Commercial Officer for US Media Consulting.

New Name, New Products
The “Jumba” name won’t go away, but it will no longer refer to the company. From now on, US Media Consulting is the company name but the Jumba brand name will continue to exist in the form of specific products. As such, Jumba’s offices in Buenos Aires, Argentina, will become an additional Latin American satellite office for US Media Consulting, joining the ones in Bogotá, Guatemala City, Caracas, Mexico City and the upcoming office in Brazil
One of the key products with the Jumba name is the online ad network, which features 1,700+ sites concentrated in 15 key subject areas. Adding this network—which will be called Jumba Display Network—to US Media Consulting’s roster of represented media and 2,200 media partners will give our clients even more Web options for their campaigns. Besides top premium sites, Jumba Display Network offers vertical site clusters and long-tail sites—both of which make for maximum reach and significant cost-effectiveness.
 
Beyond Web into Mobile, Social and More
Of course, merging with Jumba offers more than just proprietary web solutions. With the Jumba Mobile Network, US Media Consulting can help clients tap into Latin America’s surging mobile ad market via more than 150 mobile sites.
But the new solutions don’t stop there. “Our team has developed a wide range of solutions for clients, including online video advertising, email marketing and social media marketing,” says Ignacio Roizman, former head of Jumba Media Group and now Chief Operations Officer at US Media Consulting. “We’ve already launched campaigns for clients in those areas but we’re also developing a number of other web-based solutions that should roll out in 2012,” explains Roizman.

A Fresh Site…and Maybe More Mergers
Clients, media partners and industry colleagues will get a very direct sense of the offerings of the new, improved US Media Consulting this spring. “We’re re-doing our company Web site from top to bottom,” says Almeida. “The new site should be ready in a couple of months and will showcase the expanded offerings that the merger has made possible. In addition, we’re also considering other firms that we may acquire. We’re seeing a lot of interesting synergies in the marketplace and great potential,” says Almeida.

To find out how more about our web, mobile, social media, email marketing and online video campaigns, as well as our capabilities in print, TV and out of home advertising, please contact us at info@usmediaconsulting.com.

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Reaching Around Segmentation in Latam

Typically, segmentation is key to a campaign’s success. Know your customer, tailor your campaign to that knowledge and enjoy your success. But segmentation isn’t the only path to success.

Redefining the Segment
Recently, one of our tech clients was looking for buying strategies for Latam sites. They wanted their ads to deliver unit sales, not branding. So these ads needed to get in front of eyeballs and convert a user into a buyer. While a tech site would have been an obvious route to try to yield segmentation, the client wanted to sell computers. We realized quickly that anyone who’s online is potentially a customer—all Internet users were the segment to go after.

Quality Content = Conversion
With that in mind, we looked to high-traffic sites. Typically, portals for certain countries like Brazil, Mexico and Argentina are a good target. And they worked. However, this one size didn’t fit all. We discovered that for certain Latam countries, newspaper sites also worked well. Examples include Colombia’s El Espectador and El Tiempo and Argentina’s Clarín and La Nación. Why? Local content. Running traffic numbers through comScore, we noticed that the highest traffic from portals for certain countries ran through e-mail or IM programs. People see the ads when checking e-mail or sending IMs to friends and family, but they often responded better when the ads ran in content-rich sites like newspapers. They spent more time browsing these sites. So they were more receptive to the messaging from the ads than when they were focused on checking and responding to emails and IMs.
     This is not to say that portals don’t offer great reach—they do, especially if they have local content for the market. But the content made the difference in conversion with this campaign, and we noticed that in certain markets, like Peru and Central America, local newspapers function as de facto portals because of their brand equity.

Tighten the Pitch
Of course, strategic placement to deliver big reach was only part of why this campaign worked so well. The client created time-sensitive ads with great offers and strong calls to action—and they refreshed them regularly. Combining this with high-reach sites is what drove the success.

The Takeaway

  • Reach can be more important than segmentation if the product has broad appeal
  • Latam portals have great reach, but in certain markets local newspapers work just as well or better because they have millions of loyal readers who migrated from the print
  • Look at what users DO on high-traffic sites. E-mails and downloads keep them too busy to focus on ads. But quality content gets them to browse around and makes them more open to add messaging.

 To learn more about how we can create a powerful online ad campaign for you, contact us at info@usmediaconsulting.com.

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