Tag Archives: mobile ad market latin America

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5 Insights into Mobile Web Users in Brazil and Mexico

We’ve seen clear indications of mobile web use spiking in all of Latin America through very clear market indicators. These include robust rates of smartphone/tablet adoption and gigantic upticks in mobile broadband subscriptions in Argentina, Brazil, Mexico, Colombia and several other markets.

However, for anyone considering increasing their mobile advertising campaigns in Latin America—or even trying out a mobile media campaign for the first time—understanding mobile usage patterns is key.

A recent large study from Accenture seems to offer some interesting data points about mobile Internet users around the world. The firm surveyed more than 17,000 people in 13 countries, including France, Germany, Austria, South Africa, Spain, Finland, Italy Russia, the United Kingdom and also Brazil and Mexico.

Here’s a look at some of the key takeaways that could help influence the direct of your next (or first-ever) mobile campaign if your target is Brazil or Mexico.

#1 Android Rules
For 90% of the mobile Internet users in Mexico and Brazil that were surveyed, the operating system is the most important thing to consider when purchasing a smartphone. Out of all respondents from all countries, 41% prefer Android, 22% prefer iOS and only 8% prefer Blackberry.

These Accenture results are consistent with Brazil results from Nielsen Brasil published in August 2012, in which 78% of the smartphones sold in Brazil in June 2012 used the Android operating system. However, it’s important to note that comScore’s Device Essentials study from March 2012 reported that 58% of the mobile Internet traffic in Brazil came from devices using the iOS system.

But wait—there’s more. In September 2012 Kantar Worldpanel reported that for June to September 2012, Android had a 47% market share in Brazil in terms of the operating systems of smartphones sold in that period, making it the leader over iOS, which only had 6%; Symbian was in second place with 26.7%. For Mexico, Kantar Worldpanel reports 37% share for Android, 29.7% for Research in Motion (the leader last year), 4.7% for iOS and 20.2% for Symbian.

As such, if you are targeting by operating system in these markets, it seems that Android will deliver the largest amount of mobile phone users in both Brazil and Mexico.

#2 Mexicans and Brazilians Go Social with Their Mobile Phones
More than 80% of Mexican mobile phone owners surveyed say they use their phones to send messages on social media, as well as to blog, tweet and send instant messages. Among the Brazilian mobile phone owners, 73% reported doing these activities with their phones.

#3 They’re Hooked on Internet-Ready Phones
Given this high rate of online activities with their phones, it’s not a surprise that 78% of the Brazilians and 61% of the Mexicans said that the cell phones they buy in the future will offer Internet access.

#4 They Want Mobile Deals, Not Mobile Annoyances
When it comes to attitudes toward mobile ads, the Accenture study didn’t offer specific figures for the Brazil or Mexico markets but rather for all of the countries included. However, this data is telling. Nearly 40% of the respondents said that they find mobile banner ads and mobile text ads to be annoying. However, 66% said they are open to receiving coupons, special offers and promotions on their mobile phones. As such, structuring mobile messaging around savings may yield a better response in these markets.

#5 They Have Not Reached the Tipping Point for Mobile Payments
While 39% of the respondents in the 13 countries said they’d like to use mobile payments, 45% said they’re not interested. And overall, only 16% said they make mobile purchases. Of those who do use their phones to shop, 55% use them to buy event tickets, 46% buy train or plane tickets, 39% buy clothes and 37% buy consumer goods.
Despite this low response in this survey, new research predicts an explosion in mobile commerce in Brazil in 2013. Read more here.
To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us.

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The State of Mobile Advertising in Mexico

We’ve written about mobile advertising’s strong growth potential in Latin America. A new study from IAB Mexico offers a detailed look at what’s happening with this particular market.

Mobile Penetration
The IAB Mexico study cites statistics from the Comisión Federal de Telecomunicaciones—the government agency that regulates telecommunications in Mexico—that indicate that there are 94.6 million mobile phone lines in Mexico. Given that Mexico’s population is 112 million, this means that there is an 84% penetration rate for mobile in Mexico.
However, Convergencia Research estimates mobile penetration to reach 94% by the end of 2012 and to hit over 100% by the first quarter of 2013. In addition, Google’s Our Mobile Planet study showed a 20% penetration rate for smartphones in Mexico. As such, there’s clearly a strong mobile market emerging rapidly in Mexico.

Companies and Plans
Telecel seems to be the major mobile operator in the country, with 69% of the mobile subscriptions, followed by Movistar (21%), Iusacell (6%) and Nextel (4%). Most mobile subscriptions (85%) in Mexico are prepaid.

Ad Spend
Overall, in 2011 advertisers invested 402 million pesos (US$29.8 million) in mobile advertising in Mexico. The large majority—83%—of 2011 mobile advertising in Mexico was in what IAB Mexico calls “pauta pura,” which means display ads, SMS/MMS messaging and search. The reaminder was in “desarrollo,” which means creation of mobile sites, mobile apps and advergaming.

Advertising Formats
Display ads in mobile portals were the dominant format in pauta pura in 2011, making up 73% of the possible ad formats. SMS and MMS were a distant second at 11%. Most of the mobile advertising revenues (73%) came directly from advertisers and only 16% from agencies, with only 1% from networks.
In terms of desarrollo-type advertising, 51% of the revenues came from specific apps, 30% from mobile portals, 16% from SMS/MMS app set-ups and just 2% from advergaming.

The Advertisers
In 2011 in Mexico, mobile content aggregators were by far the biggest advertisers: 69% of the advertising spend came from them. Other industries accounted for a much lower portion mobile ad spend in Mexico: media and entertainment (5%), the financial industry (6%), government services (5%), tourism (3%), auto industry (2%).

Share of Online Ad Spend
Mobile accounted for 7.2% of Mexico’s online ad spend in 2011. It may not seem like a lot but in reality, mobile’s share of online ad spend in Mexico is actually larger than mobile’s share in the United Kingdom (4%), the United States (5%) and Spain (1.8%).

Ultimately, the 2011 figures point to a healthy mobile ad market in Mexico that has very strong potential to keep growing. This is why we developed the Jumba Mobile Network, which unites more than 150 mobile sites and offers a wide range of targeting capabilities to reach the growing audience of mobile users in both Mexico and Latin America.

To find out how you can use Jumba Mobile to deliver strong results for your next campaign, please contact us.

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Latam mobile

Why Mobile Advertising is a Good Move in Latam

In recent posts we’ve documented the increase in mobile phone penetration, the rise of smartphones and tablets and other aspects of Latin America’s mobile market.

But those are external factors.

New research focuses on how smartphone users in Latin America react to mobile ads—and it’s very encouraging. According to Our Mobile Planet, a study of smartphone owners in dozens of countries conducted in partnership with Ipsos Media CT and TNS Intratest,  9 out of 10 smartphone owners in Latin American’s major markets notice mobile ads and over 60% make mobile purchases once a month.

While Our Mobile Planet doesn’t have numbers for all of Latin America, it does show some compelling data for the region’s major markets: Brazil, Argentina and Mexico. Here’s a country-by-country look at the results.


ARGENTINA

Penetration
Smartphone penetration is at 24% in Argentina. Given that Argentina’s total population is 41 million, this is a market of 10 million consumers.

Frequency of Use
71% of Argentine smartphone users access the Internet every day with their devices.

Activities
• 82% of smartphone owners in Argentina research products or service on their phones and 25% have bought products using their phones
• 83% of smartphone owners in Argentina multitask with other media: 57% listen to music, 37% watch TV, 27% read newspapers or magazines
• 68% of Argentine smartphone owners watch online videos and 21% use videos once a day
• 85% of Argentine smartphone users look for local information on their phones and 89% take action as a result
• 66% of smartphone owners in Argentina make mobile purchases once a month

Response to Mobile Ads
• 86% of Argentine smartphone users notice mobile ads: 56% do so while on a web site, 39% notice them while using a search engine and 22% while watching a video
• 76% of smartphone users in Argentina have performed a mobile search after seeing an ad
• 51% only look at the first page of results from their mobile searches

Actions After Seeing Ads
Once they sought information about businesses, 68% of Argentine smartphone owners visited the businesses, 34% made a purchase and 31% told others about them.


BRAZIL

Penetration
Smartphone penetration is at 14% in Brazil—with population estimated at 190-195 million, this is a market of 27 million consumers.

Frequency of Use
73% of Brazilian smartphone owners access the Internet every day on their devices and 73% don’t leave home without them.

Activities
• 80% of smartphone owners in Brazil research products or service on their phones and 31% have bought products using their phones
• 88% of smartphone owners in Brazil multitask with other media: 63% listen to music, 6% watch TV, 26% read newspapers or magazines
• 75% of Brazilian smartphone owners watch online videos and 21% use videos once a day
• 88% of Brazilian smartphone users look for local information on their phones and 92% take action as a result
• 66% of smartphone owners in Brazil make mobile purchases once a month and 38% expect to make more mobile purchases in the future

Response to Mobile Ads

• 94% of smartphone users in Brazil notice mobile ads, 42% while on a web site, 43% while using a search engine and 25% while watching a video
• 75% of smartphone users in Brazil have performed a mobile search after seeing an ad
• 47% of Brazilian smartphone owners only look at the first page of results from their mobile searches

Actions After Seeing Ads
Once they sought information about businesses, 66% of Brazilian smartphone owners visited the businesses, 55% made a purchase and 41% told others about them.


MEXICO

Penetration
Smartphone penetration is at 20% in Mexico—with population estimated at 113 million, this is a market of 22.6 million consumers.

Frequency of Use
66% of Mexican smartphone owners access the Internet every day on their devices and 72% don’t leave home without them.

Activities
• 84% of smartphone owners in Mexico research products or service on their phones and 26% have bought products using their phones
• 87% of smartphone owners in Mexico multitask with other media: 59% listen to music, 38% watch TV, 17% read newspapers or magazines
• 81% of Mexican smartphone owners watch online videos and 31% use videos once a day
• 91% of Mexican smartphone users look for local information on their phones and 88% take action as a result
• 62% of smartphone owners in Mexico make mobile purchases once a month and 33% expect to make more mobile purchases in the future

Response to Ads
• 93% of smartphone users in Mexico notice mobile ads, 58% while on a web site, 42% while using a search engine and 31% while watching a video
• 83% of smartphone users in Mexico have performed a mobile search after seeing an ad
• 46% of Mexican smartphone owners only look at the first page of results from their mobile searches

Actions after Seeing Ads
Once they sought information about businesses, 65% of Mexican smartphone owners visited the businesses, 28% made a purchase and 27% told others about them

Our Jumba Mobile Network and Jumba Video Network are two powerfully effective options for reaching the mobile markets in Argentina, Brazil and Mexico—as well as the rest of Latin America and U.S. Hispanics. To find out more, please contact us at info@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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Why Mobile Ad Sales Are Set to Spike in Latam

Mobile is clearly making money. Worldwide, revenues from mobile ads will top US$3.3 billion—more than double the $1.6 billion earned in 2010.
And Latin America is driving the mobile ad surge: in Argentina alone, mobile ad revenues grew by 657% in 2010. Other countries are also showing mobile money spikes, including Brazil and Mexico.
Here’s why the mobile ad market is heating up in Latin America.

#1 Cellphone penetration. Across Latin America, it reached 100% in 2011, compared to 102% in the United States. Several Latin American countries boast more than 100% penetration, such as Argentina (142%) Uruguay (130%) and Brazil (118%). Latin Americans are also buying more and more multimedia phones—which are excellent for displaying mobile ad content.

#2 Smartphone penetration. Smartphone sales in Latin America for 2011 total 31 million so far, spiking by 165% in Brazil between 2010 and 2011. In Mexico, they make up 35% of the market, while smartphone penetration is at 20% in both Argentina and Colombia. Sales will grow by 30% a year over the next 5 years—or more. Smartphone prices in Latin America have dropped to the $100 range recently, making them more affordable than ever. For advertisers, surging smartphone sales mean that they have an even better device to reach customers in Latin America with ads, plus improved targeting.

#3 Consumer behavior. A recent study showed that 26% of online shoppers in Mexico used a mobile device to make purchases, while 79% of Brazilian cellphone owners use their phones in some part of the purchase process.

In Colombia, the amount of mobile Internet users spiked up 119% between 2010 and 2011 and 3G cellphone use went up 4% in the same period.

And when the Mobile Entertainment Forum surveyed 8,500 Latin American cell phone users in 2011, it found that 20% of them are prepared to spend 200 euros on mobile purchases, double the next closest region (India, with 10%).

Jumba Mobile Network
In response to this impressive surge, we have launched the Jumba Mobile Network to help advertisers reaching this growing Latin American mobile ad market. With Jumba, advertisers can target by:

• Demographic group
• Geographic area (country, state or DMA)
• Carrier
• Handset, brand or operating system
• Applications and sites
• Age of handset
• Time of day or day of the week
• Frequency, Wi-Fi or location-based

Ad formats include QR codes, traditional display in a range of sizes, rich media or text.

For more information about how we can help you take advantage of Latin America’s surging mobile ad market, contact us at info@usmediaconsulting.com.
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