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.