Tag Archives: smartphones latin america

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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.

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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.

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The Hottest Mobile Markets in Latam

Mobile continues to grow massively in Latam. A recent report from Informa Telecoms & Media estimates that Latin America’s mobile market will grow by 7.1% this year. In addition, the company estimates that Latin America will have 742 million active mobile subscriptions by the end of 2013. This is impressive growth compared to the beginning of 2012, when the region had 630 million mobile connections. But the growth isn’t just limited to mobile subscriptions: Informa calculates that smartphone connections will grow by 35% in Latin America in 2013 to reach 140.7 million. Obviously, the massive growth continues to be driven by a few key markets. Here’s a quick rundown so that marketers, media and advertising professionals can shape their future mobile campaigns in Latin America.



ARGENTINA
Smartphones: According to Pyramid Research, 42% of the mobile phones sold in Argentina in 2012 were smartphones. Pyramid projects that in 2013, 53% of the mobile phones sold in Argentina will be smartphones. And by 2017, more than 70% of the mobile phones sold in Argentina will be smartphones.
According to IDC, in 2012 more than 5.9 million smartphones were sold in Argentina, a 44% increase compared to 2011.
For targeting purposes, it’s important to note that Pyramid reports a 57% market share for the Android operating system. That said, according to IDC, Blackberry has 70% market share among companies that distribute smartphones to their employees.

Tablets: According to IDC, 340,000 tablets were sold in Argentina in 2012—a 43% increase compared to 2011.

Mobile Internet: There are currently 33 million mobile Internet subscribers in Argentina but Cisco projects that there will be 37 million by 2017.

Mobile Ad CTR: According to Hunt Mobile Ads, it was .52% in Argentina during the first quarter of 2012.

 


BRAZIL
Smartphones: According to consulting firm Frost & Sullivan, 15.5 million smartphones were sold in Brazil in 2012 and in 2013, more than 21.4 million smartphones will be sold in Brazil. Overall, smartphones will account for 35% to 40% of all mobile phone sales in Brazil in 2013. According to Kantar Worldpanel, Android operating system has 56.7% market share in the Brazilian smartphone market, followed by Symbian (31.5%), with much smaller percentages for the other operating systems. However, when it comes to companies that distribute smartphones to their employees, IDC reports that RIM has around 41% market share (double the amount of the nearest competitor) in both smaller (0-250 employees) and larger (250+ employees) companies.

Tablets: According to IT data, tablet sales reached 3.1 million units in Brazil in 2012, 222% higher than in 2011. IT Data estimates that tablet sales in Brazil will reach 5.1 million units in 2013, an increase of more than 67% compared to 2012.

Mobile Internet: According to the Mobile Modes study from Yahoo! Insights, by the end of 2012 more than 51 million Brazilians went online with mobile devices. In 2013, 67 million Brazilians will access the mobile Internet and this will increase to 86 million in 2014 and 110 million by 2015.

Mobile Ad CTR: According to Hunt Mobile Ads, it was .61% in Brazil during the first quarter of 2012.



MEXICO
Smartphones: According to IDC, 16 million smartphones will be sold in Mexico in 2013—a significant increase from 2012, when Mexicans bought 12.2 million smartphones.  A Kantar Worldpanel report from 2012 notes that Android OS has a 37% market share in Mexico, while RIM is second, with 29.7%, followed by 20.2% for Symbian and 4.7% for iOS. IDC reports that for Mexican businesses that distribute smartphones to employees, RIM has 58% market share in companies with more than 250 employees and 61.6% market share with companies that have 10 to 250 employees.

Tablets: IDC estimates that 2.2 million tablets will be sold in Mexico in 2013, up from 1.5 million tablets sold in 2012, 689,0000 sold in 2011 and 184,000 sold in 2010. By 2016 tablet sales in Mexico will reach 4.3 million, predicts IDC.

Mobile Internet: According to the Organization for Economic Cooperation and Development, Mexico has 10.7 million mobile broadband subscribers. While the country lags behind Brazil and Argentina in this regard, Mexico seems to be growing in mobile Internet, registering a 74% increase in mobile broadband between 2011 and 2012.

Mobile Ad CTR: According to Hunt Mobile Ads, it was .56% in Mexico during the first quarter of 2012.

To find out how we can help you reach Latin America via a mobile campaign or a campaign in any other type of media, please contact us.

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