Will mostly U.S. based Online Video and Advertising Technology providers really be able to deliver the goods when it comes to the Latin American Online Video Market? What are the main challenges ahead? In order to find out more about the evolution of Online Video in LatAm, we asked major experts what online video formats they see growing the most in 2015. Below, their answers.
Jorg Nowak, Head of Latin America, YuMe
“Video Advertising has arrived in Latin America and is certainly nothing new. At YuMe, our IAB and MMA Award winning ad units such as “Ngage” and others transform the traditional 30 second TV Spot/Pre-roll into an experience that engages the audience and create the brand recognition advertisers are asking for”.
The enormous opportunities presented by the Latin American and U.S. Hispanic online video landscape will be examined in-depth by major experts of the brand marketing, agency, media and measurement world at Portada’s Latin Online Video Forum on June 3 in Miami (part of #Portadalat.) Check out the evolving agenda and register!
Chris Stanley, CEO, Alcance Media
“Overall, I expect video to continue its strong growth as more advertisers see the benefits. As for the formats, pre-roll will be number one, but as more offerings become available in mobile pre-roll this should see strong growth as well”.
Mike Downs VP, Hispanic & LatAm at TubeMogul
“Pre-Roll is the format growing most consistently, with the majority of that growth driven by mobile devices, and we believe that both will continue to develop in 2015. We work with advertisers looking for innovative solutions to deliver brand messages and will continue to do what’s best for them”.
Eric Tourtel, SVP and General Manager Latin American, Teads
“Pre-roll within a quality environment will not grow, quite simply because there are not any more inventories available (producing video content is expensive hence why there is not too much availability and it tends to be sold out immediately). Pre-roll within user-generated content may grow if advertisers prefer price over quality. Hope for users and advertisers mid-rolls and post rolls will not grow either since that would have a negative impact on the way people perceive brands (no one likes to be forced to see an ad while consuming video content).
I am convinced, thanks in part to our conversations with many brands and agencies, that Outstream formats will grow, and that inRead will soon be a commoditized format. Finally, 2015 will be the year of mobile! According to eMarketer, Latin America is the second fastest growing region for mobile phone internet user growth, ranked 2nd worldwide behind Central & Eastern Europe. eMarketer predicts Latin America will have 322 Million Mobile Phone internet users by 2018, a jump of 194M from 2014 (a 65%+ increase in 4 years alone).
Research firm eMarketer expects a very high growth rate of mobile internet ad spending in Latin America, growing to US$2.24 billion by 2018 from US$334 million in 2014. One very important point to consider is that since the quality of mobile broadband’s is extremely low, people tend to use Wi-Fi on their devices all the time, to the direct detriment of the broadband quality available on mobile devices. For example, in Mexico 94.7% of the mobile traffic goes through Wi-Fi, which means we can deliver a lot of video on mobile. In our view the major growth in mobile formats will come from inRead and mobile-friendly formats”.
Manny Montilla Sales Director at Adap.tv
“Although I think mobile video will grow tremendously in 2015, I think the more compelling growth to keep tabs on will be centered around publishers concentrating their efforts in generating more medium and large player inventory. The saturation of small player inventory and the increasing negative user experiences associated with them are making advertisers more and more prone to targeting away from small pre-roll inventory sources and concentrating their spends toward larger sized pre-roll sources”.
The opinions are manifold. As 2015 moves on, we should have a clear perspective on the format that best meets advertisers’ needs as well as users’ habits.
CHECK OUT:
10 things you need to know about the Latin American Online Video Advertising Market
Will Online Video Take Money Out of the Huge LatAm TV budgets?
The enormous opportunities presented by the Latin American and U.S. Hispanic online video landscape will be examined in-depth by major experts of the brand marketing, agency, media and measurement world at Portada’s Latin Online Video Forum on June 3 in Miami (part of #Portadalat.) Check out the evolving agenda and register!
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