How MediaMath, MEC and Clarin See Programmatic Advancing in Latin America

Programmatic Media Buying and Marketing was an important theme at last week's #PortadaLat annual conference in Miami. Speakers but also sponsors and exhibitors at the event, including Yume, Playwire, AcuityAds (a DSP), Dynadmic and Teads  all have a stake in the advance of programmatic media buying in Latin America. How key players from MEC, MediaMath and Clarin/Agea evaluate the advance of Ad-Tech and Programmatic into the region.

LatAmErich Wasserman, CRO and co-founder of MediaMath and Fernando Monedero, Head of Digital Latin America at MEC, had a lively conversation about Programmatic and Real-Time Marketing in Latin America now and where it should be in 2025.
Monedero  expects a "meteoric" 600% increase in programmatic media spend this year in Latin America (Source – Emarketer & IDC)  and a total ad expenditure via programmatic means of more than US $140 million in 2016. However, he acknowledged that this is a relatively low ratio if it is taken into account that the overall Latin American digital media expenditure is close to US $5 billion.
MediaMath's Wasserman stressed the fact that Brazil already is the second largest market in programmatic volume after the United States.  Asked by Monedero, about  how he was able to foresee a future in programmatic marketing when MediaMath was founded in 2004, Wasserman said  that what he did observe at the time was a "lack of a unifying technology for buying digital media." According to Wasserman, "Latin America is very advantaged because it has a large media supply landscape as well as an increasing amount of disposable bandwidth." Wasserman added that "Digital Marketing can be measured to a large degree in Latin America, perhaps with the exception of off-line attribution which is possible in the United States in Europe."

To incorporate native advertising into programmatic is the next frontier.

Asked by the audience about how native advertising can be incorporated into programmatic, Wasserman noted that this is the next frontier, not just in Latin America but globally. One condition for this to happen is that data for native advertising becomes available to third parties for audience verification in a trend Wasserman describes as the "Democratization of Data".

The LatAm Media Owners View on Programmatic

In a very interesting presentation Tomás Salvagni, Managing Director Sales and Marketing at Grupo Clarin's AGEA, presented the Latin America's media owners view on programmatic. Salvagni was introduced by Lucas Mentasti, Managing Director Latin America, Xaxis, the global programmatic digital platform owned by GroupM.

Programmatic trading has substantially contributed to diminish non-monetized inventory.

Salvagni presented figures showing that while in 2013 programmatic ad sales for Argentinean media powerhouse Clarin were still very low, the ratio is rapidly increasing to 24 % of digital sales in 2015 and an expected 35% in 2016.  Clarin employs 80 direct sales people in for direct sales and 8 are employed working with the implementation of programmatic. Interestingly, direct sales brings in 500 campaigns a year, while programmatic brings in 5,000 campaigns. The implementation of programmatic digital advertising has decreased the amount of non-monetized inventory in Clarin's digital properties from 53% to 12% (Direct Sales monetizes 47% of the inventory). Approximately 75% of programmatic trading at Clarin/Agea is open RTB, while 25% is done through private marketplaces (PMP).

Salvagni also noted that the principles of digital programmatic trading should also be used for off-line media. For instance he pointed out that ROP and/or special sections in the Clarin Group's newspaper would also profit from real-time programmatic bidding processes.

Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.


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