What is the present and future of the South Florida based Panregional Advertising and Media sector? Our just published 2015 Panregional Marketing and Media Report addresses many of the answers to the above key question.
Miami is frequently nicknamed as the “capital of Latin America”. The South Floridian Metropolis, has been a major center of the Latin American Advertising and Media markets over the last decades. Major Latin American agency, marketing and media decisions were and are taken out of South Florida. But, wait a moment, is this still the case? Haven’t there been structural changes in the last few years that threaten Miami’s place as the capital of Latin American Marketing and Media? 8 key questions and their answers.
1.Is Miami still the Capital of LatAm Advertising and Media?
Is the South Florida based Advertising and Media sector still a vibrant growing and innovative community? Most experts will answer this question with a resounding yes. Look for instance at the wide array of new LatAm targeted digital media and Ad-Tech ventures that have recently established major operations in Miami to target Latin American markets including YuMe, MediaMath, Outbrain, Teads.TV, Skyword as well as digital media giants Facebook and Google/YouTube.
2. But wait…haven’t many major companies transferred their Miami headquarters to LatAm countries?
Most observers will tell you so. While they still think that Miami is an important Latin American media buying and decision center, the marketing budgets directly depending on Miami based agencies or clients have been reduced compared to where they were a decade ago.Why?
Over the last five to ten years many major multinational companies have relocated their Latin American headquarters, and with them their central marketing and media operations to Latin America (Brasil, Mexico, Argentina and Chile). However, as WorldCity Research points out, there are more than 40 multinationals that are based in South Florida, with each of them overseeing US $1 billion in annual sales mostly in Latin America, and countless companies more with sales of less than US $1 billion.
3. Will the panregional marketing volume increase or decrease over the next few years?
We expect the market to grow at a compounded annual growth rate of 4.2% during the 2014 to 2018 period. Below are the projections as published in our Panregional Advertising and Marketing Volume Projections (2014 – 2018).
| 2012 | 2013 | 2014e | 2015e | 2016e | 2017e | 2018e | |
|---|---|---|---|---|---|---|---|
| Total Volume (in US$ mill) | 415.53 | 438.27 | 465.20 | 477.61 | 517.89 | 551.89 | 611.06 |
| Y/Y Growth (excl. Content Marketing) | 4.24% | 3.70% | 4.39% | 1.00% | 6.70% | 4.89% | 9.00% |
4. What role will Cable and Print Media have going forward?
Pay-TV (Cable and Satellite) and print have historically been the two largest panregional media vehicles, particularly cable, which continues to be the main media type in terms of ad-dollars, as it offers mass-media reach to the LatAm middle and upper classes, but Pay-TV’s leadership is increasingly being threatened by the growth of digital. Protectionist regulations in Brazil and other Latin American countries, particularly for off-line media, establish that media buying has to be done from within the country the media is consumed in and not from other countries (e.g. Miami).
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5. So is Digital Media leading the Growth as it relates to panregional Marketing?
The enormous growth of programmatic audience buying technologies does increase the centralization media buying through platforms like the ones provided by SSPs (Supply Side Providers) or DSP’s (Demand side Providers) or the major agency trading desks including Accuen (OMG), Xaxis (Group M), Cadreon (IPG-Mediabrands) and Affiperf (Havas). The main Latin American units of most of these trading desks are based in Miami. Digital media buoyed by the high growth rate of programmatic and online video can reestablish Miami as the major panregional Advertising and Media sector.
6. How does the growth of the Content Marketing discipline bode for the role of Miami??
In our just published 2015 Panregional Report, we asked client side marketers what percentage of their panregional media buying projects is interdependent with a content marketing activity (e.g. they do paid media buys to drive traffic to owned digital properties.)
Weighting the respondent’s answers, on average, 28.8% of their panregional media-buying activity is connected to some sort of Content Marketing. Most respondents noted that Content Marketing amplifies paid, earned and owned media messages and increasingly is an important complement to panregional media buying. For more in-depth insights and details you will have to buy the report :-)!
7. What Ad-Categories are going to grow?
The IT Electronics category will continue to be the strongest category, amounting to almost a third of overall panregional Advertising by 2018. This is because the adoption of all types of Consumer Technologies and Brown Goods is going to continue to be front and center for the Latin American consumer with these types of products being increasingly offered to the Latin American lower and lower middle classes.
CPG (Consumer Packaged Goods) will continue to be a major Ad-Category throughout the 2014-2018 period with major CPG Companies such as General Mills or Procter & Gamble having decision-making centers in South Florida.
8. How does Brazil’s current economic weakness play into the forecast?
The overall growth rate of panregional advertising as well as the growth rate of categories including IT/Electronics, CPG, Telecom , Financial Services, Beverages and Automotive will be impacted by relatively low consumer demand in Brazil in 2014 and 2015 which will somewhat depress growth rates. Of even bigger significance is the taking place of mega marketing events such as the 2014 Soccer World Cup, the 2016 Olympics in Rio de Janeiro and the 2018 World Cup. Major companies and brands, particularly in the above cited categories, plan marketing around these events in a panregional and sometimes global fashion. In those cases Miami based media, brand marketers and agencies will play an important role in decision-making. For more in-depth insights and details you will have to buy the report below :-)!
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