With more than 2 billion active users worldwide, and 80 million monthly active users in Mexico alone, the social media giant is boosting revenue at a faster pace than expected. An important part of Facebook’s efforts and investments are going into the creation of a major video advertising platform.
Facebook is on a roll, the company last week reported revenue of US$9.3 billion in the second quarter, while its Monthly Active Users reached 2.01 billion during the same quarter. Facebook, with more than 2 billion active users worldwide, and 80 million monthly active users in Mexico alone, is boosting revenue at a faster pace than expected, turning Facebook into an important video advertising platform.
“Facebook is cornering all of the growth in digital video advertising and traditional ads, as they offer the fastest place to invest in and get good results,” said Brian Wieser, an analyst at Pivotal Research Group.
Always a step ahead with their financial results, Facebook is now working on its TV offerings to compete head-on with big names like Netflix, which has 80 million users in Mexico, and Amazon Video (which started its video streaming service in Mexico six months ago). The social network is focusing on TV content and financing of short series programs, and changing the way the series will be launched—the episodes will air once a week, mirroring traditional TV programming. The first set of programs is scheduled to launch in mid-August. Advertising efforts will bring in about US$70 billion annually.
Toincrease its advertising inventory, Facebook will rely on its Instagram platform. With its more than 700 million users ̶ 20 million of them in Mexico ̶ , Instagram has a mature advertising business built outside of Facebook. Instagram has been competing with Snapchat’s new audience for the youth demographic.
In Mexico, the average spending on video advertising campaigns is currently around US$ 5,000 a month.
Video ad campaigns have to be targeted to the Facebook audience, working in vertical formats so that the user can get a better mobile experience. In Mexico, the average spending on video advertising campaigns is currently around US$ 5,000 a month, according to Jorge Alcalde, Sales Director of Viewlogic in Mexico. Alcalde recommends budgeting two to five times the aforementioned figure in order to get better results on one of the fastest growing platforms today, with 80 million potential users in Mexico. He also noted that budgets in the US or Europe are 10 times higher than what is invested in Mexico.
What: Connecting any device to the Internet. Why It matters: Because although exact figures are not yet available (since it is a new trend), the fact is that advertising will become a critical point to understanding the user. It will be like doing re-targeting, except it will be directed at things.
The concept behind IOT is basically that of connecting any device to the Internet. This can include anything: washing machines, cars, cell phones, microwave ovens, motors, lamps, or anything else that can be turned on or off. It is the largest network that will be connected to humans in every way. IOT connects things with things, and things with people. IOT connections worldwide will grow from 6 billion in 2015 to 27 billion in 2025, at a compounded annual rate of 16 percent, according to projections by Machina Research.
The market value of IOT in LatAm is over $250 billion.
The market value of IOT in LatAm is over $250 billion, according to IDC. Most of the investment in IOT comes from Brazil, Mexico, Argentina, and Colombia. Brazil has more than 18 million connected devices, followed by Mexico with 10 million, Argentina with 4 million, and Colombia bringing up the rear and growing with 3 million connected devices.
Technological advancement brings new solutions and replaces obsolete technologies with new innovative products, such as the smart buttons used by Amazon today in the U.S., that allow placing an order with a single click on the product. LTE technology (5G) is also advancing, leaving behind 2G and 3G as standard connection speeds.
Fiber optic penetration in homes is also being used for faster browsing or accessing an endless stream of online products.
According to IDC, Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail. Mexico has more than 10 million connected devices, which represents only 6% of the connected population. This shows that Mexico is behind in this important market. It should be noted that ATT, the world leader in telephony, has a Mexican presence and is betting more than $1 billion in this area during the next 3 years. The deployment of 4G-LTE is of utmost importance for the development of IOT.
Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail.
Telcel, one of the companies most committed to this technology, launched its IOT expo a couple of weeks ago, where it presented the first smart trash can. When full, the trash can emits a signal alerting that it needs to be emptied. During this event, Telcel also displayed some smart lamps that light up according to the time of day, and also emit a signal when the bulbs need replacement.
CISCO has presented an implementation plan for several Mexican companies, to teach the banking, commerce, and agriculture sectors how to make their current products more efficient and have better control over them.
Brazil’s IOT market was valued at $15 billion in 2015 and is expected to exceed $35 billion by 2019, at a compounded annual rate of 20.7%.
Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%)
Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%). The Brazilian government’s efforts to accelerate the adoption of IOT are based on the launch of a platform. This initiative will be part of the Brasil Inteligente (Smart Brazil) program, which will replace the National Broadband Plan (PNBL). The three-year plan has a budget of $9.8 million.
The Future of Marketing
The development of marketing campaigns in this ecosystem will change the way we currently do advertising, as the devices or things we use will know our tastes and activities, and companies will be able to aim their advertising in a more objective and direct way to the real target market, without having to spend more money than they do now. Just imagine your refrigerator being able to help you with your food shopping, your diet, or with the perfect recipe for that dish you have in mind, directly requesting the ingredients needed from the supermarket.
Advertising will then become critical to understanding the user. It’s like doing a re-targeting, but in this case it will be directed at things. Because all of this is new, there is no data at the moment, but we will see dramatic changes ahead in advertising. In LatAm, telecommunications companies are the most active in this area, working hand in hand with various sectors to interconnect things. Telcel and Claro have deployed smart advertising campaigns that identify their company’s customers when they enter a mall, and can send them a promotion or coupon tailored to their product searches, giving the customer the opportunity to buy it at a more affordable price.
What: Chivas TV announces an alliance with Playmaker Media, part of NBC Sports, for the launch of Chivas TV 2.0; while Univision maintains U.S. broadcasting rights. Why it matters: In 2016, Chivas TV bet on independent streaming and stopped broadcasting its games on open television in Mexico.
When the Chivas TV project was born a year ago, it was a small disaster—the signal was bad, its platform at the time was not ideal to support a large number of fans on it, and system faults caused inconvenience among end users. The Chivas team ended up closing deals with Cinépolis and Claro Video to be able to safely reach more people, both through TV and Internet.
“It was a year spent learning what the most real solution (to improve the platform) was in terms of investment and time,” Amaury Vergara, Director of Chivas TV, told Portada. “Broadcasting games every fortnight, [while at the same time] analyzing and planning improvements to the platform in order to comply with user requirements, is complicated,” he added.
Now, in its 2017 opening tournament, Chivas will be defending its League and Cup titles along with the debut of its broadcasts on a new world-class platform.
Chivas announced an agreement with Playmaker Media, a world-class platform backed by NBC, a pioneer in broadcasting sporting events online. Playmaker Media was launched in May 2016 to provide a point-to-point video support service to businesses in need of best-in-class live streaming and on-demand videos. Its portfolio includes the Olympic Games, the Tour de France, and World Cup Russia, with more than 100 million users connected simultaneously.
“We are looking for an ally that doesn’t sees us as only one more customer, but as [part of] a commercial strategy,” said Vergara. Chivas TV sought an ally that understood the team and was willing to commit long-term to the brand
We are looking for an ally that doesn’t sees us as only one more customer, but as [part of] a commercial strategy.
This means that NBC will be lending 100% of its infrastructure and support to reach the more than 80 million potential users in Mexico through mobile, and about 70 million users online. Of course, only a part of these numbers represent Chivas fans.
Chivas TV is the clearest example of the evolution of sports event broadcasting over the Internet. The team is globally innovative, being the only team so far – of any sport – that has decided to leave TV to broadcast its games exclusively on its own streaming platform.
It is the only team so far – of any sport – that has decided to leave TV to broadcast its games exclusively on its own streaming platform.
According to a statement by Amaury Vergara, Director of Chivas TV, the platform supports high and low-speed connections. Users in Mexico are affected by a lack of stable Internet connections, so NBC is promising that its platform will adapt automatically to the type of connection users have, be it cable, wireless or telephone.
For Vergara, the alliance with Playmaker and NBC “will place Chivas as a world-class platform.”
In commercial terms, Playmaker represents a strictly technical ally. “Everything related to sales and content remains in the hands of Chivas TV,” explained Vergara. What will be adjusted is the advertising, which will be maintained more comprehensively within the platform, so that it doesn’t invade the games but rather run alongside them.
The new and improved Chivas TV will cost 111 pesos per month and will be charged as a recurring payment. Users will have access to all LigaMX, Copa, U17, and U20 live matches.
As part of the promotion for the retooled Chivas TV, users who register now will be able to enjoy free access to the presentation of the team uniform, the Champion of Champions‘ match against the Tigres, and the friendly against Porto in Chivas Stadium.
In the U.S. and Puerto Rico, Chivas TV will offer different content, including live commentary and statistics, as well as post-match broadcasts and on-demand videos for its MX League and MX Cup home games. However, in these markets, Univision will continue to retain exclusive broadcast rights to the games.
“Univision has been a great ally, so we are open to negotiating for the league to continue its relationship with the channel,” Vergara said. There is still some time left on that contract, so the executive did not share what specific plans he may have in store with the U.S. channel.
For now, Chivas TV will broadcast portfolio matches in its U20 and U17 divisions, including live video and commentary, in the United States and Puerto Rico. The goal is for American users to become familiarized with using the platform, even if they cannot view the Chivas games live (although it does offer audio access to the games).
“What we want is to position the project as a digital platform, not as another channel,” Vergara adde.
What we want is to position the project as a digital platform, not as another channel.
Six years after Evan Spiegel and Bobby Murphy, CEO and CTO of Snap Inc., respectively, developed their image exchange application at Stanford University, Snapchat has become a mainstay of the millennials’ social life—successfully evolving from a scorned application for sending fleeting photos to a messaging platform with new content formats.
Snapchat recently acquired location analysis firm Placed for approximately US $125 million, according to Bloomberg estimates. This acquisition has several advantages and the potential for good results, such as the ability to measure store visits and offline revenues generated by digital, TV and out of home ads. Placed has its own audience, made up of those who have chosen to share their location with the app as well as third-party audiences.
The company will continue to operate as an independent entity, offering its 100+ employees the chance to stay on with the company if they so wish.
Snapchat is already a familiar name in Latin America, but its users represent a limited demographic.
Last April, Snapchat launched its own online-to-offline measurement product called Snap to Store. Through it, Snapchat can recognize when a person uses the app in a specific location, such as a store, restaurant or movie theater, and then check if the person saw an advertisement for the brand on the platform.
It also invested between US$ 250-350 million in the functionality of ‘Snap Map,’ which allows app users to share their location with their contacts through geolocation. If a user wants to upload photos to their account, their contacts will be able to know from what location they were uploaded.
Snapchat numbers in LatAm
Snapchat is already a familiar name in Latin America, but its users represent a limited demographic. Eighty-five percent of Snapchat’s 158 million daily users are between the ages of 18 and 34. Only 15% of users are 35 years or older. The company’s goal at the moment is to promote the monetization of its users by generating more engagement.
Snapchat has 10 million users in Mexico, with a breakdown of 7 million womenand 3 million men. In Colombia, the app has 5 million users: 3 million women and 2 million men. In both countries, the user age is 18-25. In addition, users spend more than 30 minutes a day on the app and open it more than 20 times a day, according to Snap Inc. figures.
Snapchat numbers in the U.S.
Snapchat already concentrates about 70% of its U.S. users in the18-24 age bracket, and about 40% are ages 25-34, according to comScore. (This figure is reduced to 14% for users aged 35 and over). Some studies show that users over 35 were Snapchat’s fastest-growing segment between 2015 and 2016. However, growth within that age group came from a small base. The percentage of total Snapchat users in the U.S. that is older than 35 is expected to increase only 2%, from 18.3% in 2016 to 20.4% in 2017, according to eMarketer. In comparison, about 88% of Facebook users are over 35 years old, and 45% of Instagrammers are in the same age bracket.
These demographics are mainly due to young people’s familiarity with apps, versus the older population. “The [Snapchat] experience is difficult,” said Tero Kuittinen, chief strategist at app measuring company Kuuhubbs. “It is not easy to learn how to use it. If you’re 18, it’s not a big deal, but if you’re 45, it’s hard to understand it.”
What: With its purchase of Whole Foods for US $13.7 billion, Amazon strengthens its position in the race for the retail industry, and opens the door to direct contact with the Hispanic community. Why It Matters: The U.S. supermarket sector is a business that moves about US $800 billion in sales annually, according to Bloomberg data.
Amazon’s acquisition of Whole Foods for $13.7 billion is the largest acquisition to date by the Jeff Bezos-led company, and the most important merger in the retail industry. With this deal, Amazon now has 450 stores in major cities in the United States, Canada, and the United Kingdom. What are the implications for marketing and multicultural/Hispanic marketing in particular?
“Consumers are increasingly demanding products and services in near real time or “on-demand,” and a physical presence in major cities gives Amazon an infrastructure to support consumers in near real time. This is especially salient when it comes to the grocery category,” Lee Vann, Chief Strategy Officer of Captura Group, told Portada.
The two companies will operate separately and the supermarket chain will retain its brand. Amazon founder Jeff Bezos points out that Whole Foods is “loved” by its customers for the quality of its products, and will maintain its corporate offices in Austin, Texas, for now.
“The acquisition, giving Amazon the in-store presence previously lacked at scale, represents a level of competition that brick and mortar retailers had previously been able to avoid. While this entrance has an immediate effect on grocery, it puts other industries on notice,” said Sean Cheyney, Vice-President, North American Business Development at Triad Retail Media.
The acquisition gives Amazon the in-store presence it previously lacked. This represents a level of competition that other retailers had previously been able to avoid.
Both Amazon and Whole Foods stand to gain from this transaction, according to the industry expert. The e-commerce giant is in the habit of being an industry disruptor. “Now is the time that grocers and retailers across industries need to be competitive in their markets with their digital advertising and in alignment with their suppliers.”
The announcement undoubtedly rocked the supermarket industry, as the acquisition of Whole Foods changes the rules of food distribution. This was reflected in the stock market, with some companies in the food industry seeing their shares fall immediately. Kroger’s shares fell 15%, while Target lost 11% at the start of the trading session, and Costco 7%.
Now is the time that grocers and retailers across industries need to be competitive in their markets with their digital advertising and in alignment with their suppliers.
The deal puts the U.S. market in an interesting situation, just a few months away from the arrival of German supermarkets Lidl, and its rival Aldi, owner of Trader Joe’s supermarkets. With their entry, the German companies will strengthen their presence in a market with high growth potential.
On the other hand, while all this was happening, Walmart also announced on Friday its purchase of online fashion store Bonobos for $310 million. With this move, the retail giant seeks to compete directly with Amazon in the fashion sector.
Walmart also announced on Friday its purchase of online fashion store Bonobos for $310 million.
Walmart has demonstrated an aggressive strategy to gain ground in the e-commerce sector, becoming a very strong competitor. Last year, the company acquired jet.com for $3 billion.
The acquisition appears to have been a smart move, as Walmart sales grew 63% during the first quarter of 2017 compared to the same period last year.
An approach to US Hispanics
“This purchase is something that the industry had been waiting for many years to give it seriousness, organize its data, and better align the industry’s digital efforts. With these metrics, retailers are able to give consumers a better experience,” added Cheyney.
Analysts agree that Amazon will put the retail industry under a lot of pressure, as it first did with bookstores and electronics stores.
On the other hand, “remember that Amazon rolled out a Spanish language version of Amazon.com. As they seek to win with the on-demand consumer, they know they must win with US Hispanics, and now they have a front end to service those who speak Spanish and a physical presence in major cities to deliver,” said Vann.
Remember that Amazon rolled out a Spanish-language version of Amazon.com. As they seek to win with the on-demand consumer, they know they must win with US Hispanics, and now they have a front end to service those who speak Spanish and a physical presence in major cities to deliver.
In addition, it has the necessary cash to invest and be aggressive, with the support of its current suppliers and those it keeps adding. Likewise, it will have the strength to continue offering its Amazon Fresh grocery delivery service.
It will also put its Amazon Go model to the test. The company opened its first automated food store in downtown Seattle, where payment is made through an Amazon account and a cell phone.
The idea has been described as “brilliant” by analysts, who see it as a “natural evolution.”
“Retailers across all industries should be watching closely to see how Amazon uses this acquisition and its effect on Amazon’s market share within the grocery sector. Given Amazon’s history, it will take the model developed for grocery, and then replicate it across other retail verticals. While watching closely, retailers can take steps to mitigate Amazon, blocking and tackling along the way. This includes getting serious about customer experience and advertising models that allow the retailer to earn its fair share of advertising dollars that its suppliers are currently spending to sell products on Amazon,” added Cheyney.
While watching closely, retailers can take steps to mitigate Amazon, blocking and tackling along the way. This includes getting serious about customer experience and advertising models.
More and more people are using digital platforms to communicate, from Whatsapp and Telegram, to Facebook Messenger and Google Hangouts. Last year, a new player joined the market: the chatbot, which is fast becoming an important interface for the user as well as a fundamental mode of interaction between companies and their customers. Portada’s digital media correspondent Pedro Labarta explains how chatbots should develop further.
In 2016, when chatbots –automated simulators of online conversations– were created, their use was mainly limited to basic elements of the user experience and direct conversation. In 2017, platforms are allowing chatbot designers to build richer interfaces within their content. Now, these automated conversations can be more effective, more visually attractive and easier to implement. What is needed is for this knowledge to be disseminated between brands and their users—first, to make the public more aware of the existence of chatbots; second, so that chatbots can be used more; and finally, that consumers get out of them what they need.
Creating a chatbot can amount to a US$ $100,000+ investment. But if it is developed correctly, it can translate into savings of an entire customer service department.
In 2017, platforms are allowing chatbot designers to build richer interfaces within their content.
As a user, I find that chatbots are not very efficient if they provide incorrect information. This means that brands need to adapt to the needs of this technology in order to make it work. Ultimately, its goal is to provide greater services and more productive workflows.
Chatbots’ objective is to provide better services and more productive workflows.
On the other hand, not everything becomes simpler through a conversation. Sometimes, as users, we simply want to click on a button and choose an option. Or, better yet, get the information we need, when we need it—without having to ask for it. The exciting thing about chatbots is that they are now evolving to be able to do just that.
As Phil Libin, former CEO of software company Evernote, said: “Start with building a great product, and then think: what can I do now to present it in a way that wasn’t possible before because the technology did not exist?”
Google, for example, has greatly improved its personal assistant. Its chatbot already distinguishes the language you speak and can follow commands through your mobile phone, whether it’s listening to music, sending an email or opening a game, among many other activities.
Cloud-based software company Slack has already developed an application programming interface (API) that allows different bots to interact with the app to make users’ lives much easier, and able to interact with them.
Payment platform KIK has developed a bot that allows users to make payments. The global transactions value of this development has been estimated at more than $3 billion, once people start using it on a regular basis beginning in 2018.
Facebook Messenger will now allow you to search for a specific song and play it from the same platform on your smartphone, as announced last week at the company’s F8 event. Facebook estimates that more than 800 million people will be using this platform by the end of 2017.
Facebook estimates that more than 800 million people will be using chatbots by the end of 2017.
This year will also see advances in other chatbot capabilities, such as improved search, interactivity, and the ability to manipulate user experience and monetization. Last but not least is advertising. We will have to find the spaces necessary to interact with our future clients through third parties.
What:Facebook announced it is entering the world of augmented reality during the F8, its annual Developers Conference, taking place April 18-19. Why it matters:Mark Zuckerberg each year presents new technologies the social media giant will be adding to its platform. This year Augmented Reality and Virtual Reality were discussed. Both technologies open up enormous opportunities for marketers and the advertising industry.
Facebook has once again surprised the marketing and tech community. The company’s big bet this year is on augmented reality and virtual reality, according to Zuckerberg’s comments at the F8, Facebook’s annual global developers conference.
The augmented reality plan is to enable an add-on in the app for using the phone’s camera, so users can share fun moments using special effects such as 3D and object recognition.
“Precise location, 3D effects, and object recognition are the three technological bases for augmented reality,” Zuckerberg said.
According to Zuckerberg, the potential for 3D elements within the FB virtual platform are tremendous for brands. Imagine, for example, that a candy company decides to invest a couple of million dollars in a campaign. Through this new platform, you could take a photo of your bedroom or living room and then fill that virtual space with millions of sweets. The visual impact created through this technology will be beyond anything we imagine.
Precise location, 3D effects, and object recognition are the three technological bases for augmented reality
It would also have a relevant impact on object recognition and information. For example, if you have a bottle of wine on the table, you could ask for information about it, from brand details to where to get it. This technology will change the way e-commerce is done.
The new technology is in its beta phase. The company will be releasing the changes little by little, it said. But it is estimated that users will be adding virtual reality to their daily lives by the end of this year.
If you have a bottle of wine on the table, you can ask for information about it, from brand details to where to get it.
Finally, Facebook provided a glimpse of Facebook Spaces, the virtual reality app through which users can hang out with each other without leaving home. Here again, we see significant potential in terms of marketing and a revolution for the world of advertising.
What: Waze opened its first office in Latin America a few weeks ago, with a team of eight led by Luis Ita, country manager for Mexico. Why it matters: Waze will sell advertising space within its app, allowing brands to generate a connection with drivers.
In an effort to expand its presence in Latin America, Waze recently opened its first offices in Mexico. Luis Ita, Waze country manager for Mexico, and his team of eight will be in charge of implementing the company’s strategies in the region.
Through its analysis of collected data, the Waze mobile app offers drivers from different countries alternative routes to reach their destination, with the promise that they will be the least trafficked.
Samuel Keret, Waze’s head of sales, said that their traffic platform has worked since its inception to facilitate movement of people in urban areas and help them avoid traffic, from the moment people leave their homes in the morning until their return at night.
According to information on the app, users have 636 minutes of time at their disposal per month, in which the app seeks to facilitate their driving experiences by providing users with relevant and contextual information to help them find a functional service that fits their needs.
One of Waze’s objectives for Latin America is to develop a location marketing application, in order to offer a brand experience that is meaningful to users.
According to Benjamin Crowell, Waze’s head of product marketing for the U.S., this app seeks to develop what he calls “the right experience.” This refers to how the application benefits other user activities outside of the digital world.
In line with its expansion plan, Waze introduced a new feature in its app for the Mexican market that integrates real-time advertising. To prevent possible car accidents when launching an ad, the app measures speed indexes in order to add additional information that can be read by the user when he/she is able to without putting the driver at risk.
Among the new features, the user will now be able to find a parking lot before starting a trip or, when approaching the destination, the app will help you locate the nearest parking spot.
Since the app knows the exact location of the user, Waze can offer its advertisers branding pins. This helps brands to flag their locations within the area where potential consumers are moving.
Globally, 1.3 million people are killed in traffic accidents, and Waze’s goal is to help prevent such incidents, added Keret, who confirmed that the company’s focus will remain in the automotive area for now.
What: Advertising on Pinterest comes to the Asia-Pacific market. Why It Matters: With Pinterest’s arrival in Australia, New Zealand and Ireland through third-party platforms, the social network can begin selling advertisements in the Asia-Pacific market. This is exciting news for marketers in Latin America who are awaiting Pinterest’s arrival in the region.
Pinterest’s mission is to help people discover and do things they like. With over 100 million pins seen by more than 150 million people daily, and more than 10 billion daily suggestions delivered within the platform, Pinterest’s advertising impact is enormous. That is why every country in this region of the world eagerly awaits the big opportunity to join its advertising platform.
People visit Pinterest to find products to buy, ideas for cooking recipes, places to travel and more. This makes the platform an ideal place for brands to quickly and easily reach a highly segmented consumer market.
When will Pinterest arrive in LatAm? Pinning down the exact date is not easy, as Pinterest is still in still in a trial and error period to determine which of its customers, partners, and companies are willing to take risks, which in LatAm is sometimes complicated as companies are not prepared to invest in market testing.
According to sources close to Pinterest, the platform plans to land in LatAm by the end of 2017.
Although it sounds very far away, the truth is that regional brands need to learn from what is already being done in other markets, so that when the platform arrives they can be ready to achieve outstanding results.
One such example is the campaign run by Target on Pinterest’s U.S. site, which achieved incredible results. Adding cost-per-click (CPC) to cost-per-engagement (CPE), Target posted a click-through-rate (CTR) that was 200% higher than any other campaign running on the platform.
While these results speak to the success that advertisers in the US and the UK have had with Pinterest (for brands such as John Lewis, B&Q, Bloom & Wild, Nestlé’s Nescafe Azera, and Tesco), advertisers in Australia, New Zealand and Ireland now have the opportunity to add the social network to their pool of commercial platforms. More countries will soon be joining the platform, with Latin America at the top of the list.
Mobile apps are at their peak. As a result, we will be seeing many ad-tech companies developing specific mobile apps and mobile app advertising for each market under one same platform. As a result, mobile app producers will have to increase the benefits and offerings that are provided by existing apps. Here are the top four mobile app predictions for 2017, by Portada’s digital media correspondent Pedro Labarta.
By Pedro Labarta
1. Smart prices will take over.
Apps focused on the sale of products will have to become smart bots. That is because buying sensitivities vary depending on region/country. Producers of mobile applications will have to use individual user data along with location at the time of sale in order to achieve better profits. For example, people in Mexico may not be willing to pay the same amount for a particular product as do people in Spain. Companies will be able to classify purchases according to the algorithm needed to quickly adapt to each market. As a result, they will also be able to unify inventories and databases.
2. Mobile app advertising
This will be the year in which businesses such as agencies will be able to safely, quickly, and effectively monetize applications and mobile app advertising. For example, a clothing brand will be able to pay for an in-app ad when the user is searching for a specific application. Or pay for an ad even within the app itself. And brands will also be able to do it a crucial moment of the game or video where the advertiser wants its ad to appear. This will help advertising networks improve their performance. It will also boost their revenues once this feature kicks in by mid-2017. It will lead to higher satisfaction rates and more business opportunities for all.
3.”Yes” to TV on smartphones and “No” to TV on smartwatches
Apple, Samsung, and Google specialize in mass consumer products. The smartwatch is not a great product because it does not replace the phone. That same can be said of Apple Pay. It has not replaced the credit card. Also, not everyone wears a watch, while most everyone uses a smartphone. This is another problem faced by large companies that have failed to build an adequate ecosystem and a monetization model for smartwatch developers. With development not being financially viable, developers will stop creating for it and instead focus on creating for apps for TV, etc. This will open a new source of revenue for publishers, leading to better content and a better advertising platform that makes it a win-win for everyone.
4. Apps and messaging
Messaging has tapped out, so entering this market is too complicated these days. The focus now should be on developing message extensions, where we can take advantage of the billions of people already connected on them.
We are already seeing specific developments for iMessage from Apple and Facebook Messenger. Instead of opening an application such as Skype separately, users will use a face-to-face extension within the messaging application with which they are already familiar.
This will be the year in which businesses such as agencies will be able to safely, quickly, and effectively monetize applications.
Extensions will not stop there, however. They will be used for everything, including some tools we are already used to seeing in our email. They include calendar invitations, unread text markings, current status, and functions that will be carried out within our specific message groups. Bots and AI were launched in 2016, but they still do not work very well. In 2017, we will see strong breakthroughs in bot intelligence and more implementations in our everyday technology. Many of today’s most promising video messaging and walkie-talkie apps will soon find themselves competing against and potentially missing out on a well-implemented app extension.
However, bot technology will see its strongest boom in late 2017.