The outlook for panregional advertising over the next twelve months is very positive, according to a survey of marketers and agencies done by Portada’s editorial team during our 2011 Latam Advertising and Media Summit earlier this month. Clients and major agencies present at the Summit answered a multiple choice question on whether the panregional advertising market would grow over the next 12 months by:
- 20%+
- 10-20%
- 0%-5%
- -5%-0%
- 5%+
36.4% of the interviewed consider that the panregional advertising market will grow between 5% and 10%. 27.3% considers that growth will lie between 10% and 20%. While 18.2% think that over the next twelve months growth will lie between 0% and 5%. The same ratio (18.2%) expects the market to grow by more than 20%. Not a single respondent thinks that advertising volume will decline.
The survey results are in line, although slightly more optimistic, with Portada’s growth estimate for the recently published report 2011 Panregional Advertising and Media Market. Portada expects the Panregional Advertising sector to grow from an aggregate volume of $306 million in 2010 ($275 million in 2009) to $457 million in 2015 at an annual compounded growth rate (CAGR) of 8.3%. According to the study, panregional digital media advertising (display and search) will expand significantly over the next few years. In addition, over the next five years there will be a significant expansion in ad investment in the IT/Electronics ad-category.
Qualitative Answers
Portada also asked clients and agency executives the following qualitative question: “What do you see as the biggest challenge over the next twelve months?”
Below are the most interesting answers:
Franklin Vargas, VP Sales & Marketing, Latin America, Canyon Tech
“Find the appropriate media and methods to accomplish metrics to have an idea of ROI on penetration, sale and, branding.”
Luis Guardia, Marketing Manager , Central America, Ecuador, Caribbean & Venezuela, Samsung
“Have enough resources, in-country staff, money, to keep pace with sales quotas.”
Jorge Gonzalez, Head of Marketing Central America, Caribbean and Venezuela, Nokia:
“Connect those customers that today don’t have an access to digital media using mobile phones.”
Thomas Wenrich, CFO, Open English:
“Adopting the messaging, accent, etc. to better resonate with the different local markets in the region.”
Anjanette Correa, Buying Director, OMD
“Find opportunities to generate new and different ways to obtain engagement with brands”
Raquel Solorzano, Regional Media Manager, Diageo
“Changing the mentality, capabilities and approach of current media agency for pan regional model and a more innovative and up to date approach.”
Luis Casas, Director Marketing, Communications & Recruiting, Florida International University:
“Integrating panregional with local market advertising and marketing activities.”
Jose Luis Ruiz, Director Latin American Advertising & Online, Oracle:
“How to overcome media saturation and be more creative in getting audiences’ attention in a crowded media marketplace.”
Diego Teran, Regional Account Director, Group M:
“Understanding the impact of liquid content across media consumption. Content is now being distributed across many platforms (screens) and this trend will reach Latin America within the next 12 months. Video streaming services (Netflix) have announced their introduction in the region and this can be the tip of a change in consumer behaviour.”
María Carrasquillo, Senior Marketing Manager Latin America, Jarden Consumer Solutions:
“A strong media mix. How can we be more effective? Latin America is growing and new vehicles are emerging such as social networks, digital media, search engine, mobile marketing. The big marketers challenge is to identify what is the most effective media mix between traditional media and digital.”
Daniel Redondo, Managing Director Mindshare, Group M:
“The Economic environment. In addition, value added vs. a price market”.
