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Latin America’s largest newspaper and news site launches a paywall as a new way to monetize its quality journalism. It’s a sign of the times as more Latin American news publisher will launch paywalls in the coming year.

Clarin, Argentina’s most circulated newspaper, with a weekly circulation of 190,789 and weekend circulation of 433,525 has experienced a drop of 158,000 paid newspapers since 2013 when the weekly sales number was at 348,000. Clarin is the first Publisher in Argentina, with a population of 43,833,328 and internet penetration of 34,785,206 (79.4%), to launch a paywall, as well as Spanish-speaking Latin America, excluding Brazil.

ClarínOn Monday, 24th of April, Clarin launches a metered paywall on their main site, www.clarin.com.ar, where users will be able to access 40 free articles per month, before being asked to subscribe to one of the two introductory offers, ARS$19,90 p/m or ARS$49,90 p/m.

According to Argentina’s newspaper association, ADEPA, for the past two years, Clarin has been tracking 1,3 million users on their reading behavior to determine the meter limit. However, in an article published by Clarin in 2016 it stated that the average user consumed 31 articles per month — so it seems that Clarin is clearly targeting the top 1% of its site visitors to convert them into paying subscribers — a very successful model that has worked for many publishers.

Folha de S.PauloBrazil’s Folha de São Paulo, which launched the 1st paywall in 2012 in the Latin American region, originally launched with a meter limit of 20 articles, but quickly moved to limiting access to 15. Today, users can navigate and consume articles anonymously but are required to register after the 5th article with a cap on an additional 10 articles when registered/logged in, before being asked to buy a subscription. Folha has 150,000 digital subscribers and close to 400,000 print, digital or digital-only subscribers.

O Globo, another Brazilian news publisher launched their paywall in late 2013, had a meter limit of 30 articles for anonymous readers, with another 20 articles for registered users. O Globo has also moved to smaller meter limit of 5 and an additional of 10 articles for registered users. Additionally, if a user navigates in incognito mode, all articles are blocked. O Globo hasn’t recently released its number subscribers, but it’s less than 100,000 digital subscribers.

Latin American publishers are finally re-evaluating their digital business model.

If Latin America’s largest news properties can not build sustainable adtech business models, how will smaller publishers in the region make the adtech economics work for them? It’s a trend we have seen in the North American and Europe and it seems that Latin American Publishers are reaching the same conclusion — you can not compete and win against the Duopoly of Google/Facebook.

If Latin America’s largest news properties can not build sustainable adtech business models, how will smaller publishers in the region make the adtech economics work for them?

Being one of Latin America’s most visited News site, with 36.6 million unique browsers, Clarin’s launch of a Paywall is a strong indication that more newspaper groups in Argentina and Latin America will be launching digital subscription models, as people continue to consume news online, at the expense of paid print versions and low CPM’s that are controlled by Google and Facebook.

The EconomistThe next main challenge for Clarin will be to convert 1% of their traffic into paid subscribers in the following year or two, which would be 360,000 digital subscribers. Depending on their success, Clarin would then quickly move to grow their paid audience to 3% if not 4%, the key number to make the digital newspaper operation profitable.

One way to achieve the acquisition rate is to test and optimize the meter limit — something that the UK’s The Economist does extensively, even launching a 3 articles limit per week, a model that is proving to be very successful in moving from it’s 303,500 paid subscribers to its goal of doubling it’s paid subscribers profits in the next 5 years.

Text writen by Billy D. Aldea-Martinez, head for Latin America and Brazil for Piano, the world’s leader SaaS Platform that allows media companies to launch Direct Monetization models, such as metering and paywall solutions for digital content and user data analysis.

A summary of the most exciting recent news in advertising technology in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

By Gretchen Gardner.

US/US-HISPANIC MARKET

MARKETING AND ADVERTISING TAKE A STEP TOWARDS INTEGRATION: MediaMath has teamed up with IBM’s Universal Behavior Exchange (UBX) to integrate their products and give marketing professionals the tools they need to create unique consumer experiences. The company behind the TerminalOne Marketing Operating System, MediaMath is thrilled to provide a solution for those that have been waiting patiently for the intregration of marketing and advertising technology.

CONTINUING EDUCATION: MediaMath’s educational branch, The New Marketing Institute, has launched certification courses in Spanish, first in New York City and online, with plans to expand to cities across Latin America soon. The courses will provide training in how to create a campaign, how to formulate an advertising strategy, and how to use and take advantage of advanced optimization tools. Visit the NMI website for more information.

LATIN AMERICAN AD-TECH LEADER E-planning launched AdExpert, a holistic Ad Server and RTB-enabled Ad Exchange for the US online advertising market. The product is free, and works seamlessly on Desktop, Mobile and Video to help publishers manage their campaigns and advertiser relationships.

A MIGHTY DUO: The Atlantic and Univision Digital, the digital division of Univision Communications Inc. (the the No.1 multi-platform digital property for U.S. Hispanics), have teamed up to put together a Spanish-language version of The Atlantic’s successful publication CityLab.com, which covers topics related to urban life like crime, politics, immigration, culture and the environment. It will be called CityLab Latino, will feature original journalistic coverage as well as content modified from CityLab. They are aiming to launch in early 2016 through Univision’s website.

instagram

PICTURE PERFECT ADVERTISING: Instagram has announced partnerships with a whopping 41 tech-marketing firms to help grow its advertising services. The company wants to eventually partner with over 100 vendors to better manage ad campaigns, engagement and content marketing. Some recognizable names on the partnership list are Adobe and Salesforce, along with a plethora of smaller firms.

NEVER ONES TO RUN OUT OF IDEAS, the creatives at Nike have put together a plan to begin advertising on The Weather Channel’s mobile app with suggestions on what to wear (or buy!) according to weather conditions. Since Americans are spending 60% of their online time on apps (according to Goldman Sachs), it makes sense that Nike, and many other brands, have shifted their advertising strategies to focus on applications.

BMW NORTH AMERICA has selected The Community as its Hispanic AOR. Trudy Hardy, vice president of marketing at BMW America, says that the choice was made because of The Community’s “unique understanding of our brand.” The Community, which is based out of Miami, will be in charge of developing strategy, creative, production, and custom digital and social solutions as well as brand events.

GERMAN GROUP ADDS TO U.S. VIDEO AND AD-TECH ASSETS.German Media Group RTL is leading a US $15 million Series A investment round in VideoAmp, a screen optimization platform for the TV and video ecosystem. RTL Group’s investment in VideoAmp follows its acquisition of a majority stake in Denver-based video supply-side platform SpotXchange. as well as in YouTube multichannel video network StyleHaul and BroadbandTV and a US$19.4 million investment in programmatic TV tool Clypd.

 

 

LATIN AMERICA

ARGENTINA MAKES WAVES: On November 10, Imagine Communications, a global provider of advertising and video solutions, signed a channel partner agreement with Pontis Technologies, an engineering, sales, and marketing company based on Argentina. The agreement is part of Imagine Communication’s effort to expand its presence in media and entertainment in both Central and South America.

“PROGRAMATICO LOPEZ” HAS ADVICE FOR YOU! Portada’s new character “Programático López” has put out a Guide on the Latin American Advertising Ecosystem in Spanish.  Download the Guide here!

MERGERS AND ACQUISITIONS: App Nexus announced its purchase of ad tech firm Real Media Latin America (RMLA) from Peter Gervai, a Brazilian entrepreneur who bought it 13 years ago for a million dollars from 24/7 Real Media. While no numbers were given, the company has 40 employees working on projects in Brazil, Mexico and Argentina, and lists Globo, Estadão, Walmart, MercadoLibre and El Universal Mexico among its almost 50 clients.

globad

GLOBAD has officially launched its Media Solutions concept, designed to help clients better plan their digital campaigns. It will be executed by their 34 employees spread between the usual suspects of Argentina, Colombia and Mexico, and will serve their clients in Latin America, Spain and the U.S. Media Solutions will be split between two units: Branding for ad campaigns and Performance for generating engagement between clients and consumers.

 

 

Facebook announced the release of Slideshow, a new ad format that combines interactive static images to provide advertisers with an effective way to reach corners of the world with slower Internet connections. The slideshow will be up and rolling by December 25 in Latin America. Industry analysts tell Portada, that the news should help expand online video in areas of Latin America that have no broadband and where mobile data plans are too expensive.

Facebook’s press release on October 29 implied that they released the new feature to increase online video imagesconsumption and engagement, stating: “We found that a 15-second slideshow can be up to 5x smaller in file size than a video of the same length,” and that the Slideshow was a “new way to tell brand stories to people everywhere.” The Slideshow will be up and rolling by December 2015, including in the Latin American and Caribbean region.

It is important to understand that there are emerging markets in Latin America that are still experiencing a slow broadband penetration and high costs for mobile data plans.
Humberto Cruz, Head of Socialyse Miami, Havas Group

“It is important to understand that there are emerging markets in the LAC Region that are still experiencing a slow broadband penetration and high costs for Mobile Data Plans. This has been diminishing user experience, especially with video platforms and ad formats,” says Humberto Cruz, Head of Socialyse (the social media unit at Havas Group).

Aside from reaching larger audiences, the Slideshow will be game-changing for those with smaller advertising budgets. “It is important to keep in mind that the investment required to shoot and edit a video, regularly is often beyond the reach of advertising budgets. Slideshow reduces the need for video production time and resources, and because of its smaller file size, it extends eye-catching ads to people on basic devices or with poor connectivity,” says Cruz.

Some categories, like Entertainment and FMCG are taking advantage of video ads for broadband segments across the region, but not considering slow conection segments because of Telecom infrastrucure issues.

Opening Markets with Infrastructure Issues

Cruz also believes that all sectors and categories will benefit from this development, although local markets may have specific needs. “Generally speaking, relevant sectors like Entertainment and FMCG (Fast Moving Consumer Goods) could directly benefit from this format across all LAC. Because of their business nature, they are taking advantage of Video Ads for Broadband segments, but not considering slow connection segments because of Telecom infrastructure issues on the Region.”

Reaching the developing world is key to Facebook’s goal of bringing in the next billion users to its social media platform, which currently has 496 monthly active users in the Asia-Pacific region. That region raked in $623 million in sales for the company in the second quarter alone. Facebook’s Internet.org, whose mission is to expand internet access across the globe, has brought 15 million people online in 29 countries so far, and 50 million people currently use the company’s Android app, “Lite,” which gives people with low bandwidth connections access to the social network.

Coke Already Tried in Kenya

The Coca-Cola company was one of the first companies to use the Slideshow, testing it in Kenya with great success: the campaign for the brand’s new show, “Coke Studio Africa,” reached two million people and increased ad awareness by ten points in the country.

 

 

In the span of a week, Facebook announced the release of the Slideshow, a new ad format that combines interactive static images to provide advertisers with an effective way to reach corners of the world with slower Internet connections, and reported stellar third-quarter financial results.

Facebook’s press release on October 29 implied that they released the new feature to increase online video imagesconsumption and engagement, stating: “We found that a 15-second slideshow can be up to 5x smaller in file size than a video of the same length,” and that the Slideshow was a “new way to tell brand stories to people everywhere.” The Slideshow will be up and rolling by December 2015, including in the LAC region.

Th news was followed up with the company’s reports of financial results for the third quarter on Wednesday, November 4th, which saw a revenue increase of 41% from the same period a year before, exceeding the expectations of Yahoo’s poll of industry analysts.

We found that a 15-second slideshow can be up to 5x smaller in file size than a video of the same length.

Reaching the developing world is key to Facebook’s goal of bringing in the next billion users to its social media platform, which currently has 496 monthly active users in the Asia-Pacific region. That region raked in $623 million in sales for the company in the second quarter alone. Facebook’s Internet.org, whose mission is to expand internet access across the globe, has brought 15 million people online in 29 countries so far, and 50 million people currently use the company’s Android app, “Lite,” which gives people with low bandwidth connections access to the social network.

Humberto Cruz
Humberto Cruz

The Coca-Cola company was one of the first companies to use the Slideshow, testing it in Kenya with great success: the campaign for the brand’s new show, “Coke Studio Africa,” reached two million people and increased ad awareness by ten points in the country.

“It is important to understand that there are emerging markets in LAC Region that are still experiencing a slow broadband penetration and high costs for Mobile Data Plans. This has been diminishing user experience, especially with video platforms and ad formats,” says Humberto Cruz, Head of Socialyse (the social media unit at Havas Group).

Aside from reaching larger audiences, the Slideshow will be game-changing for those with smaller advertising budgets. “It is important to keep in mind the investment required to shoot and edit a video, regularly is often beyond the reach of advertising budgets. Slideshow reduces the need for video production time and resources, and because of its smaller file size, it extends eye-catching ads to people on basic devices or with poor connectivity,” says Cruz.

Cruz also believes that all sectors and categories will benefit from this development, although local markets may have specific needs. “Generally speaking, relevant sectors like Entertainment and FMCG could be directly benefit from this format across all LAC. Because of their business nature, they are taking advantage of Video Ads for Broadband segments, but not considering slow connection segments because of Telecom infrastructure issues in the Region.”

 

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Latin American market and/or targeting Latin American consumers right now.

  • Danonino Argentina has appointed WebAr as its digital agency. The agency will be in charge of all digital activities including Danonino´s website and social networks. The brand is looking to reinforce engagement with mums.

 

  • Socialmetrix has been chosen by ad:tech to manage its social networks. The agency will be in charge of the social networks during the global advertising tech event in London.

 

  • NBA Star Tony Parker has signed up to be public face of the new Renault Koleos for the next two years in various markets that Renault has a presence in. According to Renault, Parker symbolises the ‘French Touch’ on a global scale and embodies values of success, fighting spirit and elegance – therefore a perfect ambassador for the car manufacturer. Renault will also support the ‘Tony Parker Camps’, which are basketball camps that allow young people to hone their playing skills and meet their idol. Similarly, Renault will sponsor the ‘Par Cœur Gala’, which aims to raise funds for different charities.

 

  • The Hershey Co. said it has switched ad agencies after an eight-month review process, hiring New York-based Universal McCann for all of the chocolate giant’s global paid media planning and buying. The assignment includes all paid media, including TV, print, digital and Hispanic for the U.S.–the company’s largest market–as well as Hershey’s growing international businesses. Key growth markets include China, Mexico, India and Brazil. Hershey has previously worked with OMD.

 

  • Havas Media has won Emirates’ global media planning and buying account following a hotly contested review. The decision means the account, which is believed to be worth an estimated $150 million, is no longer with Starcom MediaVest Group (SMG), which had held the business since 2008.

 

  • Newell Rubbermaid has begun a review of its global-media-agency business less than a year after bringing on a new chief marketing officer. According to the firm’s financial statements, in 2012 the company reported US $146.8 million in global advertising expenses, plus cooperative advertising or trade-promotion costs of $118.5 million, which were treated as a reduction of net sales under accounting rules. According to Kantar, the company spent U.S. $12 million on U.S. measured media in 2012. Newell Rubbermaid currently employs different media agencies around the world. the move to potentially hire a shop with a multi-region scope is in line with the company’s decision to hire a CMO with a global background. UM is Newell Rubermaid’s Latin American Media Agency.