Tag

advertising

Browsing

What: CNN’s SVP of Research and Scheduling Robin Garfield tells Portada how the ubiquitous news broadcaster is navigating the complex landscape of digital, mobile, OOH and OTT television viewing habits along with the greatly expanded opportunities they present for brands to communicate with their markets.
Why it matters: In spite of predictions that the small screen would go the way of the dinosaur, quite the opposite is occurring as multiple platforms and viewing opportunities inside and outside the home bring viewers closer to CNN in their living rooms, including millennials, making it an even stronger medium for advertising.

Like the famous newspaper headline proclaiming “Dewey Beats Truman,” predictions of the demise of the traditional home television haven’t proven to be true. In fact, in a recent interview with Portada, CNN’s Senior Vice President of Research and Scheduling Robin Garfield describes a much different landscape where brand marketers have new and expanding opportunities to communicate with their markets via advertising on CNN.

Some of Garfield’s top insights include:

  • While viewers are using more and more platforms to view CNN, “traditional TV viewing has never been stronger.”
  • CNN is the “youngest” news brand on TV and mobile phones are a gateway for Millennials to both discover and become loyal CNN viewers.
  • More viewers prefer to watch CNN live when viewing CNN on over-the-top (OTT) media
  • CNN’s online shopping guide CNN Underscored has proven very popular with consumers.

Measuring Out-of-Home Viewing

CNN was an early adopter of OOH (out-of-home) metrics to understand how CNN content is consumed in airports, bars, doctors’ offices and other public venues. “It’s been our mission to be able to just holistically tell a story about where people are encountering CNN and how they are consuming us in those places.” Garfield told Portada.

Traditional TV viewing has never been stronger.

Each viewing experience of CNN away from home is “unique,” and the broadcaster, using its measurement data and understanding of each, works to help advertisers to tailor their messaging for maximum impact. “What is important to us when working with advertisers is to understand what the advertiser is trying to accomplish and then help them understand what the different platforms are.”

CNN’s Robin Garfield will participate at #PortadaNY on April 3 where she will be a speaker on the panel “How data and content continue to fuel the evolving world of advertising.

CNN doesn’t let so-called “analysis paralysis” get in the way. “It is easy to get the data wrong.  We still need to rely on our expertise. But it’s vital that researchers focus on the research goals and the best tools for the job rather than chasing available data.”

Live TV Most Popular OTT Choice

Over the top (OTT) viewing opportunities, including services like Apple TV, are another very important venue for CNN consumers, and the single most popular CNN OTT content is Live TV. “We’re on all of the platforms and on each of the OTT media we have our live TV feed, on-demand content, (original series, big events) video on demand, and clips. But live TV is really important,” Garfield told Portada.

It’s vital that researchers focus on the research goals and the best tools for the job rather than chasing available data.

“I don’t want to overstate the difference between the OTT opportunities because they are all different, but I think more than anything else they are all growing and evolving and creating new capabilities for advertisers with targeting that makes them very exciting.”

Mobile a CNN Gateway for Millennials

Millennials “skew” to watching CNN on mobile platforms like smart phones, and the mobile phone has proven to be a gateway for acquiring their loyalty which includes, watching CNN at home on a traditional television.

Garfield said she recently spoke with a young 19-year-old woman who started watching CNN on her mobile phone, and has become a big fan of CNN’s Erin Burnett OutFront. “The gateway platform was the phone but she catches up at the end of the day,” on her television at home, Garfield said explaining the woman’s CNN consumption pattern.

Importance of CNN’s Multi-cultural Audience

 A proposal to put a citizenship question on the US census is being watched closely by CNN, according to Garfield. “From a research perspective, it is very important that the US Census methodology does not change in a way that discourages participation. A variety of research sources and methods rely on it to establish the total, available universe.

Gravity has announced the arrival of multicultural strategist Xavier Turpin as Vice-President of Client Services and Strategy. In this role, Xavier will lead multicultural strategy for Gravity’s clients.

His analytical and structured approach, mixed with a deep understanding of the multicultural marketplace, has earned Xavier Turpin great respect and accolades within the advertising industry.

Xavier brings with him over 25 years of multicultural and diversity communications experience. He was named member of the ‘Multicultural Thought Leaders Circle’ by the Association of National Advertisers (ANA)‘Top Marketer to Hispanic Audiences’ (twice) by Portada, and ‘Top Hispanic Market Thought Leader’ by HispanicAd.com.

His experience and implementation of multicultural strategies have directly impacted the evolution of how brands reach diverse audiences. Prior to joining Gravity and as Director of Multicultural Marketing at Dunkin Donuts, Xavier revolutionized the company’s Total Market Practice throughout Dunkin’s marketing organization, creating a ‘Center of Excellence’ elevating the implementation of multicultural strategies and increasing the company’s ROI. Along with this, he has led emerging market initiatives for leading companies such as Bellota/Corona, Fiskars, Makita, and Vertis, just to name a few.

In his new role, Xavier will place a great focus on Gravity’s client General Motors’ multicultural and diversity initiatives.

 

What:Univision Communications Inc. (UCI) announced that Keith Turner, president of Advertising Sales & Marketing, will retire at the end of the year.
Why it matters: The Company will announce leadership transition plans in the coming weeks.

Univision Communications Inc. (UCI), the leading media company serving Hispanic America, announced that Keith Turner, president of Advertising Sales & Marketing, will retire at the end of the year. The Company will announce leadership transition plans in the coming weeks.

Turner will retire after an extraordinary career in the media industry that has spanned more than 40 years across some of the strongest brands in the sector. He has been an integral member of the UCI team since 2012, having successfully strengthened the Company’s advertising sales team, activated more than 600 new brands across all of UCI’s platforms, and continued to build upon the Company’s unrivaled success as the leading media company serving Hispanic America. Among his many accolades, Turner was inducted into the Broadcasting & Cable Hall of Fame, named among the Adweek 50, a list of the top vital leaders in Tech, Media and Marketing, and honored by The National Kidney Foundation with the Visionary Leader Award.

“Keith is a uniquely talented individual who has been a friend and an inspiring leader to all who have had the opportunity to work with him,” said Randy Falco, president and CEO of UCI. “He is a devoted promoter of the UCI brand and is responsible for breaking many boundaries in expanding our partnerships over the last five years. We are immensely grateful for his contributions to our success.  I know that I speak for the entire UCI family in wishing Keith the very best as he prepares for his retirement at the end of this year.”

Turner commented, “It has been a pleasure and privilege to work alongside Randy and the rest of the superb Univision team for the past five years and I will leave here feeling proud of all that we’ve accomplished together.  This is an extraordinary organization with a leading market position and loyal audience that is unmatched in the industry.”

Prior to joining UCI, Turner served as the senior vice president of Media Sales and Sponsorship at the NFL. In that role, Turner oversaw the NFL sponsorship business, as well as advertising sales for all NFL media platforms, including NFL Network, NFL.com, and NFL Mobile. Before transitioning to NFL, Turner spent more than 20 years at NBC, where he held various roles of increasing seniority, including president of Sales and Marketing, senior vice president of Olympic and Sports Sales, vice president of Olympic and Sports Sales, and vice president of Sport Sales, among other positions. Before NBC, he was an account executive for CBS. Turner began his career at Grey Advertising.

 

What: The world’s first guaranteed advertising contract exchange – NYIAX (New York Interactive Advertising Exchange) – was announced. It will operate on Nasdaq’s  technology and leverage the Nasdaq Financial Framework architecture.NYIAX aims to transform ad inventory into standardized and durable securities. A blockchain-enabled media trading platform running in the cloud and powered by Nasdaq.
Why it matters: (Digital) advertising in mass media is becoming a commodity.. Trading of advertising through programmatic means and exchanges like NYIAX will become similar to trading of financial assets.

 

descarga (1)NYIAX (New York Interactive Advertising Exchange), the world’s first guaranteed advertising contract exchange, has been introduced. NYIAX will operate on Nasdaq’s  technology and leverage the Nasdaq Financial Framework architecture. NYIAX will be the first exchange to be deployed in the cloud and also run on blockchain technology.

NYIAX benefits media buyers by providing a transparent and trusted market to secure and re-trade premium future advertising inventory. Publishers benefit from the capabilities it provides to help them increase revenue by growing sell-through, retaining higher CPMs and reducing fees. For advertisers, the exchange delivers a new way of discovering and purchasing inventory. Through greater transparency and forecasting, advertisers are also able to secure the premium inventory they need in advance.

Chief Product & Technology Officer, Richard Bush, is currently overseeing the onboarding of a select group of premium companies on the NYIAX platform. Once the pilot program is complete in late 2017, NYIAX will incorporate trading use cases, benefits and details into the training it rolls out to ensure all clients have the tools and tips needed for proficient platform use.

“NYIAX is a trading platform that brings Wall Street to Madison Avenue through a Nasdaq-powered, seamless global exchange that allows publishers and advertisers to buy, sell and re-trade premium advertising inventory as guaranteed contracts,” said NYIAX CEO Lou Severine. “By enabling guaranteed digital media contract trading with efficiency, transparency and ease and providing the proprietary matching engine and trading tools trades require, NYIAX helps advertisers and publishers dominate the $72 billion US digital advertising landscape they command1. Once the exchange achieves critical mass within digital, we will begin supporting TV, print, radio and out-of-home markets.”

“Trading, a vital part of other market sectors, has now come to media. With the ability to trade guaranteed media contracts, advertisers and publishers can now be efficient and rid themselves of unnecessary costs and risks,” said Bush.

The Nasdaq Matching Engine and other proven exchange data models and technologies provide the foundation on which Bush and his team created the NYIAX platform. NYIAX and Nasdaq also co-created the other modules necessary to specifically serve advertisers and publishers.

For advertisers, the exchange delivers a new way of discovering and purchasing inventory.

NYIAX’s leadership team of adtech and fintech pioneers includes:

  • Carolina Abenante, Co-founder, President and Vice Chairperson of NYIAX, is an accomplished leader who has held key positions at Reed Elsevier (now RELX Group) and United Online, Inc.
  • Graham Mosley, Co-founder and Chief Strategy Officer at NYIAX, was most recently the SVP of Business Development at Mojiva, Inc, which was acquired by PubMatic.
  • Mark Grinbaum, Co-founder and EVP of Products and Platform at NYIAX, is a veteran of the technology industry having held positions at ISE Inc and Dow Jones.
  • Lou Severine, Chief Executive Officer of NYIAX, has led advertising businesses for more than 20 years and most recently was the Chief Revenue Officer of Phluid Media, SVP of AOL Networks and Director of Business Development at Microsoft.
  • Richard Bush, Chief Product and Technology Officer, served as former General Manager of Publisher Solutions at IPONWEB and served in a variety of key roles including Head of Product and Director Technology with Severine at AOL Networks.
  • Will Schmahl, Chief Revenue Officer, has more than 14 years of experience in the digital advertising space. He spent the last nine years working as VP of Sales for AOL Platforms.

The world-class leadership team is also supported by a group of financial services, technology and media veterans including Thomas O’Neill, Chairman of NYIAX and former Nasdaq board member, and Mediaocean CEO and Founder, and Board Member of NYIAX, Bill Wise.

“The platform immediately delivers clients upfront media buying and re-sell capabilities. As a new secondary market, a new potential revenue stream is one of the main reasons we are seeing so much interest in our pilot program,” said Severine. “What NYIAX is doing will change everything. Once the rest of the market is exposed, advertising as we knew it for the past twenty years will be ancient history.”

Join us at PORTADA Mexico!

 

 

 

What: WPP’s MEC is car rental company Hertz new media agency of record in the US, Canada and Latin America.
Why it matters: MEC will replace incumbent agency Florida-based FKQ Advertising.

Car rental company Hertz has appointed WPP’s MEC as its new media agency of record in the US, Canada and Latin America.

The win follows a “media pitch which consolidates media investment, planning, strategy, digital, SEM, SEO, mobile, analytics and insight, and affiliate marketing with one agency,” according to MEC.

MEC will replace incumbent agency Florida-based FKQ Advertising for media planning and buying duties.

“We’ve determined that MEC is the right media planning and buying partner for Hertz Global and our portfolio of brands. We look forward to tapping their strategic planning, creativity and best-in-class analytics and insights capabilities in the digital space as we go to market in support of our Hertz, Dollar and Thrifty brands,” said Hertz’s EVP and chief marketing officer Matt Jauchius on the appointment.

In 2015, the company reported total advertising costs of US$170 million.

 

See also:
SALES LEADS LATAM: Marriot, Hertz, Dove…

Join us at PORTADA Mexico!

Nintendo’s release of Pokemon Go has taken the world by storm, as a walk down the street is now an exercise in dodging the many players, heads buried in their phones, that run around in person of imaginary creatures that are overlayed onto their devices’ cameras.
We speak to Zachary Rosenberg, president of MBMG Media Group, about just how this somewhat unexpected eruption of augmented reality will affect digital marketing strategies.

Are Marketers Ready for Augmented Reality? 

To most of us, it felt like Pokemon Go came out of nowhere. But were marketers ready? According to SmarterWeb, 5.9% of Android users were on the app by July 15, nine days after its release, sending marketers scrambling to find a way to monetize it.

Zachary Rosenberg, President, MBMG Media Group
Zachary Rosenberg, President, MBMG Media Group

In-game advertising, to this point, has been limited to “lures” that attract a Pokemon to your place of business for 30 minutes in what is called a “Pokespot.” Physical businesses like restaurants, bars or stores have already seen huge results: A New York pizzeria that paid $10 for a lure apparently saw a 75% increase in revenue, and who doesn’t like to see local businesses thrive?

Brands looking to target Hispanics will be particularly interested in Pokemon Go, because the demographic uses mobile heavily.

Brands looking to target Hispanics will be particularly interested in Pokemon Go, Rosenberg pointed out, because the demographic uses mobile heavily.

Rosenberg’s take is that the adoption was more astounding than the technology, given the fact that the game requires so much action: “You never know how much effort people are willing to put into something. When you think about, expecting people to leave their house/couch to go out into the streets to accomplish these missions is a big ask.”

I would urge my clients to take a step back and evaluate if developing a game fits into their brand voice and objectives. If it does, the key will be riding the wave while AR is on the upward trend.

Pokemon Go, backed by Nianta Labs (a spinoff of Alphabet, which owns Google) and Nintendo, had the backing of big brands with lots of resources. Rosenberg asked: “The real question is, would a game/brand with less recognition have been able to have the same effect?”

Challenges: Fear of the Unknown, Timing

Nianta claims that more advertising options will be introduced in the form of sponsored locations, which use the logic of Google AdWords by charging per visit instead of click. But the app’s continued success may be affected by timing: “Releasing the game during the summer was a smart move but once kids are back in school and overall mindset shifts away from summertime fun, it will be interesting to see how the user base fluctuates,” said Rosenberg.

Continued momentum will also depend on a “second wave” of players adopting the technology, and any other AR games that are released. “As with all new technology, there will be early adopters and those who are intimidated at the unknown,” Rosenberg added.

The key will be riding the wave while AR is on the upward trend. If not, brands can find other ways to leverage the current trend, especially within social.

Tracking ROI

Augmented reality is unique in that it is so dependent on physical location, but time will tell how effective location-based marketing is. Aligning brands’ objectives with the reach of AR-based marketing will “vary from one campaign to another, depending on each campaign’s specific goal,” Rosenberg asserted, and “understanding this goal will inform the exact metric for the return on investment and determine if those metrics are in fact, trackable.”

While physical locations like restaurants and cafes can measure ROI easily through visits that convert to sales, the success of other campaigns and sponsorships may not be as easy to measure.

Hispanic Targeting Opportunities

Brands looking to target Hispanics will be particularly interested in Pokemon Go, Rosenberg pointed out, because the demographic uses mobile heavily.

Not only do they use mobile heavily, they often depend on it. A new study from the Pew Research Center found that while just 10% of white smartphone owners rely on mobile devices to access the Internet, the same is true for 23% of Hispanics.

The study also found that the digital gap between Latinos and Whites is shrinking, which makes sense, since the Hispanic population is the fastest-growing in the United States. In the study, the percentage of Latino adults who report using the Internet increased from 64 percent to 84 percent between 2009 and 2015, versus an increase of 80 percent to 89 percent among White adults who use the Internet. This means that while the gap was 16% in 2009, it is now just 5% in 2009.

“Targeting options are consistent across games,” Rosenberg added, and augmented reality will afford brands tools for “relevant in-game options that may appeal to a particular segment of a brand’s target.”

The app has drawn big numbers of minorities to the Pokemon franchise. A recent study by mobile marketing firm mfour found that 40% of Hispanics said that the new app was their first introduction to Pokemon, while that was only the case for 32% and 31% of Caucasians and Asians, respectively. The study claimed that 13.4% of respondents identified as Hispanic/Latino.

Lee Vann, cofounder of Hispanic marketing agency Captura Group, commented: “The Pokemon Go craze looks like it is here to stay and along with it AR is becoming a top-of-mind tactic for digital marketers.  It is not surprising that the hottest game on the planet, or virtual planet, is being embraced Hispanics and marketers looking to tap into the nation’s fast growing, digitally connected consumer group should considering going with Pokemon Go to reach them.”

Rosenberg also highlighted what is one of the biggest  concerns with augmented reality: intrusiveness. While AR ads are effective because they generate such high levels of engagement, they may be so engaging that they become annoying. Like they are with pop-up ads, brands must be careful.

The final verdict: “Until adoption of AR games grows in scale, targeting may be more limited.”

Above all, Rosenberg reiterated that not all brands’ messages align with augmented reality games. “I would urge my clients to take a step back and evaluate if developing a game fits into their brand voice and objectives,” he advised. “If it does, the key will be riding the wave while AR is on the upward trend. If not, brands can find other ways to leverage the current trend, especially within social.”

Join us at PORTADA Mexico!

A recent study by Brand Networks revealed that advertising on Instagram is working, with decreasing costs and increasing performance across industries. We spoke to Pedro Labarta, Brand Networks’s Managing Director for Mexico and Latin America, about what the study’s findings indicate about the best way to make use of this platform in advertising campaigns.

Advertisers are still figuring out the best way to make use of the different engagement tools that social media platforms provide. And the platforms themselves are constantly tweaking those tools according to new insight revealed in studies like that conducted by software and social network services provider Brand Networks, whose clients include Interpublic Group, WPP, American Express, AT&T, InBev, Discover, Yahoo! and Unilever.

Brand-Networks-LogoThe three-month study looked at two billion Instagram ad impressions and tracked metrics related to spending and performance in the first quarter of 2016. The highlights, with additional insight from Pedro Labarta, Brand Networks’ Managing Director for Mexico and Latin America, below.

For Best Ad Performance on Instagram, Turn to Video

One of the most interesting revelations from the study was that video ads made up an average of 58% of ad impressions over the first quarter. Breaking the numbers down month-to-month, the study found that video ad impressions rose steadily from 43% in January, 59% in February and 65% in March. These numbers are even more impressive if one considers that December 2015 video ads represented just over 30 percent of the total.

What accounts for this change? Instagram did extend the maximum length of videos from 30 to 60 seconds in the middle of Q1. While the Brand Networks team analyzed both long and short videos, there wasn’t a notable difference in performance based on ad length: “We’ve also witnessed advertisers on our platform deliver video ads that were much shorter that performed very well,” Labarta said.

Lower Costs, Increased Performance for Instagram Ads

Continuing to give good news, the study showed that average cost-per 1,000 impressions (CPM) dropped to $4.58 in January, an all-time low at the time. But the numbers kept falling, and in February the CPM reached $3.88. March brought it back up, but just slightly, to $4.19. Impressive, nonetheless, as average CPM was $7.04 in just Q2 of 2015.

The test revealed that the CPM dropped across industries, in some more notably than others. The technology sector’s CPM went down by 32%, education by 50%, automotive by 49%, and e-commerce by 29%. Only telecommunications and travel industries saw decreased cost efficiency, as the CPM went up by 6% in each.

Labarta revealed that Brand Networks has “seen a few industries adopt Instagram advertising more rapidly than others,” and that “retail, consumer packaged goods and high fashion industries have been among the most motivated verticals to test and learn on Instagram.” The fashion industry has been experimenting with new approaches to getting target audiences involved in Spring Fashion Week Events, and all signs point to video as its secret weapon. 90% of fashion impressions came from video, which explains why 71% of ad spending on Instagram in the industry go to video ads.

Comparing the different social channels today is a bit like comparing two different planets. The ecosystem on each is incredibly different. They are as different from one another as they are from television or radio.

Despite the decreased cost efficiency its ads have experienced, telecommunications brands “flocked” to Instagram in Q1 to support their sports-related ad campaigns during football and basketball seasons and new contract promotions, which explains the increased competition and CPMs.

Beautiful, Real-World Imagery Carries Platform’s Success

It’s very hard to compare strategies, advantages and disadvantages of the wide array of platforms available to advertisers. In fact, “comparing the different social channels today is a bit like comparing two different planets,” says Labarta. “The ecosystem on each is incredibly different. They are as different from one another as they are from television or radio.”

But in the end, Instagram arguably provides the best platform for visual communication, and is “very interesting because of its focus on beautiful and real-world imagery as a form of communication and expression,” says Labarta. An image or video’s ability to transcend language and culture makes it an undeniably powerful channel.

Join us at PORTADA Mexico!

What: The North American SVOD sector is by far the most mature in the world, with 81.81 million SVOD subscribers by end-2015. The number is expected to reach 109.59 million by 2021.
Why it matters: Advertising on OTT sites (AVOD) will become the main OTT revenue source in 2018. Advertising on OTT sites will generate revenues of US$10.98 billion in 2021.

OTT TV and video revenues in Canada and the US will reach US$24.39 billion in 2021; up from US$2.67 billion in 2010 and US$15.39 billion in 2015, according to the North America OTT TV & Video Forecasts report.

The North American SVOD sector is by far the most mature in the world, with 81.81 million SVOD subscribers [for movie and TV services only – excluding sports, for example] by end-2015. The SVOD total is forecast to climb to 109.59 million by 2021.

OTT-TV-and-video-revenues-by-country

Simon Murray, report author and Principal Analyst at Digital TV Research, said: “It is important to stress that these figures are gross – some homes take more than one SVOD platform – especially in the US. We do not believe that 86% of US TV households or even 97% of US fixed broadband households will be SVOD subscribers by 2021. From the 101 million US total in 2021, we forecast that 25 million will be secondary SVOD subscriptions. Therefore, the average US SVOD user will pay for 1.33 subscriptions. Putting it another way, there will be 76 million US primary SVOD users by 2021.”

He continued: “We have included half of the Amazon Prime fee as an SVOD subscription to homes that we estimate take Amazon Video (about 70%), even though homes are not directly paying for Amazon Video.”

The North American SVOD sector is by far the most mature in the world

Canadian and US SVOD revenues will soar from US$0.58 billion in 2010 to US$6.26 billion in 2015 and onto US$9.16 billion in 2021.

Online rentals will continue to suffer as SVOD grows. OTT TV and video rental revenues climbed from US$708 million in 2010 to US$2,022 million in 2014. However, revenues will fall from then on – to US$1,744 million in 2021 as SVOD is seen as a more attractive substitute to rentals.

Download-to-own (also known as electronic sell-through or EST) buying will not be as badly affected by SVOD as rentals. DTO revenues are forecast to be US$2,505 million in 2021, up from US$279 million in 2010 and US$1,493 million in 2015.

Advertising on OTT sites (AVOD) will become the main OTT revenue source in 2018 as the SVOD sector matures. Advertising on OTT sites generated revenues of US$5.65 billion in 2015; quintuple the US$1.11 billion in 2010. Rapid growth will continue; reaching a total of US$10.98 billion in 2021.

Join us at PORTADA Mexico!

To industry outsiders, the NewFronts seem like something out of Mad Men – and that’s because they are.

For the uninformed, the NewFronts are digital’s answer to television’s Upfronts, through which networks debut programming including new shows and old hits, and executives do their very best to wine, dine and schmooze their way into securing commitment from advertisers before the season starts.

In contrast, the NewFronts are events held over the course of two weeks that are organized by digital video companies to show advertisers the kinds of bang they can get for their buck on their platforms. Those who can’t do that are “left to the scatter market,” as Yahoo’s director of sales for US Hispanic Matthew Harris says.

Ditching Old School for Digital

It’s all very old school, which is why it seems strange that digital, such a modern rejection of everything TV, would try to copy TV. But as digital slowly starts to catch up to television, the NewFronts have come into their own, and the increasing value of reaching the Hispanic consumer has played no small part in shaping today’s digital landscape.

Multicultural Digital always rises to the top as a priority due to the Hispanic consumer media behaviors.

Harris affirmed that US Hispanics were a “recurring theme” at Yahoo’s even this year, and that Joe Zee, Yahoo’s style editor, mentioned Hispanic consumers in his presentation, which was “a signal of Yahoo’s broader commitment to the Hispanic community,” confirmed Harris.

But reaching Hispanics means understanding the evolving Hispanic consumer. Harris pointed out that Yahoo transformed its Yahoo en Español  into Yahoo US Hispanic for bilingual, acculturated audiences, as “Spanish-language only is a disservice and disadvantage,” Harris says.

Mobile and Video Reign

“Multicultural Digital always rises to the top as a priority due to the Hispanic consumer media behaviors,” says María Fernández Ordóñez, senior vice president and and media director at the agency Identity. Hispanic consumers tend to keep up with the latest trends in mobile consumption, so “when developing media plans for this consumer and seeing how driven they are to use digital media and particularly mobile and watching video, these two platforms get the highest media allocations,” Ordóñez adds.

popsugar-newfronts-hed-2016-444x250All platforms were excited to introduce their Hispanic-oriented content to advertisers. Geoff Schiller, POPSUGAR’s CFO, comments that it went beyond its regular POPSUGAR Latina channel this year, creating strategic partnerships with Mas Mejor, Broadway Video’s premium comedy studio starring Latino influencers.

At its NewFronts event, POPUSUGAR also premiered Cooking Rodriguez, a scripted comedy about an aspiring Cuban YouTube chef created by Marlena Rodriguez, a writer who contributed to season two of Unbreakable Kimmy Schmidt.

In general, the NewFronts also reflected the general shift in advertising budgets from television to digital. Ordóñez notes that IPG committed $250MM to buy Google Preferred inventory for Broadcast 2017, and 250MM more to an upfront deal with YouTube. Schiller says: “TV to digital investment has yet to reach its apex, but many brands such as General Motors and Hilton are making deep investments with us in the digital video space and we anticipate investments like this to increase substantially, both with POPSUGAR and across the industry.”

Viewability didn’t seem to be a huge concern, at least nobody will admit that it is. But everyone is investing in understanding consumer behavior – with an emphasis on Hispanic consumers. Yahoo says that its data and insights team is constantly producing material on trends in Hispanic behavior so that advertisers are assured to connect with this complex audience, and both Yahoo and POPSUGAR have put together studies of US Hispanic digital consumption and behavior.

Understanding Consumer Behavior

Other trends included the increasing adoption of technology and data to optimize resources. Yahoo believes that its “focus on data” is more important than ever, as Harris highlights the company’s acquisition of Flurry, an analytics firm, which provides access to millions of touch points across mobile devices to help him and his colleagues learn about audiences and find device IDs, and BrightRoll, the DSP that helps Yahoo serve advertisements and target audiences.

While the NewFronts still maintain the structure of television’s upfronts, the digital landscape is now large and complex enough that we would be wise to stop comparing the two.

All of this technology is aligned with the company’s content strategy for news, lifestyle, sports and finance in a restructuring effort that Harris says helps the company “focus on the couple of things we do well, hone in on them and take resources that were too spread out.”

While the NewFronts still maintain the structure of television’s upfronts, the digital landscape is now large and complex enough that we would be wise to stop comparing the two. Digital is still creating its own path and grappling with how to make the best use of its data, but there is no doubt that today, consumers are living in a digital realm on multiple screens, and advertisers are paying attention.

Join us at PORTADA Mexico!

Carlos Espíndola (3M), Denisse Guerra (Estée Lauder), Martín Jones (L’Oréal) and Borja Beneyto (Starcom MediaVest) give Portada an exclusive look at their Latin American marketing and media 2016 forecasts.

Carlos Espíndola, 3M: Efficiency and Effectiveness

“My expectations for 2016 are efficiency and effectiveness. The situation in Latin America in terms of politics and economics is very complicated, and companies need to make efficient

Carlos Espíndolainvestments in advertising to have a greater and better impact. Media outlets and agencies must develop greater empathy for advertisers and their realities, and advertisers must develop the ability to be more effective, productive and relevant. It’s no longer necessary to invest millions in different media outlets: the most important thing is to develop automated marketing plans that guarantee a return on investment for consumer outreach programs.”

 

Denisse Guerra, Estée Lauder Companies: Full-Fledged Development of E-Commerce

“Our expectations as a company and as specific brands will be the exhaustive development of our e-commerce business for our retailers (especially the fragrance brands that we license). For our prestigious brands, which Denisse Guerrahave traditionally done business in physical stores, it is a great opportunity to recruit new clients through online media and reward our loyal consumers. Of course, we will continue to develop strategies to keep providing a “high-touch” service to all of our clients in physical stores, but we must work on strategies so that this “high touch” can be transmitted through our e-commerce and social media as well. In the fragrance area, it will be very important to develop creative communication strategies for digital media that can substitute the consumer experience of going into the store to smell aromas, creating a digital environment that makes the consumer want to find out more and then receive samples or decide to make a trip to a physical location.”

We must work on strategies so that this “high touch” service can be transmitted through our e-commerce and social media as well.

Martin Jones, L’Oreal: Marketing Automation, Content Marketing and Mobile Marketing

“The majority of expectations for 2016 were trends in 2015; what we hope is that these trends consolidate this year. Expectations for 2016 are very clear for the digital world: automated marketing,  microtargeting and personalization are at the Martin Jonescenter of digital strategies. It is increasingly necessary to direct personalized communication and content to consumers; impacting audiences precisely according to their behaviors is the key to media ROI (here there are two key factors: email marketing and predictive analysis), and on the other hand, programmatic buying will become significant in 2016. Content marketing: the video ad forms part of any advertiser’s agenda as an extension of his or her TV, but more than anything through productions designed for the digital world (at a lower cost to generate a larger volume of content). Another important point on the agenda is data-driven marketing: finding important insight from all information obtained from audiences and programs is vital to decision-making. We must know our consumers. Mobile marketing: today, everything has to start on mobile. Geolocalization and transactional experiences are the motor for deepening the mobile experience. Electronic PR will form part of the content agenda of every brand, and the curation and distribution of content is increasingly relevant to win the battle of earned media. The wearables market and its outlook for the future will see growth into 2020. Inbound marketing or “attraction marketing” will be articulated through different resources: blogs, podcasts, vídeos, ebooks, boletines, whitepapers, optimization techniques for search engines (SEO) and social media.”

Borja Beneyto,Starcom MediaVest Group: Data Management

Borja Beneyto“I believe that 2016 will be the year in which the industry will become more sophisticated in its data processes, tools and products. This is something that will turn data management into not only a commodity in terms of services, but also in an audited base for businesses to generate sequential communications, total investment efficiency in multi-disciplinary media and above all, precision marketing. On the other hand, we will see more advanced search models appear through the results of e-commerce on demand, the evolution of content aggregators, the unstoppable advance of mobile thanks to messenging, the added value of social media to maximize the sales funnel and intelligence applied to photography archives.”

Data processes will not only turn into a commodity in terms of service, but also in an audited base for businesses to generate sequential communications.

So there you have it: the opinions of important brands and agencies in the region. Shortly, we’ll be releasing the 2016 marketing and advertising forecast from the Latin American media owners perspective.

 

CHECK OUT: 2015 LatAm Marketing Highlights According to Estée Lauder, Viacom, Starcom, L’Oreal, Zoomin.TV, 3M….

What: DDB Worldwide, a division of Omnicom Group Inc., has acquired Grupo ABC, the largest independent advertising and marketing communications group in Brazil for approximately US $270 million.  The transaction is subject to regulatory approval in Brazil and is expected to close by the first quarter of 2016.
Why it matters:  Thomson Reuters deals intelligence data shows that this might be the largest media and advertising industry deal in Brazil since 2008. Grupo ABC owns agencies like Pereira & O’Dell, DM9, Sunset, Dojo and Africa Global, covering public relations, CRM, digital, promotions, events and advertising.

p7mJRAC4_400x400DDB Worldwide, a division of Omnicom Group Inc., has announced  that it has acquired Grupo ABC, the largest independent advertising and marketing communications group in Brazil.

Grupo ABC’s group of agencies consists of brand advertising agencies as well as specialized offerings in public relations, CRM, digital, promotion and events. The group has a diverse network of agencies including DM9 (Sao Paulo), in minority partnership with DDB; Africa and Loducca; CDN, a  public relations agency; Sunset, a specialized digital agency; and Newstyle, a  promotion and point of sale (POS) company in the country.

Brazilian advertising leaders Nizan Guanaes and Guga Valente, who will continue in their leadership roles, founded Grupo ABC in 2002. The acquisition strengthens a long-standing historical relationship between both holding companies in the region extending as far back as 1997 when DDB first invested in DM9, today one of the largest and most creatively awarded advertising agencies in Brazil.

Global Ad Giants Buy Brazilian Firms

brazil.flagThomson Reuters deals intelligence data shows that this might be the largest media and advertising industry deal in Brazil since 2008. According to reports, Omnicom has agreed to pay around 15 times annual operational earnings for the company, taking advantage of the Brazilian currency slump which has seen the BRL lose about 70% of its value. Grupo ABC. While the Brazilian economy is currently undergoing a contraction, many global advertising and marketing firms have recently invested in Brazil to strengthen their long-term growth prospects. Recent transactions include Hill & Knowlton acquisition of PR company Ideal, Accenture’s purchase of digital ad agency Dialeto as well as Dentsu-Aegis Network’s acquisition of Brazil’s leading Out-of-Home agency OOH Plus.

The acquisition strengthens a long-standing historical relationship between both holding companies in the region extending as far back as 1997.

“Grupo ABC is widely acknowledged as an outstanding company with impressive creative work and expertise in a broad range of disciplines,” said John Wren, President and CEO of Omnicom Group. “Over the years, Grupo ABC have been great partners of Omnicom and their depth of talent will strengthen our business capabilities not only in Brazil but around the world.”

“This is a world of disruption, scale and innovation and Omnicom will empower our companies to compete in times of extraordinary technological changes,” commented Guga Valente, CEO, Grupo ABC.

“Omnicom has the most creative and awarded agencies in the world and that is something that really matters to me and to all of us in ABC. Together we will be better prepared to serve our clients with all of the innovation and digital capabilities that modern business are demanding nowadays,” continues Nizan Guanaes, Partner and Co-founder, Grupo ABC.

“This partnership will further unite two companies that have long held the same values and creative ambitions,” said Chuck Brymer, CEO of DDB Worldwide. “I have known Nizan and Guga for more than a decade and have sincerely admired their success and influence both in and out of Brazil. It is a tremendous addition to both DDB and Omnicom and we are excited at the opportunity to utilize our combined assets to help our clients generate growth.”

The transaction is subject to regulatory approval in Brazil and is expected to close by the first quarter of 2016.

Advertising agency Hill Holliday, whose clients include Dunkin’ Donuts, has spun off its media operations as Trilia, a stand-alone agency inside IPG’s Hill Holliday. According to Trilia Media president Cindy Stockwell, Trilia is a mashup of “true” and “real” to reflect how the company approaches every relationship with clients, with tech and content partners and with each other, Adweek reports. In a similar move to Hill Holliday with Trilia, LatinWorks last year spun off its media unit and called it  NTrigue. 

7-WKqr7k_400x4005d70e61cc7dfd9a2c6f74498c1cdb861_400x400“The open triangle reflects our belief that pricing transparency is absolutely critical to a solid relationship with our clients. If you look at the conversation in our industry in the last few months, we see a general lack of transparency that we think is bad for business,” Stockwell said.

When launching Trilia, the agency wanted to be able to invest in tools, technology and data sets to give  clients an edge in the marketplace. To do that, they needed to be in a position to create a revenue stream. After talking to key search consultants, who felt that media creativity was really lacking in the rush to data and low CPM, they realize clients were hungering for a partner that could provide both.

The industry is starting to recognize that there needs to be a true blurring of the lines between media and creative,”Stockwell added.

Because of its heritage as a full-service agency, Trilia naturally works that way. Media buys complemented by social programs that amplify the creative message are so much more effective at driving up time spent with that message. But the media team needs to understand the brand positioning, and needs to work very closely with their creative partners to make sure the message is actually amplified. Conversely, creatives should be using data to inform their campaigns.An example of which is the work Trilia does  with TJX and their creative partners around their holiday campaign. For the past five years, they have created social engagement programs as diverse as social influencer programs to a custom gift recommendation engine. The goal is to get on the target’s holiday shopping list by leveraging their social and technology behaviors to amplify the holiday campaign and share their experience within their social networks.

Stockwell assures Trilia has made a very conscious decision to tell its clients exactly what fees they are paying in the programmatic space.

“We can drive the overall CPM of the buy down by more than 25 percent—while driving up the time spent with our client’s message.” Stockwell said when she launched Trilia. By using data and consumer insights, and pairing paid media with social experiences, can drive those kinds of numbers for any client, at least on a portion of their budget.

 

sands-floor-sm As weary ad execs wandered home from CES 2015, we took a look at what this mother of all consumer electronics shows revealed about the future of advertising. We identified five trends that we think will matter for advertisers in the years to come, and checked in with three smart executives to get their thoughts.

1. Connected Watches

They show no sign of going away, with twice as many wearable exhibits as at CES 2014. But ads on them? Really? Probably, according to Jeremy Sigel, director of mobile, North America, for digital agency Essence. “Similar to mainstream mobile ad formats, it is easy to envision a full-screen interstitial ad or even a 15-second video on a smartwatch,” Sigel says. He points out that while a watch face may seem small, the dimensions would be similar to a Facebook mobile newsfeed ad. “While smartwatch ads may start there, the bigger opportunity will be highly contextual push notifications that strive to be additive, and branded applications that are inherently helpful to keep a brand top-of-mind.”

smart-watches-sm

If you think people won’t accept ads on their smartwatches or fitness devices, just remember that in the early days of mobile, people said the same thing about their phones. In fact, some of us, ahem, are old enough to remember when advertising on the World Wide Web was frowned upon.

2. OTT TV:

Dish’s SlingTV streaming service gave another push to over-the-top video, enabling subscribers to watch live TV, video-on-demand and 12 cable channels on a variety of devices. It also could open the way for better targeting and tracking of TV ads. Sling did not immediately respond to an email about its ad plans, but third-party ad networks may start salivating now.

Pat McKenna, CEO of Strike Social, says Sling and other OTT services will help marketers get a more accurate comparison of the performance of video ads on TV and digital. Strike Social is a third-party TrueView advertising, targeting and analytics platform that tracks video-ad performance across YouTube, Twitter and Facebook. The key to achieving this, according to McKenna, is for OTT services to provide APIs and consistent data to allow ad servers and analytics platforms to consume their data. “The opportunity for us is to marry performance data across all platforms, and then provide the report to [advertisers],” he says.

David Santana, art director at global, digital marketing agency Deep Focus, says that Sling TV’s $20 monthly subscription, no-contract deal will be attractive to Hispanic consumers, who are gravitating to other companies like T-Mobile that don’t demand customers lock themselves in. He says a bigger win will be if Sling TV develops content packages for Hispanics, the way that DirectTV does. (In December DirecTV introduced OTT Video Service Yaveo targeting the Hispanic population.) “The opportunity to tailor content packages to this market is important to see it grow,” Santana concludes.

The opportunity to tailor content packages to this market is important to see it grow.

3. Connected and Autonomous Cars

Internet-connected cars have been around at least since BMW introduced ConnectedDrive in 2011 – and CES 2014 seemed to be the CES of the Car. This year, more than a dozen cars were on display, many of them highlighting current or concept connected-car technology. With Google powering or at least participating in several of these offerings, you have to wonder: Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls. There’s also a strong –someday – play for ads on the so-called infotainment screens, the ever-larger digital dashboard screens that show everything from what’s playing on the sound system to your navigation route to use Facebook.

[youtube https://www.youtube.com/watch?v=SyCox6In5bg&w=560&h=315]

How about sending the driver a McDonald’s coupon when she’s approaching the restaurant? Actually, TeleNav has been doing that since 2010. The problem has always been, and continues to be for now, getting enough scale to make it worthwhile for national advertisers to bother. Maybe someday …

Wouldn’t it be great if, instead of driving, you could, um, use Google Search or watch YouTube with prerolls?
Nick Cannon playing virtual volleyball
Nick Cannon playing virtual volleyball

4. Virtual Reality

Volvo, Dos Equis, Marriott, HBO, Tourism Australia and a handful of movie marketers have already released branded apps. VR is cool and fun, but hampered by the need to use a headset. Joining the fray among the expensive and still-in-beta Oculus Rift and the adorably crafty – and cheap – Google Cardboard headsets, Avegant and Samsung demonstrated virtual reality at the show. In the short term, VR marketing will live at trade shows and special events, where staffers can be on hand to manage the hardware and software.

Deep Focus’ Santana gives kudos to Volvo for it’s VR campaign that sent consumers who registered a Google Cardboard viewer kit. “That make it inclusive,” he says. “You don’t need a lot of money or to be in a major market to experience virtual reality. That’s important for the Hispanic community.”

Eventually, Digital Agency Essence’s Sigel thinks, that these virtual-reality “experiences” could contain ad units, in much the same way ads have been inserted into TV broadcasts, as well as into video and console games. He gives the example of a VR experience that lets you sit court-side at an NBA game. “In addition to traditional signage, the t-shirts of patrons, concessions, chants from the crowd, a comment from a court-side celebrity and shouts from players may all be sellable units,” he says.

By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?

5. Big Data Gets Ginormous with Connected-Everything

The Internet of Things was one of CES 2015’s Top Tech Trends, along with wearables and autonomous cars. All these devices will generate data either all the time or a lot of the time. Location-based data combined with behavioral and contextual data could make ad targeting incredibly more complex – and possibly better. The quantified self, continuously tracked by wearables, could alone generate unprecedented amounts of usable personal data. The possibilities – futuristic as they are – are fascinating. By tapping into someone’s Fitbit or health-tracking device, could you send him an ad for Starbucks when his energy flags?  Would his anonymous personal profile include the information that he’s more likely to respond to ads 20 minutes after he’s completed a run? How about a tweet from New Belgium Brewing after that run? Now, that’s the future of advertising.

What: International media sales company Publicitas has selected Rubicon Project, a SSP (Supply Side Platform) company automating the buying and selling of advertising, to power its digital advertising inventory.
Why it matters:Publicitas will take advantage of Rubicon Project’s Advertising Automation Cloud platform to make digital inventory available to buyers globally. The move is somewhat surprising because Publicitas in November 2012 acquired Improve Digital, a Netherlands headquartered SSP.

descarga (1)Publicitas, which gives global advertisers access to audiences and inventory around the world, has announced that it has selected Rubicon Project to power the monetisation of digital advertising inventory. The move is somewhat surprising because Publicitas in November 2012 acquired Improve Digital, a Netherlands headquartered SSP.

Publicitas, which works with media owners across the globe to sell advertising space in traditional as well as digital media, will use Rubicon Project’s Advertising Automation Cloud platform to make digital inventory available to leading buyers across Europe and the rest of the world, via open auction as well as private marketplaces. Publicitas also sells into a wide array of Latin American and U.S. Hispanic web sites.

Commenting on the announcement, Publicitas Chief Technology Officer David Klement said, “working with Rubicon Project sets us up well to maximise the returns from automated advertising for our media partners. This is an increasingly important trend across both Europe and the rest of the world and we see Rubicon Project as a leader in terms of its current technology, its future roadmap, its expert staff and the support and consultation they provide.”

“We are proud that Publicitas has chosen Rubicon Project as an advertising automation platform.We look forward to working closely with the Publicitas team to develop a successful approach to digital advertising across all the regions in which they operate, and across all screens,”added Jay Stevens, General Manager International, Rubicon Project.

 

Pierre Chappaz is CEO & Co-Founder of Ebuzzing and Teads Group.

Half of all internet advertising bought by brands is not seen by web users. It is a shocking statistic and the situation is worsening year on year, thanks to the rise of programmatic buying. In 2012 ComScore estimated that 31% of advertising was not seen, this number rose to 54% in 2013.

The recent announcement that GroupM will soon withdraw from open AdExchanges and operate solely on private exchanges clearly demonstrates that the lack of transparency and fraud in online advertising has reached an unsustainable level. It is time for an industry-wide rethink.

For video advertising the situation is potentially even more precarious, due to the domination of pre-roll advertising formats. Instream formats like pre-roll force web users to watch an advert before they are able to view their chosen video content. Leaving fraud, which accounts for 12% of all impressions , aside for now, the biggest threat to viewability is user behaviour.

The biggest threat to viewability is user behaviour

Today’s internet users have developed lightening quick reflexes to avoid advertising they do not wish to watch. They open a new tab or window, mute the sound the very instant an unwanted advertisement appears in front of their video content.

A recent study by Tubemogul revealed that 70% of all non-viewable impressions are non-viewable because the window in which the video is playing is no longer on the screen.

Once bot traffic is discounted, the viewability of pre-roll advertising drops to 22% on average and 48% in premium environments. Ultimately advertisers who buy on CPM are paying between two and five times more than they should.

To combat the issues surrounding viewability, new technology able to precisely measure the viewability of videos from beginning to end has been developed.

Pre-roll

Although monitoring viewability is key, it is more important to develop formats which encourage the user to watch an advert, not avoid it at all costs. Returning to the topic of pre-roll advertising, it is clear to me that the days of non-skippable pre-roll advertising are numbered.

The days of non-skippable pre-roll advertising are numbered.

It is impossible to force a web user, who is active, mobile and engaged, to watch an advert if they do not want to. Web users are not in the same frame of mind as those watching TV at the end of a long day, half asleep and too lazy to change the channel during the ad breaks, they will skip if they are not interested. While the majority of users may not be interested in watching your advertising, why not focus on those who actually want to hear from your brand?

We believe that adverts have more value when they are intentionally viewed by web users. Video adverts are often highly entertaining and great quality, and can be offered as relevant content, not a painful toll that must be paid before video content can be viewed.

The view-to-play concept is an efficient and elegant solution to the challenge of viewability in video advertising. But it also has another benefit: it opens huge new premium video inventory in the world’s largest media sites. The availability of such premium inventory, on a global scale, can only be good news for advertisers, agencies and media owners alike.

Pierre Chappaz has held marketing and communications positions at Toshiba, Computer Associates and IBM. He founded the site Kelkoo in 1999, he has been president of Yahoo Europe and also created Wikio in 2005, wich merged with Ebuzzing in 2009.

Foro Portada Mexico 2013Exciting prospects are in store in 2014 for the world of marketing, advertising and media in Mexico. In addition to interesting macroeconomic developments, there is also the 2014 World Cup, an event of great media and advertising importance. How do the big brands view the Mexican advertising and media market in 2014 and what strategies will they use to reach Mexican consumers? The analysis and answer to this question will be one of the main themes at the Portada Mexico Forum for Advertising and Media, to take place on Thursday, October 17th at the Presidente Intercontinental hotel in Mexico City.

A panel moderated by Santiago Duran, Digital & Catalyst Manager, Havas Media Mexico, will focus on prospects for advertisers in 2014. The panel will include very high-profile marketing managers, including: Mercedes López Arratia, Head of Digital Marketing and Premium Marketing, Banamex; Rosa Maria Grados, Marketing Director – Mexico, Central America and Caribbean, Blackberry; Ingrid Motta, Director of Marketing, Public Relations, Digital, and Applications, Samsung; and Alicia Trujillo, Social Media & Strategic Projects Supervisor / eCommerce, Wyndham Worldwide/RCI, all of who will talk about their marketing and advertising strategies expectations for the coming year.

The Portada Mexico Forum for Advertising and Media, to be held Thursday, October 17, is being organized for the third consecutive year by Portada (https://www.portada-online.com), the leading source of news and analysis on the Latin American Marketing, Advertising, and Media space, as well as that of the U.S. Hispanic market and Spain.

Content marketing, linked to both advertising and digital media, will be discussed at the “Brand-building and Storytelling” panel moderated by author and executive Joe Kutchera. Carlos Espindola, eHUB Manager for Latin America, 3M, will analyze 3M’s successful case study; while Ximena Moreno, Distributor Analyst for Mexico HFS, Procter & Gamble, will review that of Procter & Gamble.

Registration:
Tickets purchased before the day of the event will include a copy of the book (É-X-I-T-O), su estrategia de marketing, by Joe Kutchera. The entrance fee is US $199 (approximately 2,550 pesos). Register here!
https://www.portada-online.com/eventos/foro-mexico/inscripcion/

 

 

Portada interviewed Alejandro Campos Carlés, Co-Director and Founder of StartMeApp.
Alejandro_Campos_Carles 285StartMeApp is an independent mobile advertising network with offices in Brazil, Argentina, Colombia, Mexico, USA, England, and Singapore.

Translated by Candice Carmel

“StartmeApp’s value proposition is linked to direct response marketing—we are looking for accurate results. It’s not just about media buying, clicks or impressions, but about transformation: transforming impressions/clicks into the response that advertisers are seeking from the audience,” says the company founder.

“We have the chance to position ourselves in the Latin American market while the market is still developing, but we possess the know-how to play in other markets and that’s what we’re doing,” adds Campos Carlés. The company, which was founded in Argentina and later expanded throughout the region, also has a presence now in Europe and Singapore.

StartMeApp’s revenues come mostly from Latin America (70%), but according to its founder: “This year we expect revenues in Latin America to be dispersed by revenues from Europe and Asia.”  In Latin America, the company derives the bulk of its business from Argentina, Colombia, Mexico, and Brazil. Campos Carlés says that the company was profitable from day one and generates its own customers. It had a marginal contribution of about 50%, with EBITDA of nearly 20% last year.

Mobile advertising market in LatAm

“Latin America has a very small market presence in mobile advertising,” asserts Campos Carlés flatly. “In the E-marketer report published two months ago, Latin America appeared as a separately listed region for the first time. In last year’s reports, Latin America’s market presence was so low that is was lumped under ROW (rest of the world). Even though the region’s metrics and projections are very positive and point to high growth, it still lags far behind other regions,” he added.

 

For Campos Carlés, the low market presence of mobile advertising in the region is due to several factors. The first has to do with the population, which is low compared to other regions, he says. As a result, the number of mobile telephone subscribers is also low. “Smartphone penetration in the U.S. will reach 80% next year, while that number is only expected to reach 30% in Latin America,” Campos Carlés told Portada.

Portada: What are the causes of Latin America’s delay in getting into the mobile advertising market, in comparison with other regions?

Alejandro Campos Carlés: The situation is that the subscriber base is still prepaid, not postpaid, and the featured phones base is still very strong. In regards to carriers, the passage from 3G to 4G is just beginning, which causes data transfer rates to be slower. Government decisions are also a factor, because they influence technology, infrastructure, and investment. Brazil is an example of how government decisions influence market development. In Brazil’s case, the country is going digital in preparation for two major sporting events Brazil will be hosting—the World Cup and the Olympics. This is an example of government joining forces with operators in an effort to generate infrastructure. And finally, there are regulatory issues: the region is highly monopolized.

Market rules are starting to change, because regulation is beginning to take place. But we must also keep in mind that it will take a while for Latin America to replace its fleet of featured phones with smartphones.

Portada: What is the current investment flow in mobile advertising in the region?
Alejandro Campos Carlés: Today we have pan-regional and local spending, but both advertisers and agencies still have little knowledge [about mobile advertising]. Online advertising is important here, but if you compare it with traditional media it is still marginal, despite the fact that it is growing at impressive rates. IAB reports rates of about 40% annually in the region. If online spending is marginal compared to traditional media, imagine what mobile ad spending must be.

Latin America gets residual pan-regional advertising from mobile global campaigns. That is beginning to change.
On the other hand, advertisers are unsure about how to enter the mobile advertising market, faced with a wide variety of offerings and multiple operating systems. In fact, StartMeApp launched an event in Sao Paulo called Movilizando Latinoamérica (Mobilizing Latin America), to demonstrate what the channel is all about and what can be achieved with it. We will be repeating the event in Mexico, Miami, Colombia and Argentina.
Portada: What will be this year’s surprise?
Alejandro Campos Carlés: The market is giving very precise signals that this year’s surprise will be RTB (Real Time Bidding). In 2009, RTB was just beginning to be used as a purchasing technique and represented 1% of online advertising buys at the time. Today, its use is impressive and is growing at a rate of 300% month after month.

Tablets

In regards to other mobile devices besides smartphones, Campos Carlés highlights the importance of tablets for mobile advertising. “Tablets are making a difference. Tablet shipments to Latin America next year have been estimated at $3.7 trillion, of which 1.7 will be spent in Brazil,” said Campos Carlés.
According to the executive, there are 24 million tablets in Brazil today, out of a population of nearly 300 million—which reflects low penetration compared to the population, despite Brazil being the largest market in Latin America.

Key players in the mobile advertising market

The main mobile advertisers in Latin America are mobile content aggregators. “These players have a shared network agreement with the operator for content purchases or subscriptions by users,” says the executive.

Other investors participating in the mobile channel are advertising agencies, who allocate their clients’ advertising budgets. Campos Carlés says that “only this year have we begun to see a slightly larger commitment to the channel by the agencies, who are allocating a bit of their brands’ ad budgets to mobile. But it is still far behind the spending of mobile content aggregators.”

Coming in third are those investing in the distribution of applications. “Most come from global application distributors who also want to gain an audience in Latin America for their applications.”

Best bets for 2014

For next year, the StartMeApp founder is betting on the “conversion” of both agencies and advertisers to mobile advertising. “The same thing happened 10 or 15 years ago, with digital advertising. We need to start showing successful case studies, as these are very important.”

“All marketing and advertising managers are talking about mobile. That’s what the buzz is about today—the need to have to have a presence, even if they don’t know how to do it or why. But it’s a huge opportunity for us,” says Campos Carlés.

Think mobile

When asked by Portada what advice he could give to advertisers interested in mobile advertising, Campos Carlés offered the following:

• First, think about who your mobile channel audience is. That’s the first tip. You first need to study the mobile audience you already have.
• The next point is to think about how to hold on to that audience, through which medium, and how to create audience engagement with the brand.

To launch the new 2014 Lexus IS sport sedan, the automaker this week debuted several new TV spots, including Intense, targeted to Hispanic audiences.

The new spots “celebrate the independent spirit of the IS,” and were produced to appeal to different audiences: Two general-market spots (Crowd and Color Shift) were created by Lexus’ agency of record, Team One. Two other spots, targeting African-Americans and Hispanics, respectively were developed by the automaker’s multicultural agency Walton Isaacson.

The spot targeting African-Americans is called This is Your Move and features Los Angeles Dodgers center fielder Matt Kemp as he searches for something that matches his ambitious and driven personality.  Intense, targeting Hispanics, follows a young couple as they experience the thrills of driving the redesigned IS 250.