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Will mostly U.S. based Online Video and Advertising Technology providers really be able to deliver the goods when it comes to the Latin American Online Video Market? What are the main challenges ahead? In order to find out more about the evolution of Online Video in LatAm, we asked major experts what online video formats they see growing the most in 2015. Below, their answers.

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Jorg Nowak, Head of Latin America, YuMe

“Video Advertising has arrived in Latin America and is certainly nothing new. At YuMe, our IAB and MMA Award winning ad units such as “Ngage” and others transform the traditional 30 second TV Spot/Pre-roll into an experience that engages the audience and create the brand recognition advertisers are asking for”.

The enormous opportunities presented by the Latin American and U.S. Hispanic online video landscape will be examined in-depth by major experts of the brand marketing, agency, media and measurement world at Portada’s Latin Online Video Forum on June 3 in Miami (part of #Portadalat.) Check out the evolving agenda and register!

Chris Stanley, CEO, Alcance Media

38859b2“Overall, I expect video to continue its strong growth as more advertisers see the benefits. As for the formats, pre-roll will be number one, but as more offerings become available in mobile pre-roll this should see strong growth as well”.

Mike Downs ‎VP, Hispanic & LatAm at TubeMogul

“Pre-Roll is the format growing most consistently, with the majority of that growth driven by mobile devices, and we believe that both will continue to develop in 2015. We work with advertisers looking for innovative solutions to deliver brand messages and will continue to do what’s best for them”.

Eric Tourtel, SVP and General Manager Latin American, Teads

iWl5-mjI_400x400“Pre-roll within a quality environment will not grow, quite simply because there are not any more inventories available (producing video content is expensive hence why there is not too much availability and it tends to be sold out immediately). Pre-roll within user-generated content may grow if advertisers prefer price over quality. Hope for users and advertisers mid-rolls and post rolls will not grow either since that would have a negative impact on the way people perceive brands (no one likes to be forced to see an ad while consuming video content).
I am convinced, thanks in part to our conversations with many brands and agencies, that Outstream formats will grow, and that inRead will soon be a commoditized format. Finally, 2015 will be the year of mobile! According to eMarketer, Latin America is the second fastest growing region for mobile phone internet user growth, ranked 2nd worldwide behind Central & Eastern Europe. eMarketer predicts Latin America will have 322 Million Mobile Phone internet users by 2018, a jump of 194M from 2014 (a 65%+ increase in 4 years alone).

In Mexico 94.7% of the mobile traffic goes through Wi-Fi

Research firm eMarketer expects  a very high growth rate of  mobile internet ad spending in Latin America, growing to US$2.24 billion  by 2018 from US$334 million  in 2014. One very important point to consider is that since the quality of mobile broadband’s is extremely low, people tend to use Wi-Fi on their devices all the time, to the direct detriment of the broadband quality available on mobile devices. For example, in Mexico 94.7% of the mobile traffic goes through Wi-Fi, which means we can deliver a lot of video on mobile. In our view the major growth in mobile formats will come from inRead and mobile-friendly formats”.

There will be a rapid increse in mobile internet ad spending, growing to US$2.24B by 2018 from US$334M during 2014

Manny Montilla Sales Director at Adap.tv

Manny_0165(1)“Although I think mobile video will grow tremendously in 2015, I think the more compelling growth to keep tabs on will be centered around publishers concentrating their efforts in generating more medium and large player inventory. The saturation of small player inventory and the increasing negative user experiences associated with them are making advertisers more and more prone to targeting away from small pre-roll inventory sources and concentrating their spends toward larger sized pre-roll sources”.

The opinions are manifold. As 2015 moves on, we should have a clear perspective on the format that best meets advertisers’ needs as well as users’ habits.

CHECK OUT:
10 things you need to know about the Latin American Online Video Advertising Market

Will Online Video Take Money Out of the Huge LatAm TV budgets?

The enormous opportunities presented by the Latin American and U.S. Hispanic online video landscape will be examined in-depth by major experts of the brand marketing, agency, media and measurement world at Portada’s Latin Online Video Forum on June 3 in Miami (part of #Portadalat.) Check out the evolving agenda and register!

Programmatic digital media buying, or computerized trading of digital advertising, is advancing at a very rapid pace in the U.S. digital media market. Is it gaining as much traction in the U.S. Hispanic market? Will Wall Street like trading desks be as frequent in Hispanic ad agencies as in general market agencies? Portada interviewed major players in the digital media market to find out.

A recent MAGNA GLOBAL study forecasts that 43% of total online display advertising will be traded through programmatic mechanisms (or exchanges) in the US by 2017. MAGNA GLOBAL forecasts that programmatic will grow by more than 40% this year, rising to 23.2% of all online display advertising sold in 2013. By 2017, Magna predicts programmatic trading will rise to $7.533 billion, representing 43% of all online display advertising.

Programmatic, similar to computerized securities trading on Wall Street, can make digital media purchases more efficient as an algorithm looks for available inventory against a set of specific parameters set by the advertiser. The algorithm matches inventory demand and supply on a global scale. Are these sophisticated digital media trading mechanisms gaining traction in the U.S. Hispanic market?

Christopher Stanley, CEO, Alcance Media
Christopher Stanley, CEO, Alcance Media

“We have come across a limited number of agencies that have been asking about it, but as of yet have not seen a major slant towards programmatic buying when the focus is on Hispanic or Latin American based targeting,” says Christopher Stanley, CEO and Founder of Online Advertising Network Alcance Media.
Stanley adds that it is also a question of resources: ” For many Hispanic buyers, a key focus is on proving the success and showing where that success has come from versus just the statistics. For many companies, they are only starting to reach out to the Hispanic market and are trying to prove the case for more resources through that success.”

As of yet, we have not seen a major slant towards programmatic buying when the focus is on Hispanic targeting.

” It really depends on the agency,” says Justin Kuykendall, CEO and Founder of Pulpo Media, a Hispanic media and technology company that offers advertisers online media as well as a proprietary technology platform.

Justin Kuykendall, CEO Pulpomedia
Justin Kuykendall, CEO Pulpomedia

“We are working with some very sophisticated agencies that are very receptive and forward thinking in terms of data management, advanced targeting and segmentation. On the other hand, there are also agencies that are very resistant in the US that find it hard to go beyond their upfront plan with Univision–for example–that may only reach a fraction of Hispanics online. We are also seeing general market agencies that are working with us to target bilingual and even English dominant Hispanics in a much more engaging way than we used to see with people just translating banners to Spanish or just tracking CTR.”‘

 

Real Time Bidding

Programatic buying mechanisms are supplemented with Real Time Bidding (RTB) which adds an auction marketplace to programmatic buying. Instead of reserving prepaid advertising space, advertisers bid on each ad impression as it is served. The impression goes to the highest bidder and their ad is served on the page. According to Larry Harris Chief Marketing Officer at PubMatic, a digital media platform company for publishers, RTB ecpms (prices per thousand impressions) tend to be 5 times higher, on average, than ecpms offered by online ad networks. Harris notes that RTB amounts to 31% of all paid impressions and 48% of all revenues at publishers associated with PubMatic. PubMatic works with both traditional media companies as well as with so-called non-traditional ones, including companies like Toys “R” us and Target. PubMatic helps these companies to monetize their websites through RTB in a brand protected manner.

Slower growth in Mobile and Online Video

Larry Harris,, CMO, PubMatic
Larry Harris,, CMO, PubMatic

An additional obstacle to the growth of programmatic trading and RTB in the Hispanic market is that these trading technologies are not yet important when it comes to trading mobile advertising inventory. Hispanics index very high in mobile phone usage. The main reason for the low utilization of programmatic in mobile is that mobile audiences need to be better understood: while web browsers enable third-party cookies to provide data in the PC display advertising marketplace, mobile browsers, including Apple’s Safari browser, do often not accept third-party cookies. This has proven to be a major impediment to the programmatic trading of mobile ad inventory. As a result, other targeting data besides behavior is often used in mobile, such as location. According to PubMatic’s Harris programmatic trading and RTB are still nascent in the mobile space. “There is a need for a more robust offering as well as a question of getting enough inventory as well as the ability to standardize and automate it.”

 

The impact of programmatic trading and other digital advertising technologies on the Latin American and U.S. Hispanic market will be explored in-depth at Portada’s Latin American Advertising and Media Summit on June 4-5 in Miami.

Learn more about the enormous role Online Video can play in the Latin (Latin America and U.S. Hispanic) marketing space. Book now for our Latin Online Video Forum, a required event for any marketing professional.