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What: Recently-retired Ronaldinho has launched a cryptocurrency, RSC, as part of a broad-based world football business.
Why it matters: RSC and the associated business is the largest-scale effort by a global soccer superstar in the crypto world, and could serve as a model for others to tap into the sport’s estimated 3.5 billion fans.

All-time international superstar Ronaldinho (@10Ronaldinhomay have retired from the pitch after more than two decades on some of the world’s best clubs and nearly 100 appearances and 33 goals for the Brazilian National Team, but he intends on keeping in the game on the business side, recently partnering with Malta-based World Soccer Coin (WSC) for a wide-ranging series of programs.

At the heart is the establishment of Ronaldinho Digital Stadiums, said to be in development in 300 locations, for implementation in the next three years, in Asia, the Middle East and Africa, as well as the Ronaldinho SoccerCoin Project, or RSC. The cryptocurrency, set for pre-sale in August, will be the fulcrum of the business, which will include the Ronaldinho Super League, eSports, a betting forum, “Smile Project” to benefit children and secure payment system.

With soccer fandom worldwide—perhaps 3.5 billion, by some estimates … an international megastar like Ronaldinho is a good test case for sustainability, and could serve as model for others.

The two-time FIFA World Player of the Year isn’t the first soccer star to develop a cryptocurrency; according to Cryptovest.com, the JR10 Token, from Bayern Munich’s James Rodriguez (@jamesdrodriguezof Columbia became available in June (selling out quickly, per media reports). But to use the block-chain technology as the basis of a significantly larger business is a first, at least on this scale. With soccer fandom worldwide—perhaps 3.5 billion, by some estimates—likely outpacing that of the four major U.S. sports combined, with interest in all corners of the globe, an international megastar like Ronaldinho is a good test case for sustainability, and could serve as model for others. (BeckhamBucks? MessiMoolah? RonalDinero?)

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For sure, Ronaldinho is making a run at the business world with the digital and retail service. E-Sports is growing exponentially, and the tide has certainly changed regarding gambling in the U.S., catching up to the rest of the world. But the clout can also be used to fund initiatives like Smile Project, the stated goals to operate a football academy and provide soccer equipment, better facilities and program opportunities to kids all over the world.

“I want to bring a smile to as many people as possible through this project,” writes Ronaldinho in a statement. “I wish as many people as possible will have a dream and hope and become happy. I wish to contribute to the world as much as I can during my short life.”

Reaction in the cryptocurrency world is guarded, with Greg Thomson (@gregthomson88of CryptoCoin.News, for example, noting that the confluence of soccer and crypto may succeed since “[b]oth industries are frantic and passionate and both have followers who see their venture as a matter of life and death,” while at the same time tweeting that he is hopeful it’s not just a PR venture. Some are rooting for the trend to continue, like Coinstaker.com’s Ian Karamanov, who writes, “We can only hope more famous athletes turn towards such initiatives.”

cover image courtesy WSC

What: The Brazilian Football Federation (CBF) has partnered with Twitter to distribute exclusive content produced by the CBF.
Why it matters: As the universe of “broadcasters” expands, the potential audience for team- or league-based content increases, making it more attractive to potential marketing partners.

The definition of the term “broadcast outlet” has changed significantly and is more nebulous than ever. With Facebook and Twitter broadcasting Major League Baseball games, Amazon Prime taking over the rights for AVP beach volleyball (@avpbeachmatches and many leagues creating their own online networks, the delivery methods for content are more varied than ever.

Team Brazil is the latest huge entity to work with a “new” broadcaster to deliver content, as the soccer power’s national governing body, the Brazilian Football Confederation (@CBF_Futebol), has partnered with Twitter to distribute video of basically everything but the FIFA World Cup 2018 matches: news, training, interviews and more.

Football is a topic of great interest to Twitter users, who already access the platform, naturally, to see and comment on what is happening around the subject.

“The continuous work of approaching the Brazilian national team allows the fans to follow the daily routine of the delegation during the World Cup,” said Rogério Caboclo, executive director of management at the CBF, in a statement. “The partnership with Twitter ensures that this premium content reaches the public in an agile and modern way.”

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The content is available through the official CBF Twitter page, with mascot Canarinho as a key figure, with his own emoji and hashtag ( ). Fans can watch the video features throughout the World Cup.

“Football is a topic of great interest to Twitter users, who already access the platform, naturally, to see and comment on what is happening around the subject,” added Pitter Rodriguez, director of sports content partnerships for Twitter Latin America.

Working with established Internet giants like Twitter, Facebook and Amazon and their inherent marketing muscle is an excellent way for brands, in this case a national governing body, to distribute content that might otherwise only go to its own fandom to a wider audience. The potential for branding is strong, as the “free” video will have a significantly larger potential audience.

Cover Image: CBF/Twitter

What: American Hat Company has added two young Brazilian pro rodeo stars to its rosters of ambassadors.
Why it matters: The dominance of Brazil in the sport is reflected in the marketing efforts of American Hat and other companies that sponsor PBR and its riders.

credit: Elise Derwin/PBR Australia

Brazil has been dominant in the world of professional bull riding, particularly during the past decade, during which time half of the Professional Bull Riders (@PBR) champions have hailed from South America’s largest and most populous nation. One marketer that has taken notice is Bowie, Texas-based American Hat Company (@AmericanHatCo), which has been in business for more than 100 years. Owner Keith Maddox rode bulls in the 1970s, according to AHC public relations manager Katie Lynn.

American Hat this week announced the addition of two of Brazil’s best riders as ambassadors, as PRCA cowboys Junior Nogueira and Marcos Costa have joined PBR stars Guilherme Marchi (the “Babe Ruth of PBR), three-time World Champion Silvano Alves and numerous other Brazilians on board.

The company, which specializes in cowboy hats of various styles, is all-in on the sport, a natural fit that is popular among Hispanics and others in the Southwestern U.S.

“We have noticed that our brand is a lot more recognizable to the Brazilian community and we’re so lucky to have that,” Lynn told Portada-Online this week. “Recently bringing on Marcos and Junior for us was huge because they have such a large Brazilian fan base. Those guys have already accomplished so much and they’re so talented so we’re thrilled to have them.”

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Credit: American Hat Company

The company, which specializes in cowboy hats of various styles, is all-in on the sport, a natural fit that is popular among Hispanics and others in the Southwestern U.S. and has expanded into other areas like New York, Oregon, South Dakota and Colorado on its tour. American Hat also recently announced a partnership with the Brazilian team roping outfit CPLD, and is a major sponsor of high school rodeo.

Both Nogueira and Costa are relative newcomers, each with four years of PRCA experience. American Hat is looking to the sport’s bright future with these young stars plus 12-year-old rider Canyon Trevino, who dreams to make the PBR one day. It’s an expanding media universe that includes TV deals with CBS (which average more than a million viewers per broadcast), the CBS Sports Network and streaming network Ridepass, in a schedule that concludes with the PBR World Finals in Las Vegas, November 7-11.

“We want to continue to grow our presence in Brazil,” added Lynn. “We have friends there already that we cherish our relationships with so if we can continue to grow that and bring more of the cowboy heritage to Brazil, then we’ve accomplished our goal.”

Cover Image: Elise Derwin/PBR Australia

What: Soccer star Neymar Jr. has begun his two-year term as Global Sports Ambassador for TV and small appliance manufacturer TCL.
Why it matters: TCL is increasing its presence in the U.S. and Latin America, in particular in 4K/HDR television sets, and connecting with Neymar Jr. is helping introduce the brand to a younger audience there.

TCL (@TCL_USAis a relative newcomer in the world of TV manufacturers, at least to U.S. fans. But its Roku-enabled 4K and HDR sets have helped the 37-year-old company, also known for producing air conditioners, gain at least a small foothold as fans upgrade their home entertainment experiences.

The Huizhou, Guangdong Province, China-based company recently added soccer superstar Neymar Jr. (@neymarjrto its roster of sport-related partners, inking the Brazilian National Team standout to a two-year stint as Global Brand Ambassador. While the role covers all of TCL’s products, high-definition television sets are the most natural connection, as the company looks for additional brand awareness in the Americas for its well-regarded products. He officially kicked off the role this week after having been named in February.

With sports fever set to spread all over the world this year, Neymar Jr. is undoubtedly the best possible partner with whom, together, we can deliver an exceptional experience to our consumers.

“We are delighted to welcome this outstanding, talented young athlete to the TCL family,” said Tomson Li, Chairman and CEO of TCL Corporation, in a statement. “Neymar Jr. is truly a global sports icon who inspires fans to strive to reach the ultimate standards of excellence, just as TCL constantly strives for excellence in technological and product innovation. With sports fever set to spread all over the world this year, Neymar Jr. is undoubtedly the best possible partner with whom, together, we can deliver an exceptional experience to our consumers,” Li added.

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This is the latest in a series of sports partnerships for TCL that also include NBA’s Minnesota Timberwolves (@Timberwolvesand Lynx (@minnesotalynx ‏), soccer team San Jose Earthquakes (@SJEarthquakes), Brazilian Football Confederation (@CBF_Futebol ‏), Rosario Central Football Club of Argentina (@CARCoficial ‏), Philippine Basketball Association, The Melbourne Cup and Melbourne Victory Football Club (@gomvfc ‏).

“I am thrilled to be partnering with TCL,” said the Sao Paulo native in a statement announcing the partnership in February. “It was an easy decision for me. I share similar values with TCL – the constant pursuit of excellence and great results in every game and I’m excited to work closely with TCL and support the company’s efforts to bring the global sports community together through football.”

Neymar Jr., 26, competes for Paris Saint-Germain in France’s Ligue 1, though he is currently injured and did not play in the team’s championship-clinching win on Sunday in Paris. Known for his exceptional ball skills, Neymar Jr. is a popular fit for other global brands such as Nike, Gillette, Panasonic, Red Bull and Beats by Dre, with Forbes estimating his earnings last year at $37 million, nearly 60% of that from endorsements.

What: Neymar is joining forces with Digible to create the Neymar Experience app.
Why it matters: This move exemplifies how star athletes can be utilized by tech companies as influencers to gain traction in Hispanic and Latin markets.

Neymar Scores Himself a New App

PSG winger Neymar is one of the world’s biggest soccer superstars, and he has partnered with Digible to create a new app, Neymar Experience, to spread his brand and interact with his fans. One of the app’s primary focus is to help users learn to play and take care of themselves like Neymar with features such as skill challenges, video tutorials, and nutrition advice. Neymar, however, will leverage his massive social media appeal (87.5M Instagram followers, 60M Facebook followers) to increase fans’ ability to connect with him through the app. Namely, Neymar will review users’ attempts to complete the app’s challenges and will post submissions of his choosing to his various social media pages. With athletes such as Tom Brady and LeBron James having created their own apps, Neymar seems to be right on track in his quest to join the world’s most notable athletes in terms of global marketing capital.

Neymar Experience shows how technology companies are recognizing the possibilities for massive growth in Latin and Hispanic markets, and a key to unlock this potential is collaboration with influencers, particularly athletes.

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Digible’s Drive for the Latino and Hispanic Market

The partnership also signifies a strategic move for Digible, as it signals a move specifically aimed at engagement with Latin and Hispanic consumers. Neymar has captained Brazil’s national team, played for Spanish giants F.C. Barcelona, and has the attention of football followers across the globe, particularly in the Americas. The app is available in Spanish, Portuguese, and English so it can accommodate Neymar’s wide-ranging appeal, and the company believes that it will allow it to have tremendous engagement in the Americas. An example of this confidence was co-founder Fabio Freitas’s comment that he expects to increase the number of the company’s Brazilian users to surpass two million just shortly after the app is released for both Android and iOS. Neymar Experience shows how technology companies are recognizing the possibilities for massive growth in Latin and Hispanic markets, and a key to unlock this potential is collaboration with influencers, particularly athletes.

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What: The 2017 season saw Formula 1 register an increase in audience figures across both TV and digital platforms compared to the previous year. Brazil was the 2nd strongest market with a 13.4% audience growth.
Why it matters: Brazil is still the biggest TV market with more than 76 million viewers.

The 2017 season saw Formula 1 register an increase in audience figures across both TV and digital platforms compared to the previous year, with F1 the fastest growing sport brand on social media platforms.

The TV cumulative audience – i.e. the aggregate of the average audience of all the F1 programs broadcast across the year – in the top 20 markets* (based on ranking of TV audience) stood at 1.4 billion, which represents an increase of 6.2% compared to 2016.

The top four markets – Germany, Brazil, Italy and the UK, ranked by absolute figures – all registered positive growth. The strongest was Italy (+19.1%), followed by Brazil (+13.4%), the UK (+3.9%) and Germany (+0.9%). Other significant increases were registered in China (+42.2%), Switzerland (+14.3%) and Denmark (+14.1%).

Cumulative viewing (live and non-live) of races remained at around 603 million, with a 1% increase in the live audience and improvements in cumulative viewing for both free practice and qualifying sessions.

During 2017, 352.3 million unique viewers tuned their TV set into F1 programming at least once – the first time since 2010 that there was not a decrease in this specific number. In the main markets there was an increase of 2.4%, with Mexico (+22.6%), Italy (+16.7%) and the USA (+13%) leading the field in terms of improvement. Brazil is still the biggest TV market with more than 76 million viewers, despite a slight decrease (-1.8%) compared to 2016.

The number of users of Formula 1’s social media platforms also grew significantly during 2017, with a total of 11.9 million followers on Facebook, Twitter, Instagram and YouTube.

The improvement compared to 2016 was up to 54.9%, which made Formula 1 2017’s fastest growing sport brand on social media, as shown in the table below:

On Facebook, the minutes of video viewed were up over 1,600% compared to 2016, reaching more than 390 million, thanks mainly to the qualifying and race highlights, the most seen content, especially for the races held in the Far East.

On Twitter too, video content was the best performing, with over 64 million views, up 165% year on year. And Instagram followers almost doubled during 2017 (+93%), reaching 3.8 million.

Brazil is still the biggest TV market with more than 76 million viewers, despite a slight decrease (-1.8%) compared to 2016.
 

Unique users of Formula 1’s official website and app reached a total of over 124 million, with an increase of 7.5% compared to 2016. Formula1.com users grew by almost the same percentage, while users of the app grew by 1.7%, but the number of sessions was up by 37.7%.

The top performing three races in terms of number of unique users on both platforms were China (+35.6%), Singapore (+26.7%) and the USA (+19.8%).

“We are encouraged by the growth in audience numbers across linear and digital platforms during the 2017 season,” commented Sean Bratches, Managing Director, Commercial Operations at Formula 1.“Central to our efforts last season was to improve the fan experience across our platforms and it is encouraging to see the engagement that fans around the world have with Formula 1 media. Our work continues as Formula 1 fans will see material changes in 2018 with respect to both incumbent experiences and the creation of new ones. It is a good time to be a Formula 1 fan.”

*Top 20 markets, in alphabetical order: Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Poland, Romania, Russia, Spain, Switzerland, UK and USA.

Source: Formula 1

A growing trend among professional athletes has been the usage of social media to make important announcements. And on Sunday, December 17, Brazilian soccer star Kaká declared his retirement via his Twitter account to his nearly 30 million followers.

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The 35-year-old leaves a legacy that will forever rival the playing careers of fellow superstars, Cristiano Ronaldo and Lionel Messi. In fact, Kaká is the most recent recipient not named Ronaldo or Messi to win the Ballon d’Or, which is the award given to the male player of the year.

In the year that Kaká won the Ballon d’Or (2007), Pele said of attacking midfielder, “He’s the complete player.”

Five years earlier, in 2002, Kaká announced himself to the world stage, winning the World Cup with Brazil.

Full name Ricardo Izecson dos Santos Leite, Kaká did most of his international damage in his career with AC Milan, where he played for six seasons beginning in 2003, before leaving to play for Real Madrid. While in Spain, Kaká captured a league title and a Copa del Rey. He returned to Milan for a brief stint before coming to the United States to play three seasons for Orlando City of the MLS.

Upon his announcement, Milan was one of the clubs to offer him a contract that would have extended his playing career, but Kaká felt that it was time to hang up the cleats.

In a farewell interview he gave to Brazil’s Globo TV, he was candid about a different kind of future with Milan.

I would like to participate in the club in another way, as a manager, a sporting director, as someone who is between the pitch and the club. I prepared very hard to be a professional footballer and I want to prepare for this new role.

From the sounds of it, Kaká is determined to once again leave his mark on Milan in his third stint with the club. It just won’t be as a player this time around.

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

US/US HISPANIC MARKET

Verizon has signed a 2.5B deal with the NFL that will allow Yahoo users (Yahoo is owned by Verizon) to watch football games for free on Yahoo’s app.

More than 58% of video plays globally occurred on mobile devices in the third quarter of 2017, with that figure due to rise to 60% in mid-2018, according to Ooyala.

A new study by 16 programmatic publishers — including Business Insider, The New York Times and The Washington Post — and Google, Amobee and Quantcast found alarming figures around video and display advertising fraud, according to a press release.

According to Ooyala’s Q3 2017 Global Video Index, Connected TV (CTV) mid-rolls had a 98 percent completion rate in Q3, while PC mid-rolls had a completion rate of 97 percent. On each platform, broadcaster mid-rolls had stronger completion rates than did publisher mid-rolls. The highest rate for publisher mid-rolls was 88 percent on PCs.

Alibaba‘s video streaming service, Youku Tudou, has signed content licensing deals with NBCUniversal and Sony Pictures Television.

Redbox is going after the online video market again, launching On Demand service that offers movies and TV shows for purchase or rent.

Amazon Prime Video has begun streaming in HDR10+ on US Samsung QLED and 4K TVs.

LATAM MARKET

It seems like Apple may be about to launch ApplePay in Brazil. 

A report by Magna forecasts that digital ad spend will grow 9.9% in 2018 in Latin America, which is the fastest-growing region compared to other markets.

Digital House, a Buenos Aires, Argentina-based group of schools providing digital skills to young Latin Americans, has raised $20m in funding.

Turner International’s Digital Ventures & Innovation (DV&I) team has launched a new gaming streaming service GLOUD in Latin American countries Argentina and Chile, with plans to launch in other countries in the region soon.

Teads Brazil announced impressive results for 2017, closing out the year by growing its operations by 150%, and achieving 1.2 billion people monthly in their audience reach. This represents 91% of the Brazilian population with internet access, up from 52% of coverage in the beginning of the year.

What:  Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017;  thanks to a more robust economic recovery in the region, according to MAGNA.
Why it matters: Television remains the top media category in the region with 54% of total advertising sales while Digital advertising in Latin America remains lower than the global average.

MAGNA is expecting Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017, thanks to a more robust economic recovery in the region. The latest IMF update forecasts real GDP growth of +1.9% next year in the region, compared to +1.7% in 2017 and -0.9% in 2016. Economic recovery remains extremely fragile, however, and political instability continues to loom over several countries, including Brazil.

A +9% growth would not be that impressive considering the high levels of economic inflation in the region, and the growth rates experienced pre-2014 that usually range between 10 and 15%. However, that would the strongest growth rate since 2013.

Ad spend trends continue to vary by country. Digital switch-overs, the introduction of new TV channels, government reconstruction programs in natural disaster areas, and elections are all expected to impact marketing activity and advertising spending. Nevertheless, most LATAM markets are expected to see slightly higher ad spend growth in 2018 versus 2017, as economies in the region are stabilizing and benefitting from the recovery of commodity prices.

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017, way above the global average (35%). Television is forecast to hold its media leadership until 2021, when digital finally becomes the top media format in Argentina and Brazil. Free-to-air TV is the dominant segment (+4% in 2018) controlling 80% of total TV NAR but Pay TV is experiencing faster growth (+6% in 2018) as subscription fees and programing are gradually becoming more attractive. Another driver is the change in selling models, from a cable model (where advertisers buy packaged airtime with little control over which channels their campaign appear on) to a direct sales model (where advertisers and agencies buy from individual Pay TV vendors). This is taking place in Chile and Uruguay, for example.

Television will benefit from increased viewing and brand interest around the FIFA World Cup as usual, although the excitement may not be quite as high as four years ago when the tournament was hosted by Brazil; time difference may also be an issue but the event is still guaranteed to boost TV ad sales especially in the eight nations that qualified this year: Brazil, Argentina, Uruguay, Colombia and Peru in South America, as well as Mexico, Costa Rica and Panama for Central America.

Digital advertising in Latin America remains lower than the global average, inhibited by a relatively low digital penetration and the sheer power of television. It is expected to grow by +23% to reach 32% total media share at the end of 2018, still well below the global average of 44%. Social media (+30%) and digital video (+33%) will grow significantly again next year, while search (+21%) remains the number one media type with 36% of total digital ad sales.

Brazil: +12%

With BRL 49 billion in NAR (approx. $14 billion), Brazil is the sixth largest advertising market in the world and accounts for over half of LATAM’s advertising spend.

Brazil’s economy has begun to stabilize from the recession in 2015 and 2016.  Real GDP will grow by +1.5% in 2018, accelerating mildly after the stabilization of 2017 (+0.7%) and the severe recession of 2016 (-3.6%), while Consumer Price Index (CPI) inflation has dropped from its peak of 9% in 2015 to just 4% expected in 2018. Media cost inflation, on the other hand, remains high (between 6% and 10% across media categories). Business confidence however, continues to be hindered by political instability with unelected President Michel Temer, successor to impeached president Dilma Rousseff, himself facing various corruption scandals.  The next presidential election, scheduled for October 2018, will hopefully clarify the political environment but is not expected to directly affect advertising spend, as parties are not allowed to buy television advertising time.

In that mixed environment, MAGNA anticipate media owner NAR to grow by +11.8% in 2018 following a decent performance in 2017 (+9.7%). That will be driven by strong digital growth (+23%) coupled with robust TV ad sales: +5.4% for free-to-air channels and +9.2% for pay TV. The FIFA World Cup, which will air on Globo, SporTV, and FOX Sports, will help drive cost inflation (CPM +9%) and offset declines in viewing.

Mobile advertising is growing dramatically (+52% in 2017) and now accounts for over 55% of digital advertising expenditures in Brazil.  Internet and mobile penetration rates reached around 60% in 2017 and will continue to grow over the next five years. Google, Facebook, and YouTube dominate the search, social, and video markets, reaching of over 90% of the total internet audience.

Digital advertising in Latin America remains lower than the global average, inhibited by a relatively low digital penetration and the sheer power of television.

Mexico: +5%

Mexican media companies’ net advertising revenues will grow by +5% in 2018, to 92 billion pesos (approx. $4.9 billion). Mexico’s participation to the FIFA World Cup typically drives TV ad sales up, but that may not be enough to prevent TV NAR from decreasing (-1% to $43 billion pesos). Presidential elections are scheduled that take place in July 2018 but should not have a direct impact on TV revenues as political parties are not allowed to buy commercial air time beyond the free minutes allocated by Law.

Ad growth will be primarily driven by a +16% growth in digital ad sales (rising to a 31% market share) while print NAR will decrease by -5%, radio will increase by +5% and OOH NAR will grow by almost +8%.

The extinction of analogue terrestrial broadcasting at the beginning of 2016 disrupted television reception and introduced new digital channels competing with incumbent broadcasters Televisa and Azteca. That in turn created audience fragmentation and cost inflation (20%+) in Free TV CPMs as well as in digital video. CPM inflation has nevertheless cooled down in 2017 and will remain moderate in 2018 (+5%)

Online Video has been growing faster than any other ad format and already accounts for 32% of digital advertising, more than double its global share of 13%. Alongside Youtube, Facebook is becoming another important video advertising platform, especially in Mexico, where the social network has close to 80 million monthly active users. In addition, Mexico has one of the highest smartphone penetrations, driving mobile ad sales to grow by +22% in 2018, accounting for 64% of ad spend.

Argentina: +24%

Advertising sales in Argentina will grow by +24% in 2018 to reach 100 billion pesos (approx. $6.7 billion at a constant average 2016 exchange rate).

The economy began to stabilize in 2017, when real GDP grew by +2.5%, and 2018 is expected to see continued economic growth and gradual slowdown in the inflation rates. CPI inflation is expected to slow from 27% in 2017 to 18% in 2018, and will continue to drop over the next five years.

Nominal advertising sales growth, which peaked at 47% in 2014, when inflation was around 40% per year, will thus also stabilize over the next five years, to around 10% per year.

Television is still the largest media in Argentina, accounting for 36% of total advertising sales.  Newspapers remain relatively strong too with a market share of 19% at the end of 2017, significantly higher than regional and global averages (5% and 8% respectively); however the slow nominal growth rate (3% in 2018) means that the category is quickly losing share. TV NAR is expected to grow by 29% in 2018, driven by the FIFA World Cup and the last-minute qualification of the national squad.

Digital advertising is more developed than in the rest of Latin America. It already accounts for 32% of total advertising sales at the end of 2017, and will surpass television NAR by 2019.

Colombia: +5%

Colombia’s net advertising revenues (NAR) will grow by +5.2% in 2018 to reach COP 4.8 trillion pesos (approx. $1.6 billion). The Colombian ad market ranks 4th in the region, behind Brazil, Argentina and Mexico.

Pay TV channels control more than half of TV NAR in Colombia, due to high multichannel penetration and reach. In 2018 Pay TV ad sales will grow by +7% and account for 58% of TV ad spend, while Free TV will grow by just +3%.

Digital media advertising is still very under-developed, accounting for 16% of total ad spend. It is the fastest growing media though (+27%), growing from a small base.

Furthermore, Colombia is in the process of a digital switch-over, expected to be completed by December 31, 2019. Television signals are currently offered in Simulcast (analogue and digital), allowing for everyone to continue watching terrestrial TV, a frequency resource to accommodate analogue and digital, and a transition period to full digital.

A new free national TV network, Canal Uno, was launched in August 2017 by Plural Comunicaciones. Although Canal Uno aims to become a competitor to the commercial duopoly of RCN and Caracol, Canal Uno cannot compete yet in terms of coverage. However, as the digital switchover transition progresses, there are expectations it could reach 90% of the population by the end of 2018.

Some of Latin America’s other smaller markets will continue to experience ad spend growth.

 

What: Latin American technology investment firm Mountain Nazca, owner of Groupon Latam, announced the  acquisition of Peixe Urbano, Brazil’s leading e-commerce player.
Why it matters: With this acquisition, Mountain Nazca becomes the largest service marketplace in Latin America.

Latin American technology investment firm Mountain Nazca, owner of Groupon Latam, announced its acquisition of Peixe Urbano, Brazil’s leading e-commerce player. The merger will consolidate Mountain Nazca’s regional e-commerce operations, with a presence in Argentina, Brazil, Colombia, Chile, Mexico and Peru.

Peixe Urbano, previously owned by Chinese technological giant Baidu Inc. (NSDQ: BIDU), is the leader in Brazil’s online-to-offline (O2O) market, which connects the physical world with the digital world.

“Peixe Urbano and Groupon Latam will create a digital platform on a scale that allows us to dream big in Brazil and the rest of Latin America,” said Alex Tabor, CEO of Peixe Urbano. The company has over 28 million registered users and works with more than 70,000 companies. “The merger will allow us to better serve our customers, expand our reach and develop our new O2O services business,” he added.

“This is a shared history of entrepreneurship, in which two founders buy back our companies from world-class players such as Baidu and Groupon, with the support of knowledgeable regional investors. This merger will generate synergies to position us as the main technological ecosystem in Latin America,” said Felipe Henríquez, Chairman of Groupon Latam.

The launch of Games4U is part of Vivo‘s strategy in a very promising enterprise: Brazil is the 13th largest game market in the world and mobile gaming is the fastest growing segment, claiming 42% of the global gaming market.

By Carla Ponte, with Luiz Duarte.

There is a global population of 2.2 billion gamers, or should we say “game enthusiasts?” According to Newzoo’s 2017 Global Games Market Report, this is a more accurate term as this planetary crowd includes a much wider variety of interests: playing intensely, casually, professionally; viewing game content on-demand and live streaming; following the news and championships worldwide or just engaging in so many other innovative practices we cannot even imagine today, but will soon see. The fact is, digital games are rapidly becoming the world’s favorite pastime.

Vivo Games4U wants to be the digital platform of choice for these consumers in Brazil. The service is accessible through Android apps by any mobile user, with added exclusive premium content for Vivo subscribers. Besides access to over 300 games, the digital platform offers information about the main games on the market, trailers for new games, and news coverage about games and sports events along with all sorts of content regarding the topic. “Our strategy is to be closer to this audience, understand their demands and contribute to strengthening this market, says Marcio Fabbris, Vivo B2C Vice President.

 

Brazil represents only 1.4% of the “game enthusiasts” population, with 30 million consumers generating US$1.3 billion, according to Newzoo Report. Compared to the global figures these are not impressive numbers at all, but for Marcio Farris it is clear that “each year, the game market consolidates itself as one of the greatest drivers of the digital economy in Brazil,” whose revenue is just behind that of Mexico in Latin America. The region is expected to grow by 13.9% year over year – the highest rate worldwide – to reach US$4.4 billion this year and US$6.3 billion by 2020.

Brazil represents only 1.4% of the “game enthusiasts” population with 30 million consumers generating US$1.3 billion

 

 

 

The figures presented in Newzoo’s 2017 Global Games Market Report support Vivo’s strategy, as consumers increase their migration to mobile gaming. Already the largest segment – accounting for 42% of the total global gaming market –, mobile (smartphones and tablets) growth is set to continue, claiming 50% of the market by 2020.

 

Brazil: Inside the Game

In Brazil, there are some 30 million gamers generating about US$1.3 billion in revenues. These figures are mainly related to clients of the giants of the entertainment industry. But behind the screen, the Brazilian games market is experimenting a very exciting moment, exploring the more independent sector. “The development of indie games in Brazil is booming,” says Eliana Russi, Executive Director of the Brazilian Association of Digital Games Developers (Abragames, in Portuguese). “In 2008, we counted 43 companies, in 2014 we jumped to 130 and today we have 300.”

According to Abragames, 70% of Brazilian developers begin their business as outsourcing companies, but many are growing beyond that role. “We started in 2012 creating games for other companies and nowadays we are focused on producing our own brain puzzle games. This is our niche: games to exercise the brain.” João Vítor de Souza – CEO at Cupcake Entertainment – explains that defining a niche was a key decision to achieving a 45% year over year growth, with 90% of their consumers being women 35+ and most of them from the US.

70% of Brazilian developers begin their business as outsourcing companies, but many are growing beyond that role.

Having their main consumers out of the country is a common feature of the Brazilian indie games industry, which saw its exporting revenues jump from US $1.5 million in 2013 to US $19 million in 2017. Eliana Russi says that “it is amazing how this industry responds and does not take any opportunity for granted.” Abragames and ApexBrasil – Brazilian Trade and Investment Promotion Agency – support and organize delegations to events abroad and are also behind the 3rd biggest game event in the world, hosted annually in São Paulo City. BIG Festival – Brazilian Indie Games Festival – will be hosting its 6th edition. “Our main goal is to keep growing the international business and get the Brazilian game consumers closer to the Brazilian game developers.”

Another push is coming from the government. Ancine – the Brazilian agency that regulates the audiovisual market – approved tax incentive mechanisms and FINEP – a Research and Innovation public company –is selecting companies in which to invest and help them take the first steps into the market. João Souza says it is very good to see these moves. “For sure it will help the beginners, but for the ones already in the game the main sources are really coming from abroad.”

In Cupcake’s case, 80% of the company’s revenues come from the international market, especially the U.S. In tune with the mobile wave, the company’s 03 brain puzzle games – initially accessible on Facebook – are already available for smartphones. João Souza notes that due to the demand, all new products are already being created for mobile devices. “Our long term goal is to be the world’s number one company in brain puzzle games. Recently we got an investment of US$1 million from Playlab – of Thailand – to help us achieve this audacious goal”, states the Cupcake CEO. As the Executive Director of Abragames says, Brazilian game developers are alert and taking every opportunity to play big in this promising market.

CHECK OUT prior articles of BRAZIL CORNER:
Brazil Corner: How São Paulo Intends to Become a Center of Film Production
BRAZIL Corner:João Daniel Tikhomiroff – On the Intricacies of the Brazilian Audiovisual Market
João Daniel Tikhomiroff – On Branded Entertainment, New Financing Models and More (Part 2)
BRAZIL Corner: Despite Cord-Cutting, Pay TV Gains Ground In Advertising and Audience per Minute

What: Connecting any device to the Internet.
Why It matters: Because although exact figures are not yet available (since it is a new trend), the fact is that advertising will become a critical point to understanding the user. It will be like doing re-targeting, except it will be directed at things.

The concept behind IOT is basically that of connecting any device to the Internet. This can include anything: washing machines, cars, cell phones, microwave ovens, motors, lamps, or anything else that can be turned on or off. It is the largest network that will be connected to humans in every way. IOT connects things with things, and things with people.
IOT connections worldwide will grow from 6 billion in 2015 to 27 billion in 2025, at a compounded annual rate of 16 percent, according to projections by Machina Research.

The market value of IOT in LatAm is over $250 billion.

The market value of IOT in LatAm is over $250 billion, according to IDC. Most of the investment in IOT comes from Brazil, Mexico, Argentina, and Colombia. Brazil has more than 18 million connected devices, followed by Mexico with 10 million, Argentina with 4 million, and Colombia bringing up the rear and growing with 3 million connected devices.

Technological advancement brings new solutions and replaces obsolete technologies with new innovative products, such as the smart buttons used by Amazon today in the U.S., that allow placing an order with a single click on the product. LTE technology (5G) is also advancing, leaving behind 2G and 3G as standard connection speeds.

Fiber optic penetration in homes is also being used for faster browsing or accessing an endless stream of online products.

Mexico

According to IDC, Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail. Mexico has more than 10 million connected devices, which represents only 6% of the connected population. This shows that Mexico is behind in this important market. It should be noted that ATT, the world leader in telephony, has a Mexican presence and is betting more than $1 billion in this area during the next 3 years. The deployment of 4G-LTE is of utmost importance for the development of IOT.

Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail.

Telcel, one of the companies most committed to this technology, launched its IOT expo a couple of weeks ago, where it presented the first smart trash can. When full, the trash can emits a signal alerting that it needs to be emptied. During this event, Telcel also displayed some smart lamps that light up according to the time of day, and also emit a signal when the bulbs need replacement.

CISCO has presented an implementation plan for several Mexican companies, to teach the banking, commerce, and agriculture sectors how to make their current products more efficient and have better control over them.

Brazil

Brazil’s IOT market was valued at $15 billion in 2015 and is expected to exceed $35 billion by 2019, at a compounded annual rate of 20.7%.

Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%)

Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%). The Brazilian government’s efforts to accelerate the adoption of IOT are based on the launch of a platform. This initiative will be part of the Brasil Inteligente (Smart Brazil) program, which will replace the National Broadband Plan (PNBL). The three-year plan has a budget of $9.8 million.

The Future of Marketing

The development of marketing campaigns in this ecosystem will change the way we currently do advertising, as the devices or things we use will know our tastes and activities, and companies will be able to aim their advertising in a more objective and direct way to the real target market, without having to spend more money than they do now. Just imagine your refrigerator being able to help you with your food shopping, your diet, or with the perfect recipe for that dish you have in mind, directly requesting the ingredients needed from the supermarket.

Advertising will then become critical to understanding the user. It’s like doing a re-targeting, but in this case it will be directed at things. Because all of this is new, there is no data at the moment, but we will see dramatic changes ahead in advertising. In LatAm, telecommunications companies are the most active in this area, working hand in hand with various sectors to interconnect things. Telcel and Claro have deployed smart advertising campaigns that identify their company’s customers when they enter a mall, and can send them a promotion or coupon tailored to their product searches, giving the customer the opportunity to buy it at a more affordable price.

 

Join us at PORTADA Mexico!

What: Oath, the Verizon unit that encompasses AOL and Yahoo,  has defined its leadership structure for the U.S Hispanic market and Latin America. Armando Rodriguez will oversee all sales and operations for the region, Henry Zamarripa,will lead sales for Spanish-speaking Latin America, Andre Izay, will be in charge of overseeing sales and operations in Brazil, and Matthew Harris, will leadsales for the U.S. Hispanic market.
Why it matters: The announcement reflects Oath (Verizon’s) continued interest in the U.S. multicultural/Hispanic market as well as in Latin America. (Last year Yahoo had closed its operations in the Argentinean and Mexican markets).

Armando Rodriguez

Verizon company Oath, resulting from the combination of AOL and Yahoo brands, products, and operations, has defined its leadership structure for the U.S. Hispanic market and Latin America.  Armando Rodriguez will oversee all sales and operations, a position he has occupied at Yahoo since 2005.

Armando’s leadership team includes Henry Zamarripa, who will lead sales for Spanish-speaking Latin America, Andre Izay, overseeing sales and operations in Brazil, and Matthew Harris, leading sales for the U.S. Hispanic market. In addition, Luiz Braz will lead platform solutions and Melva Midi will oversee sales operations for the region.

Join us at PORTADA Mexico!

Verizon, one of the largest telecom operator in the United States, acquired AOL in 2015, and most recently completed its acquisition of Yahoo for US$4.5 billion in early June. The integration of these two companies, which will operate under the Oath umbrella, should take several months to complete.

 Digital ad spend in Latin America is forecasted to hit US$8bn in 2017, growing to US$11.6bn in 2020.

A global leader in digital and mobile, Oath is a house of more than 50 media and technology brands, including AOL.com, HuffPost, Yahoo Sports, Yahoo Finance, BrightRoll, Flurry, ONE by AOL, TechCrunch and Tumblr, to name a few. Today, the combined properties of Oath reach over 1 billion people worldwide, with a goal of reaching 2 billion people by 2020. Oath is shaping the future of media and building brands people love through scaled audiences, trusted content, premium distribution and differentiated data for thousands of the world’s leading advertisers.

Latin America remains a strong market for growth in digital advertising. According to eMarketer, digital ad spend in Latin America is forecasted to hit US$8bn in 2017, growing to US$11.6bn in 2020.

CHECK OUT: Verizon buys Yahoo: 8 Things You Need to Know

“We are creating a transparent and reliable environment for advertisers that combines relevant and differentiated content with a complete set of data that gives us an in-depth understanding of more than 1 billion people around the globe. This represents a huge opportunity for advertisers in Latin America, where we’re seeing tremendous growth and momentum,” says Armando Rodriguez.

Join us at PORTADA Mexico!

In this new edition of Portada’s new Brazil Corner feature, Carla Ponte and Luiz Duarte focus on the São Paulo Film Commission’s work. The comission is celebrating its one year anniversary with impressive results and also an innovative app to facilitate film set location. The incentives to create optimal conditions for international film production are enormous as they can bring large investments and tax revenues.

A city often described by its multiple shades of grey and hectic pace aims to become a prime production set for the Film Industry. This is the challenge of São Paulo Film Commission. Created in May 2016, it is celebrating the first results and launching an innovative app to make producers’ lives easier in the biggest city of the Southern Hemisphere.

The São Paulo Film Commission is launching an innovative app to make producers’ lives easier in the biggest city of the Southern Hemisphere.

Filming in a city of 12 million people and 8 million cars that make for a chaotic traffic at any time of the day can be a real nightmare. So somebody has to do a real good job to convince producers to come and do just that in São Paulo. Its Film Commission aims to facilitate the filming in public spaces of this immense city and, after a year of existence, has released its first report on results: some 670 productions placed over 2,600 requests for filming authorizations, resulting in about 20 simultaneous shootings across town on any given day. “We have a specialized team of producers that understand the dynamics of an audiovisual production company, what facilitates the communications between producer and municipal authorities. We pass on to the various offices the specific needs for shootings in any particular São Paulo City-owned location”, explains Tammy Weiss, head of the São Paulo Film Commission (SPFC). According to her, before the creation of the Commission, producers had to go to at least 10 public entities to get an authorization to shoot a short/feature film, TV series, webisode or advertising film in public locations.Now, the producer goes through only one public entity, which is the São Paulo Film Commission.

Driver of Economic Growth

This facilitation has a strong impact on production budgets, through time and money savings, as well as on the economics of the city. Within the last 10 -12 months, these productions moved almost US $100 million (1 USD/ 3.1 BRL) in São Paulo, considering only those shooting in public spaces, and generated more than 20,000 temporary jobs. Of course, those are a fraction of the average 2,500 productions on any given year in New York. According to the Mayor’s Office of Film, Theatre & Broadcasting  – New York Film Commission – the film and television industry contributes nearly US$9 billion and over 130,000 jobs to New York City’s economy. But filming in New York City wasn’t always as easy as it is today. In the 1960’s, producers often required upwards of 50 permits to shoot their project. In 1966, Mayor John Lindsay changed this process and gave the Department of Commerce the authority to issue a single permit for filming in City-owned locations. In an open letter to the public, he wrote “Each additional feature film or commercial television show means additional jobs for New York residents. Additional jobs mean a healthier economy. And a healthier economy means a healthier city.”

New York City’s Example

Tammy Weiss_Head of SPFC_Press Release PhotoFor Tammy Weiss (photo), the example of John Lindsay is a major inspiration for the SPFC. “He was a visionary that understood his city had to be seen by the world, that NY culture had to be one the world acquired. The NY Film Commission is 50 years ahead of us. We are just completing our first year, but we are proud of our accomplishments.”

The Commission was an old request from the audiovisual sector in São Paulo, joining the Brazilian Film Commission Network (REBRAFIC in the Portuguese spelling), which now includes 10 Commissions at work and 16 others in the process of being created. “A major audiovisual center like São Paulo, a reference for Brazil and Latin America, ought to have a Film Commission”, explains Andrea Barata Ribeiro, Executive Director and Partner at o2 Filmes, producer of City of God, Blindness, and Trash, amongst other internationally awarded films. “For producers — large, medium or small — who need to shoot in this megalopolis, the São Paulo Film Commission represents a watershed accomplishment.”

The SPFC has a price table that offers discounts according to the budget constraints of each project. For example, in the case of shorts and documentaries, which traditionally have low budgets, producers have up to 95% discounts on locations, including any public building, park or square. Eduardo Sallouti, founder of Nation Filmes, took advantage of this discount for a series of documentaries he produced for Italian TV RAI in partnership with other European channels. “If it were not for these discounts I would have never been able to shoot in some public spaces I wanted, such as Parque Ibirapuera, which is a very expensive location.”

Beyond the democratization of public spaces for audiovisual shootings through the reduced bureaucracy, São Paulo Film Commission has just launched a mobile application for Android and iPhone with a catalog of municipal public spaces available for shootings. “We already have 250 locations listed and hope to reach 1,000 by the end of the year”, states Tammy Weiss. She explains the goal of the App is to help producers think beyond the usual well-requested locations and present the less-known side of São Paulo to many people. “It is an innovative tool for Brazil and we want to open it to locations under the State responsibility too.” According to Sallouti, efficient and transparent tools like this help instill a level of confidence in the foreign producers coming to Brazil. “It is the kind of positive feedback we got from the European producers and channels involved in the documentary series.”

Viaduto do Chá - São Paulo (SP) - 25.01.2015 - Geral - Viaduto do Cha, liga a Praca do Patriarca a Praca Ramos de Azevedo, sobre o Vale do Anhangabau, na regiao central. Foto: Jose Cordeiro/SPTuris
Viaduto do Chá – São Paulo (SP)  Foto: Jose Cordeiro/SPTuris

On the App, producers find photos and information on each location, including availability of bathrooms and places to eat, pricing for reservations, and availability calendar. Location scouts can easily share the information with Art and Photography directors to quickly reach a decision. Every request for shooting reservations is made online and the Commission has specific deadlines to answer: three business days for advertising, eight for other types of shootings. Per Weiss, many Rio de Janeiro productions are being switched to São Paulo, including some Rede Globo soap operas, despite the large drama structure that Globo maintains in Rio. “In 2016 we brought three Globo telenovelas — something unprecedented — and this will help promote São Paulo on Brazilian open air television, as well as in international markets, given the global reach of these productions.”

Attracting foreign producers remains a challenge though, since Brazil lacks some competitive edge according to Steve Solot, Executive Director of REBRAFIC. “There is a ferocious competition among FCs around the world to offer locations, infrastructure, service and, especially, a range of subsidies and rebates to reduce the cost of shootings for films, TV shows and commercials. Through economic impact studies, the FCs have demonstrated that subsidies have a high return on investment for the public coffers. Solot cites an example in Latin America that reflects the importance of incentives on locations decisions. The Chilean film Los 33, about the 33 Chilean miners stuck in a copper mine during two months, was shot in Colombia with a Spanish-American protagonist (Antonio Banderas) and Brazilian Rodrigo Santoro. “The movie was the first project to take advantage of the incentives offered by the Colombian Film Commission for international productions, which offers 40% reimbursement of production services plus 20% for logistic services, such as transportation and catering.”

Through economic impact studies, Film Comissions have demonstrated that subsidies have a high return on investment for the public coffers.

Solot defends the establishment of federal, state and municipal policies for competitive incentives. “The economic benefits are significant. In the U.S., for example, a movie shooting by a major studio generates an average of US$200,000 in economic activities and public revenues for each day on the set, according to the Motion Picture Association of America (MPAA).” These incentives brought shootings like Lord of the Rings to New Zealand, Game of Thrones to Spain, Brave Heart to Scotland, Evita to Hungary and Skyfall to Istambul. Even without the benefit of such incentives, Weiss celebrates a recent win in this international competition. Among the 670+ productions organized by the SPFC in its first year was the American TV series “Sense 8”, for which it closed important roadways. “Besides the SPFC support, we had a major point of attraction for them, which was the largest LGBT Parade in the world, key action for their story.”

São Paulo Film Commission is a governmental office, under the umbrella of SPCine – a public company created to develop São Paulo’s audiovisual market dedicated to the promotion of the city as a film-friendly place. São Paulo Film Commission is a partner for producers from all over the world. It makes filming in the city a great experience. The skilled team of São Paulo Film Commission gives assistance applying for a permit, from registration to authorization, and also gives support for post filming to check if all is as accordingly to what was previously set.

Brazilian Film Commission Network – REBRAFIC is a national non-profit Film Commission association whose objectives include: ensuring a standardized, high level of support for national and international producers, promoting all regions of Brazil as premier locations for national and international productions, and organizing and making available information on film commissions from all regions of the country. The members of REBRAFIC include 10 existing, legally – established film commissions, as well 16 film commissions in the process of formation in 14 states and the federal district.

 

CHECK OUT prior articles of BRAZIL CORNER:
– BRAZIL Corner:João Daniel Tikhomiroff – On the Intricacies of the Brazilian Audiovisual Market
– João Daniel Tikhomiroff – On Branded Entertainment, New Financing Models and More (Part 2)

 

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

US/US-HISPANIC MARKET

Warner Music Latina and Natcom Global have entered an agreement to collaborate on the production and distribution of online video. Warner Music Latina and its artists will share in the advertising revenue generated by the video on third-party platforms. The content will be regionally focused, with Latin American and US Latin artists, as well as international performers visiting the region.

The Azteca America network announced two new strategic partnerships with digital/TV programmatic and OTT platform providers, Videology and Zype. Azteca is the first Hispanic network to the market using the Ideology platform, and will be able to plan advertising campaigns using Videology’s proprietary software to gain access to Azteca’s inventory and optimize their buying plans programmatically for better targeting.

Sling TV expanded its Spanish-language offering with the addition of Estrella TV, Vme Kids and El Financiero|Bloomberg TV, to “Best of Spanish TV.” Additionally, Sling TV introduced its SHOWTIME premium, marking the first time an OTT service has offered content from the four leading premium networks.

Video streaming startup PhenixP2P announced on Monday that it has closed a $3.5 million Series A round of funding. KB Partners led the round, in which all of the startup’s existing investors also participated. Phenix will use the funding to support the continued development of its streaming platform, and to scale its sales and marketing efforts.

Alibaba Group Holding Ltd said that online video could continue to be the main “influencing factor” in the estimates for the next six quarters, Bernstein’s Bhavtosh Vajpayee said in a report.

Verizon Digital Media Services today announced that it will soon launch the Verizon Media Xperience Studio, a cloud-based content intelligence system (CIS), which will automate and simplify the online video production and distribution pipeline for broadcasters, OTT providers and online video distributors, all while offering timely and accurate performance, revenue and cost insights that are essential to building a profitable OTT business.

ChannelMeter, Inc., the leading online video analytics platform, has unveiled the ChannelMeter Creator and Influencer Management Suite. This new SaaS platform allows multi-channel networks (MCNs), digital media companies, creator networks, agencies, and now brands to automate large portions of their creator operations.

Google has announced more details about its launch of Programmatic Guaranteed, stating that it will provide support for audience lists, and grant media buyers improved targeting capabilities for desired audiences and sponsorships, meaning publishers can sell premium inventory via DFP on a flat-fee sponsorship basis.

Interpublic Group’s Magna announced that it expects global advertising to grow at 3.7% and reach $511 billion this year. Search and social video are expected to grow significantly, MediaPost reports.

Rocket Fuel, a predictive marketing platform, today announced, in partnership with Integral Ad Science, research showing that within a particular set of video impressions, up to 70% labelled as ‘in-stream’ were actually misrepresented as in-banner.

Snapchat is turning its data on location- and theme-based user-generated snaps into a searchable library.

Google has announced a deal with ComScore to provide independent verification that its inventory is brand safe.

Ooyala and the Digital Production Partnership (DPP) launched the industry’s first report analyzing the benefits of adopting Internet Protocol (IP)-based processes and technologies in video production.

LATAM MARKET

Yahoo has redesigned its homepage and updated its Yahoo Finance and Yahoo Sports pages for its Spanish-speaking audiences in the U.S. and Latin America. The new design encourages sharing, adds personalization and gave the site a more modern look.

Google and the Lemann Foundation, an education nonprofit in Brazil, announced an initiative that will send lesson plans directly to the cellphones of Brazilian elementary school teachers.

The Brazilian digital ad market grew significantly in 2016, as digital ad expenditure reached R$11.8bn (£3bn). This is a 26% year-on-year growth, far higher than the expected 12%, according the the most recent report unveiled by IAB Brazil, “Digital Ad Spend 2017”. 

Él Gráfico, Torneos‘s sports site, has joined the publisher co-op Real Premium Audiences Media (RPA Media Place), which already counts Clarín, Infobae, La Nación, Perfil, and Telefe among its members.

Data from Criteo’s “Ecommerce in a Cross Device Era” shows that in 2015, 45% of online retail transactions in Brazil happened after the user had browsed in two devices. 23% of transactions started on smartphones, and 44% of mobile purchases started on desktop. Criteo also reveal that almost 25% of online purchases in Brazil happen via mobile, a 26% growth.

In the first article of  Portada’s new Brazil Corner feature, published last week, Sao Paulo based journalist Carla Ponte interviews João Daniel Tikhomir, head of the Brazilian production powerhouse Mixer. Tikhomir described the state of the Brazilian audiovisual sector and the impact of production incentive laws on studios as well as  the relative infancy of branded content and product placement in Brazil. In the below second part of the interview, Tikhomir expands on his expertise in branded integrations, describes new  ways to finance audiovisual content and criticizes the high concentration of the distribution in the Brazilian movie market.

Brazil Corner – Despite all the limitations and the early state of  product placement in fiction content, Mixer has succesful  cases of branded integration.  Please describe them.

JDT – “We have made some deals including the series Mothern – produced for the GNT Channel (Globosat Group) in 2006 and it was  nominated for International Emmy Awards. The series had a very low-cost of production, and was managed in a very creative way. Another series we used product placement in  was “Descolados” for MTV in 2009. To be able to do these product placements deals, it is essential that the partner network is able to pursue these opportunities. Eventually, you may even count on the partnership with an independent producer, but in my opinion the focus should be on the network. It is crucial that our writers work together with the agency that places the product in order to integrate the product in the development of the scene.  Because these professionals have the perspective of both marketing and product positioning to be placed in the context of the series and the character. Product placement only works when it is inserted in the context of the drama.”

Brazil Corner – In American series, they insert a wide product range –  from drinks to games 0 in the scene – and generally this is done in a very organical way. Perhaps one of the best recent examples is the series “House of Cards” on Netflix with hundreds of product placements already on the first season. There was controversy, but nothing that really impacted the success  of the series…

JDT – “There’s a scene with two journalists that, if I’m not mistaken, are talking and one of them says, “want a Stella?”… and then they appear just drinking Stella Artois beer. But everything is done in a very natural way because people talk like that, it is part of our life. The brand  benefits from  exposure of the product but it does not harm the viewing experience. But for this it is essential that the scene is developed for this purpose, along with the writers, so that the product is part of the character’s life. Because our daily lives are filled with products and brands. They are part of our life and we consume naturally.”

Brazil Corner – Another approach and business model that is being used in Brazil l is the partnership between the independent producer a Pay TV network and an Open TV network; this is a way to split the bill and increase viewership through different channels. Does this model have a future in the light of the advance of VOD and OTT? 

JDT – “This is a business model that Mixer started with the series “Julie e os Fantasmas,” in partnership with BAND and Nickelodeon. Last year we debuted another series with this model in partnership with SBT and FOX. I do not see any problems regarding to VOD platforms and this business model. On the contrary, we even have a chance to add  VOD to the model. Nothing prevents us from negotiating with the three players – one in each platform. In my opinion, they are all complementary because the audience of Open TV is different from the audience of Pay TV, which is in turn is different from the audience of the VOD and OTT.  They are different and can watch the same content differently. And, of course, all benefit from this cross-channel approach. Those who heard of the series in Open TV channel or in the Pay TV channel, but prefer to watch the entire season at once will wait for it on VOD/OTT.”

A U.S. Hispanic audience will enjoy a  Brazilian product as long as it connects with the audience and is well dubbed.

Brazil Corner – You just were appointed as president of  SIAESP – Union of Audiovisual Industry of the State of São Paulo – and you are also part of CSC – Superior Council of Cinema / Audiovisual. One of the hottest topics in 2016 was the enforcement of quotas of Cable Law for Web TV channels. This would put the mandatory hours of local content on the VOD and OTT services. What is the current state of the  discussions?

JDT – “These discussions are still very preliminary. Indeed, it was one of the issues on the agenda of the first meeting this year for the Superior Council of Cinema Higher Cinema Council (which includes the audiovisual sector). There is a study done by Ancine currently under public consultation on Ancine’s web site to receive contributions from the public. The goal is to try to regulate the sector. But it is still at a preliminary stage of discussions, because there was a change in the Federal Government in 2016 and recently a change in the Ministry of Culture, a new Superior Film Council of Cinema/ Audiovisual and in May we will have a change in command at Ancine. In other words, there are many changes underway and while things may be going in a certain direction now, they can take another turn with the ongoing discussions and with the new leaders that are coming in. We are at a very early stage of the discussions.”

Brazil Corner – With Trump in the White House, many questions are in the air… But the census projection in the United States indicates that by 2050 the country will have more than 120 million people of Hispanic origin. And the American TV networks are eyeing this market through the production of content in Spanish, but the production is still focused on the United States. Telenovelas and series  are mostly produced in Miami, New York, Los Angeles, Chicago… How can Brazil compete in this market?

JDT – “A winning product in the audiovisual market is one that has quality and that connects with the audience. And today you cannot impose content on the viewer. The audience has to choose what they want to watch and when they want to watch it… And the audience chooses depending on the story, the protagonists, all the elements that will draw you. And to reach out to this Hispanic audience in the US you need to have relevant content. Within this perspective, the series “O Negócio”, even spoken in Portuguese, was very well dubbed by HBO for the Spanish-language market, and got an amazing audience, was broadcast in prime time, not only in Latin American countries, but also in the U.S. Hispanic market.  This shows that the Hispanic audience will enjoy a Brazilian product, spoken in Portuguese, as long as it connects with the audience and is well dubbed. HBO recently announced that “O Negocio” is the most successful series in the history of HBO Latin America. It is  a product created in Brazil, produced by a Brazilian company that offers a universe of women dealing with prostitution by using marketing strategies… It has a lot of humor, it is very intelligent, and it resonates in all countries of Latin languages. In Mexico, for example, the series is a resounding success. At the launch of Season Three, the main actresses made visits to several Latin American countries and were recognized at the airport, on the street etc. This is the proof that a product can travel well when it has universal themes and breaks the language barrier.”

Brazil needs to democratize the distribution and exhibition of movies.

Brazil Corner – Ancine reported that 2016 was a year of record numbers for national cinema, with 143 films released, and 97 works of fiction. And the figures of tickets sold reached close to 30.5 million, the best result since 1984, an increase of 3.5% of the audience share of domestic films. You just released your new feature, “Os Saltimbancos Trapalhões – Rumo a Hollywood”.  Is Cinema a good business in Brazil?
JDT – “It’s a good deal, but for very few companies.  And this is a point that has already been made and was introduced to the CSC agenda and is also a matter SIAESP is looking at. Although the figures look good,  the distribution in Brazil it is all very concentrated in the hands of a large player that holds 81% of the distribution of movies in the Brazilian market.  This is reflected in official figures that were released this year. Another distributor has almost 10%. And then all the other players have to divide the remaining 9%. Not taking away any merit and competence of the company that owns the 81%, it has to be said that in a country like the U.S. this would never happen. The anti-trust law would not allow it. Brazil needs to democratize the distribution and exhibition of movies, because today the choice and the way films are distributed is disproportionate. And in this scenario, we miss great opportunities for Brazilian productions to be better displayed and better distributed. Having large companies is very important, but it is also important to set limits.”

CHECK OUT: The first part of this interview: BRAZIL Corner: João Daniel Tikhomiroff – On the Intricacies of the Brazilian Audiovisual Market (Part 1) .

In the first article of  Portada’s new feature Brazil Corner, Sao Paulo, Brazil, based journalist Carla Ponte interviews João Daniel Tikhomiroff, one of the top producers and filmmakers in Brazil. Tikhomiroff is founder and partner of Mixer, a Brazilian production company.

THE BACKGROUND: With a prolonged political crisis, an economy struggling to overcome a long recession and endless scandals feeding an almost chaotic circle, Brazil has certainly provided an amazing collection of stories to writers and content producers. Nevertheless, the Brazilian entertainment sector has been growing at a high rate. Ancine, the agency that regulates the Audiovisual market in Brazil – reported  that in recent years – 2007 to 2014 – the Audiovisual sector grew almost 9% per year. In 2014 the sector had an overall size of US $7.9 billion.  The figures for 2015 and 2016 have not been reported yet, but some analysts suggest an average growth of 2% per year, which is still higher than most sectors of the Brazilian economy.
An institutional factor that explains the growth of the Brazilian Audiovisual sector is the Incentive Law that supports TV and cinema productions as well as by the implementation of national content quotas on Pay TV. These quotas were activated at the end of 2011 and require international channels to display 3 and a half hours per week of local content during primetime. The Pay TV sector is facing a  lot of pressure by a decrease of subscriptions – after a huge jump from 5 million in 2007 to 20 million in 2014 – and also by the growth of VOD and OTT services, which are growing in number of offers and subscribers everywhere in the world, including Brazil. What to expect for 2017?  Will the Brazilian Audiovisual sector  keep growing despite the country’s economy? How to break the chain and be less dependent on government support?

João Daniel Tikhomiroff (photo) answers the below and more questions in Portada’s Brazil Corner. Tikhomiroff is the most awarded publicity director in Latin America, with 41 Cannes Lions, and 10 years ago migrated to the Entertainment world to found Mixer, which ranks the top 5 Brazilian Production Houses with an internationally awarded portfolio.

Brazil Corner – Your agency Mixer opens 2017 with the release of the film “Os Saltimbancos Trapalhões – Rumo a Hollywood” directed by you; your company is also producing another season of  “O Negócio” for HBO Latin America – the first Brazilian series to reach a fourth season on the channel; you just got the renewal of the series “A Garota da Moto” for SBT – Open TV Network ; besides various non-fiction productions for multiple channels of Discovery Networks, including large realities as “Desafio Celebridade”. What share of the business does content production account for at Mixer? Is advertising still  essential  to pay the bills, even in this period of crisis in the advertising market?

JDT – Mixer’s revenue structure still needs the advertising market to pay its bills. But Entertainment – both content and branded – already represents 50% of our revenues. We closed 2016 with a 50/50 advertising/content revenue split. And, until very recently, the ratio was 60/40 (60% Advertising – 40% Entertainment). According to our business plan, in 2017, Entertainment should surpass 55%.

Brazil Corner – And what is the company’s main strategy for content production?

JDT  – We take great care with the structure. Mixer is the only Brazilian production house with its own development team, ie permanent writers (chief writers and writers who develop). And that is on both fronts, both in the fiction  and non-fiction entertainment space. This structure that is part of our DNA, because our aim was always to be a content producer which develops, and owns content and not merely provides service. Mixer was born with the goal of being a producer that, in fact, has its identity, its brand recognized through the work we create, develop and produce.

Brazil Corner – Ancine – Agency that regulates the Audiovisual market in Brazil – reported that despite the country plunged into economic  recession, the Audiovisual sector grew on average 8% per year. This growth rate is largely explained by  tax incentive laws. How can you overcome this dependence of the sector’s growth on tax incentives.?

JDT – “There are two issues here. The first is that tax incentive are key in any country that wants to create a new industry. And this goes for any activity, not only for audiovisual sector. The automobile industry always had tax incentives to set up plants in several states. And don’t forget that the United States also has state tax incentive, which is very strong in the production of TV series. In most American series, about 30% to 40% of the cost of production comes from tax incentive state laws. This happens in California, Florida and many other states. In addition, it is important to remember that when the TV entertainment industry was born in the United States, the US Congress passed a law that prohibited the channels to produce their own content. This law required that 100% of the content would be produced by independent producers or studios. And I’m talking about the Open TV channels in the decade of the 1940s and  later,  Pay TV in the United States, was born in a similar way to the current situation in Brazil, where content is produced by  independent producers.

Tax incentive are key in any country that wants to create a new industry.

Brazil Corner – It would be a legislation in the mode of Law 12.485 / 11, the so-called Cable Law, which came into force near the end of 2011 and which among other rules, requires international channels to display 3 and a half hours per week of local content in primetime.

JDT – “In Brazil we have a tiny share… and in the United States, the production process for TV in the forties started with a quota of 100% in Open TV channels. And that American law lasted 50 years. Only in the 1990s, the law was abolished by Bill Clinton, saying he believed that from that moment, the entertainment market was already mature and able to self-regulate. But nothing would prevent that, in case the reverse phenomenon is observed, a new request be presented to Congress to revive the law again. In the United States, this law helped regulate and create a way of doing business between channel, creators-writers and producers that lasted for decades. In other words, a relationship that has matured to the point of creating an audiovisual industry that is an economic powerhouse. So when we talk about Brazil and Latin America, we are still in our infancy. Because, in Brazil specifically, our content production for TV began in the opposite way compared to the U.S. As there was no law, it was considered best to follow a verticalization of production in Open TV with almost all content being produced internally. For Pay TV it was a semi-verticalized process, with several projects done internally, but, at the same time, opening a loophole for partnerships with independent producers for more specific projects, such as series and reality shows, because they had the know how and the financial savvy.  That is how Brazilian independent production was born. We got our first break, obviously, with the mechanisms of Tax Incentive Laws and also the so-called Cable Law that prescribes compliance with Brazilian content quotas. And this quota is very small compared to other countries like France, Spain, Canada.

Brazil Corner – But how do you create other mechanisms and business models so that the independent production can be structured by creating a parallel dynamic to the stimulus already guaranteed by Law?

JDT – “There are several business models that can be followed. The first and the most obvious is to work with original content. Original productions for channels or platforms that do not use incentive laws and pay 100% of the  production, but the channel owns the content.  Mixer produced the series “O Negócio” for HBO Latin America under this model and the channel invests a lot more. The value per episode is much higher (than compared to projects linked to incentive laws) because the channel wants to achieve a standard of quality that guarantees the export of this product to other countries.”

Brazil Corner – And what does the independent producer get from this business model, since in exchange for this investment the channel retains the rights of the work?

JDT – “First, the producer has the opportunity to produce at a very high quality level, showing that it is capable of producing a series with a quality level on par with other international series and can be broadcasted in any other countries. And another very important point for the producer is that we make our mark on the international scene as a player able to compete in the top markets. Therefore, the business model based on producing original and exclusive content for the networks opens the door to the international market, both for the producer and for all professionals involved in the series. And this is extremely healthy and desirable in this maturation process of our audiovisual market.”

Brazil Corner – The series “O Negócio” was even mentioned in BuzzFeed as one of the 26 non-American series that deserve to be followed. It is a series that could be sold as a format, but in this case the rights belong to HBO. Does Mixer have other products of your property that it can be turned into international formats?

JDT – “Yes, since our DNA lies in  the development of content, we have series both fiction and non-fiction with good chances to catch on as formats in the international market. The youth series “Julie e os Fantasmas” is an example. It was a co-production with Nickelodeon, including a 2011 parallel airing in Open TV channel BAND (TV Bandeirantes Network) and caught the attention of some countries. Italy aired with dubbing on TV. And since the series was also among the five nominated to International Kids Awards, it won a high international profile and we are reaping the results now. We are currently in talks with players in the US to sell the format. And in this case, the business model can be a mere sale format, or may include an artistic supervision with monitoring by our head writer, who headed the development of the Bible production and the format and general director of the series, in an exchange with the professionals who will be in charge of the work abroad. And also in the youth genre, we have another series in pre-production that has everything to become a format model. We cannot yet disclose the channel, but it is a business model using incentive laws to gain the funds, as “Julie e os Fantasmas”, providing that Mixer keep the rights of the work. That is, the channel has distribution rights, but in the case of format sales it is one more product that we can sell freely and reap new rewards later.”

Branded entertainment and product placement are still a misnomer in Brazil.

Brazil Corner – In this business model, we have witnessed a growing trend of brand positioning in reality shows and other non-fiction programs that sponsor productions. However, in fiction productions for Pay TV, product placement is rare. Why has this practice, already proven successful in the United States, has not grown in Brazil?

JDT – “The use of product placement on Open TV helps fund telenovelas, series and other entertainment programs, generating a fundamental income stream for the channel. However, on Pay TV, the vacuum starts by the lack of a structure in the networks which relates to advertisers. The producers don’t have  contact with the advertising community. So, it is important that the channels have executives that focus on seeking opportunities to place products in the productions in partnership with independent producers.”

Brazil Corner – This already happens in non-fiction programs. Pay TV network have departments focused on this business, but this is not the case for fiction content. Do you think that in Brazil brands are open to  invest in branded content and product placement? 

JDT – “Very little. In the United States, no marketing professional thinks of doing marketing and advertising of their products without considering product placement and branded entertainment. In Brazil there is still a classic mentality that is vested more in traditional advertising. And the marketing people are still not fully convinced in branded entertainment From the point of view of creation and production, it is essential as a business model because it brings resources to production. It is a win-win relationship. At the same time it helps finance series and audiovisual products in general, the brands presence also helps to promote the products of the advertiser. Undoubtedly, this a business model that is hardly in practice in Brazil. In Argentina, the use of product placement is already more widespread both in series and in cinema. In Mexico, Chile, and Colombia as well. But it is in fact a business model still little common in the Latin American market. A loss of opportunity from all perspectives: the advertiser, the network and the producer.”

CHECK OUT: The second part of this interview: Brazil Corner: João Daniel Tikhomiroff – On Branded Entertainment, New Financing Models and More. (Part 2) .

Wix announced that it will return to the Super Bowl marketing lineup with a new TV spot airing during the FOX broadcast of Super Bowl LI on Sunday, February 5, 2017. Omer Shai, CMO at Wix.com talks to Portada about how the 30 second TV spots are just one part of his company’s Super Bowl investment.

omer-shai-1“Our Super Bowl campaigns aren’t limited to the 30-second spots but are built out to month-long campaigns that extend outside of game day and the United States. We recently announced our third year as a Super Bowl advertiser and rather than just limit it to the US English-speaking community we are also reaching the Spanish-speaking community through bilingual activity, such as our recent release and social activity. Our focus on working on integrated cross-cultural campaigns is emphasized with Super Bowl 50’s TVC with Kung Fu Panda. This campaign was adapted for different markets and in seven languages including Portuguese, Korean, and Spanish.”

 

Rather than just limit it to the US English-speaking community we are also reaching the Spanish-speaking community through bilingual activity.

Super Bowl Investment Adds Cross-Channel Campaign

With Super Bowl spots being able to cost in excess of US $5 million, one key question is how brands can measure the ROI on their investment. Shai notes that the Super Bowl campaign allows Wix to expose its brand to a massive audience.” While the Super Bowl is the most watched broadcast of the year with over 100 million viewers, we will launch a cross-channel campaign that reaches hundreds of millions worldwide – in addition to the commercial. We hope to build on our success of last year when our campaign ranked #1 with 36,459,669 views online. This made the decision to go back to Super Bowl easy, as we had a positive return on investment and saw a meaningful growth in our brand awareness.”

Alignment with Sports Events…

Shai believes that the tenants of sports aligns closely with his brand. “The ideas of teamwork and connecting with fans (or users) is the basis of anything we do as a company. It also allows us to reach a diverse and large audience worldwide that we are always happy to engage with.”

… Sponsor of Manchester City and FC New York

Shai notes that after the success with Super Bowl advertising, Wix decided to expand to the most popular sport in the world – soccer. “Soccer is greatly loved and celebrated across the globe, and the Premier League is the #1 most viewed, admired and celebrated league. Working with a globally recognized club like Manchester City allows us to engage with tens of thousands of fans worldwide. The partnership with MCFC officially kicked off with the release of an online video featuring Manchester City FC players building a Wix website dedicated to the fans and the chants they love as former professional footballer and pundit, Chris Kamara, commentates on every click. The video also served as inspiration for the creation of an all new Wix website ‘Sing Loud, Sing Proud’ where Manchester City fans can listen to some of their favorite chants, and later on upload their very own renditions of the City songs they love.”

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In-House Creative Agency

To some extent Wix can be described as a creative agency. As Shai explains Wix’s in-house studio leads and actively participates in creating and maintaining all Wix products and promotions. “We have over 100 designers and UX designers who take great pride in executing creative materials across the board – web design, branding, printed materials, events, animation, video and more.
As we have an incredibly talented internal team, we feel confident telling our own story. Wix is a product company and we build our campaigns to highlight not only our platform capabilities but the amazing ways that our customers use Wix to make their businesses and brands come alive.”

Combining Off-line and Online

“By combining both online and offline activities we create an engaged user experience,” Shai emphasizes. One example is  the  New York Yankees partnership with Wix.com. Which hosted Yankees legend, Mariano Rivera, at the Wix Lounge in NYC this fall. “We amplified the reach of an event where users can come and hear Mariano speak about his career through a Facebook livestream. This event helped us not only provide a perk to Wix users but also helped us reach a larger audience and talk about a new product of ours – Wix ADI.”

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Substantial Presence in Brazil

Brazil is an important market for Wix. In Brazil, as in the US, Wix uses multi-touchpoint campaigns to connect with its audience across verticals and platforms. “Last summer we partnered with Condé Nast to give three users the chance to shoot the cover of one of three magazines and had amazing success in Brazil. As seen with this video, we not only translated but localized the efforts by amplifying the contest via blog posts, offline events, social and digital to resonate within the Brazilian market. To coincide with the Condé Nast partnership we hosted various events focusing on the photography community such as the Foto Conhecimento (Photography Congress) to create a stronger tie-in.

What: Direct Sales and Social Selling are very connected. Noone knows this better than Rebeca Ricoy, Senior Manager of Digital Strategies at Avon NoLA. Ricoy speaks to Portada about the evolution of the company, which is focused on direct cosmetics sales, toward the adoption of digital platforms, as well as the challenges that the company is facing in the process. Ricoy is one of the many major brand marketers that will be participating at #PortadaLat, which will take place in Miami on June 8-9.
Why It Matters: LatAm is one of the regions that Avon is betting on the most. When it comes to revenue, Brazil is the brand’s largest market, and Mexico is the second-largest. At the global level, Avon has six million representatives, and LatAm is one of the regions that contributes the most to that statistic. In 2015, for example, 650,000 new representatives joined the company in Mexico.

Rebeca Ricoy
Rebeca Ricoy, senior manager of digital strategies at Avon NoLA

Portada: What challenges is Avon facing in terms of going from direct sales to digital/social sales? 

RR: “To us, even though we are going digital, direct sales will be maintained because we have representatives that recommend Avon products to their friends on social media. Independently of that, we have two great challenges: on the one hand, Internet penetration in Mexico is low compared to that of other countries. On the other hand, an important part of our consumer base today is made of women from a lower socioeconomic level, and older women, many of which have no access to technology. We need to incorporate more digital representatives and train our current salespeople to explain the great benefits of digital tools.”

Portada: With digital development, are direct sales more complicated?

RR:” No. Direct sales are still occurring, and even more so in Latin countries where human contact and “buying from a friend” is much more powerful than a store without a face.”

“The challenge is to give our representatives the different technological tools so that they can multiply their business and take advantage of the digital boom.”

Portada: How have consumers reacted to the evolution of the brand towards digital?
RR: “We have two targets: our consumers and our representatives. In both cases, our trend toward digital has been well-received. Especially since we re-branded through “Beauty with a Purpose” last year. This re-branding came with a 360 strategy for content strongly supported by digital. The evolution is slow, but the goal is clear.”

Portada: What challenges does marketing through digital platforms present?

RR: “There are various challenges, on the one hand, speaking to and staying relevant to the final consumer without leaving our representatives behind. On the other hand, generating adequate tools to increase earning opportunities  through platforms so that representatives can adapt to change and take advantage of it.”

Portada: What role do social media platforms play for Avon in LatAm?

RR: “They are key to communicating and interacting with our representatives and final clients. It is a great thermometer for us. It’s so relevant that we have made large investments in the last two years in which we have pushed more and more toward digital media. Of our digital investment budget, 90% goes to social media.”

Portada: Which do you use the most?

RR: “For our target and category types, the networks we use the most are Facebook, Instagram, YouTube and Twitter (in that order of importance). We are starting to explore Pinterest, although we know that this network is very niche, but aligned with our target.”

Portada: Do you use influencers?  

RR: “We still haven’t done that as much as we wanted, but we are working on some projects that integrate influencers. It doesn’t matter if they are local or multicultural, as long as the audience coincides with the target of Avon NoLA.”

Portada: How do you choose them? Do you use some type of software or special agency?

RR: “Our digital, media and public relations agency makes recommendations together; each one uses its own analytics and listening tools to come up with the best proposal. Internally, we have our own market research area that can help us understand if they are relevant to our market and our representatives.”

Portada: What other challenges do you think Avon faces? 

RR: “One of the greatest challenges we will have is attracting a younger, more digital target that can help us evolve the business. To do this, we need to scale our social sales, connecting those who look for beauty products with those that sell them through a solid digital platform to offer an experience that integrates the consumer and the representative.”

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.

U.S./U.S. HISPANIC MARKET

DataXu, programmatic marketing software provider, is releasing a whitepaper which analyzes a year’s worth of data on ad fraud as the first instalment of its Programmatic Quality Report Series, The 2015 Advertising Fraud Report. This issue reports that brands lost $18.5 billion to fraud in 2015, and promises that things will get worse. Other statistics include the claim that fraud rates can reach 65% on exchanges, 17% on networks and 7% on publishers’ sites. The industry averages for fraud were reported between 6 and 30%.

NBC Universal and Vox Media have announced that they voxwill sell digital ad inventory across their portfolio of brands together. This is the biggest collaboration between the two since NBCU invested in Vox last year. Their “Concert” digital inventory portfolio will combine premium inventory and audiences and concentrate on display ad inventory for the time being (although they will almost certainly incorporate digital video at some point). The collaboration will give advertisers more tools to reach targeted audiences.

The Atlantic and Univision have announced that CityLab Latino, a Spanish-language version of The Atlantic‘s CityLab, which focuses on urban and lifestyle news, has gone live. Juan Pablo Garnham, a veteran at El Diario, is managing the editorial efforts out of Miami. 

In advance of the 2016 TV Upfronts, AOL today announced the launch of self-serve programmatic TV buying to give marketers a clearer view of valuable audience buying opportunities, and to better plan, purchase, and measure their TV ad investments. This self-serve module extends AOL’s ONE by AOL: TV managed module, which launched in 2014, and is part of the company’s open, unified programmatic platform ONE by AOL™, which launched in April 2015.

zvelo, a content categorization tool, announced the launch of zveloSHIELD™, a real-time, dual-decisioning ad fraud prevention and botnet detection system tool. It offers ways to combine pre-bid blocking of fraudulent IP addresses with zvelo’s exploit and botnet detection capabilities.

Digital identity company Drawbridge is partnering with Peer39® by Sizmek, a cookie-free targeting solution, to integrate Peer39’s contextual relevance data into the Drawbridge Cross-Device Platform. This way, advertisers, agencies and trading desks will be able to make media buys according to the contextual relevance of every web page, and decide exactly what ads they want their own ad to be placed next to.

Ghostly has announced that its Trackermap tool will be available to companies online a la carte instead of only through annual subscriptions. The tool improves the understanding of tracking tech online, displaying and mapping JavaScript tags associated with any single website.

eMarketer released a study that claims that mobile is driving the growth of programmatic advertising, accounting for more than two-thirds of all programmatic digital display-ad spending this year. Facebook, Alphabet‘s Google-owned YouTube, LinkedIn are important forces behind this trend. U.S. programmatic digital display-ad spending should reach $27.4 billion by 2017, an increase of 24%.

Proctor & Gamble is reportedly seeing three to five times greater ROI on ad spending through programmatic buying than it was through traditional environments.

Vasona Networks Inc, which creates platforms to help mobile-network operators improve user services, raised $14.6 million of Series C venture capital. The money will go towards Vasona’s projects with major network operators and drive R&D, the company said.

Virool, a video distribution platform for marketers, has raised  $12 million in Series A funding to penetrate the global market, Latin America included. The funding came from Flint Capital, Menlo Ventures, Yahoo! Japan, and 500 Startups.

DON’T MISS PORTADA’S UPCOMING EVENT: PortadaLat’s two-day LatAm marketing, advertising, media and digital conference, will be held from June 8-9, 2016 in Miami, and will feature a session on the OTT revolution. Register now to hear about monetization, view ability, YouTube, Facebook and more.

New trends in online video monetization, measurement, engagement and many more aspects of the emerging OTT market will be explored at the Latin Online Video Forum during PortadaLat in Miami on June 8-9, 2016. Get your tickets at early bird price now!

LATAM MARKET

Nielsen Mexico has announced an agreement with MediaMath to integrate Digital Ad Ratings (DAR) with its TerminalOne programmatic media buying platform. DAR will provide comprehensive and real-time analysis of audiences on desktop and mobile for digital publishing campaigns – similar to Nielsen ratings for TV.


ematkerereMarketer
‘s latest stats also reveal that digital ads represented less than 20% of Mexico‘s total advertising spending, but that this number should rise to a  third by 2020. Mobile is on the rise in Mexico as well, as $1 out of $10 that goes to advertising spending in 2016 and $1 in every $4 by 2020 will go to the mobile screen. In Brazil, the Olympics will boost advertising, and mobile is also growing. It currently accounts for 6% of ad spending, but that should rise to 19.1% by 2020. In Argentina, mobile will account for 4% of spending this year, a number that will reach 17.2% by 2020.

iFood, the largest online food delivery platform in Latin America, today announces the acquisition of SpoonRocket technology. This move is the fifteenth acquisition in two years for iFood, and will continue to bolster the company’s unchallenged dominance of the on-demand economy in Brazil. The company plans to use SpoonRocket’s robust logistics technology to optimize delivery time, enhance the restaurant-to-consumer experience, and continue its rapid expansion in LatAm and other emerging economies.

Global media network Carat released growth forecasts for ad spending in 2017, and Latin American advertising markets are predicted to stay strong and achieve up to 10.5 % YOY growth.

H.I.G. Capital, a leading global private equity investment firm with $19 billion of equity capital under management and investor in Batanga Media, announced the closing of H.I.G. Brazil & Latin America Partners at $740 million, exceeding its $600 million target. The Fund will continue H.I.G.’s successful investment strategy of focusing on private equity, buyout and growth-oriented investments in lower middle-market companies in Latin America, with a focus on Brazil.