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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

Spotify presented a new video strategy that involves canceling original video series on the service, as well as shows it hasn’t released.

According to research from eMarketer, programmatic advertising will make up 83% of US display dollars by 2019.

Periscope announced that it will give almost all earnings from “super hearts” left by fans on videos back to the content creators.

According to a study from PQ Media, global advertising & marketing revenues are expected to increase 3.9% to $1.225 trillion in 2017.

Facebook reported a 79 percent profit increase, in part thanks to its push into video advertising.

The Q3 2017 Video Benchmark report from cross-platform advertising solutions specialist Extreme Reach found that click-through rates are down in every single category.

YuMe has launched its People-Based Marketing Suite to enable cross-screen audience targeting, sequential messaging, and attribution for U.S. audiences.

According to a new report by ad sales insights platform MediaRadar, P&G ran ads on 20% fewer sites –1,251 —  between January and August 2017, compared to 1,565 during the same period in 2016. The company also ran ads on just 59 percent of the same sites as they had the previous year.

LATAM MARKET

FD Comunicação, Brazil’s first and oldest PR agency that works only with video games, has launched a news portal where it will cover the Brazilian video games market.

NBCUniversal Telemundo Enterprises is expanding Fluency Studios with the launch of “Fluency Plus,” a new, bilingual digital production studio. 

Clarín and El Cronista found a study about YouTube consumption in Argentina, signaling that 70% of users go on YouTube every day, and that one in three Argentines that are online at any given moment are watching a YouTube video.

After launching a marketplace in Brazil, Amazon is not giving any indications about how and when it will expand into the Brazilian electronics segment.

Text written by Lorena Hure @lorenahure

Paying for access to digital content is nothing new for users; the popularity of Netflix and Spotify has paved the way in that regard. What is a novelty is that Argentine newspaper Clarín has joined the bandwagon, spearheading a trend that will surely be joined by other media in that country and the region. How does this news impact users, advertisers, and the media outlet itself? In this article, I share my experiences as a user, written from the point of view of a digital world insider.

I still remember that day. It was a Sunday in May of this year. I began my day with my usual digital media rounds, a ritual that begins with Facebook, followed by reading Clarín and La Nación, and ending with LinkedIn. In that order.

To my great surprise, Clarín did not allow me to access its content (or rather, it would have, had I be willing to pay for it). What a shock. Right away, I wrote to Portada’s editorial team to give them the scoop, only to be told they had already published this news a month earlier (click on it for a link to the article).

“How behind I am,” I thought. “In the end, I am still one more user,” I consoled myself. Thousands of (professionally subjective) questions suddenly flooded over me like a tsunami. Since I am naturally curious, I decided to contact Pitu (Gabriela Pinto), a dear colleague and friend who was in charge of executing this project, via an informal Facebook message.

(Here is the conversation/interview we conducted via email.)

Why did you implement the paywall now?

The person who can best explain why we launched digital subscriptions is Ricardo Kirschbaum. The transformation in how media content is accessed has been constant and forced us to adhere to the changes in the industry, where the paid subscription model is used to support a commitment to quality journalism (which requires a major investment of economic and professional resources). And this requires a mixed model of advertising revenue and paid a subscription to support it. It means joining the trend followed by major international news sites such as NYT, Washington Post, Folha de Sao Paulo, and O’Globo (among others), whose audiences recognize the value of quality journalism. Plus, here is another bit of international data: 78% of newspapers with the highest circulation have some kind of paywall model.

What percentage of Clarín’s regular users signed up for a paid digital subscription?

We opted for a “porous” subscription system; therefore the impact is on Clarín’s most faithful users. You have to read a lot to need to sign up for a subscription.

How does it work?

The Home page still offers complete free access, as do the cover pages of each section and services. In addition, you can access 10 articles per month for free. Once the 10 articles have been accessed, the user can easily register for free to access an additional 30 articles per month. That is a total of 40 free monthly articles. One thing to note: the 40 free articles a month available to each user are NOT cumulative across devices. That is, you have access to 40 articles on your desktop, 40 articles on your mobile, 40 articles on a tablet, and 40 articles through the native app. That’s a lot of content! The article count resets every month. Each calendar month begins with zero articles read. The impact on our total audience is small because it only affects the sites heaviest readers. In addition, subscribers to the print edition will continue to have unlimited access to all content from any device.

What was the impact on the number of monthly users and other metrics related to site visits?

Regarding the numbers, we were able to verify in a few weeks (we launched on April 24th) that our readers support the paid subscription model. Projections indicate that in just one month we approached the goal set for an entire year. We are very satisfied with the results!

Will subscribers continue to see ads? Or is one of the benefits of paid content not receiving any more advertising? (For example, like with a paid Spotify subscription.)

Both users and paid subscribers see the same advertisements.

What was the impact on advertisers?

For advertisers, the role of digital subscriptions in advertising is a benefit, as it gives them the possibility of audience segmentation and personalization. It opens a new space not yet explored for the sale of digital advertising space.

Thanks for your support, Pitu! If I ever write a book on the history of digital media in LatAm, I will mark April 24, 2017 as one of the milestones in the timeline. And give you credit for it, obviously.

Join us at PORTADA Mexico!

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

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

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

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

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

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

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

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

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

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

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

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

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

Tomás Salvagni, Commercial Manager at Grupo Clarin’s AGEA died suddenly last wednesday November 16 due to a cardiorespiratory failure. He was  in Mar del Plata (Argentina), where Clarin’s Commercial Division was having a meeting.

Salvagni was an innovator in the Argentinean and Latin American marketing and media industry, where he  played an important role in creating organizational structures to adapt media properties to the advance of programmatic buying in the region. In 2015 he played a crucial role in creating RPA Media, a programmatic buying platform with access to premium inventory from Argentina’s major publishers (Grupo Clarin, Infobae, La Nacion, Perfil and Telefe). Salvagni also was one of the key speakers at PortadaLat’s 2015 edition, 

Salvagni led marketing and ad sales for all of Agea’s media properties including the newspapers Clarin, Olé and  La Razón the magazines Viva, Elle, Genios and  Shop, and many additional digital and print editorial products

 

What: The challenge that newspapers and other print media face in Latin America to stay afloat through selling advertising.
Why It Matters: Brands are increasingly focused on the relevance of having a presence on digital media, also in Latin America.  but the decline  of print media is somewhat slower in Latin America compared to the United States.
According to a PWC Global study published in 2014, ad spending in print media in Latin America had reached US$4.8 billion, although that number has decreased by 3% annually since 2009.

Tomas Salvagni, the manager of the commercial division at Grupo Clarín and Guido Conterno, executive director of Grupo Diarios America,  agree that although print media is stalling, it is still an important advertising vehicle for brands.

“In Latin America, the impact of the industry crisis came by the end of 2013 and 2014,” explains Conterno. “There, we started to see a real change, one as significant as those in Europe and the U.S.”

The industry’s fall isn’t all that surprising, though. The challenges that international print media face are many. On the one hand, there is the surge of digital media, where all buyers want a presence, but consumer habits have also changed, and they don’t necessarily seek the same content on the same platforms as they used.

Guido Conterno
Print media’s biggest enemies are bandwith, wifi and flat rates for smart phones.

Plus, new graphic concepts and ways to display information have emerged, Salvagni and Conterno agree. That is why for print media to stay relevant it is key to adapt to new trends.

No more Church and State?

What’s more, the way that advertising is presented has changed. Before, editorial and commercial were separated by a clear line. Now, strategies like content marketing have revolutionized the concept of journalistic content.

“In the creative part, you can be more aggressive from a graphic design point of view. Content is more audacious, and there are ad formats that are more embedded and less intrusive,” admits Conterno.

Just as design and content have evolved, so have advertisers. Many have migrated to the digital world, but there are still “economic sectors that digitalize more quickly than others,” says Conterno. “For example, the auto industry has been quicker than retail, while education still uses a great deal of print.”

Tomas Salvagni

Tomas Salvagni

Clarín still finds the great majority of its advertising through advertisers from the service, banking and textile industries, admits Salvagni.

But print media doesn’t want to fall behind, so many properties that were born 100% in print, have substantially developed their own digital channels and have added them to their offerings for advertisers. “We offer combos to everyone that buys advertising,” says Conterno. “Our sales forces are all multi-platform and offer both media.”

We are in a maturation phase. We aren’t growing, but we are staying steady.

The same happens at Clarín, where “the commercial team has a very complex portfolio and the advertiser can choose multiple platforms.” Most of this strategy is related to integrating print with other supporting platforms.

“It seems like we are going against the current,” believes Salvagni. “Agencies believe that everything has to be digital. But it could just be a fad.”

January seemed like a calm month, but it wasn’t. Everything seems to indicate that decisions have been made that will define the year. From the closing of Yahoo‘s offices in Mexico and Argentina (wow!), to various reorganizations and launches, it seems like 2016 is off to a start that few expected.

Translated by Gretchen Gardner

Yahoo Shuts Down Operations

A few days ago I looked at my  Facebook feed, as I do every day, yahooand saw that a few of my friends in Mexico had changed their profile pictures to an image with a purple background with text that read, “Once Purple, Always Purple. We stand with all of you.”

In addition to the images, there were messages expressing condolences with pictures that depicted different professional memories from the past years, tagged in a way that suggested nostalgia.

yahoocouchI understood that something had happened in Mexico, but didn’t understand what. Until someone else dared to ask about this state of mourning. Like that, I found out that Yahoo had closed its office in Mexico. And then I found out that the same thing had happened in Argentina. Consequences of globalization (and I’m based in Buenos Aires).

With the shutdown of Yahoo operations in the region, an era comes to an end. It’s a big deal. Digital professionals tend to put a lot of passion into what they do, and when things end this way, so do parts of our professional stories.

We will miss the best parties in the industry. Those purple wigs. That Bergère couch that was so emblematic. We have a lot of lovely shared memories.

A New Project

diego
Diego Cormio

A few days ago I found out that Diego Cormio had left his job at
Clarín, where he was developing their digital business in the commercial area. Apparently, he will be working on a professional project (it seems like he still can’t say much). How intriguing!

US Media Consulting is Renewed

GAston-real
Gaston Real

There are changes going on within the USMC team. Gaston Real entered as CTO to lead the technology team that runs MediaDesk. Salvador Caloggero is now the product definitions as Product Owner and Ignacio Roizman took on a commercial role, now leading the local sales team (as he continues to manage  the regional operational aspects as COO).

Careful, It Vibrates!

I found out that Opera Mediaworks will be launching a rich media format with vibrating technology. This means that the format will make phones vibrate according to what is seen on the screen to simulate explosions, car engine sensations, shots, etc.

Be careful, if a client works with this format and you find yourself within their target, your phone will probably start to vibrate. Don’t say I didn’t warn you.

Growth Startups

It seems like the Growth Startup team has started 2016 on a roll. They just signed an agreement with an important multinational company in electronics based in Uruguay. They couldn’t tell me much more, but I’ll give you a clue: they produce cell phones and televisions. Who could it be?

Google Jumps on the Green Bandwagon

I’ve been told that the AdWords team has been moved to the third floor in Puerto Madero. I haven’t seen it personally, but they told me that the style is very “green” and “zen.” In that atmosphere, it’s fun to be stressed. Of course I’m only kidding.

That’s all, folks. See you in February! It will be a short month, although I am guessing there will be much to talk about.

Just as we saw in the unique user rankings published in mid-November, Google and Facebook are in first and second place, respectively, in the “video” category in Latin America (with the exception of Mexico, where Facebook is third, behind VEVO).

In general terms, as much as these rankings show the transmission of audiovisual content as a common denominator, it is interesting to observe certain particular characteristics:

  1. Some sites only permit a passive participation by the user, in the sense that the user can only consume content from the site without adding his or her own (aside from commenting or sharing). Examples of this are Grupo Clarín, Globo, Grupo Televisa and ABC Digital, whose video content is exclusively controlled by the media editor through a clear communications strategy. This way, on these sites, the user cannot make decisions related to, for example, topics, duration or location (on a particular section of the site) of the videos that he or she consumes.
  2. Other sites do permit active participation from users, allowing the user to operate like a content editor (deciding to upload his or her own content, choosing topics, uninstalling, determining in which section of the site it will be published, etc.). Facebook and YouTube are examples of this.
  3. Regarding distribution, when it comes to websites that allow active participation as well as passive, users have functionalities that allow them to share content with friends and acquaintances.
  4. Another phenomenon that we observed is that in the majority of cases, the sites and platforms on the rankings use technology provided by YouTube or Facebook. in other words, as much as the other sites and platforms may have made the top 10, that content still belongs to YouTube and Facebook. Some of these platforms are Maker Studios, Fullscreen, Machinima Entertainment, QuizGroup, ZEFR and ZOOMIN.TV. Of course, they have particularities that differentiate them from each other and that have allowed them to climb into the rankings. But it is important to highlight the role that distribution has for YouTube and Facebook (which explains why both platforms appear in the first two spots of the rankings).
  5. Finally, with respect to the quality of the material presented on the sites and platforms on the rankings, there are two noteworthy trends: on the one hand, premium content, and on the other hand, content generated by the user. In the context of this article, anything produced professionally with the objective of illustrating, positioning or reinforcing the ideology of the media outlet that has produced it can be called premium content. This type of content appears on the sites mentioned in the first point. In contrast, content generated by the user is anything “homemade” ( including anything that has been produced by a professional, using high-quality resources). In other words, we understand that content generated by the user, even when it is high-quality, loses its ideological power when it is published in an isolated context among many other homemade videos of different quality. This is the case of the sites and platforms that occupy the second spot in the rankings.

We also see that when the first-ranked sites publish audiovisual content generated by the user, the context of the publication configures the premium treatment that is given to the piece, with which, only in this case, the content generated by the users acquires characteristics of premium material, since it illustrates a certain alignment that the media outlet controls according its own discretion.

We can see these concepts reflected in the rankings from the participating countries here:

Source: comScore Video Metrix, United States, Hispanic All, October 2015, PC/Laptop OnlyTotal Unique Viewers (000)
    Total Internet:  Hispanic All25.120
    Top 10 Video Properties
1    Google Sites22.398
2    Facebook11.496
3    VEVO6.811
4    Yahoo Sites6.382
5    Maker Studios Inc.6.148
6    Warner Music5.720
7    Vimeo5.388
8    ABC Digital4.484
9    Microsoft Sites3.941
10    Fullscreen3.859
Source: comScore Video Metrix, Argentina, September 2015, PC/Laptop OnlyTotal Unique Viewers (000)Total Unique Viewers (000)
    Total Internet : Total Audience17.191
    Top 10 Video Properties
1    Google Sites16.379
2    Facebook12.335
3    VEVO10.123
4    Warner Music8.726
5    Maker Studios Inc.8.252
6    Grupo Clarin5.994
7    Machinima Entertainment5.910
8    QuizGroup5.188
9    Fullscreen4.653
10    ZEFR3.756
Source: comScore Video Metrix, Brazil, September 2015, PC/Laptop OnlyTotal Unique Viewers (000)Total Unique Viewers (000)Total Unique Viewers (000)
    Total Internet : Total Audience68.063
    Top 10 Video Properties
1    Google Sites55.937
2    Facebook50.956
3    Maker Studios Inc.23.650
4    Warner Music21.865
5    VEVO21.680
6    Globo18.938
7    ZOOMIN.TV16.349
8    Fullscreen15.519
9    Machinima Entertainment12.803
10    QuizGroup12.611
Source: comScore Video Metrix, Mexico, September 2015, PC/Laptop OnlyTotal Unique Viewers (000)Total Unique Viewers (000)
    Total Internet : Total Audience25.992
    Top 10 Video Properties
1    Google Sites17.216
2    VEVO17.151
3    Facebook17.060
4    Warner Music13.923
5    Maker Studios Inc.11.019
6    Machinima Entertainment8.240
7    QuizGroup7.867
8    ZEFR6.489
9    Fullscreen6.282
10    Grupo Televisa5.288
Source: comScore Video Metrix, Chile, September 2015, PC/Laptop OnlyTotal Unique Viewers (000)
    Total Internet : Total Audience5.970
    Top 10 Video Properties
1    Google Sites3.960
2    Facebook3.959
3    VEVO3.923
4    Warner Music3.530
5    Maker Studios Inc.3.163
6    Machinima Entertainment2.622
7    QuizGroup2.176
8    Fullscreen1.775
9    ZEFR1.578
10    ZOOMIN.TV1.445
Source: comScore Video Metrix, Colombia, September 2015, PC/Laptop OnlyTotal Unique Viewers (000)
    Total Internet : Total Audience14.256
    Top 10 Video Properties
1    Google Sites9.292
2    Facebook9.199
3    VEVO6.619
4    Warner Music5.206
5    Maker Studios Inc.4.666
6    Machinima Entertainment3.285
7    QuizGroup3.076
8    Vidaprimo2.822
9    Fullscreen2.368
10    ZEFR2.115

 

Medula, the Miami based digital marketing service provider owned by several Latin American publishers is relocating its operational team from Miami to Buenos Aires, Argentina. The operations team will now be based in Medula’s offices in Buenos Aires.The company also reached an agreement with Microsoft Advertising to sell Venezuelan inventory of Microsoft Advertising.

Medula will continue to have a client services and sales team in Miami in addition to sales offices in Mexico City and Colombia. The company also reached an agreement with Microsoft Advertising to sell Venezuelan inventory of Microsoft Advertising.

Medula markets and monetizes online display and video inventory for several major Latin American newspapers including Clarín (Argentina),  La Tercera (Chile), La República (Perú), Hoy (Ecuador), El País, El Colombiano, Vanguardia Liberal y El Universal (Colombia); El Informador, La Verdad, El Tiempo y El Universal (Venezuela); La Prensa (Nicaragua), El Diario de Hoy (El Salvador), La Prensa (Honduras) y Diario Libre (República Dominicana).

While Medula sells into Latin America, most of its business is derived by monetizing U.S. Hispanic IPs that visit the above cited digital properties. Digital display is the bulk of the business, while online video and mobile are growing rapidly.