What: According to new research from eMarketer, TV upfront revenues are forecast to climb 2.5%, with digital video upfront deals growing 20%. Why it matters: In the upfront market, big brand TV marketers secure 50-75% of their yearly TV network inventory.
According to new research from eMarketer, TV upfront revenues are forecast to climb 2.5%, with digital video upfront deals growing 20%. Upfront revenue, to kick off in a few weeks, is expected to rise to US $21.25 billion from last year’s $20.76 billion.
In the upfront market, big brand TV marketers secure 50-75% of their yearly TV network inventory for the course of the broadcast year, which runs from September through August. Total yearly network TV revenue is forecast to be around US $45 billion to US $50 billion. According to eMarketer, “TV companies on both the broadcast and cable side have been able to consistently raise prices on inventory sold at the upfronts. This is expected to continue into the future, as desirable inventory becomes more scarce, given viewership declines, particularly in younger demographics.”
The upfront market for digital video platforms is set to climb nearly 20% to reach US $4.39 billion. Upfront digital video ad spending accounts for only 12.2% of total digital video ad spending in 2019, eMarketer notes.
“Digital video ad spending committed in advance is growing rapidly, but remains a small part of the market,” said Eric Haggstrom, forecasting analyst for eMarketer. “The majority of the spending doesn’t happen at the Digital Content Newfronts, but at the TV upfronts,” because networks continue “to package digital inventory with traditional TV in order to reach people who don’t watch traditional linear broadcasts.”
We are introducing a bi-weekly summary of the most exciting recent news in marketing technology and trends. If you’re trying to keep up, consider this your one-stop shop.
Meltwater has announced it is opening up its AI platform, Fairhair.ai, to give developers and data scientists the tools to: connect and organize internal and external data by a knowledge graph; access pre-trained, configurable AI models; and create real-time insights to make forward-looking, data-driven decisions. According to Meltwater, Fairhair.ai makes it easier for businesses to gain a real-time pulse on everything from market research to risk management.
Equity investor Beringea sees a bright future for Popular Pays’ model of helping brands create content for social media. Beringea will invest US $5.5M investment in the Popular Plays platform that provides workflow management tools and integration with a community of content creators.
Consumers are snapping up smart speakers in the US faster than any other device since the smartphone, according to new research by eMarketer. Sales of smart speakers in the US are projected to increase by 47.9 percent between 2016 and 2020—from 16 million to 76.5 million units, eMarketer says.
Investors have ponied up US $20M in additional funds for Eyeview, the video technology company that personalizes video ads for TV, desktop, mobile and Facebook. Top brands using Eyeview’s technology-driven platform for creating one-to-one videos include Lowe’s, Walgreens, Honda, BMW and Uber.
Owners of so-called “smart TVs” connected to the internet are eight percent more likely to view a view an ad to its finish (38 percent), compared to mobile users (30 percent), according to a new report by Extreme Reach. The report looked at billions of video ad impressions in the second quarter of this year across multiple devices. The Video Completion Rate for desktop, mobile (smartphones) and tablets, all increased.
Initial success has propelled Pandora to expand its programmatic ad-buying service on its music platform. The platform is powered by AdsWizz which Pandora acquired this year. According to DMNews, 92 percent of Pandora’s audience is ad-supported, vs. 56 percent for Spotify.
A survey of 433 decision-makers in Europe and the US by Forrester Consulting showed that almosthalf plan to make major AI spends within the next year. eMarketer reports a YouAppi survey of 425 digital marketers globally found 36 percent reporting AI investments this year.
What: A summary of the most relevant consumer insight research in the US, US Hispanic and Latin American markets. Why it matters: If you’re trying to keep up with the latest happenings, this is your one-stop shop.
According to the latest IRI® Consumer Connectsurvey, even though 55% percent of US households say their financial health is good, CPG unit sales growth is anemic and the non-food sector is struggling even more. 64% of Hispanics said their savings had declined during their past year.
A recently-released report by eMarketer titled “Ad Targeting 2018: Households, Individuals or Both? Why a Blended Approach Is Often the Answer” shows that ad targeting, and specifically more advanced forms such as cross-device targeting, is top of mind for marketers. The Interactive Advertising Bureau (IAB) and Winterberry Group found the greatest portion of US senior marketing professionals surveyed between December 2017 and January 2018 cited cross-device audience recognition as the marketing topic that will command most of their attention this year.
NPD’s Retail Tracking Serviceshows that US retail spending on general merchandise categories at brick and mortar rose 8% in Q1 2018, compared to Q1 2017, outpaced by increases in the top 20 Hispanic core-based statistical areas (CBSAs) which showed 12% growth during the same period.
According to Nielsen’s Fanlinks survey data, podcasting saw a significant growth in engagement from 2016 to 2017. In the fall of 2016, 13 million homes identified as “avid fans” of podcasts, while by the fall of 2017, the number of homes that consider themselves “avid fans” soared to 16 million.
Researchers from Yale’s School of Managementconducted a study where they examined how changing the sequence of choices might affect a customer’s purchasing decisions. 84 participants were asked to choose a sofa set, selecting either color first and fabric second or the reverse. Then they were asked to type a description of the product. The researchers found that in these descriptions, participants tended to emphasize whichever trait they selected first.
The WFA recently found that two in three brands intend to increase their influencer spend this year even though 95% of respondents are afraid of fraud. The same article reveals new research from CampaignDeus shows one in eight Instagram influencers has bought followers in the past six months.
comScore, Social Studio and Shareablee shared an analysis about World Cup engagement online in Latin America. They found that Latin Americans were most active on Facebook; Coca-Cola and Adidas were the most-mentioned sponsors, and Brasil was the country with most mentions throughout the tournament.
Check out our new roundup for brand marketers, where you’ll find the most relevant new insights and research published over the last week. If you’re trying to keep up, consider this your one-stop shop.
A new survey by Customer Thermometer found that 64% of women and 68% of men have felt an emotional connection with a brand or business and that the vast majority (91%) of those connections were positive. ‘Interest’ was the common emotion felt by consumers towards a brand (70%), and 57% of the survey’s respondents said they felt trust.
A global study from Rakuten Marketing claims that negative consumer attitude towards online advertising is having serious consequences, revealing that nearly half (45%) of consumers having proactively opted out of an online ad. 58% of consumers associating online advertising with “other disruptive content.”
Devra Prywes, the SVP of marketing and insights at Unruly Interactive, spoke at the Advertising Bureau’s annual NewFronts insights luncheon on Wednesday, stating that compared to other consumers, “Dad is about 20 percent more likely to engage with a digital video ad.”
According to Harris Poll‘s research, sporting goods store brand equity is 7.7 points higher among millennials compared to baby boomers, while luxury department stores (+5.6) and electronics stores (+5.7) are nearly 6 points higher. Millennials’ brand equity score for off-price retailers is 4.9 points higher compared to baby boomers, while footwear and department stores are 4 points and 3.8 points higher, respectively. Only hardware and home stores (-3.8) have lower brand equity among millennials compared to baby boomers.
SEO and digital brand firm SearchDex’s researchon U.S. Google search behaviors found that 68% of respondents are concerned about their browser history being sold to big companies. Among privacy concerns were causing an increase in annoying ads (44%), data falling into the wrong hands (43%), private searches being made public (40%) and security breaches causing browser history to be exposed (40%).
eMarketer is predicting that 35.6 million Americans use voice-enabled devices like Amazon Echo or Google Home at least once a month, a 129 percent increase since 2016. The study also found that Amazon Echo claims 71 percent of the voice-enabled market.
A summary of the most exciting recent news in online video and ad tech in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
US/US HISPANIC MARKET
A Barclays report claims that viewers in older age demographics over indexed to TV are starting to gravitate toward OTT services. Currently, more than 54% of U.S. households have SVOD access and 31% of the population has two or more subscriptions.
In a recent report, Parse.ly looked at the performance of four types of posts – long-form, short-form, video, and slideshows – on 700 sites. Video posts received 30% less engaged time than the average post, the study found. Long-form articles (more than 1,000 words) have an average engaged time of 1.8 times higher than normal.
A new report from eMarketer suggests that, by the end of 2017, 2.15 billion people online video “viewers.” This would mean that 62% of all Internet users be using online video by the end of the year.
Former Shine Americas CEO Emiliano Calemzuk, Luis Balaguer, founder of Latin World Entertainment and Modern Family star Sofia Vergarahave relaunched Raze as a digital media platform focused on Latino millennials.
Portada‘s 2017 Online Marketing Guide is out! Download it for free and get the latest in opportunities and challenges in the industry, video ad market forecasts and video audience development.
Alphabet has announced fourth quarter results: this quarter, the company reported 22% year-on-year growth in revenues for a total of $26.04 billion. The company also announced that PC search ads, mobile search ads and YouTube ads contribute over 60% to the firm’s value.
Ooyalaannounced its Ooyala Solutions Partner Programme, which allows its video technology and reseller partners to use Ooyala technologies and is built on a three-tier system comprised of referral partners, associate resellers and premier resellers.
Outstream video advertising platform Teads has announced the expansion of its presence in Latin America with the launch of its new office in Peru. This market will be lead by former Fox Latin America and RedMas executive, Josué Cardenas, who joins Teads as the Business Director for its office in Lima.
PORTADA RESEARCH: Hispanic Online Video Ad Market to Soar to US $450 million. In a new report, Portada estimates that the Hispanic Online Video Ad market volume will climb to US $450 millionby 2020. Particularly high growth is to be expected by branded content videos. Among video ad-tipes, in-stream will continue to have the largest share, although out-stream will grow at a higher rate.
According to IHS Technology’s Media & Technology Digest,Mexico’s SVOD and TVOD digital video market grew by 39% in 2016, which means Mexico was Latin America’s second-biggest online video content distribution market. Total online video consumer level spending in Mexico last year came in at 3.5 billion pesos ($218 million).
Kantar IBOPE Mediaannounced that it will start to release data on TV-related Twitter activity in Argentina and Colombia. Starting in February, the Kantar Twitter TV Ratings will release metrics about social TV activity. The company said that it plans to make the solution available in Peru before summer.
A summary of the most exciting recent news in online video and ad tech in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
Digital publishing company Playwire Media has signed video inventory management platform SpotX to manage their video ad deals across owned-and-operated (O&O) sites as well as their syndication partners. Playwire Media, which is a digital representation firm as well as an online video platform (OVP), will employ SpotX’s ad server and programmatic infrastructure to monetize its video inventory across its portfolio, including flagship partners CinemaBlend.com, BleedingCool.com and SuperCheats.com. One of SpotX’s key features that Playwire Media will utilize is the predictive viewability targeting tool within its ad server, which enables the publisher to pre-emptively meet the differing viewability requirements of buyers.
Popular gossip and news site MailOnlineannounced that its programmatic revenue has increased by 48% through selling its display inventory through header bidding.
Multiscreen audience technology company YuMe company released its Publisher’s Guide, which highlights consumer survey results focused on understanding the relationship between video viewing habits and ad receptivity. The guide revealed, among other interesting data, that users are more receptive to ads in the morning, that they prefer a single long ad over multiple short ads, that content quality matters, and that ad receptivity on tablets is higher than on smartphones in the morning, though ad receptivity is higher on smartphones in the evening.
The CW and Ford signed Twitter Amplify upfront deals to place videos in CW Twitter accounts. The Twitter Amplify program allows brands to run their ads in different categories of content.
DashBidannouncedDashBid360, a 360-degree video ad unit that runs on almost all platforms and screens. Users can move their phones or mouse to see ads from different angles.
Spanish Broadcasting System, Inc. announced the addition of a full video channel line-up to its LaMusica music streaming app. It is available now and builds on its immersive mobile music offering with bi-cultural/bi-lingual, short-form vertical video content highlighting the world of Latin music, entertainment and pop-culture, created specifically by and for Hispanic millennials.
The Interactive Advertising Bureau (IAB)released its international mobile report, “Mobile Commerce: A Global Perspective,” revealing new insights about purchases on smartphones and tablets from users across 19 different countries. The study revealed that 76% of mobile purchasers have engaged with a mobile ad in the last six months and on average, and 33% clicked on the ad to find out more information. 60% of mobile purchasers from around the world discover products and services to buy on social platforms.
GumGum, a computer vision platform for marketers, announced its renewed partnership with Wenner Media, publisher of Rolling Stone, Us Weekly, and Men’s Journal brands, to deliver GumGum’s premium In-Image and In-Screen ad units to Wenner Media’s leading publications. The partnership first began in August of 2015.
Get ready for the 2017 Online Video Marketing Guide to be published on October 25, 2016 with the latest stats/projections and intelligence on the Ad-Driven Online Video market (OTT) throughout the Americas. To align your brand with this important annual reference and thought leadership report, please contact Portada’s Sales and Marketing Director Kelley Eberhardt at email@example.com.
In reaction to Facebook’s announcement that it was misreporting the average viewing time on its video platforms, Bob Liodice, president and CEO of the ANA (Association of National Advertisers) said the news was “troubling” in his ANA blog posting on Sept 29. He also said that Facebook “not yet achieved the level of measurement transparency that marketers need and require.” GroupM issued a similar statement.
Mexican broadcaster Televisaannounced that it has signed content distribution deals with NBCUniversal and its Spanish-language unit Telemundo to add films and series to its roster and improve its recently launched streaming video service. The deal also included expanding Televisa’s existing contract for free-to-air television and blim, its streaming video service.
According to eMarketer, in Latin America, 32% of the population will use smartphones in 2016, and Latin America is projected to spend 69.8% of its digital ad budget on mobile by 2020.
The Brazilian digital agency Jüssiannounced that it will be integrating its programmatic media buying area with its media planning department to improve measurement of campaigns’ impact and efficiency.
The video ad tech company DynAdmicannounced its Weather Sync solution in Brazil, giving advertisers the ability to segment campaigns according to the weather in each user’s area.
Brazilian publisher iG and the local marketplace Apontadorwill be working with targeted content to offer online-to-offline (O2O) spaces to advertisers.
A summary of the most exciting recent news in advertising technology in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
Open ad management company Sizmekannounced a partnership with sponsored data experts Datami to expand the spend reach of emerging and low-spend markets through Sizmek’s open ad management platform, MDX-NXT. Datami helps brands and agencies engage consumers on mobile video through subsidizing users’ mobile data usage and consequently lower use of ad blockers.
Comcasthas acquired French ad video tech company StickyAds.tv, a SSP, for an undisclosed amount that is said to be more than $100 million. StickyAds specializes in helping publishers and broadcasters sell video advertising inventory for digital and television.
Technology Business Research conducted a study of ad tech buyers in France, Germany, North America and the UK, and found that in North America, 36% of respondents manage their DMPs internally, and that more than a quarter use a tech vendor’s app. More findings can be found in this link.
Cadent Technology, which was formed by last year’s merger between BlackArrow and Cadent Network, is going to be presenting its addressable linear platform at the INTX Conference currently being held in Boston. The company recently added its live linear targeting capacity to its VOD solutions for QAM set-tops, IP-based devices and OTT apps.
Adobepresented its new advertising capabilities for its marketing cloud at the Adobe Summit EMEA. The tools make it easier to create more personalized ads for multiple platforms and includes analytics to form a better understanding of ads’ effectiveness.
YuMehas announced its improved capabilities for brand safety and view ability standards on its programmatic video ad platform, YuMe for Advertisers (YFA). The technology is integrated with Integral Ad Science’s Bid Expert, and can use YuMe’s native SDK-driven brand safety technology to create efficient ads and block suspicious traffic.
The Brazilian government’s shutdown of WhatsApp, the second time a digital service was shut down by a court in the country, has sparked debate about how to appropriately intervene in digital communication services to prevent similar events in the future. Brazilian congressmen want to pass a law to regulate the blockage of website and apps that disseminate illegal content.
European mobile attributes and analytics firm Adjustannounced the opening of a Brazilian office in Sao Paulo, following its global expansion into Latin America. Apparently, they already have clients like Microsoft, Rovio and Loovo.
Mexican data company Mundoejecutivoconducted a study of Twitter use in the region and found that Brazilians use the social network most, reaching 40.7 million users in the country Q4 2015. Mexican use came in second in the region with 35.3 million users, and Argentina came in third with 11.8 million.
But eMarketer showed lower estimates: for the same period, its results showed 24.6 million users in Brazil, 21.3 million in Mexico and 7.1 million in Argentina. Argentina was found to have the highest increase in its user base, with 20.9% growth last year and an expected 12.8% growth rate for 2016.
On Tuesday, German mobile performance marketing firm glispa announced that it is acquiringMobils, a mobile digital agency based in Sao Paulo. All of Mobils’s 10 employees will stay with glispa, and will bring their publishing partners and Brazilian clients like online car sales portal Webmotors, sporting goods company Netshoes and iFood (Brazilian, similar to Grubhub).
A summary of the most exciting recent news in advertising technology in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
Instagramis expanding its Carousel ad format to let marketers publish videos, photos or a combination of both as the company brainstorms ways to increase user engagement with the ads.
eMarketeris claiming that Americans will spend just one minute more on Facebook by 2018, as other platforms like Instagram and Snapchat take up more and more of our time. This year, American adults will spend an average of 22 minutes a day on Facebook and 43 minutes a day on social media services. Most of this time will be on mobile devices, not desktops or laptops. Due to this, Facebook is set to earn 35 cents per hour spent by an adult on mobile devices, compared to 19 cents on desktops and laptops.
The New York Times’s operating profit fell 13 percent in the first quarter as ad sales dropped and the costs of their digital operations increased. Shares of the publisher, which is spending heavily to strengthen its advertising technology, fell 4.4 percent to $12.32 in afternoon trading on Tuesday.
Twitteris forecasting a less-than-impressive revenue performance in the second quarter, as the company has struggled to generate ad sales. Shares declined by 17% on Wednesday.
Alphabet, (Google’s parent company) on the other hand, announced a 17% rise in quarterly revenue thanks to mobile advertising sales. Revenues rose from 17.26 billion to 20.26 billion between January and March. It’s ad revenue jumped by 16.2% in the first quarter, and the number of paid clicks jumped 29%.
Pinteresthas acquired the team from mobile ad-tech company URX, whichspecializes in selling technology that can be used to identify trends in content consumption to target mobile ads. Interestingly, Pinterest will be shutting down the product as it acquires only the staff.
Snapchathas commenced its experimentation with e-commerce ads, as Target and Lancôme ran formats of 10-second call-to-action spots to swipe for more info or to go straight to the mobile shopping page.
The Latin Online Video Forum, part of #PortadaLat on June 8-9 in Miami’s Hyatt Regency Hotel, is bringing all of the big players in online video in the Americas together, including key brand marketers such as Nestle, 3M, Volaris, Fallabella, Best Western and many more. Get your early bird tix!
eMarketer and Rock Content’s latest research claims that when it comes to techniques used for marketing and advertising in the tech sector in Brazil, nine out of ten staff members are using data analytics tools. Landing page creation (70%), SEO analysis (63%), marketing automation (58%)and A-B testing (32%) were also popular tools and techniques.
Brazilian publisher Editora Abril has established a partnership with MOAT to use the latter’s digital marketing intelligence for online campaigns. Abril hopes to be able to generate better insights on view ability and engagement with ads contents to improve the transparency it provides its clients.
ZoomIn.TV is opening operations in Mexico, where it will offer its online video content, advertising and technology expertise to the region of Latin America. ZoomIn.TV also has offices in the United States and Canada.
Kantar IBOPE Media, the Latin American media research firm, and comScore, the multiplatform measurement company, announced a strategic alliance through which solutions will be launched in Latin America. One of those solutions is the integration of TGI Clickstream, which integrates the data from Kantar IBOPE’s Target Group Index and offers a complete analysis of consumer behavior, with comScore’s MMX platform, which gives a complete vision of online audiences. It is to be launched in Brazil this year, followed by Colombia, Argentina, Peru and Chile in 2017.
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 will 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 Univisionhave 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 Drawbridgeis 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.
eMarketerreleased 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 & Gambleis 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.
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.
eMarketer‘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 Caratreleased 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.
Nuances of culture are important for anyone trying to reach Hispanics, from political candidates to mainstream brands to media.
Fox Buys Majority in National Geographic Magazine and Cable: Will Climate Change Denial Win?
The 127-year-old nonprofit National Geographic Society has struck a $725 million deal that gives 21st Century Fox a majority stake in National Geographic magazine and other media properties, expanding an existing TV partnership. The agreement will give the company controlled by Rupert Murdoch’s family a 73 percent stake in the new National Geographic Partners venture. The National Geographic Society retains 27 percent ownership. The move shifts the longtime nonprofit flagship magazine into a for-profit venture. The arrangement brings together National Geographic’s magazine with its cable channels and other media businesses. This is the second major deal announced in the last 10 days which puts together TV and magazine assets, the other one being the acquisition of Meredith Corporation by Media General. National Geographic originally partnered with Fox in 1997 to launch the National Geographic Channel. Officials said aligning the various media brands will help fuel future growth. In the Hispanic market, NatGeo-MundoFox (now MundoMax) ad sales are operated by Fox Hispanic Media. “This expanded partnership, bringing together all of the media and consumer activities under the National Geographic umbrella creates vast opportunities and enables this business to be even more successful in a digital environment,” said James Murdoch, CEO of 21st Century Fox, in announcing the deal. Al Jazeera has another take: Rupert Murdoch’s high-profile purchase of National Geographic — perhaps the most esteemed remaining icon of middlebrow American print culture — has touched off alarms over how the swashbuckling Australian press lord may visit a Fox News makeover on the science monthly…Murdoch’s acquisition of a 73 percent share of National Geographic — for a cool $725 million — is especially troubling to the cause of climate science, since the National Geographic Society (founded as a nonprofit foundation for exploration and research) administers a $1 billion grant program to research scientists.”
A case in point is Pepsi’s new limon flavor. The new flavor was made with the help of Adelante, an employee association at PepsiCo meant to “foster relationships with the Hispanic community,” according to Latinos Health. In order to get the taste right, Pepsi uses 2 percent real lime juice. For now, Pepsi Limon is available only in selected markets in California, Arizona, New Mexico and Texas, as well as Chicago. We can only hope it spreads to the rest of us.
Don’t stereotype lifestyle or spending power
In fact, marketers still struggle to create messaging that’s truly culturally relevant and nuanced enough to avoid stereotypes, according to Carlos Garcia, senior vice president of multicultural at GfK Media. And this goes beyond not plopping a Spanish icon into a commercial. There are more subtle stereotypes that can keep an ad from resonating.
Garcia told eMarketer that Hispanics are brand-loyal because they want to stick with what they know, so advertisers trying to win them away need to focus on a value proposition, not image advertising. He said, “Be specific. Why should I buy this product? It’s just as good and cheaper, it’s the same price but bigger, it’s better taste, it has more natural ingredients, it has aloe in it, it has more protein, it has something.”
Garcia also noted that, while the Hispanic population as a whole may have below-average household wealth, it is still a viable market for higher-priced goods. He said, “They organize their lives differently. They have different priorities. They are buying high-quality, high-cost electronics. They are buying houses. They are buying appliances. They are doing all these things that the sheer income numbers would suggest are impossible.”
Sweet new hub for Latinas
Speaking of mainstreaming, POPSUGAR Latina, a mobile-first hub within the fashion and lifestyle site, aims to better serve the 12 percent of traffic to the main site comprised of Hispanic women. The English-language site will skew the regular diet of celebrity gossip, fitness, fashion and recipes to Latinas. Anna Fieler, executive vice president of marketing at POPSUGAR, told CNBC, “Our intent is to deliver the content in English, focusing on content for the Latina who considers herself to be 100 percent American and 100 percent Latina.”
POPSUGAR has partnered with JCPenney as the sponsor of the launch. In the press release, Eileen Carty, EVP Brand Partnerships at POPSUGAR, said, “Latinas are the fastest growing market in the United States, and this young, family-oriented woman loves to shop and gather information and is connected with her smartphone at a faster rate than any other demographic.”
2016 election could see spending shift
While political candidate have been used to reaching Latino voters via Spanish media, changing demographics may cause them to rethink their media plans for the next election. Arturo Vargas, the executive director of the National Association of Latino Elected and Appointed Officials in Los Angeles, told Aljazeera America that candidates must understand the diversity in language, culture and generations. In 2013, Latinos born in the U.S. made up 65 percent of Hispanic Americans. “[Candidates] need to understand that there isn’t a single Latino profile,” Vargas said.
Candidates shouldn’t simply translate campaigns into Spanish; they’ll need to craft Hispanic-centric messages. “The outreach is not about language,” said Felipe Benitez, the communications and development director for Mi Familia Vota, another voter advocacy group. “It’s not about Spanish or English. It’s about addressing the issues that really matter to our community and listening to our community.”
That could mean more intensive work on platforms and advertising, as well as more thoughtful media plan to reach acculturated Hispennials outside of traditional Hispanic media. Multicultural agencies should clarify their ability to understand this changing audience, while Spanish-language media may need to refine their pitches.
What: According to eMarketer, global mobile ad spending increased 105.0% to total US $17.96 billion. Why it matters: Facebook and Google accounted for most of that increase with an ad revenue that rose US $6.9 billion.
Last year, mobile advertising spending grew by 105 %, reaching US $ 17,960 billion from US $8.8 billion in 2012, according to eMarketer. The fast growth rate was mainly due to ad revenue growth at Facebook Inc. and Google Inc.These companies mobile ad revenue rose US $6.9 billion.
Facebook experienced an incredible increase in the percentage of net revenues from mobile ads: they grew from 11 % to 45 % in just a year.
By the end of 2014, mobile is expected to account for nearly a quarter of total digital advertising expenditures.
Mobile continues to develop as a channel for brands, and its growth shows a potential threat even to television. By the end of this year, eMarketer expects mobile to account for nearly a quarter of total digital ad spending, which is estimated to reach US $137.5 billion. That’s up from 15 percent of theUS $119.8 billion digital ad spending total in 2013. By 2016, the same report anticipates that the fee that television plays in ad spending will fall to 23.1% and mobile’s will reach 26.3%.
Facebook’s share of the mobile ad market is likely to grow to 21.7 percent this year from 17.5 percent in 2013.Google occupied the the No.1 position, with half of the mobile advertising market in 2013.
Mobile advertising is expected to be the main digital channel by 2017.
Total Mobile internet ad revenues (billions)
Net Mobile Internet Ad Revenue share Worldwide,by company,2012-2014.Source: eMarketer
What:Mexico becomes a very interesting country for ad marketers for mobile ad marketers after leading Smartphone Market in Latin America in 2013. Why it matters: The country is expected to outdo every Latin American market in mobile ad spending during 2014.
Smartphone usage in Mexico has aroused mobile marketers’ interest.
According to eMarketer, smartphone penetration in Mexico is “comparatively high” to other major Latin American countries. Smartphone usage in Mexico doubled in 2012. In 2013, it grew by 50 percent. EMarketer estimated that 6.1 million people will be added to Mexico’s smartphone owners population.
Mexico could see approximately 33.3 million smartphone users, which is more than one-quarter of the country’s population (118.4 million inhabitants). Mexico’s “lack of competition” in the mobile industry, has led to high priced mobile data plans and device prices. For this reason smartphones have been “out of reach” for many people in Mexico. Mexican smartphone users usually come from top-earning socioeconomic groups, which is why alternatives to provide smartphones to “less-banked and credit-card-lacking portions” of the Mexican population are being considered by mobile carriers.
The country is expected to outdo every Latin American market in mobile ad spending during 2014, at the expense of advertisers and marketers time spent in the country. Mobile markets revenues in Mexico ,including development and production costs and ad spending, was of US $60.3 million(794 Mexican pesos) in 2012. It increased by 98 percent in comparison to previous year’s US $51.9 million revenues. According to the Interactive Advertising Bureau Mexico (IAB México) and PricewaterhouseCoopers (PwC): • Display advertising, from mobile browsers to games and apps, accounted for 79.3 percent of mobile advertisement in Mexico during 2012. • Mobile advertisement network StartMeApp noted 74 percent of network StartMeApp’ mobile ads took place in Mexican smartphones during the second quarter of 2013. • While mobile advertisement impressions among smartphones hit 74 percent in Mexico, it accounted for 62 percent for all of Latin America and 76 percent in upper North America.
Latin Link suggested that:
• Mexico leads the Latin American smartphone penetration • Brazil came in second with 23 percent • followed by Argentina’s 20 percent • Chile’s 19 percent • Peru’s 17 percent.