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evelyn.ferroEvelyn Ferro is leaving her position as Communications Director, World Markets at IPG Mediabrands to become Sizmek’s new Marketing Communications Manager, LATAM.

At IPG Mediabrands, Ferro was responsible for internal and external communications of IPG Mediabrands agencies – UM, Initiative and BPN – in global markets, from April 2012.

Now at Sizmek, she will be responsible for leading the company’s communication and marketing strategy  in the region.

What: Globally, media owner advertising revenues are forecast to grow by 6.4% in 2014 to US$516 bn, according to a report by Magna Global.
Why it matters: Following this forecast, Latin America will have  a 15% increase driven by the digital media strategies related to the Soccer World Cup, especially mobile platforms which account for 27% of market share.

Brasil 2014 - mascota -Of the US $31bn of additional advertising expenditures expected in 2014, almost 60% (US $10bn) will come from North America and Emerging Asia (US $8.5bn),according to Magna Global, IPG mediabrands´ global media strategy unit.

In terms of individual markets, US and China markets will provide nearly 50% of the world market’s growth (US $9.5bn and US $5.5bn respectively) followed by Brazil and Indonesia (US $4.5bn combined).

Global advertising growth (2006-2019)

Magna global 1 -

Key findings

  • The combination of a improved economic outlook and record incremental spend generated by several non-recurring events will boost marketing activity ( mid-term elections cycle,  The Winter Olympics, The Soccer World Cup) will be key in generating the strongest annual advertising growth since 2010 (8.4%).
  • Advertising revenues will grow by double digits again (15.4%) in 2014, mostly driven by higher-than-expected economic inflation -especially in Argentina- and by soccer madness as the World Cup returns to Latin America for the first time in 30 years.
  • In the US, media owners advertising revenues are forecast to grow by +6.0% this year, to US $168bn- an increase from December 2013 forecast of +5.5%- thanks to an improved economic outlook and non-recurring events: 2014 mid-term elections,sports events worldwide and the implementation of the Affordable Care Act.
  • Non-recurring 2014 sport events will contribute to global TV growth (+7.2%) compared to 2.7% growth in 2013.

Advertising growth by major geographical regions (2013-2014)

Magna global 2 -

  • Digital media continues to grow by double digits globally, although the growth rate will slow-down slightly due to the maturity achieved in many markets. Still, digital spend will increase by %16 this year to nearly US $140bn and 27% global market share (2013: 25%).
  • Of that US $20bn in additional spend, the bulk will come from social media formats (US $4.5bn), search (US $10bn) and video (US $2bn), while non-social, non-video display formats (e.g. banners) are stagnant globally and experiencing a steep decline in several mature markets.
  • Mobile media (campaigns on smartphones and tablets) is now capturing the bulk of digital media growth. In 2014 it will grow by US $10bn to US $27bn, a growth rate of 61% compared to just 9% for non-mobile formats, and -1% for non-mobile display.
The advertising economy in Latin America continues to grow, and according to our report is the only region that will have a growth rate of double digits, reaching 15% by the end of 2014.

“Although inflation plays an important role, there is no doubt that the eyes of advertisers are set on the Soccer World Cup in Brazil which has just started. This event is the key driver of the advertising industry in Latin America this year,” said Shaffia Sánchez, President, World Markets, Magna Global.

Advertising growth in LatAm and U.S.

Latin America advertising revenues will grow by double digits again (+15.4%) in 2014.

This growth is  mostly driven by higher-than-expected economic inflation (especially in Argentina, following the peso devaluation earlier this year) and by soccer madness as the World Cup returns to Latin America for the first time in 30 years.

This is despite an economic environment that is anything but buoyant: the IMF recently cut its real GDP growth forecast from 2.9% to 2.5%, thus predicting further slow-down compared to the already-sluggish 2012-2013.

Argentina

Argentina -Driven by inflation of media costs, ad spending is expected to grow by 28% to 35.5 billion pesos (US $ 6.3 billion approximately according to the official exchange rate in 2013 of 15.46) this year , even though the economy is in a period of downturn about to enter recession (0.5% of real GDP growth forecast by the IMF).

The advertising market in Argentina has also experienced a big boost because of the World Cup to be played in Brazil, its neighbor and rival country.

TV  is expected to grow advertising revenues by 30%. Spending on digital media will have an increase of 35% taking into account the relatively low market share of 8.5% driven by social and mobile formats.

Brasil
Brasil, uno de los mercados con mayor crecimiento en América LatinaBrazil will be at the center of the media and marketing world in the summer of 2014 when the FIFA World Cup returns to the land of soccer for the first time since 1950. Advertising spending was strong during the first months of this year and TV prices had a sharp increase, which led to raise the annual growth forecast to 15.8%.

This is bound to bring incremental spending from domestic and international advertisers and drive media inflation well above general inflation despite the sluggish economic environment (1.8% real GDP growth) and social discontent, relieving economic hardship.

Although there was a cutback in the long-term growth forecast, the high single-digit growth between 2015-2019 and 2016 Rio Olympic Games should help Brazil to leave the # 6 position as the largest advertising market in 2013 to be located at # 4 position towards 2019.

Chile

Chile efeservicios 188Chile is some kind of economic stability oasis in South America. Reflecting a growing economy, the advertising market will increase 2.6% in 2014 reaching US $ 1.4 bn and reaching 5.1% in 2015, which is a decent growth if taken into account the low inflationary environment.

Television and newspapers are the major media categories in Chile with 49% and 22% market share respectively.

Colombia

Colombia Digital 265Colombia has shown a robust growth in recent years. Advertising spending had a higher growth than GDP growth for five consecutive years.

An optimistic outlook for 2014 forecasts a 7.6% advertising growth reaching almost COP 9,700 million (US $ 5.2 billion), slightly above the nominal GDP growth of 7.0%.

Ad growth will be driven by an expansion in the economy (4.5% growth in real GDP with moderate inflation of approximately 3% per year) and strong consumer confidence.

Television is the leading category in media, accounting for two-thirds of total advertising spending.

México

méxico bandera -The advertising market in Mexico is valued at more than 72 billion pesos (US $5.7 bn).

Despite a slow start this year, the market grew 5.0% in 2013, which was even faster than economic growth (nominal GDP growth of 3.1%). Amid an economic acceleration (+6.2% of nominal GDP) advertising spending will have an additional growth of 8.5% in 2014.

The market is controlled by television with 60% market share.

Television will get the greatest benefits of the World Cup 2014 because TV ad spending will grow by 7.0%. As a result of soccer popularity in Mexico, its’ ad spending is expected to increase by US $ 35 million this year just by the presence of Mexico in the World Cup.

North America
In the US, media owner advertising revenues will grow 6,0% in 2014,reaching US $ 168 bn.This shows an increase compared to December 2013 forecast of +5.5%.

Sochi 2014 - 1 -The main growth drivers are the improved economic outlook and record incremental spend generated by several non-recurring events. The biggest of those events is the mid-term elections cycle followed by the Winter Olympics.

The soccer World Cup will be make a modest boost at the scale of the entire market, but a significant one in the Hispanic television sector. Another one-off spending driver this year is from insurance companies, healthcare institutions and local governments communicating around the implementation of the Affordable Care Act.

As always, US television will benefit the most from the non-recurring drivers of 2014, with advertising revenue growth of +8.3%, following 2013’s stagnation (-0.6%). National TV benefitted from the Olympics in the first quarter. Local TV will gain from political and health-related campaigns throughout the year. Hispanic TV will be boosted by the soccer .

What: IPG Mediabrands will launch Rally, a social media agency,  in Latin America.  
Why it matters: With its own software and processesRally will bring solutions for social media across all platforms and technology to the region. It will roll out in Argentina, Chile, Colombia and Uruguay.

rallyIPG Mediabrands has announced the launch of Rally in Latin America, a social media agency.

Rally, the social media arm of Mediabrands Audience Platform (MAP) , was first established in Asia in 2011. But now it’s being rolled out in Latin American countries including Argentina, Chile, Colombia and Uruguay.

Rally will bring to the Latam advertising market a broad offering of solutions for social media across all platforms and technology, built with its own proprietary software and processes,  including mobile solution capabilities.
 

This includes content, design, campaign planning, and customer relations. In addition, its’ scope extends to analytics and insights for daily monitoring, strategic campaigns as well as world-class crisis management solutions.

Rally will be led by Lucia Parodi in Argentina, Alvaro Morales in Colombia, Natalia Neves in Uruguay and Walter Yenes in Chile; all planning specialists.

Pablo Rodriguez, President, World Markets, Latam at IPG Mediabrands said, “Rally’s unique selling point that sets it apart from its competitors is its focus on social media proprietary tools and its affiliation to a global agency network like Mediabrands.”

“Rally is the only social media agency that combines big data, technology, and content with an RTB solution. We fuse the social strength of Rally with the programmatic buying expertise of Cadreon to generate unsurpassed efficiencies and maximize investments for our clients,” said Marina Mendez, Regional Director, MAP, Latin America.

It currently has operations in nine countries across South East Asia, five offices in Northern Europe headquartered in Denmark, and five offices in Southern Europe headquartered in Portugal and Turkey. With more than 300 dedicated social media professionals, Rally manages over 50 blue-chip clients globally in more than 20 different languages.

What: IPG Mediabrands announced the launch of Cadreon, its programmatic buying capability in Latin America that will operate through a central hub in Chile.
Why it matters: This unit will service more than 10 markets in the region, where Real Time buying is expected to grow by 67% in 2014 reaching US $836mm.

cadreonIPG Mediabrands, the media innovation arm of Interpublic Group, has announced the launch of Cadreon, its programmatic buying capability in Latin America with a central hub in Chile servicing more than 10 markets in the region.

This launch is part of an expansion strategy of Cadreon’s programmatic buying service operating in more than 25 countries across the globe.
  

In Latin America, Cadreon counts on a team of specialist in Chile working with representatives in Argentina, Colombia, Central America, Ecuador, El Salvador, Peru, Uruguay, Mexico, Brazil and Miami where they offer pan-regional services. The Cadreon team in Latin America will bring a series of services to the region including: identifying audiences and creating customized marketplaces for each client to connect with their consumers across multiple platforms.

Cadreon is one of the core specialist capabilities offered under Mediabrands Audience Platform. Its’ specialized digital performance platform integrates technology, data and inventory to target audiences in real time. Operating as an independent media buyer, Cadreon will integrate inventory and data from multiple- domestic and international -demand side platform (DSP) partners, therefore maximizing the effectiveness and efficiency of digital communications across digital display, online video and mobile platforms.

Cadreon’s mission is to find the right audience at the right time and is mainly driven by its´proprietary technology Total Tag, which enables the data collection and deep audience insights that drives further optimization of campaigns. The integration of all the capabilities, when deployed and utilized appropriately enables significant performance improvements for clients.

Unlike many other agency trading desks, Cadreon does not purchase media inventory in advance and does not arbitrage media inventory,so that it can  ensures that inventory is purchased in real time and clients enjoy the true efficiencies of real time bidding (RTB).

The future of Programmatic buying

 The study : “The International State of Programmatic” carried out by MAGNA GLOBAL , forecasts that Real Time buying will grow by 67% in Latin America in 2014 (US $836mm) and global programmatic buying will reach a CAGR of 31% by 2017.

Brazil and Mexico were identified as the most advanced programmatic markets in the region.
 

The study also predicts that by 2017, RTB will have a market share reaching 25% of the total display spend in the region. However, it reveals that in the near future the overwhelming majority of non-premium inventory will be transacted through programmatic, primarily through RTB.

Marina Mendez, Regional Director of Mediabrands Audience Platform (MAP), said, “Cadreon, our RTB platform, allows us to find and create specific audiences in Latin American by using DSPs drivers and Big Data. We have invested in talent and resources to make Cadreon a solid network in the region and to ensure excellence in ROI.”

“With Cadreon we want to change the concept of media planning to ‘audience planning’, always adjusting the target in the purchases of display advertising for our clients to fulfill their communication objectives,” said Luis Contreras, Director of Cadreon in Latin America.

What? IPG Mediabrands has announced new appointments in Southern Cone executive structure.
Why it matters? The new appointments are part of the agency regional growing plan for 2014.

Nicolás Ramondemartin guiradoMartin Guirado has been appointed President for IPG Mediabrands Argentina and Nicolas Ramonde has been given the role of President, IPG Mediabrands for Uruguay, Paraguay and Bolivia.

The global media agency network IPG Mediabrands has announced new appointments in the executive structure of the Southern Cone As part of its regional growth plan for 2014.

Martin Guirado, President of UM Argentina since the beginning of 2012, will undertake the new role of President for IPG Media brands Argentina. He will be in charge of the group’s operations, leading the development of UM, Initiative, BPN and all specialty services offered by Mediabrands across the market.

Nicolas Ramonde, President of Initiative Argentina and Uruguay until the present, will take over as President of IPG Mediabrands for three markets: Uruguay, Paraguay and Bolivia. He will be running the evolution of the agencies UM, Initiative and BPN, as well as all diversified services across these three markets.
Martin Guirado and Nicolas Ramonde will continue to report to Pablo Rodriguez, President, IPG Mediabrands, World Markets Latam.

Pablo Rodriguez stated that this new leadership structure will help enhancing Mediabrand’s growth and consolidation across the Southern Cone as well as accomplishing the network’s and its clients goals much earlier.

Martín Guirado holds a degree in Advertising and has an extensive professional career that encompasses over 20 years in the market. He has worked for well-known agencies in the country and has headed business development efforts in several countries across Latin America. He has been a pioneer in the media industry, integrating traditional product offerings with new specialties such as branded content, digital and technology.

The economist Nicolas Ramonde has been leading the Initiative operation in Argentina and Uruguay for nine years, where he has driven outstanding organic growth and developed digital and research capabilities. He has been part of the Board of Director at the Argentinian Association .of Media Agencies, IAB Uruguay, a representative at ICOM, and jury member and speaker at various regional and global festivals.

People change positions, get promoted or move to other companies. Portada is here to tell you about it.

Santiago Nogues – Ruy Mussi ::: Laura Chiavone – DDB Brazil ::: Marina Mendez – IPG/ Mediabrands ::: Rafael Martinez – Gonzalo Martinez, Javier Macias, Miguel Angel Ruiz – Ogilvy ::: David Luhnow – Dow Jones Newswire :::

Santiago Nogues has been appointed Creative Director at Ruy Mossi Argentina. Nogues will be tasked with accounts like Samsung, Surrey and Branca.

Laura Chiavone is the new Planning VP of DDB Brazil. Chiavone will work with Marcelo Passos, Account VP and Monica de Carvalho Business VP. Nathalia Iervolino will report to Chiavone as its Account Director.

Marina Mendez is the new regional director of Mediabrands Audience Platform (MAP) for World Markets Latam, the global division of Mediabrands that deals with all specialized digital services including search, display, social, mobile, programmatic buying and video. Méndez will be in charge of developing a holistic vision for the whole range of MAP services that are already present in Latin America, including the units of Reprise Media (Digital Marketing/SEM) and Cadreon (programmatic buying). Méndez will be reporting to Pablo Rodriguez, president of Mediabrands, World Markets Latam. Earlier in her career Méndez worked as president of OMG Digital and as regional CEO of ZED Digital (Publicis).

Ogilvy has announced that Miguel Angel Ruiz, VP of Creative Services, Javier Macias, VP of Planning, Gonzalo Martinez, VP of clients and services and Rafael Martinez Gallardo, Ogilvy Red´s Director have left the agency to found their own business. Accoring to the executives the new agency will began to operate in October.

David Luhnow has been named Latin America editor for Dow Jones Newswires and The Wall Street Journal. He will be based in Mexico City. Luhnow has been Latin American bureau chief for the Journal since 2008 and is overseeing a regional editorial staff of 31 across Central and South America.

 

IPG Mediabrands continues expanding its services in Latin America with the opening of new Reprise Media offices in Argentina. The agency has offices also in Santiago de Chile, Uruguay and Colombia. Reprise Media is part of IPG Mediabrands’ MAP division (Mediabrands Audience Platform) and offers services such as search, display, mobile, social, video, e-commerce and app development.

Reprise Media has consolidated its global market position within digital marketing since 2003, providing services to large advertisers like Coca Cola, MasterCard, Unilever, Microsoft, Bayer, American Airlines and Hyundai among others. This global experience has landed in the Argentinean market under the leadership of Daniel Cao as General Director of Reprise Media in the country.

“I’m very pleased to be able to lead the Reprise Media team in Argentina. This is an era full of opportunities for those advertisers and brands anticipating the knowledge curve within digital communication.  said Daniel Cao.

Nicolás Ramonde, CEO of Initiative Argentina stated, “The launch of Reprise Media, a global digital agency with strong credentials in communication performance, supports IPG Mediabrands’ focus to provide our clients and the Argentinean market with the best practices worldwide here and now.”

Martín Guirado, CEO of UM Argentina added, “We are thrilled to have the support from our global network for the launch of Reprise Media. All our clients will benefit from the services, tools and qualified talent in one of the top notch digital agencies worldwide, which is of vital importance for our brands looking to lead the market in this area with high dynamics and constant challenges.”

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