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What: Retailers scramble behind Amazon and MercadoLibre to capture their share of expanding e-commerce in Latin America. This happens despite difficult payment and delivery challenges.
Why it matters: Experts predict e-commerce trends will grow by 19% in the next five years. They see it rising well above the global average of 11%. The lack of brick-and-mortar retail outlets in Latin America actually plays into the hand of e-commerce retailers. That’s because it allows them to offer products to consumers outside of major cities who don’t have many shopping options.

E-Commerce Trends Heating Up

E-commerce trends in Latin America provide no place for the timid. The challenges are well-known. Experts say they include lack of infrastructure, consumers without credit cards or bank accounts, high rates of online payment fraud, and obstacles to delivering product—to name just a few.

But the barriers to success don’t stop leading players. For example, MercadoLibre is diving into the e-commerce market and thriving.

One expert remarks the challenges are “daunting.” But competitors like Linio are finding ways to outperform. They chase what Linio’s General Director Olivier Sieuzac says is a “massive opportunity” in expected e-commerce growth in the region.

Linio has learned it had to expand its online business model. That means beyond just selling product. The strategy now includes things like creating its own delivery fleet. Linio also sells its hard-earned expertise to brands like Aeromexico who create their own online retailing presence.

To succeed in Mexico, Linio built partnerships with VISA to prevent credit card fraud. Consequently, it also joined arms with third-party payment channels. They include the convenience store chain Oxxo. Linio aims to provide the unbanked with cash-payment options.

Mexico, according to Sieuzac, offers the “worst of both worlds.” Mexico suffers high levels of online payment fraud and a low level of cooperation from banks.

As a result, Linio developed a proprietary algorithm with VISA as a response to reduce credit card fraud. Consequently, Linio also now offers its own credit card with a loyalty program. The loyalty program awards cash back on purchases.

Linio also created its own fleet in Mexico to handle the delivery of over-sized items like refrigerators and other home appliances.

Infrastructure, payment obstacles

Lack of infrastructure in Latin America makes delivering product a particularly difficult part of the e-commerce business.

Logistics and related issues amount to 15 percent of the cost of what’s sold online—well above other regions, according to Miriam Dowd, Marketing Manager at FOCUSECONOMICS.

Merchants experience the impact of “limited” access to credit card-based payment methods. Banks often don’t allow debit cards to be used for online payments.

E-commerce in Latin America faces many challenges, the most daunting of which are logistics, traffic, and infrastructure. Regulations and rules vary among countries. Merchants have and limited access to secure, credit-card based payment methods,” Dowd explains.

Online sales are expected to grow by 19% in the next five years. As a result, that is well above the global average of 11%. They are foreseen to double in value to $118 billion in 2021.

But on the positive side of the ledger, experts say market penetration is low compared to other regions. As a result, that represents lots of opportunity. Consequently, the market also offers higher growth rates.

“Online sales are expected to grow 19% in the next five years – well above the global average of 11%. As a result, they will double in value to $118 billion in 2021. Consequently, two of the three fastest-growing eCommerce markets in the world are in Latin America. They are Colombia and Argentina,” Dowd said in an email to Portada.

E-commerce trends forecaster eMarketer found even with this expected high growth rate, nearly 75 percent of the market of 650 million consumers expected to shop online is untapped.

E-commerce trends working for e-retailers

MercadoLibre boasts status as the undisputed leader in Latin America. Its huge geographic footprint and logistics expertise “have helped it to hold the lead,” Dowd said.

Amazon leverages its international recognition to become a leading player in Latin America.

And for Linio, expanding its business model and offering consumers a trusted, predictable and “formal” online shopping experience proves critical to its success, according to General Director Sieuzac.

Linio seeks to set itself apart from other online retailers by rigorously vetting its product providers to make sure what they offer Linio’s customers meets certain standards.

Linio offers free returns in its strategy of building customers’ confidence.

“We’re not leaving customers alone in a face-to-face situation with the seller,” Sieuzac said.

Linio’s strategy provides its online expertise to brands. They then create their own online shopping sites, a key component of Linio’s competitiveness.

As a result, Linio entered into a partnership to build and operate Aeromexico’s Club Premier online shopping experience.

Mexico offers the worst of both worlds: high levels of online payment fraud and a low level of cooperation from banks.

Linio also partnered with the micro-financing company ConCredito. ConCredito provides a huge presence in rural zones not necessarily within Linio’s geographic footprint.

Linio publishes its catalog of products on ConCredito’s website “Creditienda.” Linio spokesperson Paulina Maza said the company supports the ConCredito e-commerce site with specific promotion campaigns. They include digital marketing, logistics, fast delivery of products, and returns.

What lies ahead

The lack of brick and mortar retail outlets in Latin America actually plays into the hand of e-commerce retailers. That’s because they can offer products to consumers outside of major cities where consumers don’t have many shopping options. Sieuzac told Portada, “It’s a massive opportunity. You have people that simply don’t have access to products, even from a normal shop.”

A “key component” of e-commerce growth in Latin America proves to be shopping online with a mobile phone. As a result, a report by yStats.coMobile commerce reveals experts expect it to increase at a faster rate than e-commerce.

Brazil offers the largest consumer e-commerce market in Latin America. The report found experts predict Colombia to show a 20 percent growth rate through 2021.

A summary of the report reveals experts predict: “Rising internet and smartphone penetration rates, greater online payment security and development of MCommerce to contribute to the growth of online retail sales.”

Portada expects Latin American-Panregional Marketing expenditures to reach US$ 740 million in 2019. Miami continues to be the main panregional marketing and media hub, although Mexico City and other centers have an increasing weight. This is one of the insights of the just-published 2019-2020 Panregional Marketing and Media Report, which provides Latin American Panregional Marketing Expenditures forecasts for the 2019-2024 period.

Portada’s 2019-2020 Panregional Marketing and Media Media Report provides data, intelligence, insights, and forecasts about the Latin American Panregional Marketing Services sector from 2019 to 2024. A major tool for corporate expansion into Latin America and sales-planning/intelligence for marketing vendors offering services to major brands targeting the Latin American consumer. The 75-page report, which includes a market volume and growth forecast model based on a survey of more than 100 brand and media agency executives conducted by Portada, answers a myriad of questions including the 7 below:

1. What is the size of the panregional marketing sector?

The overall actual Latin American Panregional Marketing Services Sector, understood as decisions taken out of several marketing hubs (*see question 2) including Miami, Mexico City, New York, London and others, has a volume of approximately U.S $ 740 million a year (2019), according to the report. Measured in influence, although not necessarily in direct purchasing power, the brand and media agency executives located at those centers influence approximately US $2.26 billion a year (see chart below.)

Panregional Marketing Expenditures
Actual and “Influence” on Panregional Marketing Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

2. How is panregional marketing defined? (*)

Panregional marketing is understood as marketing services purchases for two or more Latin American countries by clients (brands) or media agencies located outside of those countries.

3.Which city is currently the largest hub for panregional marketing?

Miami/South Florida is the largest hub followed by Mexico City, New York, London and Sao Paulo. The report provides overall market volumes for marketing decisions taken out of the above hubs from 2016 to 2024.

4.What media category is increasing its share of panregional media buys?

The structure of the panregional media buy out of Miami has changed substantially over the last decade with Pay TV- ten years ago the clear leader – only capturing 20% of the share in 2019 and digital media increasing its share to 60%. The 2019-2020 Panregional Market and Media Report includes expenditures and market share forecasts  (2016 to 2024) for the below market services types (both overall as well as for Miami/South Florida):
Outsourced Content Marketing Services
Outsourced Social Media Related Services
Public Relations Services
Media Planning and Buying Services
Paid Media (Overall)
-Print
-Pay-TV (Cable and Satellite)
-Out of Home
-Radio
-Sponsorships
-OTHER (Including: Movie
-Advertising, Inflight, In-Game
Advertising)
Digital
-Social Media
-Search
-Display
-Video
-Audio Advertising

5. Does the 75-page research report also provide intelligence on Panregional Marketing Expenditures on the brand/client side?

Yes, the report displays  Panregional Marketing Expenditures volume forecasts (2019-2024) for the below ad  -categories.
-IT/Electronics
-Studios/Entertainment
-Financial Services
-Telecomm
-Cosmetics/Fragrance
-Luxury
-Travel/Tourism
-Beverages
-CPG
Other (including Automotive, Education
and Health Services)

6. What other brand related intelligence does the 2019-2020 Panregional Marketing and Media Report provide?

Dozens of examples of panregional (Latin American) marketing decisions by Fortune 1000 companies are provided. Intelligence includes the description of different ways companies structure their marketing organizations targeting Latin American consumers and their marketing decision making as well as from what hub (e.g. Miami, Mexico City, New York etc..) these decisions are made out of.

7. What else does the report provide?

The report also discusses the advantages and disadvantages of Miami as a panregional media hub, according to more than 100 major brand and media agency executives interviewed by Portada.

The 2019-2020 Panregional Marketing and Media Report is a major tool for corporate expansion into Latin America as well as sales-planning/intelligence for marketing vendors offering services to major brands targeting the Latin American consumer. To get more information about the report, please contact Sales Coordinator Michelle Lopez.

 

What: MAGNA has released its summer 2019 update of advertising forecasts, which predict the Latin American advertising market to grow by +7.3% this year.
Why it matters: Global market growth is slowing down compared to the record growth recorded in 2018 (+8%), mostly due to the lack of major cyclical events in 2019.

 

According to the latest MAGNA report, global advertising revenues are forecast to grow by +5% to reach US $600 billion in 2019. This is 3% less than 2018 growth, a difference that is due to the absence of major cyclical events this year. As the report mentions, this lack of cyclical events will affect editorial media that generally benefit from them, such as TV, print, radio, video, etc. Magna predicts editorial ad revenues to stagnate at US $366 billion this year, while direct digital ad sales, including search and social formats, will grow by +15%.

“Global ad spend continues to grow as the economy remains strong in key markets but two factors are slowing down the growth rates in 2019: one is cyclical (the lack of major events in 2019, following a record year in 2018) while the other is structural,” said Vincent Létang, EVP, Global Market Intelligence at MAGNA, and author of the report. “Digital ad formats now account for more than half of total advertising sales. However, product innovation (smart homes, cloud services, OTT, 5G) and marketing innovation (direct-to-consumer brands) will continue to drive ad spend growth this year and the next.”

Among the key predictions in the report, MAGNA forecasts ad spend will grow in all key markets this year, television ad revenues will shrink by -2%, print ad sales will decline by -10% and radio by -1%. Also, OOH will continue to outperform traditional media, and social media will be the fastest-growing digital format in 2019 (+23%) ahead of video (+22%), and search (+13%).

Also, MAGNA predicts that digital advertising revenues will grow by +14% this year, to reach US $304 billion, more than half of the total global advertising economy (51%). In 2020, digital advertising will grow by double digits again. The report points out that digital advertising growth has slowed down compared to the previous four years, which had been expected because digital media penetration is now near universal in many markets. However, growth remains strong: MAGNA anticipates search ad sales to grow by +13% this year, while social ad sales will grow by +23% and digital video by +22%.

Moreover, MAGNA’s report states that the fastest-growing markets will be Argentina and the Ukraine (both +22%) where ad spend is driven by hyper-inflation. Other emerging markets that will grow around doublé digits or more are India (+15%), Egypt (+19%), Vietnam (+11%), and Brazil (+9%). Asia Pacific and Latin America will be the fastest growing regions (+7.4% and +7.3% respectively).

For 2020, MAGNA forecasts global advertising to grow yet again, for the eleventh consecutive year. Linear ad revenues will reportedly stabilize while digital ad sales will grow by +11%. Total advertising sales will reach US $627 billion thanks to the return of events like the Summer Olympics, the U.S. Presidential elections, and the European Football Championship.

 

 

Portada is glad to announce Jose Bello has been appointed as Director, Multicultural and Latam at Omnicom’s Icon International Inc. Congratulations, Jose!

 

 

After three years as Senior Director, Total Market at Hearts & Science, long-time Portada collaborator Jose Bello is moving to another Omnicom company: ICON International Inc. ICON helps clients recover value from their underperforming assets in exchange of media. All media purchases made through ICON are at clients’ benchmark pricing and quality; thus, Jose’s mission will be to identify opportunities for clients to consider corporate barter as an efficient way to fund their media investments in multicultural and in LATAM.

Jose is an accomplished veteran in the industry with more than 25 years of experience in marketing, advertising, and media. At Hearts & Science he led the media team in charge of multicultural work for P&G, including the multi-awarded campaign “The Talk”— an effort against racial bias that received 8 Lion Cannes and a Grand Prix, Effies, Reggies, Festival of Media awards, 4A’s, and a TV Academy Emmy Gold Award for Outstanding Commercial in 2018. Prior to Hearts, he was Managing Partner at Mediacom New York where he worked with clients such as Anheuser Busch, MARS, Volkswagen, Subway, Revlon, and Dell, among others. Jose also spent 6 years at Starcom on different roles in Miami, Latam, and a two-year assignment in Russia to manage the Coca-Cola and Novartis accounts.

On his new role at ICON International, Jose will be based out of the newly-opened satellite office in Fort Lauderdale. We wish him good luck in his new endeavors at ICON!

 

What: To leverage the UEFA Champions League, Pepsico launched a 360º campaign spanning 13 Latin American countries featuring some of the sport’s greatest household names.
Why it matters: The campaign offered an integrated experience through a variety of platforms and social networks, as well as mechanics tailored to each market in order to spark consumer engagement.

 

Hosted by the UEFA, the Champions League is the annual sports event that captivates the most spectators globally. Pepsico, ever the master in larger-than-life partnerships, has wisely profited from the event’s massive audience, launching a campaign along with the soccer powerhouse for the fourth consecutive year.

Their latest joint venture spanned over 13 Latin American countries and lasted three months starting in April, and it featured some of the sport’s greatest household names: Argentina’s Lionel Messi, Spain’s David de Gea, Uruguay’s Luis Suárez, and Chile’s Gary Medel.

The idea was to create a comprehensive 360º campaign to offer participants an integrated experience through a variety of platforms and social networks acting as points of sale. First, they forged a strategic partnership with ESPN to keep viewers interested and foster interaction all throughout the tournament. Then, its local branches conceived cleverly focalized campaigns per region throughout Latin America, that used different mechanics based on their consumer’s profile, behavior, and what dynamics they find the most engaging.

For example, Chile’s Minuto de Gol required participants to guess the exact minute the first goal would be scored. Demuestra tu pasión asked consumers in Guatemala to solve a trivia. El llamado de la Champions coaxed Mexican fans to register as many codes as possible to accumulate points. For Brasil’s self-explanatory Lay’s te leva para la final da UEFA Champions League, all viewers had to do to participate was registering a code online. Participants could win from Lay’s products and official UEFA playing balls to the ultimate prize: a trip to watch the final, Tottenham vs. Liverpool, at the legendary Estadio Metropolitano in Madrid.

Portada talked to Nicolas Lopez Marti, Senior Director, Core Salty Brands, Central and South America at Pepsico, in order to find out more about the strategy behind the campaign.

 

Nicolas Lopez Marti is a recent addition to Portada’s Brand Star Committee Latam. The committee’s next in-person meeting will take place at Portada Mexico, 17 October 2019.

 

Portada: Which were the 13 countries that participated in the campaign?

Nicolas Lopez Marti: Colombia, Peru, Chile, Argentina, Uruguay, Paraguay, Guatemala, Honduras, El Salvador, Costa Rica, Panama, Puerto Rico and Republica Dominicana.

 

Portada: Was the campaign also aimed at Hispanic audiences in the U.S.?

N.L.M.: Lay’s has a strong presence with Hispanic fans on sales points. Based on our knowledge of the audience, we’re completely sure that by featuring Lionel Messi as the campaign’s main international spokesman, we’d be able to connect with them on a special level.

 

Portada: Which media did you use the most? Broadcast, video, social…?

N.L.M.: It was an integrated campaign, present on OOH, radio, TV and very strongly on digital media. We also added PoS dynamics and interactive games so the consumers could get the full soccer experience when they purchased their Lay’s.

 

Portada: Which were some of the most outstanding activations?

N.L.M.: Throughout February, we had the actual “Orejona”, the famous Champion’s League cup on display at a huge public event in Guatemala, featuring celebrities and players. We also planned an interactive activation to complete the virtual “Topps” figurine album, which is very famous in Colombia, Argentina, Peru, Uruguay, and Paraguay.

 

Portada: What has been your main social media strategy?

N.L.M.: Our already strong regional presence on Instagram and Facebook, and influencers from each country narrating their experience live during the actual final match.

 

Portada: Did you notice a direct impact of the TVC on your social media initiatives?

N.L.M.: Absolutely. Showing superstars like Messi, Suárez, De Gea, and Medel touched consumers directly; they felt widely motivated to interact with Lay’s on social networks and participate in the dynamics. Plus, the prize to see the final in Madrid was the greatest motivator to interact with the brand.

 

 

What: Kantar has released the results of its yearly Brand Footprint report, based on research of 72% of the global population.
Why it matters: In Latin America, 8 of the top 10 brands belong in the food and beverage category. Brands can refer to Kantar’s report to find out what these brands have in common, and why they are so close to the Latin American consumer’s heart.

 

Kantar has released the 2019 edition of the Brand Footprint report, a study of this year’s most chosen fast-moving consumer goods based on research of 72% of the global population; a total of one billion households in 49 countries across five continents, accounting for a staggering 85% of the global GDP.

According to the study, Coca-Cola reigns steady for the seventh year in a row as the world’s most chosen brand, purchased over 5.9 billion times. Stepping on its heels are Colgate, the only brand chosen by more than half of the world’s population (6 out of 10 households globally), and Maggi, raising consumer’s choice up to 7%.

In Latin America, the food and beverage categories dominated the top ten (except for Colgate, at second place, featuring a 89.6% penetration in 2018). Falling behind Coca Cola, the ultimate champion, are staple brands Bimbo and Maggi taking up the third and fifth spot, followed by the soft-drink category represented by Lala, Pepsi, Nescafé, and Tang ranking from 6 to 9, and kitchen basic Knorr at the 9th spot.

The study revealed an important turning point in Latam: the FMCG market has brought its growth to a grinding halt after seeing an 8% volume increase just a decade ago. Consumers are changing their habits and priorities, challenging brands and manufacturers to keep up with their new frames of mind. Health and environmental sustainability have become imperative features of modern products that seek to thrive with the millennial consumer force. The following is a list of the top 10 most-chosen brands in Latin America.

Top 10 Most-Chosen Brands in Latam

Rank Brand Penetration, % Consumer choice

(choices by shopper)

Consumer reach points (000)
1 Coca-Cola 88.2% 27.7 2797
2 Colgate 91.0% 8.2 854
3 Bimbo 32.4% 19.3 715
4 Lala 17.8% 32.3 657
5 Maggi 63.1% 8.9 641
6 Tang 56.6% 7.6 496
7 Pepsi 41.6% 10.1 479
8 Knorr 57.4% 7.2 475
9 Nescafé 41.5% 9.4 446
10 Palmolive 59.3% 5.4 364

Source: Brand Footprint Report, Kantar Worldpanel 2018.

 

Leading executives from the brand, agency, media, and tech sectors will gather at an exclusive Luncheon Roundtable at our upcoming twelfth annual  Portada Miami on April 12 to discuss the topic: Redefining the Role of Miami as a Marketing and Media Hub. During the exclusive lunch meeting, Portada will present the results of its Panregional Marketing and Media Report. The exclusive function will take place within the framework of Portada Miami on April 12, 2019, but will only be accessible to a select group of Miami based brand marketers and other Latin American regional brand marketing decision makers.If you’re interested in attending the Luncheon Roundtable, or wish to know more about the opportunities Portada Miami offers to meet your marketing and networking needs, please reach out to Sales Coordinator Michelle Lopez.

Miami has a rich history and a preeminent role as a Latin American marketing and media hub. In order to grow its leadership, and in light of structural changes in the marketing and media industry, the role of the South Floridian city needs to be redefined by key sector decision makers. Portada, a trade platform that has published the Panregional Advertising and Marketing Report for many years; convenes C-level thought leaders from the Miami brand, agency, tech and media sectors for an exclusive Thought Leadership Luncheon Roundtable under the name “Redefining the Role of Miami as a Marketing and Media Hub”​.

Check out the highlights of last year’s Portada Miami!

During the luncheon, Portada will present the findings and market volume forecasts of the ​“2019 Panregional Marketing and Media Report”​. The report will be the stepping stone for a conversation of C-level decision makers about the role, opportunities and growth drivers of the Miami marketplace.

Brand, Media and Agency leaders who will participate in the Luncheon Roundtable include:

Andres Amezquita, Stanley Black & Decker, Inc. (VP Digital and Commercial Excellence Latin America)

Adriana Bellinatti Grineberg, (Facebook Regional Director, Pan-regional Latam, CENAM & Caribbean)

Facebook’s Adriana Bellinatti Grineberg at the Americas Board’s Meeting during Portada Miami 2018

Maria Budet, Miami-Dade Beacon Council (Vice President, Marketing & Communications)

Pablo Chiozza, Latam Airlines Group (SVP USA, Canada & Caribbean)

Alan Duggan, Meliá Hotels (International Regional Vice President Business Development The Americas)

Elena Feoktistova, Mastercard (Regional Head of Consumer and Product Marketing LAC)

Lorena Holguin, Mastercard (LAC Sponsorship Director)

Eric Melis, Pepsico (Sr. Director Carbonated Soft Drinks Category, Latam Region)

Rafael Lopez-De-Azua, Coty (Head of Media and Digital – Latam)

Luis Perillo, Hilton, (VP, Sales & Marketing, Caribbean & Latin America)
GroupM Latam’s CEO José María Sanabria, speaking at Portada Miami 2018

Julian Porras, Omnicom Media Group (Chief Executive, Latin America)

Luciana Resende Lotze, Visa Inc. (Sr. Vice President Marketing Latin America and Caribbean)

Ana Cristina Rivadeneyra Balsa, WeWork Marketing Manager México

José Maria Sanabria, GroupM Latin America (CEO Latam)

Guillermo Rivera Hernández, Amazon (Sr. Marketing and Content Manager)

Trinidad Tagle, The Estée Lauder Companies Inc. (Marketing Manager Latam)

Sebastian Valderde, Google (Managing Director Spanish-Speaking Latam)

Fabiola Vega, The Estée Lauder Companies Inc. (Regional Marketing Director)

What: IZEA specializes in connecting brand marketers with influencer content creators and has signed a letter of intent (LOI) to acquire FLUVIP, which operates multiple influencer platforms in Latin America.
Why it matters: The rapid growth of cell phone use and digital marketing to sell products and services in Latin America makes FLUVIP’s network of 100,000 Hispanic influencers in both LATAM and the US look like the perfect scoop for IZEA to move into the region.

IZEA may have found the perfect match for extending its dominant technology connecting brands and influencers into the growing Hispanic market in the US and Latin America.

Who’s the lucky bride? FLUVIP.

It’s not a big surprise when you consider FLUVIP’s multiple influencer platforms in Colombia, Brazil, Mexico, Peru and Argentina plus FLUVIP’s network of more than 100,000 influencers. Not to mention its client base.

Plus, the rapid growth of cell phone use in the region has been catapulting digital ad spending by brands to new highs making FLUVIP an even more attractive prospect for IZEA.

“We believe that there is a significant opportunity for international consolidation in the Influencer Marketing space,” Alfonso Gómez Palacio, Telefonica’s Director Hispam North said in a statement announcing a Letter of Intent to acquire FLUVIP released on Wednesday.

“This transaction brings together the leading influencer marketing platform in the United States with the leading platform in Latin America.”

A match made for LATAM

Pedigree helps in any marriage and FLUVIP is brings a lot to the altar with investors which include the global Hispanic entertainment brand Cisneros Group, Spanish multinational telecommunications company Telefonica, and Velum Ventures specializing in seed and early stage investments in Latin America.

IZEA’s CEO Ted Murphy told the website Cheddar that IZEA sees tremendous promise in influencer marketing in LATAM where digital ad spending is expanding at twice the rate of the US.

This transaction brings together the leading influencer marketing platform in the United States with the leading platform in Latin America.

But successful influencer marketing requires a vision and perseverance, according to Vivian Baron, founder and creative chairwoman of Band of Insiders.

José Camargo is a member of Portada’s Brand Star Committee Latam

She recently told attendees at #PortadaMX in Mexico City only a “long-term strategy” can grow the “critical mass of loyal followers” brands need for influencer marketing to do its magic.

Synergy between influencers and a brand’s values is also an important tonic for success.

“You should focus on gaining trust and credibility through an influencer whose values coincide with the company’s,” José Camargo, e-commerce subdirector at Best Buy Mexico told #PortadaMX.

 

A perfect union of technology

IZEA intends to leverage its marriage with FLUVIP to combine the organizations’ technologies and provide better influencer marketing services to large international brands.

This technological union will accommodate multiple languages and currencies, software and managed services, and cultural expertise.

“We are excited by the potential to unite FLUVIP with IZEA to form a truly unique technology and services platform catering to marketers and influencers across North, Central, and South America,” Sebastian Jasminoy, Founder and CEO of FLUVIP, said in a release.

Multiple ways to tell brands’ stories

The marriage of IZEA and FLUVIP would appear to create a perfect match for brands looking for influencers to deliver their unique stories to consumers in LATAM.

FLUVIP operates platforms in LATAM that include Influtech, AdvocatesPro, and Mediadata where brands can harness the power of leading opinion makers in the region.

Plus, FLUVIP customers include Coca-Cola, Samsung, Apple, Pepsi, BBVA, Sony, Fox and National Geographic to name just a few.

But the game of influencing consumers isn’t just about influencers.

“Influencers are not only about your image; they can provide a great amount of information. By analyzing data and organic profiles, you can find more information than what a common marketing study can provide,” Band of Insiders Influence Marketing Manager Leonardo Vargas told #PortadaMX.

The precise terms of the FLUVIP acquisition haven’t been announced. The transaction may be consummated as soon as May of this year.

 

What: MAGNA LatAm has released its ad spending forecasts for 2019 in the different Latin American markets.
Why it matters: MAGNA’s predictions show an overall optimism that has to do with the new stability of economies, the presidential elections in five countries, and the 2018 FIFA World Cup. However, political uncertainty could bring unpredictable effects in 2019.

According to a recent statement, media forecaster MAGNA  (@MAGNAGLOBALhas predicted advertising revenue to grow in Latin America by 7.6% in 2019, reaching US $28.5 billion. If true, this would mean a 9.6% deceleration. In 2018, regional markets benefited greatly from economic stabilization and short-term cyclic drivers such as elections and FIFA’s soccer World Cup (@FIFAWorldCup), which was the most connected sports tournament ever, and had direct attention from the seven classified Latin American countries.

Digital is expected to become the most important media format by 2023, but even then it will account for a mere 50% of all ad spending.

In the words of Karla Natareno, Regional Head Latin America, MAGNA, “In 2018, ad spending in Latin America was boosted by the stabilization of the economy, presidential elections in five countries, and the 2018 FIFA World Cup. In 2019, however, the high level of political and economic uncertainty, as well of the lack of global sports events, will take its toll.”

The landscape seems a bit uncertain, as the great political changes in five regions could have a negative effect on commercial trust and marketing spend. A 7.6% growth will not have enough impact once we take into account economic inflation, stated MAGNA. Hopefully, the Copa América (@CopaAmerica) in Brazil (will make up for the lack of a World Cup to a certain extent.

Television Prevails, Digital Might Catch Up in a Few Years

Karla Natareno

Television is still the most important media category in Latin America, and it is expected to account for 51% of all ad spending in 2019, way above the global 31% average. Television is expected to stay in its leading position until 2023, when Digital will become the main media format in the region. In certain markets, such as Argentina and Brazil, Digital is already surpassing TV by a small margin, but in others, such as Mexico, TV is definitely above all other formats.

Digital advertising will grow by 19% in 2019. However, in spite of its solid two-digit growth, and even though it now accounts for 34% of all ad investment in Latin America, it’s way below the global 49% average. This is not only due to the fact that TV prevails over digital, but also to the importance of print and radio. Digital is expected to become the most important media format by 2023, but even then it will account for a mere 50% of all ad spending.

What: We looked at ComScore’s data on the most-visited news websites in Latin America and particularly Mexico in March 2018.
Why it matters: 63.8% of Latin American users looked for news online, while 85% of Mexicans with an internet connection browsed news websites.

It is an important year for Latin Americans in terms of elections, and keeping informed is a priority when spending time online. We have seen that internet users in Latin American countries look for many types of content, from travel information to sports and entertainment, but the news is the kind of content they consume moreMore than half of all Latin Americans with internet access (63.8%) looked at the news online in March, while 85% of Mexicans got informed online. These were the top 10 sites in Latin America and Mexico in April.

Top 10 News Sites in Latin America, April 2018

Total Audience, Home and Work, PC/Laptop. Total Unique Visitors (000)
Total Internet: Total Audience183,917
News 117,388
1 Globo Noticias 22,937
2 MSN News 14,115
3 UOL Noticias 12,678
4 20MINUTOS Sites 9,605
5 Grupo Clarin 9,342
6 El Pais Sites 8,825
7 Infobae – TKM 7,616
8 Folha De S Paulo 6,944
9 Yahoo-HuffPost News Network 6,430
10 BBC Sites 6,360

[Source: comScore]

  • From the total amount of Latin Americans with an internet connection, 63.8%  looked for the news online.
  • Among those users, 19.5% got informed on Globo Noticias.
  • MSN News was seen by 12% of internet users looking for the news.
  • 10.8% of visitors preferred UOL Noticias.
  • 20MINUTOS Sites received 8.1% of visitors.
  • 7.9% of users went to Grupo Clarín to get news information, while 7.5% preferred El Pais Sites.
  • Infobae – TKM was seen by 6.4% of visitors.
  • Folha de S Paulo received 5.9% of users.
  • Finally, Yahoo-Huffposts News Network and BBC Sites were tied at the last spot with 5.4% each.

Top 10 News Sites in Mexico, April 2018

Total Audience, Home and Work, PC/Laptop. Total Unique Visitors (000)
Total Internet: Total Audience 64,619
News 55,035
1 El Universal 15,487
2 DEBATE.COM.MX 11,926
3 Grupo SDP 10,838
4 20MINUTOS Sites 9,317
5 Grupo Publicidad y Contenido Editorial 8,853
6 Grupo Milenio 7,293
7 Organización Editorial Mexicana 6,861
8 Noticieros Televisa 6,775
9 Grupo Proceso 6,503
10 El Pais Sites 6,244
  • 85.16% of the total amount of Mexicans with an internet connection searched for the news online.
  • El Universal takes home the award for the greatest percentage of visitors with 28%.
  • 21% of the users looked for the news on DEBATE.COM.MX. 
  • Grupo SDP took the third position with 19.6% of the total amount of internet users.
  • 20MINUTOS Sites received 16.9% of visitors.
  • 16% chose Grupo Publicidad y Contenido Editorial to get news information from.
  • Grupo Milenio was preferred by 13.2% of the visitors.
  • Noticieros Televisa and Grupo Proceso received almost the same amount of users with 12.4% and 12.3%, respectively.
  • Only 11.8% of users got informed on Grupo Proceso.
  • The last position is for El Pais Sites with  11.3%.

[Source: comScore]

What: We looked at the most-frequently visited retail websites in Latin America, and particularly in Mexico, in February.
Why it matters: Even though Amazon is expanding in Latin America, it’s still second to Mercado Libre, the biggest online retailer in Latin America.

As retail online grows, e-commerce sites have to engage in fierce competition. Amazon is steadily increasing its relevance in Latin America, but it still has a long way to go if it wishes to reach Mercado Libre. As Amazon goes on with its plans to expand in Brazil, we’ll see how tendencies change in the next months.

Top 10 E-Commerce Sites in Latin America, February 2018

Total Audience, Home and Work, PC/Laptop Total Unique Visitors (000)
Total Internet: Total Audience 190,287
Retail 118,515
1 MercadoLibre 56,200
2 Amazon 19,728
3 B2W Digital 18,713
4 Alibaba.com Corporation 13,020
5 eBay 9,939
6 CNova 8,381
7 Apple.com 7,745
8 Wal-mart 7,331
9 Google Shopping 6,877
10 Buscape Company 6,006

[Source: comScore]

  • From the total amount of Latin Americans with internet access in February, 2018, 62% visited e-commerce sites.
  • 47.4% of those Latin Americans made their online purchases at Mercado Libre.
  • In comparison, Amazon has a long way to go with 16.6%.
  • 15.7% of users visited B2W Digital, not too far behind Amazon.
  • Alibaba was visited by 10.9% of users.
  • 8.3% of internet users looking for e-commerce sites visited eBay.
  • CNova received 7% of visits.
  • Apple.com and Wal-mart received similar amounts of visitors, 6.5% and 6.1% respectively.
  • 5.8% of users visited Google Shopping.
  • Buscape Company was visited by 5% of users.

Top 10 E-Commerce Sites in Mexico, February 2018

Total Audience, Home and Work, PC/Laptop, All Smartphones, All tablets Total Unique Visitors (000)
Total Internet: Total Audience 68,613
Retail 42,599
1 MercadoLibre 16,494
2 Amazon 9,011
3 Linio Sites 8,690
4 eBay 6,797
5 Wal-mart 6,698
6 WISH 4,093
7 Ticketmaster 3,955
8 Alibaba.com 3,246
9 COPPEL.COM 3,075
10 Samsung Group 2,765

[Source: comScore]

  • 62% of Mexicans with Internet access went shopping online in February.
  • Out of those users, 38% made their purchases on Mercado Libre.
  • 21% of users preferred to buy on Amazon.
  • Linio Sites received 20% of visits.
  • eBay, with 15.9%, and Wal-mart with 15.7%, are at almost the same level of popularity among Mexicans.
  • Wish.com opens the second half of the list with 9.6%.
  • 9.2% of e-commerce consumers visited Ticketmaster.
  • Alibaba.com received 7.6% of visitors.
  • 7.2% of users visited the website of Mexican store COPPEL.
  • Samsung Group closes the list with 6.4%.

What: We looked at the number of Latin American Internet-users (and particularly Mexicans) who looked for travel information online in February.
Why it matters: Only 25% of Latin American Internet users were interested in travel websites in February, about 1% less than December 2017. For Mexico, the drop was 4%, from 35% to 31%.

Among the major topics Latin Americans like to browse online, travel is not a favorite. While about 90% of Internet users in this region look at entertainment content and 50% browse on e-commerce sites, only 25% are interested in travel information. As shown in the tables below, TripAdvisor is still the number-one site for Latin Americans’ travel plans, while Uber heads the list in Mexico.

Top 10 Travel Websites in Latin America, February 2018

 

Total Audience, Home and Work, PC/Laptop Total Unique Visitors (000)
Total Internet: Total Audience 190,287
Travel 47,764
1 Trip Advisor Inc. 10,865
2 Expedia Inc 7,682
3 Despegar-Decolar Sites 6,978
4 Priceline.com Incorporated 6,578
5 LATAM.COM 3,883
6 Airbnb Sites 3,085
7 GOL Linhas Aereas Inteligentes 2,427
8 Uber 2,409
9 MSN Travel 1,668
10 LanChile S.A. 1,643
    [Source: comScore]
  • As said above, 25% of Latin American Internet users looked at travel content online.
  • 22.7% of travel-content users visited TripAdvisor.
  • Despegar-Decolar Sites received 14.6% of visits, while Priceline.com was visited by 13.7% of users.
  • 8.1% of users looked for airline-ticket information on LATAM.COM.
  • Airbnb was visited by 6.4% of users.
  • 5% of users looked for airline tickets on GOL Linhas Aereas Inteligentes.
  • Uber received another 5% of visitors.
  • MSN Travel and LanChile are at the bottom of the list, with 3.4% each.

Top 10 Travel Websites in Mexico, February 2018

 

Total Audience, Home and Work, PC/Laptop Total Unique Visitors (000)
Total Internet: Total Audience 68,613
Travel 21,274
1 Uber 7,291
2 TripAdvisor 4,296
3 Expedia Inc 2,679
4 Despegar-Decolar Sites 1,219
5 Priceline.com Incorporated 1,217
6 Volaris Sites 1,191
7 VIVAAEROBUS.COM 1,182
8 BUSOLINEA.COM 731
9 Aeromexico 726
10 MEXICODESCONOCIDO.COM.MX 665
    [Source: comScore]
  • Uber was the most-visited website with 34.2%.
  • 20% of travel-content users visited TripAdvisor.
  • Expedia Inc received 12.5% of travel-related visits.
  • Very similar amounts of users visited Despegar-Decolar and Priceline: 5.7% each.
  • Volaris received 5.5% of visits, just the same as VIVAAEROBUS.
  • Busolinea and Aeromexico were visited by 3.4% of users each.
  • MEXICODESCONOCIDO received 3.1% of visits.

What: We looked at the sports websites with the highest amount of Latin American (and particularly Mexican) visitors in January 2018.
Why it matters: A significant percentage of Latin Americans devotes time to consuming sports content online. Interestingly, two of the top three sites are based in Brazil.

Sports are a big deal worldwide, but there is perhaps no place with more enthusiasm for certain events (i.e. soccer matches) than Latin America. We have analyzed comScore rankings of the most-visited sports websites during January in this region paying special attention to Mexico, and we found several interesting pieces of information.

Top 10 Sports Websites in Latin America, January 2018

  Fuente: Total Audience, PC/Laptop Total Unique Visitors (000)
Total Internet : Total Audience 191,289
Sports 47,295
1 Globo Esportes 9,825
2 MSN Sports 6,643
3 UOL Esporte 4,637
4 AS.com Sites 3,233
5 DESAFIOMUNDIAL.COM 3,132
6 ESPN 2,545
7 Marca Sites 2,455
8 Jornal Extra – Esportes 2,139
9 OLE.COM.AR 2,022
10 Perform Sports – Goal Sites 1,833

[Source: comScore]

  • From the total amount of internet users in Latin America, 24.7% looked for sports content online.
  • The Brazilian website Globo Esportes received 20.7% of those visitors.
  • MSN Sports was visited by 14% of Latin American sports-content users.
  • 9.8% of visitors looked for sports content on another Brazilian website: UOL Esporte. 
  • As sites, focused on different Latin American countries, received 6.8% of visitors, with Desafío Mundial close behind with 6.6%.
  • ESPN is in 6th place, with 5.3%, and not far behind on the 7th position is Marca, with 5.1%.
  • Another Brazilian website, Jornal Extra Esportes, received 4.5% of visitors.
  • 4.2% of viewers chose Argentinian website OLE.COM.AR.
  • At the bottom of the list, with 3.8%, are Perform Sports – Goal Sites.

Top 10 Sports Websites in Mexico, January 2018

  Total Audience, Home and Work, PC/Laptop, All smartphones, All Tablets Total Unique Visitors/Viewers (000)
  Total Digital Population
Total Internet : Total Audience 68,613
Sports 20,172
1 MEDIOTIEMPO.COM 3,841
2 ESPN 3,733
3 AS.com Sites 2,884
4 Marca Sites 2,864
5 RECORD 2,103
6 MSN Sports 1,848
7 Televisa Deportes (Site) 1,536
8 Minute Media 1,526
9 NFL Internet Group 932
10 JUANFUTBOL.COM 891
    • [Source: comScore]
  • A significant 29.3% of total internet users looked for sports content online in January 2018.
  • 19% of those sports-content consumers visited MEDIOTIEMPO.COM
  • ESPN was on the second position in the ranking, with 18.5% of visits.
  • As and Marca sites received very similar numbers of views: 14.2% and 14.1% respectively.
  • 10.4% of Mexican viewers visited RECORD looking for sports content.
  • MSN Sports, the top second website in the overall Latin American ranking, received 9.1% of views in Mexico.
  • Televisa Deportes and Minute Media are almost tied in the seventh and eighth positions of the ranking, with 7.6% and 7.5% of views.
  • 4.6% of Mexican sports-content viewers visited the NFL Internet Group.
  • JUANFUTBOL.COM received 4.4% of visits.

What: We took a look at how many Latin American internet users visited travel websites online in December 2017, and particularly Mexicans.
Why it matters: While about 85% of internet users in Latin America look at entertainment sites, only 26.4% visit travel sites, which could mean the travel industry has a lot to work on to reach Latin American audiences.

TripAdvisor advertises itself as the largest travel site online. While this might be true, the number of Latin Americans who devote internet-browsing time to travel content is rather limited, especially when compared to how many users look for entertainment websites. Is it a bad moment for Latin American travelers? Perhaps it is best for marketers in the industry to make traveling easier, or to provide more engaging content to keep traveling dreams alive.

Top 10 Travel Websites in Latin America, December 2017

Total Audience, Home & Work, PC/Laptop Only Total Unique Visitors/Viewers (000)
Total Internet: Total Audience 193,562
Travel 51,270
1 TripAdvisor 10,796
2 Despegar-Decolar Sites 9,364
3 Expedia 8,863
4 Priceline.com 7,063
5 LATAM.COM 4,985
6 Airbnb sites 3,430
7 Uber 3,170
8 GOL Linhas Aereas 2,942
9 VIAJANET.COM.BR 1,734
10 MSN Travel 1,532

[Source: comScore]

  • 26.4% of Latin American Internet users looked for travel information websites in December 2017.
  • 21% of Latin Americans who looked for travel options on the internet visited TripAdvisor, more than any other website.
  • 18.2% of users looked for travel information on Despegar-Decolar sites, not too far behind TripAdvisor.
  • Close behind Despegar-Decolar is Expedia, with 17.2% of users.
  • Priceline.com received 13.7% of users looking for travel information.
  • 9.7% of Latin Americans looking for travel options online visited latam.com.
  • Airbnb and Uber had similar numbers of visitors, with 6.6% and 6.1% respectively.
  • Brazilian website GOL Linhas Aereas received 5.7% of Latin American visitors, while 3.3% of users visited the Brazilian version of Viajanet. In total, 9% of users looked for travel information in Brazilian websites.
  • MSN travel, the only site in the list that doesn’t offer booking services, received 2.9% of visitors.

 

Top 10 Travel Websites in Mexico, December 2017

Total Audience, Home & Work, PC/Laptop and Mobile Devices Total Unique Visitors/Viewers (000)
Total Internet: Total Audience 64,655
Travel 23,229
1 Uber 9,032
2 TripAdvisor 4,014
3 Expedia 2,760
4 Despegar-Decolar Sites 1,960
5 Volaris Sites 1,308
6 VivaAerobus 1,299
7 Interjet 1,280
8 Priceline.com 1,215
9 Reservamos.mx 983
10 Viajes Beda SA 953
    [Source: comScore]
  • When we look at Mexico in particular, we find that 35% of Internet users devoted some time to looking at travel information websites.
  • Among those users looking for travel information, 38% used Uber.
  • TripAdvisor received 17.2% percent of users.
  • 11.8% of Mexicans looking for travel information visited Expedia. 
  • Despegar-Decolar sites are not too far behind with 8.4% of users.
  • Volaris, VivaAerobus, and Interjet are strong competitors to each other. They all received similar numbers of visitors with 5.6%, 5.5% and 5.4% of users respectively.
  • Priceline follows from up close with 5.2% of users.
  • At the last two spots, with very similar numbers of visitors, we find Reservamos.mx and Viajes Beda SA, with 4.2% and 4% respectively.

What: Latino US Olympians such as Alex Ferreira and Jonathan Garcia have not had their backgrounds highlighted in media coverage of the games.
Why it matters: A major opportunity is being missed to market to the Hispanic market with these athletes during the Winter Olympic Games.

Little Promotion of USA’s Latino Olympians

Image result for jonathan garcia skater
USA speed skater Jonathan Garcia (credit: Houston Style Magazine)

Though the Team USA roster for the 2018 Winter Olympic Games does not have many Latino faces, there are a handful of athletes competing for Red, White, and Blue who have Hispanic roots. These athletes include speed skater Jonathan Garcia (@jagarcia23), bobsledder Carlo Valdes (CarloValdes_USA), and freestyle skier Alex Ferreira, whose father Marcelo played for Argentina’s historic soccer club River Plate. Carlo Valdes has been interviewed about his Latino heritage and even got a shout-out from Mario Lopez wishing him good luck at the Games. Ferreira and Garcia, though, have had little to no coverage on their unique backgrounds, and all three of them could certainly be celebrated further for thriving in sports for which Latin Americans are less well-known. Other Latino athletes such as Puerto Rico’s Charles Flaherty have gotten attention throughout the country, but those representing the USA are, in fact, underrepresented.

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It is hard to imagine that many of the 69,800 followers of this account would not turn on their television to watch Ferreira, Garcia, or Valdes… and this type of oversight has been unfortunately typical throughout the Winter Olympics.

A Missed Opportunity for Olympics Engagement

Image result for nbc universo
NBC Universo should have more focus on the Olympics (credit: Billboard.com)

Seeing as how the Winter Olympics have historically suffered poor engagement from the Latino community, brands are missing a tremendous chance to promote athletes who could become heroes in the eyes of at least 18% of the United States population. NBC, who holds the US television broadcasting rights for the Games, could have easily boosted its ratings within this demographic by having athletes such as Valdes, Ferreira, and Garcia invite fans to watch the Olympics in advertisements leading up to the competition. At the time of this article, the Olympics are being shown on NBC, while NBC Universo’s website does not mention the Games at all, and the only posts that the NBC Universo Instagram account has on the Olympics are to announce their start date. It is hard to imagine that many of the 69,800 followers of this account would not turn on their television to watch Ferreira, Garcia, or Valdes if their events were advertised on this feed, and this type of oversight has been unfortunately typical throughout the Winter Olympics.

it is time for brands to realize that promoting the likes of Garcia, Valdes, and Ferreira should be common practice every time the Winter Olympics comes around.

Sponsors Can Step Up as Well

Image result for alex ferreira ski
U.S. Olympian Skier Alex Ferreira (credit: Anna Stonehouse The Aspen Times)

On the other hand, brands sponsoring these athletes should also be utilizing them for marketing opportunities to a far greater extent. For example, Alex Ferreira is sponsored by Rock Star Energy, but the company does not have an Instagram post featuring him since the X Games almost a month ago. Another one of his listed sponsors, Waiakea water, does not have a post about him on their feed either. In interviews, Ferreira is an energetic, engaging character, and he is incredibly entertaining to watch as he flies through the air, twisting and turning down the half-pipe: he is the type of athlete that should be easy to market. As of now, his sponsors are missing out on easy dollars, for promoting him to any extent would be wise, but accentuating his Latino background would excite a portion of the United States market that is waiting for people like them to represent the USA in these Games. This latter point is true for sponsors of all Latinos competing in the games: these athletes are the ticket to engaging with a so far under-engaged demographic, and it is time for brands to realize that promoting the likes of Garcia, Valdes, and Ferreira should be common practice every time the Winter Olympics comes 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: Digital content company Oath announced the incorporation of Felipe Molina to their strategic planning team for the LatAm region.
Why it matters: Based out of Oath’s offices in Miami, digital strategy specialist Felipe Molina will analyze Oath’s entire brand portfolio to develop in the Latin American market.

Oath, the leading digital content company, which encloses the AOL brands and Yahoo!, announced the incorporation of the digital strategy specialist, Felipe Molina, to their strategic planning team for the Latin American region. Molina will bring support to Oath’s strategy to accelerate the growth and development of the company’s business platform in the region.

Felipe Molina has more than 10 years of professional experience in the digital media field, having worked for some of the most important companies in the region, like Unilever, MasterCard and Coca-Cola. Previous to joining Oath, Molina acted as director of digital specialization for IPG MediaBrands, integrating the different digital operations of the company, such as Cadreon, Reprise, McCann (UM WW) and Ansible.

Based out of Oath’s offices in Miami, Felipe Molina will analyze Oath’s entire brand portfolio to develop in the Latin American market.

Oath was born through the acquisition of AOL and Yahoo! by Verizon, which bring together more than 50 brands. The company has a goal of reaching two billion users in the world by 2020.

What: Cint Group announced a strategic partnership with eCGlobal Research Solutions to gain significant reach into the LatAm market.
Why it matters: The partnership will strengthen Cint’s reach in LATAM with new, local audience of more than 500,000, as well as the addition of eCGlobal’s Hispanic audience in the US.

 

Cint, the world’s Insight Exchange, announced a strategic partnership with eCGlobal Research Solutions, a marketing technology solutions provider, to gain significant reach into the Latin America (LATAM) market.

 

Through this partnership, Cint and eCGlobal will reach new LATAM networks with expanded technology.

With eCGlobal’s audience, Cint will receive access to a much richer sample in a hard to recruit market. From this partnership, Cint’s insights exchange will gain 500,000 additional respondents in LATAM, as well as the addition of eCGlobal’s Hispanic audience in the US, a sought-after market for local researchers. Similarly, eCGlobal will leverage Cint’s technology to automate their recruitment and digital research fielding. By incorporating this technology, eCGlobal will benefit from added overall efficiency and greater quality measures that were not available through other platforms or providers.

“We know automation without quality control is not an option for market research,” said Adriana Rocha, Founder and CEO of eCGlobal and one of the first online pioneers in Brazil. “It is happening fast on several different fronts, from data collection to analysis and reporting. However, when it comes to automating online sample purchase, there is a great concern regarding quality, fraud and other aspects that compromise the data collected. With this partnership, Cint and eCGlobal will bring the best of both worlds to the global market research industry: automation with data quality through superior user experiences, reliable sample sources at speed and affordable prices.”

“Cint’s ongoing expansion in LATAM remains a key factor to our success in the Americas. By collaborating with regional market leaders like eCGlobal, we’re able to bring new efficiencies and scale to our businesses in addition to arming market research and brand marketers with coveted LATAM access,” said Jake Wolff, EVP of the Americas, Cint.

Together, Cint and eCGlobal will have access to an abundance of quality samples and audiences that will provide a new, inside look at a relatively challenging, yet emerging market.

 

What: According to comScore’s Digital Future 2017 report, Latin America’s desktop audience is now as large as that of the United States, at 196 million users. And while the use of desktop has decreased by 1.1% globally (and by 5.2% in North America) since last year, in Latin America, it grew by 0.5%.
Why It Matters: Simply creating desktop campaigns for the region is not enough: This large audience must be monetized through precise targeting that reflects the complexity of the region. Marketers must understand and appreciate that the content a Latin American user consumes — and the device he or she consumes it on — varies depending on geography, category, and other cultural variables.

According to comScore’s Digital Future 2017 report, Latin America has finally caught up to the United States in terms of desktop audiences. As of February of this year, the number of desktop users in Latin America had hit 196 million users.

Mexico is driving digital trends in the region: It is the country with the highest consumption of video in Latin America with users consuming about 280 minutes of video a month, followed by Chile with 270, and Argentina with 240. Consumption of mobile minutes in Mexico grew more than 400% between 2016 and 2017 alone.

But the region is as complex as it is large. Will marketers be able to adapt their strategies to the diverse and untraditional Internet consumption patterns observed among Latin American audiences?

Will Marketers Pay Attention to the Growth of Desktop in LatAm?

Nobody debates that mobile, which many major advertisers are prioritizing in order to reach the region’s many younger, mobile-only users, will play a vital role in shaping the future of the digital landscape.

But the data in comScore’s recent report sheds a light on an interesting phenomenon: Desktop is growing in Latin America, defying global trends and creating an interesting opportunity for marketers that pay attention. Desktop grew 0.5% in Latin America between June 2016 and 2017, while it went down 1.1% last year globally. In other countries, the move to mobile is even more pronounced: In the United States, desktop use has gone down a whopping 5.2% since last year.

As Latin American users incorporate digital products and devices into their daily routines, marketers that focus exclusively on mobile are missing a significant opportunity to speak to the particularities of the Latin American Internet user’s preferences, which appear to increasingly include desktop.

It’s not that mobile isn’t growing in the region. For example, 76% of Mexican digital users are now multi-platform or using mobile exclusively, and that number jumps to 93% among Millennial Mexican users.

But Rodrigo Cerón, Senior Manager of Corporate Marketing at comScore, warns that marketers may be focusing too heavily on mobile, commenting that “mobile is growing a lot in terms of advertising investments, even though desktop is still strong in terms of user preferences.”

“The most advisable thing is to mix the best of desktop with the effectiveness of mobile ads,” Cerón said. “The marvel that the Internet represents is exactly that.”

Latin America Still Home to “Different Levels of Maturity” When It Comes to Internet Use

It is careless to generalize when discussing a region as heterogynous as Latin America in terms of Internet consumption patterns and rates of adoption of new technology and platforms.

Cerón commented that in Latin America, “there are different levels of maturity” when it comes to Internet use. He pointed to the monetization of video as an example. “We observe, for example, that there are categories that are more monetized than other, depending on the country.”

The most advisable thing is to mix the best of Desktop with the effectiveness of mobile ads. The marvel that the Internet represents is exactly that.

Marketers must understand the idiosyncrasies of the region and appreciate how they generate different patterns when it comes to Internet consumption. In Mexico, for example, a higher percentage of total video minutes is dedicated to ads than in Argentine videos, but Argentine sports sites dedicate more video minutes to ads than Mexican sports sites do. Understanding these subtle nuances is key to reaching target audiences effectively in the region.

Marketers Must “Understand the Digital Biorhythm” of a Diverse Region

Based on comScore’s data, a few general conclusions can be reached about Latin American Internet use: Latin American audiences dedicate 20% of their desktop minutes to social media, compared to North America’s 11%, the EMEA region’s 17%, and the APAC region’s 6%. Latin Americans also showed slightly more interest in entertainment-related content than the other regions studied, dedicating around 350 minutes a month on the category.

 

But in other ways, the region shows striking diversity. For example, in video categories, Mexican Internet users stand out for dedicating 140 minutes/month to video content on social media, compared to 45.7 minutes in Colombia, 37.2 in Argentina, 35 in Brazil, and 32.4 in Chile. In another example, Argentina and Colombia demonstrate far more interest in news and current events than Brazil, Mexico, and Chile.

Deep diving into the preferences and behavior of specific countries in the region, the report reveals how varied Latin American consumption preferences are.

It is important to understand the digital biorhythm and know that there are some devices that enjoy higher preference depending on the time of day, and the category of content they are visiting.

Marketers seeking to reach audiences on desktop must think about when, and for what type of content, LATAM audiences prefer desktop: In Argentina, over 80% of news, trips, cars, and government-related content happens on desktop, while the same is true of education in Brazil, and real estate in Mexico.

Cerón added that “depending on where my brand is positioned, I can focus my advertising efforts in a very precise way.” He cautioned marketers that “it is important to understand the digital biorhythm and know that there are some devices that enjoy higher preference depending on the time of day, and the category of content they are visiting.”

The report provides no easy answers for marketers looking to capitalize on a growing and active digital audience. But there are boundless opportunities and significant rewards for marketers that can cater to the region’s evolving and particular digital landscape.