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This week, results of the Buen Fin and Black Friday insights. Here’s your summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. Check out the previous Latam Consumer Insights Roundup here

 

  • According to e-commerce company Mercado Libre, Black Friday is an important day for online retail in Colombia. The company’s data shows Colombian consumers might spend up to 22% more in average than last year, and 70% of Mercado Libre users are expected to complete their purchases on mobile devices. The top categories are expected to be electronics and clothing.

 

  • Kantar has announced a 14% increase since 2017 in participation in the Buen Fin, which took place last weekend in Mexico. While Kantar estimates that 80% of Mexican consumers took part in the Buen Fin in 2017, 94% engaged in purchases this year. To get informed about sellers’ offers, 84% of consumers went to a website, 71% chose social media, and 53% headed directly to the stores.

 

  • According to the Mexican Secretary of Commerce, Services and Tourism, Buen Fin had much better results than last year. Total sales amounted to over 120 billion pesos, almost 8% more than last year. Also, it was indicated that 63% of consumers made their purchases in cash.

 

  • However, the good results are due to consumers spending more, and not necessarily because there have been more shoppers. Mexico’s Profeco has announced that only 40% of the population made a purchase during the Buen Fin, and 26% of those consumers bought clothes or shoes. The Secretary of Economy outlined that other popular products were electrical appliances, TV screens, multimedia devices, and furniture.

 

  • A survey by VTEX has concluded that e-commerce sales in Chile have decreased by 70% after the start of the political crisis on October 18th. Reportedly, numbers were positive up to then.

 

  • Research by IPSOS and Comscore Mexico has found that during Q1 2019, 67% of Mexicans had access to cable or paid broadcast TV, 80% had access to national broadcast TV, and 75% could access the internet. In addition, only 25% of those exposed to paid TV don’t have an internet connection. On the contrary, only 32% of the online population aren’t consumers of paid TV.

All about how Latcom and Disney designed a successful communication strategy for the new Disney films and empowered the world’s largest entertainment company.

 

The premieres of Toy Story 4 and The Lion King quickly broke audience records, becoming some of the highest-grossing films so far this year. To position these releases, Disney followed the advice and strategic guidance of Latcom, a company specialized in Out of Home Advertising (OOH). Thus, Latcom and Disney worked together in an effective out-of-home strategy that helped the success of the entertainment company.

To develop an action plan, the company analyzed new challenges in the entertainment world, current market demand and changes in the way movies are consumed. It was also necessary to face the challenges presented by the target audience. On the one hand, Latcom and Disney had to connect emotionally with those that saw the original Lion King; on the other hand, they had to seduce Toy Story fans who considered that the existing trilogy was enough, or that a fourth film brought potential to ruin the story.

The objectives were generating awareness with target audiences: centennials, millennials, families and fans; and positioning the films as “must-see events.” Consequently, Latcom designed a strategy based on the consumer journey, while identifying the key touchpoints for the campaign. In the end, it was structured around four OOH advertising modules and a mobile component that worked as a complement.

“It wasn’t just about buying media, but rather about doing an in-depth analysis of the consumer behavior of the different audiences in Latin America and the different targets that make up that audience,” commented Valentín Bueno, CEO of Latcom. “Each target has a different point of contact with Out of Home media. For example, in the case of children, who are a very difficult target audience to reach, we had to generate special networks close to the areas they frequent.”

The campaigns were executed in Buenos Aires, Gran Buenos Aires, Córdoba, Rosario, Mendoza, San Pablo, Rio de Janeiro, Mexico City, Guadalajara, Monterrey, and Puebla. A mobile component was included at some of the target’s points of interest to reinforce the main communication. Static images and gifs led traffic to the campaign’s website. In addition, geofencing technology covered a radius between 100 and 500 meters, in areas with a good concentration of the desired target audience, such as schools, sports clubs, parks, cinemas, and shopping malls, among others.

“Cities can be transformed into a hub for entertainment distribution and access to all kinds of content worldwide. This system has great potential and I think we can contribute a lot to it. Making this campaign for iconic movies like Toy Story and The Lion King filled us with pride because of the excellent results it had in all markets,” Bueno concluded.

 

Teads has invited select guests to get a preview of the platform’s product portfolio in 2020. The Teads Vision 2020: Miami Upfront will take place on November 20 at the Silverspot Cinema in Downtown Miami. 

 

Teads is one of those companies that are known because it has both eyes set on the future. For 2020, it plans to continue producing innovating solutions in advertising, and they’re not shy about it! Actually, they’re celebrating big time with an upscale event. At the Teads Vision: 2020 Miami Upfront, the company will showcase its great ideas for the future in the heart of Downtown Miami.

The sharpest minds at Teads will host an afternoon of talks on November 20th at the Silverspot Cinema. Brands will be able to see what Teads has in store, and see which products resonate with their objectives. After an introduction by Latin America SVP Eric Tourtel, Teads’ co-founders Bertrand Quesada and Gilles Moncaubeig, as well as Chief Strategy Officer Todd Tran and Monika Cerqueira, Head of Teads Studio Latin America will share their ideas and plans to deliver an optimal advertising experience in 2020.

Guests will spend an insightful time with the Teads team, building together an innovative plan for 2020 while keeping their brand’s marketing objectives insight. After the talks, Teads will host a happy hour for everyone to network and enjoy.

 

E-Commerce trends in Mexico and Peru. Here’s your summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. Check out the previous Latam Consumer Insights Roundup here

 

in-Store Media has revealed that Mexicans prefer to buy wine at warehouse stores, according to 37% of survey participants. The most important factor to select the product is the brand, followed by the grape variety and price of the bottle. Over half (55%) of surveyed consumers already know which wine they’re getting before visiting the store. even so, 34% said they have changed their mind about the brand, and 86% said they’re willing to choose a new product if they find appealing information at the store.

 

Since November 2018, Amazon has launched five Alexa devices in Mexico, among which the Echo Dot is the most popular. Amazon has revealed the list of topics Mexicans ask the most about: animals; movies, TV shows and celebrities; trivia; songs; superheroes; Mexican History; sports; jokes; and alarms. Among the most frequently heard phrases Mexicans tell to their devices are: “Good morning, Alexa”, “Alexa, I love you”, “What’s up, Alexa?”, and “Alexa, I’m home”.

 

According to Linio, millennials are driving e-commerce more than any other generation in Peru. Peruvian millennials spend four minutes, 27 seconds in average looking for and purchasing products. Most of them research prices on mobile devices and make the transaction on a PC or laptop. Generation Z spends more time researching products, but are not yet spending as much as millennials.

A survey by Tiendeo.mx found that nine out of ten Mexicans said they planned to make purchases during the Buen Fin, on 15-18 November, and spend an average MX $4,518. More than two-thirds of respondents (70%) said they’d make their transactions in physical stores, as opposed to the 30% that claimed they’d use their phone, PC or tablet.

 

 

Portada picked Andy Berman’s brain to find out the history, tips, and insights behind Global Mind’s meteoric rise to advertising fame.

From Analog to Digital: A Mindframe for Radical Changes

Andy Berman, CEO, Global MindAndy Berman considers himself lucky to have been born in his time. Like many of us, he got to live through one of the most powerful social phenomena in humanity: the world’s transition from analog to digital. “Technology came early into my life. I experienced the first signs of change when I was a teenager. I remember my parents buying me my first console, the Atari. Then the Commodore 64, the Amiga, the 128, then the PC XT… Thing is, I learned through change.”. With each bold innovation, Berman was learning to adapt, evolve, and understand technology like a true native.

But how did these experiences help him lead his company through great change and disruption? “Along with progress, I saw lots of people and lots of companies crash and burn”, says Berman. “But you learn from everything, and then you put it to use for your benefit.” And so, and old-school computer geek and his hunger for innovation helped create a full-service, cross channel advertising agency for the future.

The Digital Way or the Highway

Berman had a clear vision from the very beginning. Almost twenty years ago, the internet was barely moving from the dial-up modem to broadband connections. Owning a home PC still felt sci-fi. TV was the undisputed king of media. But pushing into the future, Global Mind’s DNA has been digital since Andy Berman conceived it in 2001. “We were doing digital when digital didn’t matter to anyone. For us, it was everything. For the other big agencies, it was nothing but a tiny slice of the advertising cake. So, we became a white-level agency for others for a long time. We gained so much knowledge of the digital world until the same agencies that shunned digital saw the cake was getting bigger”, explains Berman.

We were doing digital when digital didn’t matter to anyone. For us, it was everything.

However, as soon as companies realized the massive hit they were missing, they started putting together their own in-house advertising teams, fast. Former clients were now “making their own cake”, so to speak, and Berman’s business took a hit.

In order to stay relevant, Global Mind faced its first major change of direction. The company took a leap of faith and started looking for direct clients instead of performing from behind the curtain. “For ten years, we always had direct customers, but it was never our main business. However, we had a strong regional footprint and we went for it. Our track record of having been white-level for so many agencies made customers trust our services”, explains Berman.

The brave and timely switch of business models worked, big time. “We expanded from Argentina to Toronto, then to Mexico, Colombia, and the US”, recalls Berman. And the success went on for years, until they became the biggest independent players in Latin America. But then, at the top of their game, came yet another wave of change. Sometimes the only way of growing is becoming a link on a stronger chain.

An Offer You Cannot Refuse

The Dentsu Aegis Network derives around 60% of its revenue from digital activity across 143 markets. The international giant purchased Global Minds in July 2018. Andy Berman didn’t hesitate when offered the opportunity. He knew that great power would also bring great technology. This made the decision a no-brainer. “Dentsu had the technology we didn’t have; whatever we had was sourced by Google. We sold our company knowing we’d be getting all those benefits, and access to all that data. So we brought together the best of two worlds: an agency with know-how that works well and a global giant with all the technology. We used to be the biggest independent agency in our region, except for Brazil. Now, we’re part of the big six”.

We brought together the best of two worlds. […] We used to be the biggest independent agency except for Brazil. Now we’re part of the big six. 

And if they’d never been purchased by Dentsu? Would that have made a difference? “We would’ve had to make a tremendous investment to get the same technology now available to us”, replies Berman. “Otherwise, we wouldn’t have been able to offer the high-quality service expected from a global agency”. Simply put, either you keep up or you die. But you always move forward.

Andy Berman’s Five Golden Rules for a Media Agency

According to Andy Berman, these are the tenets of a successful media agency. Missing just one of these would mean putting your agency at a dire risk of obsolescence. Follow purposefully:

  1. Take good care of your staff. Choose them well and listen to their needs. “We still have employees from the first day the company started. Loyalty is the result of taking good care of your employees”, says Berman. So keep them happy and motivated and they’ll be there through thick and thin.
  2. Constantly invest in your business. “Challenges are everywhere. Global Minds was founded twenty years ago, and the digital landscape has now changed entirely. We had to invest, change, do a bunch of things to keep up”. There’s no progress without investment, so be generous with your own company.
  3. Fail fast, mend immediately. “You need to try, experiment and do it faster than anyone else. But when you’ve made a mistake, don’t dwell on it. Pick up and learn as much from it as you can”. Err constantly, but wisely.
  4. Don’t follow trends, set them. “We were one of the first agencies to do regional searches, the first to try to get mobile when everyone else thought we were foolishly wasting money”. Trends might be volatile, but so is the market.
  5. Create specialized divisions. Always assign the right task to the right person. “We were one of the first agencies to have a Mobile Media Director. Over the course of 20 years we’ve had a bunch of directors for different things. When something very disruptive comes along, you have to hire someone who knows who to drive that disruption from within the agency”. Without someone fully developing new technologies, the staff would just be grasping at a straw they don’t fully comprehend.

 

Mexican holidays are a cultural big deal. Here’s your summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop.

 

  • Recent research by Comscore shows Brazilian digital users spend the most time online per month (92 hours per user on average) when compared to the rest of the region. Second is Argentina with 82 hours and third comes Mexico with 65 hours per user. Peru, on the fourth spot with 25 hours per user, boasts the highest percentage of centennial users in the region, as they represent 30% of the online population.

 

  • According to a survey by Ofertia, 56% of Mexicans celebrate the Day of the Dead. This is Mexico’s favorite fall tradition; in contrast, only 2% celebrate Halloween, 25% celebrate both, and 17% of respondents said they don’t care for either. Last year, Mexican consumers spent $556 MXN in costumes on average.

 

  • The new Salesforce study Connected Shoppers has found that 79% of Mexican consumers expect to make a purchase during El Buen Fin, a weekend in November in which most retailers offer discounts and specials. Most consumers will make omnichannel purchases, as they’ve done in the past. As the study shows, 62% of Mexican Buen Fin consumers have purchased a product online and picked it up later at the store.

 

  • Deloitte has published the results of a survey that explored consumer behavior around different technologies and mobile services. The firm surveyed 2,000 Argentinian consumers and found that 50% of respondents buy mobile phones at physical stores, as opposed to last year’s 56%, while 20% make the purchase online.

 

The out of home company has hired Marco Zúñiga as General Manager of Mexico and Central America to strengthen its presence and development of new accounts and operations in key markets.

Latcom announced that Marco Zúñiga is joining the company at its Mexico office. His main objective is to increase  the company’s presence in Mexico and Central America. Marco’s experience includes a position as Director of Operations and Business Development for Rain Advertising, a communication solutions company in Mexico. He also was the founder of Unédito.dos, applying a business model oriented to communication solutions for customers. He was also CEO of Initiative Media in Mexico and Central America, positioning it as the third media agency in a three-year period. Marco is a graduate of Northwest Missouri State University with a Bachelors’s degree in Marketing.

There were several important reasons that led me to be part of Latcom, however, the main one is the growth challenge that Latcom Mexico and Central America have while expanding its presence at the regional/global level. I am confident that we wil be achieving that goal by capitalizing on our talent, strengths, tools and services to position Latcom as OOH’s global solutions leader,” Zúñiga states.

 

 

Mexican millennials prefer Airbnb, did you know? A summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop.

 

  • According to a recent study by Americas Market Intelligence (AMI), 56% of Mexican millennials prefer to stay at an Airbnb than at a hotel. Airbnb’s guests are having a slightly better experience, too, as 81% users said they were satisfied as opposed to 74% of hotel guests. According to AMI’s study, 63% of Airbnb users recommend this option while only 47% of hotel visitors are willing to spread the word.

 

  • In 2018, Mexicans watched 8% more free broadcast TV than the year before. According to the National Survey on Audiovisual Content Consumption, carried out by the IFT, 72% of Mexicans who own a TV watch free broadcast channels. According to the survey, the most-frequently consumed content types are news, movies, and soap operas.

 

  • A survey by Colombia’s Retailers Federation (Fenalco) has concluded that 44% of Colombian credit card holders have had to refrain from making a purchase in the last 12 months because they ran out of credit. In addition, the survey shows 89% of consumers prefer to make purchases at stores that offer their own credit options (not credit cards).

 

  • EBANX, a payments fintech company headquartered in Brazil that connects global businesses to Latin American consumers, has raised a significant follow-on investment from FTV Capital, a US-based growth equity investment firm. The investment contributed to making the fintech company the newest unicorn of Latin America.

 

 

Latin American market leaders will discuss the future of marketing technology on October 17 at the beautiful Casa Lamm in Mexico City. The agenda includes:  5G, DOOH, e-commerce, and much more. Three units of Portada’s council system will hold their private meetings at the event. Get tickets now and meet executives of your choice at Portada Meet Up.

 

Don’t Miss Latin American Market Leaders at Portada Mexico

This year, for the 2019 edition of Portada Mexico, the leaders of marketing innovation in Latin America will delve deep into the state of the art of MarTech and will discuss new insights to target consumers in key Latin American markets. 

On October 17 at the Casa Lamm, top brands and agencies will show how they’re evolving their video and digital marketing toolkit to engage consumers via out of home advertising and e-business. In addition, brilliant speakers will discuss 5G and its relevance in the Mexican market.

Portada Mexico attendees will be able to network with members of Portada’s Council System. The Americas Board, Brand Star Committee Latam, and Travel Marketing Board will hold their second 2019 in-person meetings at the same venue.

Portada Mexico offers senior executives from tech, media and marketing firms the opportunity to interact with brand marketers through Portada’s one-on-one meetup offering. Get tickets and choose whom to meet from a list of brand and agency decision-makers pre-screened by Portada (first-come, first-served). 

Latin American Market Leaders to Take the Portada Mexico Stage:

Is 5G a Reality in Mexico?

Henry Zamarripa, Head of Sales & Partnerships, Verizon Media

5G promises endless opportunities for brands to redefine their relationship with consumers: Smart Cities, IoT, instant brand-consumer communications, etc…

 

 

Out of Home Advertising in the Digital Era

Valentin Bueno, CEO, Latcom

Mobile and geo-location technologies are expanding the horizons of out of home advertising.

 

 

Using Digital Strategies to Reach Small Business Owners in Mexico

Juliana Sarria, Manager of Consumer & Client Engagement, Grupo Gepp

Traditional business owners handle around 80% of Mexican CPGs. The head of consumer & client engagement at Gepp will explain how digital marketing can help navigate the complex world of Mexican retail.

 

 

The Revolution of Video Marketing in Mexico

Marine Garmrouguian, Head of Programmatic, Affiperf MX, Havas Media Group

 

 

 

 

E-Business as a Cornerstone of Marketing

Luis Macin, VP of E-Commerce, Nestlé MX

Macin will explore how E-Business dynamics impact marketing from brand building to digital communications.

 

 

 

What: Ecommerce marketing strategy is revealed by retailers Walmart and Soriana. It shows how they’re capturing the e-commerce home delivery grocery market in Mexico with alternative digital payment strategies.
Why it matters: Fear of fraud stops many Mexico consumers from making online purchases with a credit card. As a result, Walmart and Soriana are on it. Consequently, they’re deploying cash on delivery, branded digital cash cards, mobile phone loyalty programs, and PayPal options.

The race is on as grocers deploy ecommerce marketing strategy in Mexico. Grocery and general merchandise retailer Walmart has taken the lead. But in Mexico, its competitors, including Soriana, are racing to build their online-delivery businesses.

How customers pay for their online purchases could make all the difference.

High credit card commissions and fear of fraud pose a significant barrier to online sales in Mexico. Digital purchases make up only 3 percent of all consumer goods sales nationwide. As a result, that’s way below the average seen in other countries, according to branding expert Vilma Vale-Brennan. She is deputy general manager of Vale Network in Mexico.

The new President of Mexico, Andres Manuel Lopez Obrador, has promised to get banks to lower credit card commissions. But grocery retailers like Walmart don’t have time to lose.

Ecommerce Marketing Strategy with Digital Payment App

Last year, Walmart launched its own digital application. As a result, it allows customers to pay for goods at stores with the Walmart digital application “Cashi.”

After downloading the app to their mobile phones, customers can recharge it with cash at any Walmart-owned store. It’s a fast and easy way to convert cash into a secure digital payment option. As a result, customers use it for purchases at Walmart, Superama, Sam’s Club, and Bodega Aurrera stores.

Cashi can be used to pay electric bills and services including Netflix, Spotify, and Uber.

The idea here is to make purchasing with Walmart easier, and to give people more options.

But perhaps more importantly, Walmart tells Portada it expects to extend the Cashi digital payment system later this year to allow its online customers to use Cashi for online grocery purchases, according to Gabriela Buenrostro, assistant director of corporate communications. “The idea here is to make purchasing with Walmart easier, and to give people more options,” she said.

Walmart’s ecommerce marketing strategy outpaces the online market with 4.5 million e-commerce shoppers in Mexico, followed by grocers Soriana at 1.1 million, according to a study by the American media measurement and analytics company Comscore as reported by Portada.

Cash, PayPal Options Offered

Walmart offers online customers the option to use PayPal, and Soriana added the PayPal payment option to its online shopping site this year.

Soriana also allows its online customers to pay cash to the home delivery person, or use their credit card on the delivery person’s portable card reader, Director of Electronic Commerce Rafael Castelltort told Portada.

Most of Soriana’s online grocery customers shop online using Soriana’s branded mobile application on their cell phones. A Soriana loyalty card program has more than 9,000 users, and to build loyalty even more, Soriana, deploying its own ecommerce marketing strategy launched its own mobile phone service “Soriana Movil” in 2017, which earns users loyalty points that can be exchanged for free products, Castelltort said.

The trends are very clear. Mexicans prefer to use a mobile phone when visiting grocery stores’ online sites.

Soriana’s decision to launch its own mobile phone service in Mexico might appear tangential to an effort to build online purchases, however, it could be spot-on in terms of getting more online shoppers.

“The trends are very clear,” comScore’s Alejandra Ibarra, manager of comScore’s Latin America Services, told Portada when asked about ecommerce marketing strategies among grocers in Mexico. “Mexicans prefer to use a mobile phone when visiting grocery stores’ online sites.”

And as time goes by, mobile applications are becoming more and more important for grocery ecommerce market leaders like Soriana and Walmart.

Just last year, Walmart announced its acquisition of the online marketplace Cornershop. Users download the Cornershop application to make online purchases using their mobile phones at supermarkets, specialty food stores and pharmacies in Mexico and Chile, according to Forbes.

“The Cornershop acquisition by Walmart shows the focus that applications have for the company and the performance it must deliver to maintain its leadership,” Ibarra told Portada.

What: Teads and Precision, Publicis Media’s programmatic division, have announced a partnership that will expand across eight Latin American countries.
Why it matters: Through this partnership, Teads and Precision aim to deliver a more efficient ad-tech supply chain with curated inventory and data that uses advanced technology.

Teads and Precision, the programmatic division of Publicis Media, will collaborate in Latin America. Their objective is delivering a more efficient ad-tech supply chain with curated inventory and data that uses advanced technology.

Precision will continue to provide a tech agnostic approach for its clients while adapting to their business needs. In the meantime, Teads will be the full-stack digital platform for viewable video and display inventory. Together, the team will develop new strategies for Latin America.

Teads will then conduct regular training for the Precision team to share cutting-edge information and best practices on advertising campaigns optimization. Thus, the company will strength Precision’s position as a reliable guide of its clients throughout their transformation journey.

Full-Funnel Technology

“By combining our premium and brand-safe inventory with engaging, personalized, non-intrusive ads, we are helping brands at every stage of the marketing funnel, from awareness to conversion, passing through consideration,” said Eric Tourtel, Senior Vice President of Teads Latin America. “Instead of simply charging by the impressions, at Teads we use machine learning and artificial intelligence to optimize the campaign or ROI. Moreover, we guarantee results, from viewability, completed views, unique incremental visitors, or even conversions.”

“Teads has earned our trust by offering the most advanced technology, innovation, and brand-safe inventory. The Teads team never stops looking for ways to improve results, “said Monica Gadsby, CEO of Publicis Group Latin America. “It’s really inspiring to see the immense possibilities that this partnership brings. Therefore, Teads has definitely become a key business partner for Precision in the region.”

 

What: Google Flights, with its dominant search engine positioning, has turned the competition for online airline ticket sales upside down.
Why it matters: Airlines are scrambling to keep up and compete in new ways in response to what Ernesto Echeverri, Director of Marketing for North America, the Caribbean & Asia for LATAM Airlines Group, says is Google Flights’ complete disruption of the business of directing consumers to the best flights online.

It isn’t easy to compete with Google. In fact, Google’s owner, Alphabet, Inc., finds itself under intense scrutiny by governments and regulators. In these instances, Institutions have accused Google and in some cases won court judgments for antitrust violations. Now, airlines are discovering Google’s entry into the online ticket advertising and sales market has both good and bad consequences.

First launched in 2011, Google’s airfare search tool has become a dominant player among travel booking sites. The San Francisco Chronicle’s Thrifty Traveler columnist Jared Kamrowski says Google Flights is “leaps and bounds better than any other flight searching tool.”Google Flights

“Google Flights is the most powerful flight search tool,” Kamrowski wrote in a recent column. “[It] should be your go-to flight search engine.”

A Matter of SEO

But the tool’s success is turning out to be a double-edged sword for airlines. Since it directs users to the best fares, brands have to compete harder —and spend more— for first-page search-engine results.

“No one else has as much access to online flights information as Google. That means Google can outperform any other online flight aggregator,” Ernesto Echeverri, director of marketing for North America, the Caribbean & Asia for LATAM Airlines Group, and a member of Portada’s Travel Marketing Board, told Portada. “It makes it a little bit uneven because they have a tremendous advantage.”

Google Flights is the most powerful flight search tool. It should be your go-to flight search engine.
Ernesto Echeverri

As a result, it makes it more difficult for brands like LATAM to ensure top positioning on search engine results, especially on mobile platforms where appearing on the first page is even harder due to the smaller screens on mobile.

To compete with Google Flights’ dominant positioning in search results, LATAM will have to spend more money on purchasing first-page positioning, increasing its digital advertising costs, Echeverry said.

Competing with Google

Portada typed the words “flight to Paris from Boston” into Google recently and the following results popped up:

The first four search engine results were paid positioning by companies including Expedia, Cheap Flights, and Opodo.com. Google Flights took the fifth spot, the first unpaid position.

“We see players like Kayak and Priceline or Expedia who are also struggling to remain relevant with Google Flights,” shared Echeverri. Competing with Google for first-page search results is going to cost LATAM more. “What I think is going to start happening is that this will start increasing my costs.

A Silver Lining

The consequences of Google Flights’ entry into online flight search haven’t been all bad, however.

Echeverri declared that LATAM ticket sales tied to searches on Google have increased as a result of Google Flights directing consumers to LATAM flights. “Google Fights is increasing our sales. The multiple is probably ten-fold per year in the category of metasearch.”

Google Flights’ dominance on Google search has also forced LATAM to compete harder for other ways to win customers, including making improvements to its mobile application, frequent flyer program, and CRM.

We see players like Kayak and Priceline or Expedia who are also struggling to remain relevant with Google Flights.

A Better Deal for Consumers

Another consequence of Google’s disruption of flight search has been the possibility to break down the geographic barriers that allow airlines to sell tickets on the same routes at different prices, based on the market where the ticket is purchased.

According to Echeverri, the same round trip ticket between Mexico and Chile may cost more or less, depending on whether the purchase is made, in Chile or Mexico.

LATAM faces tough competition against Google flightsGoogle’s massive database of online information means Google Flights looks at fares from all over the world, so consumers can find a cheaper price on the same route, depending on where they choose to pay. It’s great for the consumer, but it will force airlines to adopt single pricing. “It’s hard on the airlines that used to have geographic barriers to manage their markets,” Echeverri asserted.

As a company you can do two things: start crying right now, or start doing stuff. LATAM has started doing stuff.

Here to Stay

“As a company, you can do two things: start crying right now, or start doing stuff. LATAM has started doing stuff. You don’t want all your eggs in one basket,” Echeverri warns.

Google Flights is “dominant and they are leveraging that dominance, which is good in the short term,” but could produce consequences that will have to be examined over the long term, according to Echeverri. “Google Flights is here to stay.”

 

What: Ecommerce marketing strategy is revealed by retailers Walmart and Soriana. It shows how they’re capturing the e-commerce home delivery grocery market in Mexico with alternative digital payment strategies.
Why it matters: Fear of fraud stops many Mexico consumers from making online purchases with a credit card. As a result, Walmart and Soriana are on it. Consequently, they’re deploying cash on delivery, branded digital cash cards, mobile phone loyalty programs, and PayPal options.

The race is on as grocers deploy ecommerce marketing strategy in Mexico. Grocery and general merchandise retailer Walmart has taken the lead. But in Mexico, its competitors, including Soriana, are racing to build their online-delivery businesses.

How customers pay for their online purchases could make all the difference.

High credit card commissions and fear of fraud pose a significant barrier to online sales in Mexico. Digital purchases make up only 3 percent of all consumer goods sales nationwide. As a result, that’s way below the average seen in other countries, according to branding expert Vilma Vale-Brennan. She is deputy general manager of Vale Network in Mexico.

The new President of Mexico, Andres Manuel Lopez Obrador, has promised to get banks to lower credit card commissions. But grocery retailers like Walmart don’t have time to lose.

Ecommerce Marketing Strategy with Digital Payment App

Last year, Walmart launched its own digital application. As a result, it allows customers to pay for goods at stores with the Walmart digital application “Cashi.”

After downloading the app to their mobile phones, customers can recharge it with cash at any Walmart-owned store. It’s a fast and easy way to convert cash into a secure digital payment option. As a result, customers use it for purchases at Walmart, Superama, Sam’s Club, and Bodega Aurrera stores.

Cashi can be used to pay electric bills and services including Netflix, Spotify, and Uber.

The idea here is to make purchasing with Walmart easier, and to give people more options.

But perhaps more importantly, Walmart tells Portada it expects to extend the Cashi digital payment system later this year to allow its online customers to use Cashi for online grocery purchases, according to Gabriela Buenrostro, assistant director of corporate communications. “The idea here is to make purchasing with Walmart easier, and to give people more options,” she said.

Walmart’s ecommerce marketing strategy outpaces the online market with 4.5 million e-commerce shoppers in Mexico, followed by grocers Soriana at 1.1 million, according to a study by the American media measurement and analytics company Comscore as reported by Portada.

Cash, PayPal Options Offered

Walmart offers online customers the option to use PayPal, and Soriana added the PayPal payment option to its online shopping site this year.

Soriana also allows its online customers to pay cash to the home delivery person, or use their credit card on the delivery person’s portable card reader, Director of Electronic Commerce Rafael Castelltort told Portada.

Most of Soriana’s online grocery customers shop online using Soriana’s branded mobile application on their cell phones. A Soriana loyalty card program has more than 9,000 users, and to build loyalty even more, Soriana, deploying its own ecommerce marketing strategy launched its own mobile phone service “Soriana Movil” in 2017, which earns users loyalty points that can be exchanged for free products, Castelltort said.

The trends are very clear. Mexicans prefer to use a mobile phone when visiting grocery stores’ online sites.

Soriana’s decision to launch its own mobile phone service in Mexico might appear tangential to an effort to build online purchases, however, it could be spot-on in terms of getting more online shoppers.

“The trends are very clear,” comScore’s Alejandra Ibarra, manager of comScore’s Latin America Services, told Portada when asked about ecommerce marketing strategies among grocers in Mexico. “Mexicans prefer to use a mobile phone when visiting grocery stores’ online sites.”

And as time goes by, mobile applications are becoming more and more important for grocery ecommerce market leaders like Soriana and Walmart.

Just last year, Walmart announced its acquisition of the online marketplace Cornershop. Users download the Cornershop application to make online purchases using their mobile phones at supermarkets, specialty food stores and pharmacies in Mexico and Chile, according to Forbes.

“The Cornershop acquisition by Walmart shows the focus that applications have for the company and the performance it must deliver to maintain its leadership,” Ibarra told Portada.

What: WeWork’s Ana Rivadeneyra reveals to Portada how WeWork “humanizes” its outreach to potential customers in order to grow its market in Mexico and Latin America.
Why it matters: WeWork is leveraging the power of its own members’ experiences as told by them on social and other digital media to fuel its rapid growth in Latin America. 

“Our community is our most valuable marketing tool.” That’s how Ana Rivadeneyra, Marketing Manager México at WeWork, describes WeWork’s strategy for continuing its rapid growth in Mexico and Latin America.

WeWork first entered the Latin America market in 2016 starting in Mexico City and has since grown its presence in the region to 50 locations and 11 cities in six countries, including Mexico City, Buenos Aires, Sao Paulo, Bogota, Río de Janeiro, Lima, Monterrey, Santiago de Chile, Medellin, Guadalajara and Belo Horizonte.

“This region is of utmost importance globally for WeWork since it is the fastest-growing region, taking into account that we have only spent a little more than two years in this territory,” Rivadeneyra tells Portada.

Today, WeWork has 32,000 members in Mexico, and 450,000 members worldwide.

Portada: How does WeWork see itself operating worldwide and in Mexico? Is it a real estate, services, or software company?

AR: Our growth in Latin America—and the world—is on all of those fronts. We provide a 360-degree solution that simplifies space installation and maintenance. We are a single point of contact for an architect, designer, construction professional, landlord, and attorney. Here, workers and companies have the space, technology, services and experience to help them focus on what’s most important to them. Beyond just the physical space, our network of members and our application create a worldwide community of professionals and businesses.

WeWork has 32,000 members in Mexico, and 450,000 members worldwide.

Portada: What are the traditional marketing tools WeWork is using to grow its market in Mexico and Latin America?

 AR: Our community of members is our most important marketing tool. For that reason, we have developed our “member stories” which are case studies of success that tell how WeWork has contributed with its growth, expansion and connections. To distribute these messages and to amplify their content, we use multiple channels such as social media, print, radio, videos and events. By the same token, we place a lot of importance on our referral program where our employees and members are awarded for recommending someone who is interested in a work space.

Our most valuable marketing tool is our own community. There is no one better than our members to explain what WeWork is and how we can help.

Portada: What are some of the newer marketing tools that WeWork is using to grow in Mexico and the region?

 AR: At WeWork we are constantly looking to innovate in all areas, and our marketing is no exception. Our strategy is highly focused on digital (Social Media, Google Ads, Search, Website, Email Marketing, etc.), but without losing the real experiences and the value of real connections with people. Therefore, we like to define our strategy as “humanized marketing.” Another one of our very valuable tools is our WeWork application. With it we have managed to materialize loyalty tactics like discount benefits for members, direct communications, push notifications, a referral program, etc.

Portada: Among the new digital marketing tools that WeWork is using, which ones are proving to be the most important?

 AR: Organic content on the Facebook and Instagram platforms works well for us in order to promote our mission and generate awareness of what we offer. We add to that strategic segmentation on the same social networks that allows us to talk about our products to a new market and grow the community. We also use tools like LinkedIn that work to connect with a specific target in a more direct way.

Portada: What is an example of a tool or technology that is making a big difference in your Latin America marketing?

 AR: We use the “WeWork experience” that our members have when working in our spaces, including events and experiences that can be posted on Instagram. This has proven to be one of the 360-degree tools where people can learn more about trends, well-being, and different themes that interest them. For this reason, we focus many of our efforts and actions to invite more people to enter our buildings and experience and live the spaces within.

What: Latin Trade has published its annual ranking of the Top 1,000 Latin American Companies by revenue, total assets and net income.
Why it matters: The net income of the 1,000 companies in the most recent LT1000 ranking reached $100.7 billion, down from the $121 billion from last year.

The net income of the 1,000 companies in the most recent LT1000 ranking reached $100.7 billion, down from the $121 billion from last year.

Maintaining their spot among the top 5 are Petrobras, with a 5,034 percent jump in net income compared with the previous year; Pemex (+20 percent); América Móvil (+1.7 percent); JBS (-4.9 percent) and Vale (+5.8 percent).

The LT1000 ranks Latin America’s 1,000 largest, non-financial, publicly listed companies by revenues, assets and EBITDA.

The sectors covered in the ranking are:

  • Agriculture & Fisheries
  • Metal
  • Chemical
  • Construction
  • Electronics
  • Home Appliances
  • Electric Power
  • Food & Beverage
  • Industrial Machinery
  • Mining
  • Oil & Gas
  • Pulp & Paper
  • Retail
  • Software & Data
  • Telecommunication
  • Textile
  • Transportation
  • Vehicle & Parts

To read the full document visit Latin Trade: https://latintrade.com/2019/07/30/latin-americas-top-1000-companies-2019/?v=0b98720dcb2c

 

What: We touched base with key executives of  U.S. and Latin American media properties to know their thoughts on what this latest Facebook algorithm change might mean for traffic referral and content viewership. 5 things to take into account. Interviewees: Iván Adaime, Juan Convers, Henry Pacheco, Juan Romero, Christian Wilkins, Matan Har, and Rafael Urbina.
Why it matters: After Zuckerberg’s announcement, there’s been a buzz around the effect it might have on media properties. Facebook’s reach is unparalleled. Thus, we should get a sense of what the change could mean not only for the general market but also for the multicultural segment in the U.S and the Latin American space.

There’s been an uproar on the web after Mark Zuckerberg announced last week that a new change to the news feed algorithm would prioritize “posts that spark conversations and meaningful interactions between people” over public posts. Opinions are divided among the ones who believe this can be a “Facebookgeddon” and those who see it as a driver of positive change. We talked to a few publishers about the subject and, according to their perspective, it’s not that bad.

1. A Facebook Algorithm Change Shouldn’t Be the End of the World

“I hope we all source our news from multiple outlets and don’t rely solely on FB,” tweeted Marketing and Media professional Marie Casimir on January 17, interacting with Twitter for the first time in 4 months. Even though they know they could lose some traffic, publishers who do not solely rely on Facebook for interactions know their users will stay with them. “No platform will do the work that every publisher should be doing by themselves,” points out Iván Adaime, EVP at ImpreMedia. “It requires effort and work with a lot of data to develop new audiences, but the opportunity is definitely there. As a cautionary tale, publishers might consider not putting all eggs in one basket.”

As to which other “baskets” they could consider, Juan Convers, VP of Strategy & Business Development at Univision, thinks every publisher needs a strong distribution strategy. For Univision, the more distribution channels the better. “We have good SEO, a newsletter, podcasts, a very strong influencer network, and we’ve been experimenting with different messenger platforms. We have used platforms like Instagram; Insta Stories are also important sources of traffic.”

No platform will do the work that every publisher should be doing by themselves.

2. Direct Communication With the Audience Is Crucial

Actually, not everyone spends all their time on Facebook, which is good for publishers who are aware of their target’s preferences. Henry Pacheco, social media manager at La Vida Baseball, explains that Facebook is not the most important social network for Hispanic audiences. “Latinos slightly outnumber whites in percentage terms when it comes to Facebook use. But on Instagram, 34% of Latinos are active against only 21% of whites.” Then, it’s just a matter of getting to know the people at the receiving end. “Latino audiences share content that relates to their identity,” says Pacheco.

Latino audiences share content that relates to their identity

It may seem basic, but publishers need to keep in mind that direct relationships matter more than very good intermediaries. “We work under an ‘Audience First’ notion,” asserts Juan Romero, CEO of Metro Latin America. “We are ready to go where audiences are.” In short, Facebook should be a place where publishers go to listen and learn. As La Vida Baseball’s Pacheco points out, “Publishers that already do this will be the ones who thrive and survive future algorithmic changes.”

 

 

3. The Ultimate Objective Is to Deliver High-Quality Content

The panic after Zuckerberg’s announcement was immediately noticeable. The following morning, Facebook pre-market shares fell 4%, meaning Facebook shareholders were losing US $23 billion. Needless to say, this signals to a need of thinking (and fast) about what to do if the algorithm change is too significant. For Christian Wilkins, sales and marketing manager at newspaper El País, Uruguay, the answer is simple. Want to keep your users? Deliver them good content. “Even if media and audiences change with time, the essence of communication media is the quality of their content.”

The essence of communication media is the quality of their content.

“Sports fans are highly active, passionate communities. Our content is always authentic, interactive and engaging,” says Matan Har, head of content at soccer platform 90 min. As he explains, this is even truer among Hispanic audiences. “They particularly enjoy engaging content; creating content for them is fun and meaningful.” He also shared with us a very interesting statistic. “Among the world’s digital consumers aged 16-24, it’s those in Latin America who are most engaged with social media.” Going where audiences are and offering high-quality content results in engagement and loyalty. Then, even if referrals decrease, “this will be compensated because users will be more loyal,” declares Metro’s Juan Romero.

4. The User Also Has a Part to Play

Not everything is up to the publisher; loyal and engaged users are actively searching for good content. “The new Facebook algorithm change will force users to be much more active,” says Christian Wilkins. “They’ll have to modify their preferences according to which pages they like.” The way to make sure audiences will include publishers in their preferred pages is making sure contents are conversation starters. Rafael Urbina, CEO at Vix, thinks there will be no more room for passive viewing. “Focusing on content that drives sharing and sparks conversations has always been and continues to be of critical importance”.

In the end, it all aligns with Facebook’s renewed ideal of prioritizing quality interactions. Ultimately it is up to the user to decide which contents inspire them to interact. Also, Facebook just announced plans to have users rank news providers according to how trustworthy they are. “The idea is that some news organizations are only trusted by their readers or watchers, and others are broadly trusted across society even by those who don’t follow them directly,” explains Zuckerberg.

The new algorithm will force users to be much more active.

 

5. The Change is Not Really That Surprising

In spite of everything, the Facebook algorithm change isn’t new or unexpected. All the good publishers will know how to face the change because, as ImpreMedia’s Adaime asserts, they don’t put all their eggs in one basket. “We’ve known zero organic reach has been coming for a while now,” says Henry Pacheco. “Publishers who recognized this will likely be OK. Anyone who hasn’t already might be unable to adjust fast enough”.

Then, going back to their roots can really be a good thing, both for Facebook and for content users. In the case of Latinos, their enthusiasm for content, and publishers’ commitment to delivering it to them, indicates everything will be okay.

 

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