What: We looked at the retail websites with the most Latin American visitors, and specifically Mexican, in December 2017. Why it matters: By paying attention to the number of Internet users who look for retail information online, we can get a good idea of the reach of e-commerce among Latin Americans, and particularly Mexicans, as well as the kind of transactions they prefer to complete based on the type of website they look for.
It is no secret that we’re living in the era of digital transactions, and there is virtually no other sector where this is truer than retail. Buying online is easy, it’s convenient, and everyone has at least tried it. E-commerce is expected to grow by 8-12% in the next couple of years; it’s vital for marketers to keep an eye on who’s doing a good job… and who isn’t.
Top 10 E-Commerce Websites in Latin America, December 2017
Total Audience, Home & Work, PC/Laptop Only
Total Unique Visitors/Viewers (000)
Total Internet: Total Audience
Apple Worldwide Sites
Out of the total amount of internet users in Latin America, 64% visited e-commerce websites.
Almost half (48%) of Latin Americans looking for retail options online visited MercadoLibre.
17.8% of users preferred to shop on Amazon websites.
15.6% of Latin American users were interested in finding out more about financial figures related to e-commerce on B2W Digital.
Alibaba received 13.3% of Latin American visits.
9.9% of users visited the Wal-Mart website for shopping online.
8.8% of Latin American internet viewers visited CNova sites.
Close behind is eBay, with 8.2% of users.
7.7% of Latin American e-shoppers visited Apple sites, while 7% preferred Google Shopping.
Finally, Brazilian website Buscapé received 6.5% of visits.
Top 10 E-Commerce Websites in Mexico, December 2017
Total Audience, Home & Work, PC/Laptop and Mobile Devices
Total Unique Visitors/Viewers (000)
Total Internet: Total Audience
67.5% of Mexicans with an Internet connection visited websites dedicated to shopping online.
As in the rest of Latin America, MercadoLibre leads the list with 45% of visits; again, almost half of users.
Amazon is still in second place, although not so far behind as in the rest of Latin America, with 26.6% of users.
Wal-Mart is more relevant to Mexicans than to other Latin Americans: 23% of users in this country visited the company’s online store.
18.2% of Mexican e-shoppers visited Linio sites.
17.5% of users looking for online stores decided to visit eBay.
Coppel and Wishreceived similar amounts of visits, with 10.7% and 10.3% of users respectively.
9.8% of online shoppers decided to visit Samsung‘s website, while 9.1% went to Alibaba looking for shopping options.
What: Avocados from Mexico made another big splash with its fourth Super Bowl ad. Why it matters: Rather than launching a specific product, AFM highlighted the versatility of avocados and looked to connect with consumers on a broader scale.
The usual Super Bowl mix of commercials has beer, movies, some tech and… Avocados. Yes, Avocados From Mexico (AFM) returned to the multi-million dollar ad extravaganza for the fourth consecutive year, trying to find its way among the big brands during the world’s most-watched sporting event.
Avocados From Mexico (@AvosFromMexico), the wholly-owned subsidiary of the Mexican Hass Avocado Importers Association (MHAIA), again used not just the Super Bowl spot, but future NFL Hall of Famer Tony Gonzalez (@TonyGonzalez88) as a spokesperson, to amplify their message during Super Bowl week in Minneapolis.
The spot, tagged #GuacWorld, landed in the middle of USA Today’s Ad Meter for the game, at 33, ahead of bigger spends for traditional brands like Tide, CocaCola and Michelob Ultra. However the goal for AFM is to be in the game and engage with consumers going forward for event in 2018, not for launching one product.
“The strategy of a business like Avocados for Super Bowl is different than a traditional consumer brand,” said veteran marketer Chris Lencheski. “People on Super Bowl Sunday actually have their product in hand already. It’s a reminder to the consumer that Avocados are different and should be a staple going forward and in that vein the ad becomes a launching point for the rest of the spring, when people are thinking parties and healthy snack alternatives. It’s a big spend, but one that works for them to cut through the clutter.”
Bringing Gonzalez, who starred in the NFL for over a dozen years with the Kansas City Chiefs and Atlanta Falcons, into the mix during Super Bowl week as their spokesman also gave AFM an added media boost.
“Over the past three years, our groundbreaking Big Game campaigns have been an overwhelming success,” said Alvaro Luque, president of Avocados From Mexico. “This year, we are excited to further build on that momentum with another integrated campaign that reminds consumers that avocados are a highly versatile and great tasting fruit, perfect both inside and outside the bowl – from sandwiches to burritos to wraps and salads.”
AFM launched its first Super Bowl ad in 2015, bringing the world “Draft Day,” a humorous, star-studded spot depicting Mexico as the origin for the avocado during a pre-historic, football-styled “first draft ever” of plants and animals. In 2016 they unveiled “Bounty of Earth,” a hilarious, out-of-this-world experience set in an interplanetary museum where aliens highlighted how the Mexican avocado is “Always in Season,” among other unique Earthly treasures. In their 2017 ad, “#AvoSecrets,” a secret society leader is troubled, as humankind figures out that Avocados From Mexico have good fat – a precious secret the society is supposed to protect.
Bringing Gonzalez, who starred in the NFL for over a dozen years with the Kansas City Chiefs and Atlanta Falcons, into the mix during Super Bowl week as their spokesman also gave AFM an added media boost. Although not in the spot, Gonzalez, now an analyst for FOX Sports, was able to weave the AFM messages into multiple appearances in and around Radio Row at the Mall of America, using his own Avocado recipes as a hook around the football talk. That gave AFM an even bigger presence in smaller markets around the Big Game, and extended their media exposure well beyond just the spot, which debuted midway through Sunday’s game on NBC.
There is always risk with a massive one time spend for nontraditional brands during Super Bowl. But by combining with a spokesperson prior and then using the ad to amplify a bigger play into the social world for the spring and summer, Avocados From Mexico is able to score where other brands fail; by being in the Super Bowl conversation, and presenting an opportunity to its partners that keeps the product top of mind and growing as consumer choose snacks for the spring.
What: The NFL has increased its work engaging the Latino community through various efforts including games in Mexico City and the new Hispanic Leadership Alliance. Why it matters: The power of the Latino dollar and influence over brands is ever-increasing, and programs like this reinforce their desire to connect.
Earlier this year the NFL announced an expansion of its efforts to better engage the Latino audience in Mexico, which included more grassroots efforts and the extension of their series of regular season games in Mexico City. For brands looking to take the power of the NFL and marry it with the growing and engaged fans, not just in Mexico but Latino fans in the U.S., the effort makes great sense as the league finds ways to grow its massive following.
This past week the league announced another extension of that effort, bringing on Nationwide Insurance to launch the Hispanic Leaders Alliance, in conjunction with the Hispanic Heritage Foundation. The program will expand the relationship between the NFL and HHF, which has existed since 2011, through webinars, community events and other efforts to better position the league with a community they have been steadily growing. Nationwide’s involvement will give the program a much-needed corporate boost as well, providing a longtime NFL partner with a bigger avenue into the growing Latino market and expanding a leadership position in the community.
One of those key growth areas remains the Latino community, and the great success the league enjoyed this past season in Mexico will be expanded by efforts like this one and others to come.
“The launch of the Hispanic Leaders Alliance signifies a continued commitment by the NFL, the Hispanic Heritage Foundation and Nationwide to connect with and serve Latino communities across the country,” said Dawn Hudson, NFL Chief Marketing Officer this past week. “We are excited to connect with this network of leaders on a year-round basis and continue to impact the local communities of our 32 teams.”
A key part of the existing program has been acknowledging leaders during Hispanic Heritage Month, with more than 200 Hispanic leaders from across the country already recognized and more than $400,000 granted to non-profit organizations. The efforts will now focus in every market, as well as with the NFL’s Latino community outreach which can bolster its efforts south of the border as well.
“Nationwide is honored to partner with the NFL and Hispanic Heritage Foundation to support this newly formed Hispanic Leaders Alliance,” added Mike Boyd, Senior Vice-President of Marketing at Nationwide. “Our sponsorship along with the Hispanic Heritage Leadership Awards align with Nationwide’s goal of partnering with organizations that share our values of improving the lives of others and giving back to their communities.”
With Super Bowl week here, the NFL will look to wrap up what has been a tumultuous season and continue its push to marry brands that they have gotten great benefit from to their dedicated extended community programs. These programs will be great currency for the league as it continues to reshape its public persona and grow from the many positive efforts its players and teams are doing in the community. One of those key growth areas remains the Latino community, and the great success the league enjoyed this past season in Mexico will be expanded by efforts like this one and others to come.
The power of the Latino dollar and influence over brands has never been stronger, so marrying Nationwide to this program is a great sign of the future and sets a nice benchmark for future work.
What: Whatsapp has launched a separate app, meant to help small businesses to connect better with clients. Why it matters: According to Forbes Mexico, 82% of Mexican small businesses using WhatsApp agree that the app helps them to communicate with clients, while 65% percent think it contributes to their business’ growth. For now, the app is available only in the US, Mexico, the UK, Italy, and Indonesia.
“WhatsApp was built for people and we want to improve the business experience,” posted the company on its blog when they announced the new app launch. “For example, by making it easier for businesses to respond to customers, separating customer and personal messages, and creating an official presence.”
The app was designed with several tools in mind, to help companies and users interact easily. Business profiles, automatic messages, and statistics are some of the features included, and it is already available to download for free on android devices.
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.
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.
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.
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’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: Through a license agreement with Time Inc. and Televisa, FORTUNE en Español will be published monthly in Spanish. Why it matters: FORTUNE en Español will include features from the U.S. edition of the magazine, as well as original content from its staff in Mexico. Business magazines are an interesting proposition in some Latin American countries. Forbes Latin America has a relatively large footprint as well as a panregional sales unit in Miami.
Time Inc. and Editorial Televisa will launch FORTUNE en Español. The magazine will be distributed through distributor Intermex at 9,500 points of sales in Mexico and will cover a range of topics from the economy and politics, to technology, startups and innovation. Through a license agreement with Time Inc. and Televisa, FORTUNE en Español will be published monthly in Spanish. German Sanchez Editorial Director of Fortune en espanol tells Portada that an event strategy is likely in 2018. He adds that the concrete topics and dates are still to be determined.
FORTUNE en Español will include features from the U.S. edition of the magazine, as well as original content from its staff in Mexico. The magazine’s debut cover story reports on the evolution of Airbnb and its plans for the Mexican market, written by FORTUNE en Español Editor-in-Chief Germán Sánchez Hernández.
“We are pleased to be partnering with Televisa to bring the FORTUNE brand to Mexico,” said Alan Murray, Time Inc. Chief Content Officer and FORTUNE President. “We are confident that Mexican readers will come to view FORTUNE as their most valued source of business news and information.”
Porfirio Sánchez Galindo, CEO of Editorial Televisa, said, “With the launch of FORTUNE en Español, Televisa starts a new era of content generation and timely news in Mexico in the business and finance sector. We are convinced that our joint initiative with Time Inc. is reaching an underserved audience in our country, that is hungry for great content.”
A digital version of FORTUNE en Español will also be available on Android, iOS and Zinio.
Time Inc. also publishes international licensed editions of FORTUNE in China, Korea, Greece, India and Turkey.
What: Connecting any device to the Internet. Why It matters: Because although exact figures are not yet available (since it is a new trend), the fact is that advertising will become a critical point to understanding the user. It will be like doing re-targeting, except it will be directed at things.
The concept behind IOT is basically that of connecting any device to the Internet. This can include anything: washing machines, cars, cell phones, microwave ovens, motors, lamps, or anything else that can be turned on or off. It is the largest network that will be connected to humans in every way. IOT connects things with things, and things with people. IOT connections worldwide will grow from 6 billion in 2015 to 27 billion in 2025, at a compounded annual rate of 16 percent, according to projections by Machina Research.
The market value of IOT in LatAm is over $250 billion.
The market value of IOT in LatAm is over $250 billion, according to IDC. Most of the investment in IOT comes from Brazil, Mexico, Argentina, and Colombia. Brazil has more than 18 million connected devices, followed by Mexico with 10 million, Argentina with 4 million, and Colombia bringing up the rear and growing with 3 million connected devices.
Technological advancement brings new solutions and replaces obsolete technologies with new innovative products, such as the smart buttons used by Amazon today in the U.S., that allow placing an order with a single click on the product. LTE technology (5G) is also advancing, leaving behind 2G and 3G as standard connection speeds.
Fiber optic penetration in homes is also being used for faster browsing or accessing an endless stream of online products.
According to IDC, Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail. Mexico has more than 10 million connected devices, which represents only 6% of the connected population. This shows that Mexico is behind in this important market. It should be noted that ATT, the world leader in telephony, has a Mexican presence and is betting more than $1 billion in this area during the next 3 years. The deployment of 4G-LTE is of utmost importance for the development of IOT.
Mexico’s investments in IOT exceed $3 billion, which represents only 13% of last year’s growth, with direct investment in transportation, security and retail.
Telcel, one of the companies most committed to this technology, launched its IOT expo a couple of weeks ago, where it presented the first smart trash can. When full, the trash can emits a signal alerting that it needs to be emptied. During this event, Telcel also displayed some smart lamps that light up according to the time of day, and also emit a signal when the bulbs need replacement.
CISCO has presented an implementation plan for several Mexican companies, to teach the banking, commerce, and agriculture sectors how to make their current products more efficient and have better control over them.
Brazil’s IOT market was valued at $15 billion in 2015 and is expected to exceed $35 billion by 2019, at a compounded annual rate of 20.7%.
Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%)
Brazil’s IOT market is undoubtedly better positioned than Mexico’s, as its population is double that of the Mexican market (15.5% vs. 8%). The Brazilian government’s efforts to accelerate the adoption of IOT are based on the launch of a platform. This initiative will be part of the Brasil Inteligente (Smart Brazil) program, which will replace the National Broadband Plan (PNBL). The three-year plan has a budget of $9.8 million.
The Future of Marketing
The development of marketing campaigns in this ecosystem will change the way we currently do advertising, as the devices or things we use will know our tastes and activities, and companies will be able to aim their advertising in a more objective and direct way to the real target market, without having to spend more money than they do now. Just imagine your refrigerator being able to help you with your food shopping, your diet, or with the perfect recipe for that dish you have in mind, directly requesting the ingredients needed from the supermarket.
Advertising will then become critical to understanding the user. It’s like doing a re-targeting, but in this case it will be directed at things. Because all of this is new, there is no data at the moment, but we will see dramatic changes ahead in advertising. In LatAm, telecommunications companies are the most active in this area, working hand in hand with various sectors to interconnect things. Telcel and Claro have deployed smart advertising campaigns that identify their company’s customers when they enter a mall, and can send them a promotion or coupon tailored to their product searches, giving the customer the opportunity to buy it at a more affordable price.
What:Gameloft, a leading global publisher of mobile video games, seeks to move up in the market with its offer to integrate ads into its video games. Why it matters: The company, established in 2000, posted 257 million euros in revenues globally in 2016, according to statistics portal Statista.
“We propose that the presence of the brand, and the campaign, make sense for the user so that he/she perceives them in a natural way,” said Jean Saltarin, Country Manager – Mexico CENAM & Caribbean at Gameloft.
For example, in a racecar game such as Asphalt, advertisers appear natively in billboard ads. Or in a Real Football soccer match, advertising is displayed around the perimeter of the pitch, just like in the real world. In this way, the video game player will not perceive the intrusion of an advertiser, explained Saltarin.
Gameloft users are not part of the “hardcore” video games sector, he said. “Nearly half of our users are women, and 15% of our audience is over age 35.” This mix has made it possible for Gameloft to attract advertisers in the entertainment industry (such as film studios), as well as car manufacturers, beverage, mobile phones, and technology companies in general.
Nearly half of our users are women, and 15% of our audience is over age 35.
Six out of every 10 dollars spent on digital advertising are targeted at the mobile industry, according to eMarketer. Gameloft, whose specialty is mobile games, is betting on making a “premium” offer to brands, said the executive. “Our vision is one of quality; we do not compete for millions of impressions. We guarantee engagement and viewability. We seek to enrich the offer with data, targeting strategies, development of mini-games, and native integration that will be similar to programmatic, but with a stronger value. We are focused on branding awareness and engagement,” he affirmed.
Six out of every 10 dollars spent on digital advertising are targeted at the mobile industry
In order to guarantee a premium level, Gameloft has refused to use third parties to market its ad space and all advertising is produced in-house: “Instead of charging a fee for advertising, we wanted to make sure of when, where and what [ads] would appear before our users, because a frustrated user never comes back to the developer,” said Saltarin.
To ensure user satisfaction, Gameloft relies on statistics and algorithms that keep it from offering challenging experiences and lets the user set the level of difficulty, as well as predict user exit and create personalized offers.
The new Gameloft
“What has allowed us to go on is the ability to adapt. The company was launched in 1999, when the Nokia snake game started and the [industry] began to think it would become a massive platform,” recalled Saltarin. “We continue the strategy of trying to capture innovation, but with the flexibility to act very fast.”
What has allowed us to go on is the ability to adapt.
Last year, Vivendi, Europe’s largest entertainment and media holding company, absorbed Gameloft, which has given the company a new boost and led to its planned entry in eSports ̶ which would make it the first competition of its kind in mobile phones ̶ by 2018 at the latest.
The new Gameloft also raised the offerings for its female audience, with casual games like My Favorite Villain, with almost 100 million downloads; of which 60-70% of users are women.
Over the next few years, Gameloft will focus on the following areas: create fewer games (8-12, instead of developing 15-20); do 15 specialization studies instead of 25; and develop new monetization techniques, according to corporate information.
What: Mexican soccer clubs have begun to work on developing their marketing. Generating more revenue, increasing their number of followers, making themselves more attractive to advertisers, and capturing the Latin American market in the U.S. are some of the goals they are trying to reach. Why it matters: Liga MX is the most followed soccer league in both Mexico and the U.S., so reinforcing their marketing strategies is an essential key to continued growth.
Liga MX clubs have made a significant leap in the last ten years. Mexican teams began to study their international peers to copy their best practices and learn from their mistakes.
“In the last ten years, Mexico has tried to match what European leagues are doing, such as in Spain or England. They are not yet on par with England’s Premier League, the MLB, or even the NFL, but the qualitative leap is remarkable. There are few clubs out there that are not doing a serious job of marketing,” said Antonio Rosique, sports commentator, and sports marketing specialist.
Mexican soccer is an attractive business market for generating and collecting revenue. This is confirmed by the howmuch.net site, which places Liga MX among the top 15 highest-earning sports leagues in the world, ahead of even European leagues such as the Netherlands’ Eredivisie and the German Bundesliga.
howmuch.net calculates that Liga MX generates US $555 million in revenue annually. Rosique explains that Liga MX’s high revenues are due to the large size of the Mexican soccer market. “If you have a market with a population of 90 million, and the Netherlands has a population of seven million, you are automatically going to generate more money, even with a junk league.”
However, clubs in Mexico need to really boost their revenue through wise marketing strategies. This will help the league become even more attractive to brands.
“Soccer is very attractive because it is a topic that penetrates all market segments, from ‘A’ to ‘E’. Each brand decides whether to associate itself with a club or league, or even just with a single match. It depends a lot on the market, and on the interests, you have as a brand,” added Rosique.
Nevertheless, Liga MX faces four basic challenges it needs to overcome in order to truly enhance its brand.
Mexican fans are definitely among the sport’s most passionate, but this passion is sadly accompanied by violence in the stadiums and in matches where rivalry runs high. “As long as violence continues in Mexican soccer, there will be fewer brands that want to associate with that,” said Rosique.
As long as violence continues in Mexican soccer, there will be fewer brands that want to associate with that.
2. The stadium experience
Much of the country’s stadium infrastructure is old. If we compare it with that of the MLS in the U.S., for example, Mexican clubs are far behind with their stadiums. Going to see a live game is an experience that needs to be complete and first-class, experts agree. “As clubs improve that experience for the fans, they will see better revenue,” explained Rosique.
3. Underutilization of digital platforms
Javier Salinas, a marketing expert who has worked with FEMEXFUT and teams like Morelia’s Monarcas, thinks that Mexican clubs need to exploit areas such as social networks, where they have grown beyond other sports powerhouses, and where there is a large influx of domestic fans.
“In digital marketing, Mexico is better developed than Europe—our society is more Twitter and Facebook oriented than in Europe. Our country is one of Facebook’s main revenue sources. And Mexico is the fourth highest revenue-producing country for Twitter. On YouTube, Mexican soccer videos are among the most-viewed. This has led to an acceleration of digital marketing processes,” said Salinas.
Salinas, current Marketing Director of the Mexican Baseball League (LMB), thinks there is room for improvement when it comes to generating and attracting sponsors.
“In Mexico, sponsorship culture is a new thing for brands. Here, it is still seen as an expense, rather than as an important investment in their brands,” he explained.
In Mexico, sponsorship culture is a new thing for brands. Here, it is still seen as an expense, rather than as an important investment in their brands.
Mexican clubs undoubtedly have the exposure and followers necessary to maintain their strong brand. Now, they need to overcome these four challenges to stay ahead, especially against new players who are getting stronger in their markets, such as the MLS in the U.S.
“The example of emulating leagues that have great marketing strategies is still far away. Getting top dollar for TV rights and increasing the number of followers worldwide are still goals that have to be worked on,” concluded Rosique.
Although the Tourism Promotion Council of Mexico (CPTM) has slashed its budget by almost 35% this year, the country’s spending on tourism promotion abroad will increase by 41% to 1,125 million pesos. Eighty percent of it will be allocated to “priority markets” such as the US, where it appears to have opted to strengthen its ad spending during 2017.
In 2016, Mexico sought to attract visitors with its Live it to Believe it campaign, which helped to increase the influx of international tourists by 10%. Between 2014 and 2015, the number of tourists increased from 29.3 million to 32.1 million, with economic revenue rising from $16.2 billion to $17.5 billion.
In the second quarter of this year, the name of the campaign was changed to A world of its own, and will continue to target men and women (47% and 53%, respectively), with annual revenues of more than $314,000, according to information obtained via official transparency data.
Of all foreign visitors to Mexico, 60% come from the United States and 10% from Canada. The main states that receive travelers are Mexico City, Quintana Roo, Yucatan, Baja California, Jalisco, Nayarit, Chiapas, Oaxaca, and Guanajuato, said Juan Alberto Muciño Abrego, CPTM’s Marketing Coordinator.
The Mexican government also promoted campaigns aimed at different niche markets, such as romance tourism, with México, Yes I do; and nostalgia tourism, targeting the Latin market, with Mi México. Promotion has also extended to business meetings, with water sports and golf also used as a travel hook at high-impact events such as the OHL Classic at Mayakoba on the Riviera Maya, Quintana Roo; the Lorena Ochoa Invitational in Mexico City; and the Mexico Regatta Cup 2014 in Nayarit.
Mexico currently ranks third as best Latin America country brand, after Argentina and Brazil, according to Future Brand Global’s Latin America Country Brand Report 2015-2016.
Mexico currently ranks third as best Latin America country brand, after Argentina and Brazil, according to Future Brand Global’s Latin America Country Brand Report 2015-2016.
The table below shows which platforms Mexico advertises on to promote the country in the U.S., along with the amount invested in each media outlet.
From 2015 to 2016, there was a strong drop in ad spending on traditional media. Investment in TV advertising fell from $4.9 million to only $443,902. However, it seems that tourism promotion spending will see an upswing in 2017. For this year, the amount has already climbed to $1.5 million and we are barely halfway through the year.
Investment in TV advertising fell from $4.9 million in 2015, to only $443,902 in 2016.
As for digital platforms, CPTM seems to have diversified less in 2016, distributing its spending among only a few sites such as YouTube, Teads, Nurun, IMS, Golf Digest, and Facebook. Will it set its sights once again on the OTAs in 2017, as it did in 2015 with Expedia, Price Travel and Despegar.com?
TV spending in the U.S.
TELEVISION (in USD)
Pati’s Mexican Table
SM Hispanic LLC
Cable News Network
Source: CPTM. ** As of March 2017, there has been no spending in online media for the US market
Spending in U.S. digital platforms
TRADITIONAL WITH ONLINE PLATFORM (in USD)
Northstar Marketing Solutions
Advance Magazine Publishers
Gannett (USA Today)
Hawaii World (Journese)
Mas Comunicación (NBC)
Travel & Leisure
Viva The Woodlands
Source: CPTM ** As of March 2017, there has been no spending in online media for the US market
Travel Marketing will play an important role on Day 1 of PortadaLat this Wednesday. We have added new Ticket Types to Meet Your Needs!
DAY 1: SPORTS AND TRAVEL MARKETING DAY (June 7): The first day of PortadaLat will focus on how technological innovation is impacting key segments of business and marketing with emphasis on Travel and Sports. All sessions, keynotes, and marketing-tech showcases are included as well as light food, sandwiches and beverages. (US $199) GENERAL PASS: Attend the overall PortadaLat event on June 7 and June 8. All sessions, keynotes, networking, food and beverage included! (US$549). DAY 2: BRAND INNOVATION DAY (June 8) The second day at PortadaLat will celebrate Brand Innovation and showcase how leading companies are boosting brand equity and increasing their relevance in a disruptive environment in Latin America and the U.S. Breakfast, Lunch and Evening Reception Food and Beverages included. (US$ 449!) VIP ATTENDEE: Meet up to 5 high-level brand, agency or media executives of your choice attending or speaking PortadaLat. These 10-minute meetings will take place in a separate room during the first and second day of PortadaLat and are designed to help you build valuable relationships. General Pass offering is included. (US $ 1,999). Secure your spot and start the PortadaLat journey!
What: Portada spoke with Arno Trabesinger, FC Barcelona’s Managing Director Americas, about the Spanish club’s expansion plans for Latin America. Why it matters: Last September, FC Barcelona opened new offices in New York, in an effort to boost its growth throughout the American continent, with a special focus on Latin America.
Since FC BarcelonaDirector Ramón Adell’s arrival two years ago, the team has embarked on the road to globalization. “We want to be the most global team of all sports, and Latin America is the base because soccer here is already [the] number one [sport],” said Arno Trabesinger, FC Barcelona’s Managing Director Americas.
To fulfill this goal, FC Barcelona is looking to solidify its presence in Latin America in 2017 through strategic efforts. “Latin America is very important for us, due to the fact that we have so many fans following the team in the region,” added Trabesinger.
Latin America is very important for us, due to the fact that we have so many fans following the team in the region.
According to the team’s social networks analysis, Mexico is the second largest country with the largest number of followers worldwide on the club’s Facebook page, surpassed only by Indonesia. In Latin America, Mexico is the largest, followed by Brazil and Colombia.
FACEBOOK FANS (21 mar – 2017)
Mena / North Africa
Europe / (Mena)
In Mexico, football fans follow their favorite local team, but also support and follow one or more European teams, explained Trabesinger. “That’s where we want to be number one. In addition, we have nine Latin American players on our team, so that gets us more fans in the region.”
The goal now is to take advantage of the attention that the club already has to keep it growing. In addition to its social networks strategies, which are dictated from Barcelona, “a relevant marketing tool for Latin America is the team’s soccer schools for children ages 8-16. We have several already in Peru, Guatemala, Brazil, and Mexico, and we want to open more throughout the year,” he added.
A relevant marketing tool for Latin America is the team’s soccer schools.
These schools represent an opportunity for brand development and brand building among children and young soccer fans.
Looking for more sponsors
Growing its network of followers is undoubtedly one of Barça’s objectives, but “growing our business opportunities” is also a goal, said Trabesinger.
In 2015, the team signed a regional agreement in Latin America with Canada’s Scotiabank, which will run through the 2018-2019 season. It also has local sponsorship deals with foot deodorant brand Baruel Tenysa Pe in Brazil, and with Tecate beer in Mexico, in addition to its global sponsorship agreements with Nike, Gatorade, Gillette, and Stanley Black & Decker.
“We are looking for partnerships in Latin America, especially in Mexico and Brazil. That’s why we came to New York, to strengthen our LatAm efforts from here,” he explained.
The club seeks to add marketers to its New York office who know the Latin American market well, and know how to bring together partners in this region.
When adding brands, the most important thing is that they support the philosophy of the club. “We want sponsors who are proud to be part of the family, and are interested in activating at the local level,” said Trabesinger.
Register, nominate, and participate in the Premio Golazo Best Soccer Campaign Award!
In addition, the team wants to sign agreements lasting a minimum of three to four years. “We want partners who will stay with the team in the long run,” he said.
We want partners who will stay with the team in the long run.
Sports Marketing will play an Important Role at Day 1 of PortadaLat: We have added new Ticket Types to Meet Your Needs!
GENERAL PASS: Attend the overall PortadaLat event on June 7 and June 8.All sessions, keynotes, networking, food and beverage included! (US$549) VIP ATTENDEE: Meet up to 5 high-level brand, agency or media executives of your choice attending or speaking PortadaLat. These 10 minute meetings will take place in a separate room during the first and second day of PortadaLat and are designed to help you build valuable relationships. General Pass offering is included. (US $ 1,999). DAY 1: SPORTS AND TRAVEL MARKETING DAY (June 7): The first day of PortadaLat will focus on how technological innovation is impacting key segments of business and marketing with emphasis on Travel and Sports. All sessions, keynotes and marketing-tech showcases are included as well as light food, sandwiches and beverages. (US $199) DAY 2: BRAND INNOVATION DAY (June 8) The second day at PortadaLat will celebrate Brand Innovation and showcase how leading companies are boosting brand equity and increasing their relevance in a disruptive environment in Latin America and the U.S. Breakfast, Lunch and Evening Reception Food and Beverages included.(US$ 549!) Secure your spot and start the PortadaLat journey!
What: The sports clubs market in Mexico continues to grow steadily, making it a relevant platform for brands seeking to reach potential captive consumers and boost their presence in the fitness market. Why It Matters: With 51 million members, the global fitness industry generates $81 billion a year in profits.
The U.S., Brazil, Germany, Argentina, and Mexico are the five countries that dominate the world fitness market, accounting for 50% of the 186,000 sports clubs tallied by the International Health, Racquet & Sportsclubs Association (IHRSA).
The fitness industry generates $81 billion a year in global profits, serving a market of 51 million members. However, not all of its profits come from membership fees.
Alliances and sponsorships with brands that want to connect with the fitness audience are increasing every year. “In short, we have seen a lot more advertising in the last few years and the supply is increasing in different commercial channels,” said Fernando Guzmán López, Director of Marketing, at Mexican sports clubs Sports World, one of the leading gym chains in Mexico with 45 sports clubs and eight more openings slated for this year.
We have seen a lot more advertising in the last few years and the supply is increasing in different commercial channels.
The advantage of using gyms as a channel to reach an audience is that they are spaces that concentrate a specific target group: middle to upper-middle class, concerned with looking and feeling good, in a relaxing setting bathed in endorphins (the “happiness chemical” released by the body when exercising). This is a combination that brands find hard to resist.
“[Brands] are interested in this demographic, [in a place] where people are also more relaxed and willing to listen to a brand message. It’s a chance for brands to talk to them, one on one,” said Chris Dedicik, CEO of New Evolution (NeV), which runs nine gyms in Mexico under the Hard Candy, Energy Fitness and MX Gym labels, in addition to over 1,000 other sports clubs in 20 countries around the world.
It’s a chance for brands to talk to them, one on one.
Sports World has established advertising partnerships with New Balance, Puma, and Kappa, among other brands, while NeV has inked deals with Under Armour, Powerade, and Innovasport.
The potential for growth is looming. “We are at 3.2% penetration nationwide, with ample opportunity to grow compared to countries like the United States and Canada, which are at 17% and 16%, respectively,” said Guzman.
The demographic profile is growing to include young people and older adults, and those with lower incomes. As the fitness market matures in Mexico, this may attract increasingly more alliances and sponsors.
Dedicik cites the U.S. as an example of this trend, where the fitness market has been consolidating for 20 years, giving rise to a wide variety of gym options. “Ten years ago, there were only two gym chains, aimed at the upper and upper-middle classes. The gyms that served classes C and D were not part of a chain, lacked quality, and were small gyms with used machines. In the same way as with the U.S., the market is already changing in Mexico.”
What: ESPN launched ESPU and SEC Network focused on college sports lovers. Both networks will be available on Totalplay. Why it matters: Together, ESPNU and SEC Network broadcast more than on thousand live college games, in addition to carrying over 600 original studio shows.
In 2005 ESPN decided to listen to college sports fans in the U.S. and launched ESPNU, focused on broadcasting live college sports events. Now, the channel makes its way into Mexico, on sports on Totalplay, the entertainment and total connectivity company offering internet, interactive television and telephone services.
Also available on the OTT will be SEC Network, devoted to covering collegiate sports in the Southeastern Conference, a college athletic conference whose member institutions are located primarily in the Southern part of the U.S.
“We are excited to make both networks available to Totalplay customers in Mexico,” said Gerardo Casanova, vice president and managing director, Latin America North and ESPN Mexico.
ESPNU airs more than 650 live events annually, including conference championships and the crowning of national championships, in addition to carrying over 600 original studio shows. Together, ESPNU and SEC Network offer live college games including regular-season football games, men’s and women’s basketball games, soccer, volleyball, lacrosse, track & field, as well as unparalleled access to news and information shows, and original programming.
What: Waze opened its first office in Latin America a few weeks ago, with a team of eight led by Luis Ita, country manager for Mexico. Why it matters: Waze will sell advertising space within its app, allowing brands to generate a connection with drivers.
In an effort to expand its presence in Latin America, Waze recently opened its first offices in Mexico. Luis Ita, Waze country manager for Mexico, and his team of eight will be in charge of implementing the company’s strategies in the region.
Through its analysis of collected data, the Waze mobile app offers drivers from different countries alternative routes to reach their destination, with the promise that they will be the least trafficked.
Samuel Keret, Waze’s head of sales, said that their traffic platform has worked since its inception to facilitate movement of people in urban areas and help them avoid traffic, from the moment people leave their homes in the morning until their return at night.
According to information on the app, users have 636 minutes of time at their disposal per month, in which the app seeks to facilitate their driving experiences by providing users with relevant and contextual information to help them find a functional service that fits their needs.
One of Waze’s objectives for Latin America is to develop a location marketing application, in order to offer a brand experience that is meaningful to users.
According to Benjamin Crowell, Waze’s head of product marketing for the U.S., this app seeks to develop what he calls “the right experience.” This refers to how the application benefits other user activities outside of the digital world.
In line with its expansion plan, Waze introduced a new feature in its app for the Mexican market that integrates real-time advertising. To prevent possible car accidents when launching an ad, the app measures speed indexes in order to add additional information that can be read by the user when he/she is able to without putting the driver at risk.
Among the new features, the user will now be able to find a parking lot before starting a trip or, when approaching the destination, the app will help you locate the nearest parking spot.
Since the app knows the exact location of the user, Waze can offer its advertisers branding pins. This helps brands to flag their locations within the area where potential consumers are moving.
Globally, 1.3 million people are killed in traffic accidents, and Waze’s goal is to help prevent such incidents, added Keret, who confirmed that the company’s focus will remain in the automotive area for now.
What: To investigate shifts in global travel behavior for the most recent quarter, travel audience engagement platform Sojern analyzed search and booking data from October to December 2016. The final report revealed interesting insight about how Latin Americans are planning to spend their Semana Santa vacations, and how US marketers can entice them. Why It Matters: LATAM travelers are researching and planning very early for a holiday that is tailor-made for families, but there are still last-minute bookings taking place. Travel marketers should address last-minute deals while offering incentives for early bookings,and find ways tooffer tangible services and variations on discounts for increasingly budget-conscious travelers.
Semana Santa ‘Tailor-Made’ for LATAM Family Travel
Traveler audience engagement platform Sojern analyzed trends in April travel among LATAM travelers, revealing valuable insight into shifts in consumer preferences and the effect of current political and economic conditions on people’s ability to travel.
In LATAM, the week of Easter, Semana Santa, takes the place of Spring Break for children, and schools close the week that follows Easter Sunday. “Families see it as a ‘must-travel’ time of the year because there is so much time off, so many look to take longer getaways,” said Andres Franklin, Sojern’s Commercial Director for Latin America.
And as employees in the region — especially in Mexico — tend to get less time off than they do in the United States, people are likely to take advantage of the vacation days that this entire week affords them. Some are even taking an additional week off so that they can have a rare, full two-week vacation: The study revealed that April 1, 7, and 8 are the top departure dates in April.
Franklin commented that trip durations searched for Semana Santa also reflect this trend: “43% of those looking for long-haul travel are planning trips of 12 or more days, and nearly a third of short-haul travel is also for 12 or more days,” Franklin said. The study also suggested that while people plan in advance for this holiday, last-minute bookings are still taking place. Marketers would be wise to address those who are making reservations late through last-minute deals.
LATAM Travelers Budget-Conscious but Seeking New Experiences
While each country in the region has its own idiosyncrasies, they are generally sensitive to prices as exchange rates and their purchasing power does not always favor international power. But currency exchange across the region is at a 10-year high, and “Latin Americans still travel, but they are more budget conscious than before, so variations on a discount resonate a lot better with Latin American travelers than, say, offers of free wifi or additional features,” Franklin explained. “Tangible services, like airport pickup and free breakfast resonate well, too, as does quoting room rates in local currency instead of the US dollar.”
There are also ways to acknowledge the fluctuating economic conditions and turn them into an enticing deal: “If you really want to be smart and hit home with Latin American travelers, you may want to offer, instead of a 20% discount, an offer to ‘pay for it in 2010 currency exchange,” Franklin suggested. While a deal like this is essentially a monetary discount, he assured that it “strikes a different chord” with consumers in Latin America.
Creating short videos that welcome Latin American travelers, especially in Spanish, would be a great way to get your brands in front of new travelers and inspire them to visit your destination.
It is also important to recognize that while LATAM travelers are budget-conscious, they are on the lookout for novel experiences when they travel. “They might scale back on ‘retail therapy,’ but events like a concert, a broadway show, or a major sports game all are still appealing to the Latin American traveler to the US,” Franklin said.
Marketers Should Go Out of Way to Welcome LATAM Travelers
And it’s not just economic conditions that are shaping LATAM travel decisions. LATAM travelers — especially Mexicans — follow the news in the United States closely, and understandably do not feel particularly welcome in the country. To alleviate LATAM travelers’ worries, marketers should focus on “warm and inviting” messages that are heavy on video. “Creating short videos that welcome Latin American travelers, especially in Spanish, would be a great way to get your brands in front of new travelers and inspire them to visit your destination,” Franklin noted.
Another way to assuage travelers’ worries about how welcome they are in the US is to focus on the type of American experience that LATAM travelers want. “When Latin American travelers come here, they seek that ‘Americana’ that is not accessible in their home countries, with respect to both brands and the experiences,” Franklin said. Marketers that can give LATAM travelers the customer experience that they expect from their trip — full of American culture, food and nostalgia — will be well positioned for success.
Semana Santa a Unique Opportunity to Solidify Relationships with LATAM Travelers
Marketers wondering whether Semana Santa is a good opportunity to attract LATAM travelers should rest assured: it is most likely the busiest time of year for traveling, since many people stay in their countries for Christmas so they can be close to family and friends. Plus, since North Americans escaping the cold tend to drive up prices over the holidays, “Christmas is not a great time for Latin Americans to travel, at least not to beach resorts or most of the USA, where it’s winter,” Franklin said.
And since the North American summer months have no family-centric holidays, Franklin added, “kids are usually enrolled in some form of Summer program or camp, so it is family travel time, whether parents in LATAM want it to be or not!”
What: Uniform manufacturers, banks, cement companies, and casinos top the list of Mexican soccer sponsors. Why it matters: Knowing what Mexican brands are targeting Mexican soccer fans also offers interesting clues about brand affinity of Mexican-Americans in the U.S. In addition, having the exclusive for making and selling team uniforms, or having your beer logo on a team jersey – in addition to selling the beverage at the stadium – are profitable investments for brands, even if sponsorship figures for Mexican soccer remain undisclosed.
Liga Mx, which according to statistics is followed by at least 60% of the Mexican population, has a series of sponsoring brands that are split among those which produce team uniforms, and those which stamp their names or logos on the garments used by the players on each of the 18 teams that make up the largest Mexican soccer league.
First are the brands that manufacture and provide the teams with their uniforms:
Puma leads the league with five teams (Atlas, Santos, Monterrey, Guadalajara, and Querétaro); Charly with three clubs (Veracruz, Puebla, and Chiapas); Nike with three teams (Pumas, América, and Pachuca); Pirma with two clubs (Morelia and Leon); Under Armour with two teams (Cruz Azul and Toluca); Adidas with two clubs (Tigres and Tijuana), and Umbro with one team (Necaxa).
The dollar value of the sponsorships is guarded with great secrecy, and neither the brands nor the teams generally divulge the numbers that grant them the exclusive rights to the manufacture and sale of team jerseys. With retail prices that range from 900 to 1,300 pesos, it translates into a very profitable business for sponsors.
Las marcas que visten a los equipos de la Liga MX
But even when sportswear brands are globally renowned, industry experts say that the crux of the sponsorship business is not in who makes the uniforms, but in the brand that supports each of the teams – and whose logo appears on team jerseys – as is the case of beer brands in markets like Germany, Brazil, and Mexico.
The relationship between beer and soccer fans does not seem to be a coincidence, since the three countries (Mexico, Brazil and Germany) are the most important beer producers. Beer has thus become the sponsor of such important sports events as the Super Bowl, Europe’s Champions League, Formula One, and Mexico’s Liga Mx.
When the Liga Mx championship was defined, the Tigres wore the Tecate brand on their jersey, while the América wore the Corona brand. As all the fans know today, the corona or crown, was taken by the Nuevo León team.
Liga MX Beer Brand Sponsors
But other brands also want the attention their product would get by being printed on a uniform. This is the case with cement companies that sponsor their own teams, such as Cruz Azul, Cementos Fortaleza (Pachuca), and Cemex (Tigres); banks such as Banamex (Toluca and Pumas), BBVA Bancomer (Monterrey), Multiva (Querétaro), and Compartamos Banco (Chiapas); and, most recently, casino chain Caliente.
In fact, Caliente – which includes the online betting site Caliente.mx – is the brand that arrived in mid-2016 and went on to become one of the main sponsors of Mexican soccer, with its support of four teams: Tijuana, Puebla , Morelia, and Chiapas, and is poised to increase its sponsorship efforts starting in the second half of 2017.
What: Mexico has seen a boom in international tourism—attracting a record 35 million foreign tourists, many of them Americans, last year, a 9% increase compared to 2015. Why it matters: The impact of president Trump’s contentious relationship with Mexico on Travel and Travel Marketing is very important. The Mexican hospitality industry, including government sponsored agencies, is advertising Mexican destinations heavily. and promoting the affordability of Mexican destinations, due to the depreciation of the peso versus the dollar.
Gabriela Gutiérrez M provided information for this article.
Since Donald Trump’s arrival in the White House, tourism between the United States and Mexico has looked uncertain. On the one hand, Mexicans have been reluctant to travel to the U.S. out of fear of strict entry controls, and on the other, the nationalist rhetoric in the U.S. could scare off American travelers from visiting Mexico.
Enrique de la Madrid, Mexican Secretary of Tourism (Sectur), in a speech before Mexico’s Business Coordinating Council last November, warned that while unleashing a “tourism war would benefit no one,” the country will be seeking to attract visitors from Asia and Europe to protect its tourism industry against any instability that might arise from political issues.
Approximately 18 million Mexicans travel to the United States each year, while 9.6 million Americans visited Mexico in 2016. “Americans now have 40 percent more purchasing power with the dollar than they did two years ago, which is why Mexico is still a very attractive destination for them,” says Agustin González Murillo, President of the National Association of Travel Agents (ANAV).
The favorite Mexican destinations for American travelers are the Riviera Maya (Cancun, Playa del Carmen, and Tulum) and Mexico City, which together account for 80% of all arrivals.
In contrast, Mexicans have canceled their travel plans to the United States over fears that their visas will be suspended in the wake of the new political landscape, on reports that U.S. customs officers are checking visitors’ cell phones and withdrawing tourist visas if any anti-Trump memes are found on them, says González Murillo.
Mexican travelers are uncertain about visiting the U.S. The country’s tourism industry is beginning to wake up to this, which is why local and European destinations are being promoted more.
To lessen any negative impact generated by the Trump administration, wholesale travel agencies are offering retail travel agencies (who sell directly to users) larger commissions to promote local destinations instead.
“Travel agencies who used to receive a 10% commission for hotel bookings in Cancun or Tulum, are now receiving 12% commissions,” says Gonzalez Murillo.
Travel agency Intermex has a marketing alliance with the federal government for the “Viajemos Todos por México (Let’s All Travel In Mexico)”campaign, which seeks to encourage local tourism, says Vivian Braun, Marketing Manager, Intermex.
“Mexican travelers are uncertain about visiting the U.S. The country’s tourism industry is beginning to wake up to this, which is why local and European destinations are being promoted more,” explains Braun.
However, Mexico is experiencing a boom in international tourism, with a record 35 million foreign tourists visiting the country last year, an increase of 9% compared to 2015, according to Sectur.
What: Atlético Madrid creates a subsidiary company to manage its teams around the world. Why it matters: Because the board of directors of Los Colchoneros announced the creation of the company to protect the club’s finances, strengthen relations between its institutions, and help position the related brands involved in countries such as Mexico, India, and France.
Club Atlético de Madrid of La Liga is keeping its sights on international growth and its interaction with teams around the world. To this end, the club’s shareholders voted in favor of creating a subsidiary operating company to manage the new teams that join the Colchoneros family in countries like Mexico, India, and France.
In mid-February, the club announced an alliance with the San Luis Potosí team. The Spanish club acquired 50% of the Mexican team’s shares in an operation that also involved Mexican businessmen and the state government of Potosí.
Following its restructuring, Atlético San Luis will return under the new Spanish management to the Liga Ascenso BBVA Bancomer MX ̶ the second division Mexican soccer league ̶ at the beginning of the upcoming 2017-2018 season.
This is the latest addition to the Atlético’s sports portfolio, which already includes the Atlético de Kolkata of the Indian Super League (which the club helped form in 2014 as part of the Kolkata Games and Sports consortium) and the RC Lens club of the French Ligue 2, of which it recently bought a 35% stake.
The new company will be managing these and potential future investments, in order to protect Atlético’s finances from any losses it may incur during the start of this renewed expansion project.
In addition to providing financial cover, the new subsidiary is also expected to take over institutional relationships between the teams. Part of Atlético de Madrid’s plan is to take advantage of this expansion to encourage the development of players and coaches through international sports and scouting networks, as well as set up corporate departments to promote related brands.
The new company will delimit the boundary between the teams in which Atlético holds shares and those that are part of the Madrid franchise. The sporting and financial responsibility of its women’s soccer and lower soccer divisions, as well as the basketball, handball, and motorsports teams, will remain under the administrative management of Atlético Madrid.
What: The Mexican soccer club has chosen U.S. company Under Armour to make its commemorative jersey celebrating the team’s 100 years. Why it Matters: At a time in which US-Mexico trade relations are in a state of uncertainty, the State of Mexico club has chosen a company that also sponsors Super Bowl LI champ, Tom Brady. And it carries the relationship further— unlike other team uniforms, the commemorative jersey has no sponsor signage.
Club Deportivo Toluca is celebrating its centennial with an Under Armour commemorative jersey, a variation of the jersey that the Mexican team launched last year for its 2016-2017 season.
The special jersey is part of a “Pride and Tradition” limited-edition package of only 3,000 units, which also includes a classic soccer ball. According to Innovasports, the regular jersey is priced at $50 USD.
Among the jersey’s features are the lack of sponsor tags, a gold label with a limited edition number, and the club’s coat of arms surrounded by the team’s values on the back.
The centennial celebration of the club, founded on February 12, 1917, was accompanied by a tribute to businessman Nemesio Diez Riega, the former owner of the team, whose stadium also bears his name, and was framed by the club’s 1-0 victory against Veracruz.
We spoke with agency and brand executives to learn about their travel marketing plans for 2017.
This is what we asked them:
On which platforms will you invest/implement your campaigns in 2017?
What travel marketing trends do you expect to see in 2017?
In terms of marketing in general, what would you like to see more of in 2017?
Luis Perillo, VP of Sales and Marketing, Hilton Latin America Latina and the Caribbean
We are increasing our online and social media investments, along with the permanent use of print media and PR.
We expect to see greater investment in digital channels and social media.
We would like to see more holistic campaigns that include different types of media, to generate greater awareness among key audiences through campaigns that include social actions, PR, online advertising, print, TV, radio, etc.
María Aguayo, Marketing Manager, Expedia LatAm and Mexico
It always depends on the campaign, but digital media and television are a must.
Travelers today are looking for more authentic experiences, which means they also expect travel companies to interact in a much more personal way and also add technology to their offerings.
We hope that people in Mexico will take more vacations. We are very behind in balancing our work and personal life when it comes to paid vacation metrics. Mexicans receive an average of 15 days of paid vacation a year, but take only 12 days of vacation leave. Those three lost days means that Mexicans waste millions of pesos in paid vacation annually. We would like to see tourism continue to gain ground, see more advertisers in this industry, and see consumers being encouraged to travel more.
Christopher Arjona, Senior Director of digital marketing, distribution, CRM, and loyalty programs at Meliá
We’ll be focusing mainly on digital platforms (display, PMP, programmatic, social ads, etc.)
We want the industry to place a greater emphasis on programmatic marketing as a means of prospecting.
It will be interesting to know the general trends of the American traveler market that travels outside of the United States.
Erica Doyne, VP of Marketing, AM Resorts
AM Resorts’ campaigns are fully integrated, including extensions in social networks and online video, among others.
Marketers no longer trust a single traditional platform, but rather seek to engage consumers with new strategies including online video, digital advertising, mobile strategies, public relations and social networking. In addition, industry marketers now seek to target specific markets, such as wedding destinations, the LGBT market, and the Hispanic market.
The focus on experiences is gaining a lot of attention. Many travelers want to add something to their rest and relaxation, so the industry needs to offer more options.