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If you already read our 2016 brands and agencies guide, don’t miss what Diego Reck (FOX), John Mafoutsis (Viacom), Jeremy Piotraut (Teads.tv), Martín Frontini (Zoomin.TV) and Eugenia Denari (Google) tell us about media trends in the new year.

Translated by Gretchen Gardner

Big Data

Diego Reck, SVP and Chief Marketing Officer at FOX International Channels Latin America

Diego Reck

“Without a doubt, expectations are high when it comes to the consolidation of “Big Data.” The industry is going through a great deal of changes in the consumption of content and consumers’ habits are evolving faster than the market. People are dedicating more and more time to consuming entertainment, and the demand for new formats, and high-quality “everywhere experiences” is growing quickly. Our focus has shifted from targets by age or socio-economic class to audience groups that are segmented by genres of consumption. For that reason, to be competitive in marketing, we need to know the habits of our audiences to understand where and how to lead them to advertising messages. In this sense, integrating, processing and utilizing all of the data generated by the different media platforms will allow us to be productive and continue bringing the consumer better experiences every day.”

Multiplatform Opportunities

John Mafoutsis, SVP Advertising Sales and Brand Solutions at Viacom International Media Networks Américas

John Mafoutsis

“We know that the way that our audiences consume content is continuously evolving. For that reason, Viacom International Media Networks (VIMN) Américas will continue to offer innovative formats and a diverse portfolio of channels and products to generate multiplatform options that respond to the demands of our clients in Latin America. VIMN Américas will continue to invest in original productions and in the creation of content for all of our brands to compete in the multiplatform world with our linear, non-linear, mobile, social and live event products. With these products, brands offer clients an opportunity to be in constant contact with their respective audiences at any  time and on any platform.”

Video + Mobile + Programmatic

Jeremy Piotraut, Managing Director at Teads.tv Cono Sur

Jeremy Piotrout

“There will be an increase in digital investment, sustained by growth in video advertising. Within that growth, native video is taking on an important role thanks to the effort that advertisers have to distribute their videos on a premium level. Today, with the increase in Ad-Blocking(in 2015, for example, blocked videos represented 26% and 23% of advertising time in Chile and Argentina, respectively), it is crucial to strengthen formats that respect the user and generate a safe digital ecosystem with native formats.

The three trends for 2016 will be “video” + “mobile” + “programmatic.

Online Video and Mobile

Martín Frontini, Managing Director Latam & US Hispanics at Zoomin.TV

Martin Frontinni

“Expectations are high, and even better than they were in 2015. The online market continues to grow from year to year, and there are countries that haven’t even entered the double digits, which means that there is enormous potential compared to developed economies like that of the U.S. or UK, where online has already outgrown TV. Markets like that of Brazil, the biggest in the region, have experienced moderate growth due to political problems and their economic consequences.On the other hand, we expect a significant increase in online video. An increasing number of advertisers are migrating investment from TV to pre-roll, particularly, as the perfect “partner” to achieve appropriate reach and ROI.
At the same time, within online, the fact that desktop is losing market share to other devices, principally mobile, is nothing new. This trend is as global as it is regional.”

Online Platforms and Complementarity Between On and Off-Line Media

Eugenia Denari, director of marketing at Google for Argentina, Chile and Peru

Eugenia Denari“In 2016 everything indicates that the industry will continue on a sustained growth path. This forecast is based primarily on the perspectives of the market, which will continue to grow organically and constantly, with a strong emphasis on complementarity between off and online media and online platforms, which will gain a larger share of the market. Online search will continue to be a central component of online advertising campaigns, but we are going to see a clear evolution focused on efficiency and video and mobile device integration. These will be the largest spaces for innovation in the next years.

At Google, our biggest goal is to continue to be a digital partner and ally for all of the companies that want to take advantage of the Internet as a strategic pillar of their business. Online advertising is an indisputable component of advertising strategy for any brand. No leading company is questioning whether it needs to be online or not. The question is simply how to be online. To us, the current challenge is that the digital element is present in the earliest stages of designing a campaign, whether its in the marketing or advertising department or within an agency.”

Content marketing, mobile marketing, multi-screen and programmatic buying were the biggest highlights of 2015. Here, we share the reflections of Denisse Guerra, Diego Reck, Martín Frontini, Eugenia Denari, Jeremy Piotraut, John Mafoutsis, Martin Jones, Carlos Espindola and Borja Beneyto.

Content Marketing: Integration with Social

According to Denisse Guerra, Regional Marketing Director for Latin America at The Estée Lauder Companies Inc., “banners are a thing of the past, and now brands are looking for ways to engage, which makes much more sense in today’s consumer environment. For that reason, it has been very imDenisse Guerraportant for brands to develop native ads, editorial integration and that kind of communication since ad blocking is more and more of a danger to them. It’s also an opportunity to be much more creative with our content.”
Diego Reck
Diego Reck, SVP and Chief Marketing Officer at FOX International Channels Latin America, has a similar opinion, indicating that “one of the most noticeable trends in the marketing and advertising industry in 2015 was a more organic integration of  brands into agnostic content for each platform.”

The same trend was observed with respect to audiovisual content. Martin FrontinniAccording to Martín Frontini, Managing Director Latam & US Hispanics at MCN Zoomin.TV, “native advertising like ad-hoc web series for advertisers, product placement and branded content are formats that have begun to win a significant share of any advertising budget.”

Finally, as much as social networks are an entity in themselves, what is true is that they tend to be included in content marketing strategies. As Denisse Guerra indicated, “there is no doubt that companies’ social network and CRM campaigns have been the most relevant in 2015. The development of advertising campaigns that are 100% focused on social networks and brands’ e-commerce traffic are what have grown the most in the advertising industry this year.”

Native advertising like ad-hoc web series for advertisers, product placement and branded content are formats that have begun to win a significant share of any advertising budget.

Mobile Marketing: Geolocation and Transactional Advantages

Eugenia Denari, Director of Marketing at Google in Argentina, Chile and Perú, stated that “without a doubt, mobile was a huge protagonist this year.”

Jeremy PiotroutAnd  Jeremy Piotraut, Managing Director at Teads.tv Cono Sur, expressed that “today, users spend more and more time on mobile than in front of the television or other devices.”

Everything indicates that mobile marketing, as much as it was one of 2015’s trends, is here to stay.

In the words of Martín Jones, Multibrand Digital Manager at L’Oréal: “Today, everything is about staMartin Jonesrting with mobile: geolocalization and transactional experiences are the motor for a deepening presence in the mobile world.”

Multi-Screen: PC and Smartphones Media Consumption Jump

As Jeremy Piotraut reminded us, “while television is still an important media outlet, laptops and smartphones now surpass them in consumption time.”

John MafoutsisJohn Mafoutsis, SVP for Advertising Sales and Brand Solutions at Viacom International Media Networks Américas noticed a similar trend, stating: “In 2015 we saw the way that the consumer finds his or her favorite content  not just on linear television, but on multiple platforms. thanks to this evolution, advertisers have seen the benefit of offering a combination of paid TV with digital, mobile and live media as a part of a media ‘mix’.”

Martín Jones also sustains that “the video ad forms part of the agenda of any advertiser as an extension of his or her TV campaign, but more than anything for productions that are designed for the digital world (at a lower cost than that of generating a larger volume of content).”

According to Martín Frontini, “without a doubt, there has been an explosion of new formats and advertising channels with the rise of Youtubers, influencers and talents that reach the millennial cluster that is so coveted by brands. In this sense, there is an infinite amount of companies trying to group personalities and channels together with a captive audience that permits the brand to complement its traditional presence in the media, offline as much as online.”

Finally, Eugenia Denari commented, “In 2015, our most important project was to work on speaking to the multi-screen consumer that is constantly interacting with different devices. Our focus was on helping to generate even more integral and effective marketing strategies for new forms of consumption.”

According to Carlos Espíndola, Head of Latin America Digital Center  at 3M, “the most noteworthy aspect of 2015 was espindolathe adoption of programmatic buying for many advertisers, which continues to be an under-used practice, but which still helped to impact the right audiences and also prioritize the issue of where advertising money is invested. There is still much work to be done, but it is important for us to continue to communicate, evangelize and train technical market teams to understand the impact that this can have on not only audiences but also the efficiency of investments, not only digitally, but also on TV.”

Borja BeneytoSimilarly, Borja Beneyto, VP & Digital Regional Director in Latin America for Starcom MediaVest Group, commented that 2015 “was the year in which disciplines like programmatic buying were implemented, and in which we saw the appearance of new commercial data models oriented towards performance marketing.”

These were the most important trends of 2015 according to those we interviewed. Soon, we will be previewing 2016 with a look at everything those in the advertising industry should keep in mind in the new year.

 

Nescafé, one of the biggest Nestle’s brands, chose Mexico as the first country to migrate its stand-alone websites to the Tumblr platform. We spoke to Leonardo Aizpuru, Group Marketing Manager of Nestle in Mexico City about the rationale for Nestle to initiate the migration in the Mexican market. Aizpuru also told us about how the migration is going to impact his marketing plans.

Nescafé has chosen Mexico as the first country, together with the UK, to move its websites to the Tumblr platform. The move is part of a recently announced decision of one of the biggest Nestle’s brands, to migrate its global and local websites into the Yahoo owned Tumblr platform. We spoke to Leonardo Aizpuru, Group Marketing Manager of Nestle in Mexico City about the rationale for Nestle to initiate the migration in the Mexican market.  According to Aizpuru, “Mexicos is Nescafe’s largest market both online and off-line. Since Mexico has a very high social media penetration, the decision was only natural.”
(BTW: check out this article (“Is there anything besides Nescafe in Mexico?))

Mexicos is Nescafe’s largest market both online and off-line.

imagesAizpuru notes that the migration process has taken more than a year of working together with Nestle’s global team, doing tests and development to achieve the final version. “This will definitely change the way we direct traffic to the site, both paid and organically. Before, our website was only a part of what we were doing. Now it will become the protagonist and will concentrate all of our stories.”

This will definitely change the way we direct traffic to the side, both paid and organically.

Nescafe’s Media Mix

Asked about Nescafe’s Mexico’s media mix, Aizpuru notes that more than 20% of the brands media investment goes to digital media. “We continue to try new platforms in order to help us generate new conversations. Social Advertising, particularly with Facebook with whom we have a global deal is quite advanced. Facebook is also a key partner for the development of our media campaigns.”
(Mindshare is Nescafe’s Mexico’s Media agency.)

Sources at Tumblr also told Portada hbw Tumblrs leverages its Yahoo ownership (although this is not something Nescafe is currently planning to do):  “Tumblr Sponsored Posts can leverage paid syndication to premium placements across the Yahoo network, bringing together the amazing creative on Tumblr with the amplified reach and distribution of Yahoo,” they say.

First International Brand to move to Tumblr entirely

Nescafé becomes the first global brand to move all its international and local websites to the Tumblr platform.The Tumblr spokesperson adds that “they have seen brands  power their dot.coms with Tumblr, but Nescafé’s is s the first leading international brand to move its entire global and local websites to the Tumblr platform.” Ceri Morris / Senior Account Director at Ogilvy Public Relations, who does PR for  Nescafé in the U.S. notes that  “at the time there are no plans to invest in the platform beyond a drive to web strategy in GDN, Facebook, Twitter and YouTube. But as our presence on Tumblr strengthens we will definitively start exploring ways to create bigger synergies.”

Nescafe’s attempts to build stronger relationships with younger consumers, specially as coffee is in the top five conversational topics in Tumblr’s food category, as well as becoming  more mobile friendly.

By moving to Tumblr, Nescafe’s attempts to build stronger relationships with younger consumers, specially as coffee is in the top five conversational topics in Tumblr’s food category, as well as becoming  more mobile friendly. The Nescafé site will host landing pages for offline promotions and feature “buy” buttons, reviews and ratings. Nescafé will also benefit from the mobile friendly Tumblr design. Add to this the SEO benefits of Tumblr users being able to easily reblog owned Nescafé content – creating DoFollow links on the open web – and Nescafé could see a significant uplift in organic search.

“We’re actually moving everything to Tumblr but consumer data,” said Michael Chrisment, Nescafé’s head of global integrated marketing.”Tumblr is unique. It’s an agile, responsive, connected platform, the fastest growing social platform and a fantastic way to connect with younger people.”

What: Yahoo released its Q4 2014 earnings report, posting revenues of US$1.18 billion and earnings of 30 cents, and a 6% decline in revenues versus the same period of 2013. Mobile revenues showed a 23% sequential growth rate to US $254 million while display ad revenues  were down 4% to US$532 million. In addittion, Ads sold increased 17%, while the price per ad decreased 20%.
Why it matters: Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors, in an effort to revamp its slumping business.She also suggested investors should focus on Yahoo’s growth in mobile, native, social and video, a segment that, albeit less than 30% of overall revenues is growing at a high rate.

3fab1a175e2a87010f23435e0aea0f61_400x400Yahoo reported its fourth-quarter financial performance, including full-year revenue but excluding traffic acquisition costs of US $4.618 billion and full-year adjusted EBITDA of US $1.362 billion.

The company posted net revenues of US$1.18 billion and earnings of 30 cents. This means it almost missed what was estimated, sepecially with Wall Street expecting Yahoo to earn 29 cents per share with US $1.19 billion in revenue.Yahoo´s overall revenue fell 6 % in the last three months of the year and company’s shares were down 3.7 percent at US $36.82 in after-hours trading.

Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network.

Yahoo’s CEO Marissa Mayer said the company has plans to spin off its stake in Alibaba Group, which will result in a tax-free distribution to its investors.

Mayer also commented on Yahoo’s plans to leverage Flurry’s developer connections to launch a mobile ad network. As almost 600,000 apps have the Flurry SDK, which are installed on 1.6 billion devices, if Yahoo can get even a small percentage of these apps to add in monetization via Flurry, it could deliver strong returns.

Mobile and Display

Yahoo reported mobile revenues of US $254 million during the quarter, up from US $200 million in the same period last year and a 23% sequential growth rate. This “Transformative Group,” according to Yahoo, that mobile is part of, along with social, video and other products, has produced US $380 million during the quarter.

Yahoo’s display ad revenues continued to decrease in the Q4 of 2014, down 4% to US$532 million compared to same period in 2013. Total revenues for the quarter, excluding traffic acquisition costs, were US$1.2 billion.Native ads contributed US$100 million in revenue, a 20% increase. Both new ad formats and better targeting were key factor to that increase, boosting the price-per-click.While programmatic ads, contributed to the overall drop of 4% in its display ad business.

In addition, Ads sold increased 17%, while the price per ad decreased 20%.

Search revenue came to US $467 million, with a single percent. Search has been a key revenue source for the company as its deal with Microsoft’s Bing technology, a growing driver of the company’s top line.

Alibaba spin-off

Separately, Yahoo announced its plans for a tax-free spin off of its remaining, multi-billion dollar Alibaba Group stock holdings, which account for the majority of Yahoo’s value, into a newly formed company.

Following the spin-off, the Alibaba stake will become part of a new publicly-traded holding company called SpinCo, which will absorb all of Yahoo’s 384 million Alibaba shares, worth US$40 billion and later distribute them in a pro-rata formula to Yahoo shareholders.

The move will safeguard Yahoo shareholders from the immense taxes they would’ve paid through an outright sale of the assets. Still, Yahoo will continue to operate its core business and hold its 35.5% interest in Yahoo Japan.

In a conference call with investors, Mayer said the spin-off would save shareholders nearly US$16 billion in taxes. The transaction “maximizes value for shareholders,” she said.SpinCo will own a 15.4% stake in Alibaba.

Investors should focus on Yahoo’s efforts in mobile, native, social and video

descargaMayer suggested investors should focus on Yahoo’s efforts in mobile, native, social and video, the fast-growing areas in digital advertising that she wants Yahoo to be a part of.

“Our investment businesses – mobile, video, native, and social – collectively delivered more than US$1.1 billion in GAAP revenue [in full-year 2014], up 95% year-over-year. These growth drivers have really focused our investments and energy on the future of digital advertising.”

“I’m pleased to report that our performance in Q4 and in 2014 continues to show stability in our core business,” she added. “Our mobile strategy and focus has transformed Yahoo and yielded significant results.”

 

What: Brazilian Movile, one of the largest Latin America’s  mobile app developers,  is expanding globally while attracting tech interest in the Brazilian  market.
Why it matters: In addition to its headquarters in Brazil, Movile has extended its presence in the U.S. tech community by opening an office in Sunnyvale, California expecting US entrepreneurs will be happy to do business with  Latin American companies as  smartphones have become more widely used all over developing countries.

descarga (1)Brazilian technology conglomerate Movile, a mobile services and software developer in Latin America, has been investing and acquiring new businesses over the past year to expand globally and draw attention to that country. Although the company is already extending its reach to global markets such as China and the U.S., the increasing activity of industry players such as Apple, Facebook and Google in Latin America is making companies set eyes on the region.

Movile revenues have increased in Latin America, at the same time smartphones have become more widely used all over developing countries in the region. Movile has recently launched the paid- app for children PlayKids in China, which actually became the most sold and number two most popular app in Brazil (behind “Clash of Clans” and ahead of “Candy Crush”).

“Brazil entrepreneurs need to think big and we are here to play big,”said Movile’s co-founder Eduardo Henrique during a press reception in San Francisco.

In addition to its headquarters in Brazil, Movile has extended its presence in the U.S. tech community by opening an office in Sunnyvale, California. Based on PlayKids and Movile’s apps success, it’s likely that companies in Silicon Valley will be thrilled to do business with Latin American entrepreneurs as well.

Based on PlayKids and Movile’s apps success, it’s likely that companies in Silicon Valley will be thrilled to do business with Latin American entrepreneurs as well

“Latin American entrepreneurs can go global, but they need to shake hands with Silicon Valley,” added Henrique.

Big industry players such as Facebook and google have noticed Movile’s successful growth of its business in Latin America.An example of which is Facebook CEO Mark Zuckerberg holding his first-ever “town hall meeting” with the social media’s user community in  Bogota, Columbia,  while Google announced that their Project Ara, a modular smartphone, will be first introduced in Puerto Rico.In addition, Apple has also revealed they would bring iAds to Brazil and Mexico in that product’s first expansion outside of the U.S. The introduction of Apple’s iAds advertising platform into Latin America follows the company’s entry into the Brazilian retail market last year.

This reflects how the Brazilian market, equally to China and India,  is becoming a major option for tech companies when it comes to expand their business outside th U.S.

Founded in 1998, Movile has around 30 million monthly users who account for 50 billion transactions a year on the company’s platform. The tech company supplies games, education, and entertainment applications for feature phones, low-end mobile handsets with very limited capabilities. Among these app are: Apontador (their version of Yelp), Cinepapaya (mobile ticketing), and iFood (similar to GrubHub).

flag.mexicoWhat: AT&T will acquire Mexican wireless company Iusacell , the third largest mobile operator in Mexico, for US$2.5 billion including its’ debts.
Why it matters: This is something AT&T has been attempting to do ever since communication laws were reformed at the beginning of the new president’s Pena Nieto’s mandate. It will not only increase its presence in the country but  create a single network in North America, targeting approximately 400 million consumers.

The transaction is expected to close in the first quarter of 2015.AT&T has entered into an agreement with Grupo Salinas to acquire Mexican wireless company Iusacell, the third largest mobile operator in Mexico, for US$2.5 billion, inclusive of Iusacell debt.
With this agreement, AT&T will acquire all of Iusacell’s wireless properties, including licenses, network assets, retail stores and approximately 8.6 million subscribers.

After the Iusacell acquisition, AT&T will compete with America Movil not only in the Mexican phone market but also in the pay-TV market of several Latin American countries, where AT&T owned DIRECTV Latin America rivals with America Movil’s Claro.

The acquisition will occur after Grupo Salinas, the current owner of 50 percent of Iusacell, closes its announced purchase of the other 50 percent of Iusacell that Grupo Salinas does not own today.

Iusacell offers wireless service under both the Iusacell and Unefón brand names with a network that today covers about 70 percent of Mexico’s approximately 120 million people. AT&T plans to expand Iusacell’s network to cover millions of additional consumers and businesses in Mexico.

“Our acquisition of Iusacell is a direct result of the reforms put in place by President Peña Nieto to encourage more competition and more investment in Mexico. Those reforms together with the country’s strong economic outlook, growing population and growing middle class make Mexico an attractive place to invest,” said Randall Stephenson, AT&T chairman and CEO.

“Iusacell gives us a unique opportunity to create the first-ever North American Mobile Service area covering over 400 million consumers and businesses in Mexico and the United States. It won’t matter which country you’re in or which country you’re calling – it will all be one network, one customer experience,” added Stephenson.

Iusacell will continue to be headquartered in Mexico City following the transaction closing.The transaction is subject to review by Mexico’s telecom regulator IFT (Instituto Federal de Telecomunicaciones) and Mexico’s National Foreign Investments Commission. AT&T expects the transaction to close in the first quarter of 2015.

america movil - presencia latam 265 x 188With this acquisition, AT&T continues expanding in Mexico after the company bought DirectTV for US$ 48.5 billion dollars earlier this year. DirecTV also provides satellite television services in Latin America. After the Iusacell acquisition, AT&T will compete with America Movil not only in the Mexican cell phone market, where America Movil has the Telcel brand, but AT&T owned DirecTV Latin America will also compete in the pay-TV market of several Latin American countries with America Movil owned Claro.

What: Grupo Televisa SAB has agreed to sell its 50 percent stake in Grupo Iusacell SA to Grupo Salinas, owned by Ricardo Salinas,  for US $717 million.Salinas will own 100 percent of Iusacell and is looking for a  “world-class strategic partner” to strengthen the company, which has struggled to compete in Mexico.
Why it matters: More competition is needed for an efficiently functioning Mexican Telecommunications sector. More competition should also increase the incentive to market and advertise telecommunication services. Earlier this year, President Enrique Pena Nieto signed a telecommunications law that promotes competition and reinforces oversight of the telecommunications industry.

descargaGrupo Televisa SAB has agreed to sell its 50 percent stake in Grupo Iusacell SA to Ricardo Salinas for US $717 million. The mobile-phone company had struggled to compete in Mexico. The price is 55% lower than what Televisa paid for the same percentage of shares in 2011.

Following this deal, Salinas will own 100 percent of Iusacell, according to a company’s statement . The billionaire is looking for a “world-class strategic partner” to strengthen the company, he said.Televisa, which had already written down parts of its investment in Iusacell, will book a US $320 million loss on the sale. Adrian Steckel will remain chief executive officer of Mexico City-based Iusacell

Iusacell is the third-largest operator in the country, trailing billionaire Carlos Slim’s America Movil SAB and Telefonica SA, with about 8 percent of Mexico’s mobile market.

Iusacell is the third-largest operator in the country
 

“There’s considerable interest by international operators to come to Mexico, and we’re speaking to them to reach an agreement. The new partner needs to have “high technical capacity, to be an international player, and have the financial capacity to face the demand there is in this market, ” Luis Nino, a spokesman for Salinas, said in a phone interview.

In 2011, Televisa agreed to pay US $1.6 billion for a 50 percent stake in Iusacell, a deal which took a year to gain regulatory approval before it could close. Salinas, with a US $9.3 billion fortune, also controls the second-largest broadcaster in Mexico TV Azteca SAB with about 30 percent of the market, compared with Televisa’s 70 percent.

Struggling to gain ground

In 2013, Televisa invested US $123 million in Iusacell while waiting for the outcome of the new telecommunications law before deciding whether to invest further in Iusacell. However, In 2012, Televisa referred to Lusacell as its best way to participate in the rapid growth of Mexico’s wireless business.

Earlier this year, President Enrique Pena Nieto signed a telecommunications law that promotes competition and reinforces oversight of the telecommunications industry.According to Salinas, the new law, which forces Slim’s America Movil to cut its fees and share infrastructure with its competitors, gives Iusacell “certainty and confidence to keep growing.”

Salinas denied that he would sell his Iusacell stake to Madrid-based Telefonica. Still, Iusacell and Telefonica will soon face intensified competition, as America Movil aims to sell assets to a company that doesn’t currently operate in Mexico, part of a strategy to cut its share to below 50 percent to comply with the new regulations. Potential buyers include AT&T Inc. and SoftBank Corp., people familiar with the matter said earlier this month.

“This new regulatory environment is forcing everyone in the telecommunications sector to make strategic decisions, choose where to put their money and what part of the industry they will bet on,” said Nino, Salinas’s spokesman.

Source: Bloomberg

Over the past year, we have witnessed a tremendous growth in the digital world. Social networks audiences have increased significantly in recent months, in line with digital growth in general. As part of a recent Webinar, Alejandro Fosk, Senior Vice President, Latin America for comScore, Inc., highlights the major shifts in digital consumer behavior over the past year across various online sectors including social media, news/information, government, sports, online video and mobile.

Internet global audience

The Internet’s global audience has reached 1.8 million users.. The regions of Asia and Europe lead the audience with 43.9% and 23.9% respectively. With a 2 digits increase, LatAm accounts for 10% of the global audience. North America, which used to control at least 50% of the total audience 10 years ago, today only has a 12.6% share.

 

1

 

 

With a 17% annual growth rate , LatAm has 176.3 million Internet users, a lot more than the 151.0 it had in 2013.  The  Middle East – Africa region experienced the highest average annual growth (27%). Yet, with 170 million users it  failed to overcome LatAm.

 

2

Internet population in Latin America

Mexico ranks second, after Brazil (70.9 m), in terms of online audience size in Latin America with 25.4 m total unique visitor. Argentina ranks third with 18.5 m unique visitors.

 

5.

Total Unique Visitors (mm) . Latin America: 176.3, Brazil:70.9, Mexico: 25.4, Argentina: 18.5, Colombia: 13.3, Venezuela: 9.9, Chile: 6.4, Peru: 5.9, Puerto Rico: 1.6 and Uruguay 1.4

Youngest audience

Regarding the  age of the audience, LatAm has the “youngest audience ” globally. 60% of the audience in the region has an age of less than 35. Visitors under 25 are considered “digital natives” directly. Mexicans spent 14.8 hours online on average and 61.3% of time spent is by young people (under 35 years old).

 

4

Social Media

With an average annual growth of 15%, the number of unique users of social networks  in LatAm has increased from 145.97 mn to 167.43.million.

Mexicans spent the highest amount of their time online on social networks (4.7 average hours per visitor per month).Corporate presence takes over 4.0 average hours per visitor per month and services 3.7 hours on average.

 

7.

Main categories of time online in Mexico: Social Media (4.7), Corporate Presence (4.0), Services (3.7), Portals (2.9), entertainment (2.4)

Facebook leads as the most visited social network in Mexico with 22, 043 unique visitors.Youtube ranks second with 18, 369 visitors and Taringa third with a much lower number of unique visitors (6,364).

Mobile

Although it has a lower percentage in the region comparing to other categories such as Desktop, this category has significantly grown year over year. Mexico and Chile are the two Latin American countries with the highest penetration of Mobile (18.2 m and 11.2 m respectively). In Mexico it has risen from 13% to 23% . In Chile, it doubled. Mexico has the highest penetration in mobile compared to the rest of the Latin America countries.Android is the leading smartphone operating system in Mexico with 74.8% market share.

 

22

Page views from devices. Blue: desktop, lightblue: mobile, orange: tablet, red: others

With an imminent growth, the mobile category is setting the standard in terms of platform growth . Access to web sites from other platforms different from Desktop is  14.9% . Out of this total, 12.0% occurs from mobile devices.

 

13.

Online Video

The audiencie shift from TV to digital media has begun with online video category. Mexico leads the region in minutes with 83.7 minutes per unique visitor and a total reach of 18.2%.

 

10.

What: Two of the U.S biggest online real estate companies are joining forces. Zillow acquired Trulia for US $3.5 billion in stock through a deal likely to close in 2015.
Why it matters: Despite the acquisition, both companies will continue operating independently with its’ own sites and apps, giving advertisers the opportunity to reach their separate audiences, which do not overlap much, across both platforms.

descarga (1)3dc67ba26bde79b497356b9a2921f5a9_400x400U.S biggest third-party sites in online real estate are joining forces.

Zillow has acquired Trulia for US $3.5 billion in stock. The deal, which is expected to close in 2015, could trigger similar consolidations within the online real estate industry.

Following the acquisition, both companies will maintain separate consumer-facing sites and apps, and will continue operating under individual names. This merger , however, creates a giant in the increasing business of online real estate listings.Trulia CEO Pete Flint will retain his position and report to Zillow CEO Spencer Rascoff.

As partners, Zillow and Trulia are planning to help established real estate players like Re/Max, Coldwell Banker and Century 21 advertise listings, focusing mostly on mobile as more home buyers begin their searches on smartphones and tablets. While Trulia claimed 54 million unique mobile users in Zillow said it had 83 million unique mobile users. But, in general, real estate marketers have not shifted complete to mobile.

Together, Trulia and Zillow have a combined revenue of less than 4 percent—or roughly US $480 million—of the real estate industry’s total US $12 billion annual spend. They generate most of their revenue from selling ads to real estate agents.

As the two online real estate players have different audiences, advertisers may profit from this opportunity by hitting different consumers with similar messages. While the sites will remain separate, advertisers could reach consumers across both platforms. Analysts expect the newly combined company to save money on marketing costs while advertisers increase their digital spend.

What: The social net experienced an increase in revenues of 61 percent in the second quarter of 2014 vs the same period in 2013, generating a profit of US $791 million, mostly based on the strength of its online ads sales and its’ overseas revenues.
Why it matters: Facebook’s user growth is almost entirely in Latin America, Asia and other emerging markets. Still, North American users are  by far the most lucrative in terms of revenue per user.

descarga (2)“We had a good quarter” said Facebook CEO Mark Zuckerberg on his company’s second quarter earnings announcement. Facebook is already getting 55 per cent of its revenue overseas, and the growth in those markets is larger than in the U.S. The social networking service has attracted 1.1 billion users in foreign markets versus 200 million in the U.S. and Canada.

Earnings came in at 42 cents per share vs. the consensus estimate of 32 cents, and revenues came in at US $2.9 billion vs. the consensus estimate of US $2.8 billion. So , the social net experienced an increase of 61 percent in revenues, generating a profit of US $791 million, mostly based on the strength of its online ads sales.

Facebook’s daily active users increased 19% year-over-year to 829 million. Monthly active users increased 14% year-over-year to 1.3 billion. Revenue for the second quarter increased by 61% year-over-year and revenue from advertising increased by 67%.Mobile advertising revenue increased to 62% total revenues, up from 41% in the second quarter of 2013.And best of all, margins improved: GAAP operating margin rose to 48% in the second quarter of 2014 — up from 31% in the second quarter of 2013.

Oversea revenues

descarga (1)Almost all of Facebook users, who contributed to these results, came mostly from outside the U.S. and Europe. Facebook’s user growth is almost entirely in Latin America, Asia and other emerging markets, where revenues per user are much lower. Over the years, FB has added about 5 million new users in the developed world . Although Facebook is doing a better job of monetizing these emerging market users, North American users are still by far the most lucrative in terms of revenue per user, generating more than double the revenue of European users and almost six times the revenue of Asian users. A gap that is getting wider.

Facebook’s user growth comes almost entirely from Latin America, Asia and other emerging markets.
 

The company secured an average of US $6.44 per user in the U.S. and Canada during the second quarter compared to just US $2.84 per user in Europe, US $1.08 per user in Asia and US $0, 86 cents per user in the rest of the world.This means the social net continue perceiving revenue from North American users or starts to better monetize their emerging-market customers like Latin America.

The U.S. population accounts for less than 5 per cent of the world’s roughly 7.2 billion people and with incremental growth coming from international markets in a near future, we will see how the social net giant sperforms against the non “U.S. demographic”.

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

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

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

Global advertising growth (2006-2019)

Magna global 1 -

Key findings

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

Advertising growth by major geographical regions (2013-2014)

Magna global 2 -

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

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

Advertising growth in LatAm and U.S.

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

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

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

Argentina

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

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

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

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

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

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

Chile

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

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

Colombia

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

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

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

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

México

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

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

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

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

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

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

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

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

What: The mobile marketing and digital solutions InternetQ is acquiring UPmobile, a Mexican mobile marketing, television and radio content provider for an undisclosed sum.
Why it matters: With this acquisition, InternetQ’s second in Latin America, the company will increase its’ presence in the region.

descarga imagesInternetQ, a provider of mobile marketing and digital solutions for mobile network operators and brands,has reached an agreement to acquire Mexican mobile marketing, television and radio content provider UpMobile.

This acquisition strengthens InternetQ’s presence  in Latin America as it had already acquired Interacel Holdings LLCin January. It will give InternetQ opportunities to further distribute its performance-based advertising and streaming music services.

UpMobile provides interactive solutions for radio stations, as well as mobile solutions to media organizations and the public sector in Mexico, a market of over 100 million mobile connections and 33 million smart phone users currently. An eMarketer research shows the number of smart phone users will most likely increase by 18-20% per year by 2017.

“We are delighted to announce the acquisition of UpMobile, which accelerates our ability to deployInternetQ’s services in the evolving Mexican market and further strengthens our growth in Latin America,” said Panagiotis Dimitropoulos, chief executive officer and founder of InternetQ.

No financial details of the acquisition were provided.

What: Mobile engament in Latin American countries is changing how advertisers are approaching soccer fans, Especially now that watching a game on television is simply one of the many ways fans can follow their favourite teams.
Why it matters: 72 per cent of the region’s population uses a mobile phone. Overall mobile phone users are  growing at a rate of  three per cent annualy,while  smartphone users are expected to grow at seven times that rate, according to eMarketer. Out of that percentage , Android devices account for 72 per cent of growth in impressions and iOS for 22 per cent.

fifa-world-cup-2014-theme-uccw-189355-1-s-307x512The 2014 FIFA World Cup has already started. 32 teams are competing in Brazil until crowning a new champion on July 13th in Rio de Janeiro.

Zac Pinkham, Managing Director EMEA at mobile advertising firm Millennial Media, spoke about his expectations on how mobile will change the FIFA World Cup in Brazil.

Unlike any other event in the world, the 2014 FIFA World Cup gathers people around televisions at home, in bars, and out in the streets at all hours of the day to watch their favorite teams play. Pinkham says that as we now live in a mobile-first world, watching a game in real-time on television is just one of many ways fans can follow their favourite teams.

Not to mention, that soccer apps accounted for 59 per cent of impressions from sports applications according to Millenial Media 2013 Q3 Mobile Mix report.

World cup host Brazil accounts for 19 per cent of all impressions in sports apps in Latin America, and this is likely to increase as the World Cup develops. These top ten countries impressions come mainly from both Android and iOS devices.

Aware of this, FIFA has created the Global Stadium section of its website to aggregate real-time content for each of the 64 games in the tournament for mobile fans.

zp

Soccer brings people together, and so does mobile. When you combine the two, you get a global mash-up of connectivity.

Latin America mobile trends and engagement

According to eMarketer, 72 per cent of the region’s population uses a mobile phone. While mobile phone users are estimated to grow at a rate of three per cent, smart phone users are expected to grow at seven times that rate choosing mostly:

  • Android devices, which account for 72 per cent of impressions
  • Followed by iOS at 22 per cent.

1

The top three countries for smart phone impressions are Mexico, Brazil and Argentina, while Mexico, Brazil and Colombia are the top three in tablet impression. In all, smartphones account for 77 per cent of Latin American impressions and tablets account for 15 per cent.

Pinkhma says there is a correlation between population size and total impressions, although some smaller countries have high mobile engagement rates.

  • Costa Rica and the Dominican Republic are in Millenial media´s top ten impression list, while they do not belong to the top 10 countries ranked by population.
  • Guatemala and Cuba are in the top ten for population, but not impressions.
  • Mexico accounts for 28 per cent of all Latin American impressions
  • Mexico is followed by Brazil at 25 per cent. Interestingly Brazil’s population (202 million) is almost twice the size of Mexico’s (120 million).

World Cup Focus Millennial Media 2

Android devices account for 73 per cent of impressions in Brazil, while 19 per cent are from iOS devices. BlackBerry has a five per cent market share in Latin America (down from a nine per cent in Q1 2013), and Windows only one per cent. Colombia leads the region in impressions from BlackBerry devices (30 per cent), as opposed to Chile, which sees the fewest BlackBerry impressions. In this country, 78 per cent of impressions come from Android and 20 per cent come from iOS, combining for 98 per cent of market.

Still, nothing is certain about the way soccer fans engage with mobile. A Millennial Media infographic on the 2013 UEFA Champions League Final showed peaks in mobile usage before (24 per cent) and after (49 per cent) games, but not during the actual playing time.

Millennial Media suggest smart advertisers should focus on determining how they can engage and interact with fans. The Mexico vs Brazil match, scheduled on June 17th, is the perfect opportunity to put a tactic in practice as these countries are heavyweights in Latin American mobile traffic.

Source: Millennial Media

What: Technology company AppNexus has announced a new partnership with mobile leader Shazam and the evolution of its partnership with Millennial Media.
Why it matters: As Its mobile business has grown more than 500 percent in the last year, based on ad spendAppNexus aims to consolidate its programmatic mobile inventory. To make this happen it needs the help from supply partners like Millenial Media and now Shazam, to deliver that inventory.

descargaAppNexus, the technology company that provides trading solutions and powers marketplaces for Internet advertising, is growing stronger in mobile. The company has announced a new partnership with mobile leader Shazam and the new developments in its partnership with Millennial Media during its second European Summit.

“AppNexus is a mobile company,” said AppNexus Chief Executive, Brian O’Kelley.”We have a long history in desktop and are still deeply committed to that medium, but mobile is where the industry is heading and we’ve placed a huge bet on that opportunity. Partnering with Millennial Media and Shazam validates us as the clear frontrunner in programmatic mobile, and the incredible increase in mobile volume and ad spend on our platform are further proof points.”

Today AppNexus is one of the largest source of programmatic mobile inventory.  Its mobile business has grown more than 500 percent in the last year, based on ad spend. 
 

The number of mobile-sized ads and campaigns targeted to mobile supply in the system has grown 10 times over in the last year, with 65,000 campaigns currently running through AppNexus, Magna Global reports. According to this study , 68% of mobile display was traded programmatically and it is estimated to rise to 88% by 2017.

To deliver premium high-quality mobile inventory to buyers Appnexus needs to work with supply partners such as Millenial Media and Shazam.

Millennial Media Exchange, a mobile exchange powered by the AppNexus platform, was launched in 2013.Its’ Executive Vice President, Global Sales & Operations, Mollie Spillman said: “We are very optimistic about the growth opportunity of the programmatic mobile market in EMEA. Our market research shows that EMEA provides a massive opportunity for our two companies to unlock demand in the region at an automated scale that no one can provide in the market today.”

Shazam, one of the world’s most-downloaded apps and a mobile-first premium publisher, is now leveraging AppNexus’s yield management and ad quality tools for monetization, brand protection and preventing channel conflict. This App is also purchasing through the AppNexus platform using first and third-party data segments for targeting.

“AppNexus has given Shazam the flexibility to manage our existing preferred partnerships with its industry-leading inventory controls and seamless integration with data providers, as well as work with new buyers who want to take advantage of our premium supply, ” said Shazam Senior Vice President, International Advertising Sales, Miles Lewis.

What: Regulators in Brazil have approved Virgin Mobile’s venture with Telefonica SA´s mobile network.
Why it matters: The local unit of Virgin Mobile Latin America will start operating early in 2015, adding competition to the telecommunications market.

descargaRegulators cleared Virgin Mobile Brasil to market cell phone plans in the country using Telefonica Brasil SA‘s mobile network, adding competition in the  telecommunications market.

The local unit of Virgin Mobile Latin America, run by Richard Branson‘s Virgin Group, signed  a deal in January to lease capacity from Telefonica and plans to start operations early in 2015, Phil Wallace, co-founder and chairman of the Virgin unit, said in an interview on Wednesday.

Wallace said the company was targeting 15- to 30-year-old consumers with prepaid plans, a strategy that has yielded 1 million Latin American subscribers since Virgin started Chilean operations in 2012 and arrived in Colombia last year.

Virgin is launching its Brazilian venture as the country’s crowded wireless market slows sharply from a recent boom, when falling prices and low unemployment fueled service growth to more than 270 million mobile connections in a country with fewer than 200 million people.

Revenue growth has slowed to a crawl over the past year, due to tighter credit and eroding consumer confidence, reinforcing expectations among some analysts of consolidation among Brazil’s major four mobile carriers.

In coming years, Wallace said he expects 10 to 15 percent of Brazil’s mobile subscribers will use so-called “virtual operators” such as Virgin, which use third-party networks to sell plans under their own brands.

Virgin Mobile Latin America recently raised $86 million in fresh capital and took out a $42 million credit line to start service in Brazil and Mexico, which it will launch this year, the company said.

Source: Reuters

What: Supply-side platform provider PubMatic has acquired the mobile ad server Mocean Mobile (formerly Mojiva), for an undisclosed sum.
Why it matters: With Mocean Mobile’s ad-serving capabilities , PubMatic existing mobile offering will expand Increasing its´ premium publisher base.

PubMatic-MoceanSupply Side Platfrom (SSP) PubMatic acquired the mobile ad server Mocean Mobile (formerly Mojiva), for an undisclosed amount. The new combined entity will operate under the PlubMatic name.

With this acquisition, Mocean Mobile’s ad-serving capabilities and its ad network will help to extend PubMatic existing mobile offering by supplementing PubMatic’s mobile app, mobile web and tablet capabilities with a mobile ad server.

 As a result, The company will be able to provide publishers with an end-to-end mobile solution for traditional direct sales, programmatic direct sales, and mediation.
 

Mocean Mobile’s and its more than 40 employees, will join PubMatic bringing the new company’s headcount to over 475 employees worldwide. PubMatic will continue to work with Mocean Mobile’s clients, which include mobile ad networks, app stores and nearly 50 publishers as well as more 70 third-party mediation partners, and will support existing services while increasing investment in product development across the company’s mobile platform.

“The addition of Mocean Mobile’s highly regarded mobile ad server technology, greatly enhances our ability to provide publishers with a fully integrated, enterprise grade solution built to handle the complexity of mobile. This combination expands the infrastructure and technology underlying our multi-screen capabilities, and accelerates our ability to extend our programmatic mobile offering across direct as well as indirect sales,” said Kirk McDonald, president of PubMatic.

“With the integration of Mocean Mobile’s ad serving technology, the combined mobile solution will allow publishers to effectively yield manage their mobile direct performance, and programmatic demand in a single ad server stack,” said Bennett Theimann, CEO at Mocean Mobile. ”

For Nivea Sun Kids, FCB Brasil used technology to emphasize the emotional bond between a mother and her child, creating a mobile app that literally maps that connection.

Source: FCB
Source: FCB

Print ads in Veja Rio magazine included a tear-off bracelet designed to be fastened around a kid’s wrist. The bracelet connects to Nivea Protégé, a branded mobile app that the mother can use to set up a geofence for the child. If the bracelet-wearing child wanders out of range, she’s alerted by the app, which also shows her whether she is moving toward or away from the child.

The print ads for Nivea Sun Protection ran in 2,000 copies of the popular women’s magazine, targeted to subscribers who lived near Rio de Janeiro’s beaches — Ipanema, Copacabana and Leblon.

While Nivea is known as a traditional and reliable brand, the agency wanted to use digital media to reinforce other key dimensions to the brand, according to Joanna Monteiro, executive creative director for FCB Brasil. She says her team looked for a way to emphasize “a fresher, modern attitude that still relates to its core essence: the ultimate skin protection and care to Nivea consumers.”

Nivea wanted a fresher, modern attitude that still relates to its core essence.

nivea-sunband-4This highly bespoke campaign wasn’t easy to pull off, Monteiro says. The water-resistant bracelet is moisture-resistant and reusable, designed to last up to a year. It contains a Bluetooth chip to connect to an Android or iOS phone and a long-lived battery. Once Mom downloads the app, she syncs it with the bracelet as she would any other Bluetooth device. She can then set the maximum distance her child is allowed to wander away from her.

“We had to find the balance between three key variables: the material, the print quality and the chip support,” Monteiro says. “For the ad to be rolled out massively, it had to hold a good print quality and to be cheap enough. Finally, the paper had to be firm and good enough to support the chip’s grip to the bracelet. So, yes, it was quite difficult.”

Nivea will maintain the app for at least the year that the bracelets may continue to function; and FCB may decide to run the ad again in other beach cities in Brazil or elsewhere. The Nivea Protégé app doesn’t deliver any brand messages, coupons or other marketing endeavors; it’s strictly a kid locator. The agency could not disclose whether the app collects any anonymous or personal data, citing client confidentiality.

There were no definnivea-sunband-5ed metrics for success for this campaign, Monteiro says; the goal was to generate excitement and interest in social media — and she reports that the buzz was huge.

Another benefit of the bracelet is that, with its prominent logo, it turns the child wearing it into a mobile advertisement for the brand.

Susan Kuchinkas @susankuchinskas

What:  AOL and Sizmek  Q1 2014 revenues were US $186 million (55% growth) and  US $38.4 million( a 13% year-over-year increase) respectively.
Why it matters: Both companies Q1 revenues were mainly driven by programmatic products, video and mobile, reflecting a high growth rate in these segments of the digital media market.

Both AOL and Sizmek announced strong  2014 first quarter revenues, reflecting a high demand for programmatic products, video and mobile.

AolAOL´s ad platform business revenue grew 55% during the first quarter 2014 to US $186 million. Display grew 4% driven by improved inventory pricing.

– Its´combined programmatic products ,which includes  Adap.tv, AdLearn Open Platform (AOP), and AOL Marketplace ,  grew at over 100% year over year.

  • Mobile also tripled year over year.
  • Global advertising revenue grew 16% year-over-year. Third Party Platform Revenue grew 18% excluding Adap.tv.

Despite the strong overall revenue growth, the company has also experienced  a 3% decline in global display revenue , a 2% decline in its´ properties revenue and a  1% decline in global search revenue owed to a decline in AOL core search queries.

According to AOL CEO Tim Armstrong, within two years, 70% of all ad spending will be programmatic, and 30% will channel through direct partnerships with content companies:” To capture as much of that 70% as possible,we are mechanizing media and advertising and our strategy is narrowing based on where we see significant opportunities.”

In order to accelerate sales of its ad tech product set,  AOL has created an enterprise sales organization to launch its unified ONE by AOL stack into agencies and advertisers, to platform advantages.

High mobile revenue growth at Sizmek

Ad tech company Sizmek Q1 2014 revenues were US $38.4 million, a 13% year-over-year increase.

  • Mobile revenue has increased 90% year over year. The company  keeps on investing in this channel with its latest  Device Intelligence launching  , to enable accurate identification and targeting across handsets, tablets and desktops.
  • Video online advertising only accounts for roughly 10% of Sizmek’s revenue.However,  revenues grew 132% year over year . That is why Sizmek has recently rolled out a beta version of its Video Verification solution, which  is intended to reduce wasteful spend for advertisers who often pay for premium video inventory that isn’t delivered as promised. Interesting, Extreme Reach, which purchased Sizmek’s video ads business last August, has just acquired BrandAds to provide video ads verification services designed to fight that problem.

Neil Nguyen, president and CEO, emphasized that the company is changing its direction,  expanding and strengthening key areas with an emphasis on mobile and video offerings. its´ main goal now is to offer a platform through which clients can optimize the delivery of contextual ads across devices.

“We view this as a key component of our platform and mobile strategy,” Nguyen said.

Source: Adexchanger

What: Smartphone penetration in several Latin American countries  is increasing substantially. 8 Facts that reflect why this is the case.
Why it matters: Users have become accustomed to use a wide range of mobile applications for different activities, including e-commerce, mobile banking. Mobile advertising will follow.

This article is based on 8 New Trends in Latin America’s Mobile Market for 2013 from Latin Link.

Portada’s Editorial Team compiled data and research that reflect a clear trend in the rise of mobile devices, particularly smartphones, for a myriad of activities in Latin America.

ISRAEL FACEBOOK1. Number of Smartphones  grows by 50% plus

Sales of smartphones in Latin America show steady growth. According to IDC, in the first quarter of 2013, there were 16.6 million smartphones in the market, reflecting a growth of 53% over the same period of 2012.
In the second half of last year another research firm, Gartner, noted that sales had increased by two percentage points to 55%, and that only the Asian-Pacific region showed an even bigger growth rate  than  Latin America.Which are the Latin American markets growing the most according to Gartner? (See the growth rates in the below table):

  • Peru: 98%
  • Brazil: 89%
  • Mexico: 61%
  • Argentina: 47%
  • Chile: 34%
  • Colombia: 30%

tabletas 2652. Tablet sales go through the roof
Tablets sales in Latin America, accounted for more than 3.5 million units in 2013, against 1 million in the first half of 2012. According to IDC, this is an increase of 234%.

3. Android leads the market 
Research company StatsCounter, reported numbers for the mobile market in Latin America between April and June 2013. Each country has the below penetration rates.

 

País

Android

Nokia

Symbian

iOS

Blackberry

Argentina

63%

9%

8%

7%

Bolivia

54%

13%

Brasil

50%

15%

15%

Chile

63%

25%

Colombia

43%

23%

13%

Ecuador

40%

14%

20%

11%

Paraguay

40%

29%

13%

Perú

58%

13%

Uruguay

48%

16%

12%

Venezuela

44%

19%

18%

While StatsCounter did not report about the dominant mobile operating systems in Mexico, Kantar Worldpanel published data related to this in June 2013.
According to Kantar Worldpanel, the Operating System penetration percentages for Mexico are:

  • Android – 62%
  • Blackberry – 11%
  • iOS – 9%
  • Nokia – 8%
  • Windows – 7%

4. Users prefer mobile payments
An Ipsos OTX and Ipsos Global @dvisor study indicates that 48% of Mexican Internet users would prefer payments through smartphones or tablets instead of cash. While, 47% of Argentine Internet users and 38% of Brazilian Internet users would prefer to use their mobile devices to make payments.

5.  Broadband adoption fuels the mobile’s Internet Growth
IBOPE reported that 52 million Brazilians use mobile internet, while in the first half of 2013, subscriptions to mobile broadband services increased by 42% in Chile, 39% in Mexico and 18% in Colombia.In March 2013, Brazil had 103 million active mobile broadband subscriptions, which represented a 38% increase compared to March 2012.A recent report from Ericsson, forecasts a massive increase in mobile internet subscriptions in Latin America by 2018. Ericssson sees the amount of mobile Internet users increasing to:

  • Brazil: 350 million
  • Mexico: 150 million
  • Argentina: 70 million
  • Colombia: 65 million
  • Peru: 40 million

Internet Móvil6. Mobile advertising in Latin America grew by 85% in 2013
E-Marketer projects a huge increase in mobile advertising. Not surprisingly, Brazil seems to have the greatest growth potential in this area: eMarketer predicts that mobile ad spending in Brazil will increase from US$ 60 million in 2013 to US $ 132 million in 2014 and US $ 731 million in 2017.

7. Mobile banking will grow by 65%
According to the Latin American Federation of Banks (Feleban), the number of Latin Americans who access their bank accounts through mobile media will increase by 65% each year over the next two for a total of 140 million in 2015.

8. Social networks have  already been conquered by mobile devices
There is considerable evidence to sustain that targeting Latin American mobile users through social networks should produce remarkable results. For example, a recent study indicated that 77 % of Argentine mobile users access social networks through their devices. E.Life reported similar results for Brazil, indicating that 77 % of those who connect to the Internet through mobile devices also visit social network sites .
Nielsen published similar results for smartphones owners in Brazil: 75 % of smartphones users, use them mainly to go to social network sites. A Colombian smartphones owner’s survey conducted by Ipsos- indicated that 81 % of them use their phones to visit social media sites.In addition, Facebook recently reported that 74 % of the 47 million Mexicans Facebook users access the site through mobile devices, compared to the 57 % Brazilian users and 59 % of users of those devices in Argentina.

This article is based on 8 New Trends in Latin America’s Mobile Market for 2013 from Latin Link.

 

Portada interviewed Alejandro Campos Carlés, Co-Director and Founder of StartMeApp.
Alejandro_Campos_Carles 285StartMeApp is an independent mobile advertising network with offices in Brazil, Argentina, Colombia, Mexico, USA, England, and Singapore.

Translated by Candice Carmel

“StartmeApp’s value proposition is linked to direct response marketing—we are looking for accurate results. It’s not just about media buying, clicks or impressions, but about transformation: transforming impressions/clicks into the response that advertisers are seeking from the audience,” says the company founder.

“We have the chance to position ourselves in the Latin American market while the market is still developing, but we possess the know-how to play in other markets and that’s what we’re doing,” adds Campos Carlés. The company, which was founded in Argentina and later expanded throughout the region, also has a presence now in Europe and Singapore.

StartMeApp’s revenues come mostly from Latin America (70%), but according to its founder: “This year we expect revenues in Latin America to be dispersed by revenues from Europe and Asia.”  In Latin America, the company derives the bulk of its business from Argentina, Colombia, Mexico, and Brazil. Campos Carlés says that the company was profitable from day one and generates its own customers. It had a marginal contribution of about 50%, with EBITDA of nearly 20% last year.

Mobile advertising market in LatAm

“Latin America has a very small market presence in mobile advertising,” asserts Campos Carlés flatly. “In the E-marketer report published two months ago, Latin America appeared as a separately listed region for the first time. In last year’s reports, Latin America’s market presence was so low that is was lumped under ROW (rest of the world). Even though the region’s metrics and projections are very positive and point to high growth, it still lags far behind other regions,” he added.

 

For Campos Carlés, the low market presence of mobile advertising in the region is due to several factors. The first has to do with the population, which is low compared to other regions, he says. As a result, the number of mobile telephone subscribers is also low. “Smartphone penetration in the U.S. will reach 80% next year, while that number is only expected to reach 30% in Latin America,” Campos Carlés told Portada.

Portada: What are the causes of Latin America’s delay in getting into the mobile advertising market, in comparison with other regions?

Alejandro Campos Carlés: The situation is that the subscriber base is still prepaid, not postpaid, and the featured phones base is still very strong. In regards to carriers, the passage from 3G to 4G is just beginning, which causes data transfer rates to be slower. Government decisions are also a factor, because they influence technology, infrastructure, and investment. Brazil is an example of how government decisions influence market development. In Brazil’s case, the country is going digital in preparation for two major sporting events Brazil will be hosting—the World Cup and the Olympics. This is an example of government joining forces with operators in an effort to generate infrastructure. And finally, there are regulatory issues: the region is highly monopolized.

Market rules are starting to change, because regulation is beginning to take place. But we must also keep in mind that it will take a while for Latin America to replace its fleet of featured phones with smartphones.

Portada: What is the current investment flow in mobile advertising in the region?
Alejandro Campos Carlés: Today we have pan-regional and local spending, but both advertisers and agencies still have little knowledge [about mobile advertising]. Online advertising is important here, but if you compare it with traditional media it is still marginal, despite the fact that it is growing at impressive rates. IAB reports rates of about 40% annually in the region. If online spending is marginal compared to traditional media, imagine what mobile ad spending must be.

Latin America gets residual pan-regional advertising from mobile global campaigns. That is beginning to change.
On the other hand, advertisers are unsure about how to enter the mobile advertising market, faced with a wide variety of offerings and multiple operating systems. In fact, StartMeApp launched an event in Sao Paulo called Movilizando Latinoamérica (Mobilizing Latin America), to demonstrate what the channel is all about and what can be achieved with it. We will be repeating the event in Mexico, Miami, Colombia and Argentina.
Portada: What will be this year’s surprise?
Alejandro Campos Carlés: The market is giving very precise signals that this year’s surprise will be RTB (Real Time Bidding). In 2009, RTB was just beginning to be used as a purchasing technique and represented 1% of online advertising buys at the time. Today, its use is impressive and is growing at a rate of 300% month after month.

Tablets

In regards to other mobile devices besides smartphones, Campos Carlés highlights the importance of tablets for mobile advertising. “Tablets are making a difference. Tablet shipments to Latin America next year have been estimated at $3.7 trillion, of which 1.7 will be spent in Brazil,” said Campos Carlés.
According to the executive, there are 24 million tablets in Brazil today, out of a population of nearly 300 million—which reflects low penetration compared to the population, despite Brazil being the largest market in Latin America.

Key players in the mobile advertising market

The main mobile advertisers in Latin America are mobile content aggregators. “These players have a shared network agreement with the operator for content purchases or subscriptions by users,” says the executive.

Other investors participating in the mobile channel are advertising agencies, who allocate their clients’ advertising budgets. Campos Carlés says that “only this year have we begun to see a slightly larger commitment to the channel by the agencies, who are allocating a bit of their brands’ ad budgets to mobile. But it is still far behind the spending of mobile content aggregators.”

Coming in third are those investing in the distribution of applications. “Most come from global application distributors who also want to gain an audience in Latin America for their applications.”

Best bets for 2014

For next year, the StartMeApp founder is betting on the “conversion” of both agencies and advertisers to mobile advertising. “The same thing happened 10 or 15 years ago, with digital advertising. We need to start showing successful case studies, as these are very important.”

“All marketing and advertising managers are talking about mobile. That’s what the buzz is about today—the need to have to have a presence, even if they don’t know how to do it or why. But it’s a huge opportunity for us,” says Campos Carlés.

Think mobile

When asked by Portada what advice he could give to advertisers interested in mobile advertising, Campos Carlés offered the following:

• First, think about who your mobile channel audience is. That’s the first tip. You first need to study the mobile audience you already have.
• The next point is to think about how to hold on to that audience, through which medium, and how to create audience engagement with the brand.