What: A summary of the most relevant consumer insight research in the U.S., U.S. Hispanic, and Latin American markets. Why it matters: If you’re trying to keep up with the latest happenings, this is your one-stop shop.
According to Zenith‘s Media Consumption Forecasts, people around the world will spend an average of 800 hours using the mobile internet this year. By 2021 the total will rise to 930 hours, or the equivalent to 39 full days. Across the 57 countries that were surveyed, people will spend a collective 3.8 trillion hours using the mobile internet this year, rising to 4.5 trillion hours in 2021.
FinTech adoption among consumers has nearly doubled over the past 18 months, according to the latest EY Global FinTech Adoption Index. Globally, 64% of digitally-active consumers across 27 markets use FinTech. US consumer adoption has grown 29.5% in the last four years, and 96% of global consumers are aware of at least one money transfer and payment FinTech service.
Mobile marketing company Motiveexpected77% of Americans to celebrate Fathers Day, spending about US $16 million on gifts. It’s likely that most fathers got clothing (43%), giftcards (42%), and books & CD’s (22%).
Research by Accenture found more than half of consumers said they would pay more for sustainable products designed to be reused or recycled. The survey of 6,000 consumers in 11 countries across North America, Europe, and Asia found that while consumers remain primarily focused on quality and price, 83% believe it’s important or extremely important for companies to design products that are meant to be reused or recycled. Nearly three-quarters (72%) of respondents said they’re currently buying more environmentally friendly products than they were five years ago, and 81% said they expect to buy more over the next five years.
Sumo Heavy’s survey of more than 1,000 U.S. consumers found that only one out of five consumers have shopped using a voice assistant like Amazon Alexa or Apple’s Siri. Less than half (46%) of U.S. consumers said they never use voice assistants, while another third said they rely on them regularly. Fewer than half (42%) of frequent voice assistant users have shopped with voice commands.
According to a survey by Deloitte, about 53% of people born between 1983 and 1996 now subscribe to gaming services, versus 51% who pay for television. That is compared with Deloitte’s survey last year, in which paid subscriptions among millennials were 44% for video games and 52% for television.
UBS Evidence Lab‘s survey of 2,029 adult consumers who visited a fast-casual restaurant at least once a month found that McDonald’s is the best positioned among its peers. According to the survey, the most commonly cited reasons to visit McDonalds more often are good value and promotions. Only 18% of respondents said that nothing would make them go more. Burger King and Wendy’s were ranked in second and third place, respectively.
What: U.S. Digital Ad revenues surpass US$100 billion mark for the first time, hitting landmark US$107.5 billion in 2018, according to IAB Internet Advertising Revenue Report. Why it matters: Record-breaking Digital Marketing spend represents 22% year-over-year growth.
U.S. digital advertising revenues in 2018 reached an all-time historic high of US$107.5 billion—exceeding the US$100 billion mark for the first time—according to the latest IAB Internet Advertising Revenue Report released by IAB and prepared by PwC US. This full-year 2018 total represents a 22 percent year-over-year increase from US$88.3 billion in 2017.
Mobile and video continue to lead digital marketing’s steady growth. Accounting for nearly two-thirds (65%) of 2018’s internet ad revenues, mobile reached US$69.9 billion, up 40 percent from the previous year at $50.1 billion. Advertising revenues from digital video saw the largest rise among all formats—an uptick of 37 percent—catapulting to US$16.3 billion in 2018 from US$11.9 billion in 2017.
As audiences have shifted away from traditional media, digital has been a dominant force in capturing their attention—first from desktop to mobile devices and more recently to connected TV, smart speakers, and digital out-of-home.
The report analyzes the drivers behind the dramatic growth, identifying that revenue stemming from eCommerce, including the emergence of the direct brand economy, has played a key role. With the rise of “social stories” as a tool to connect with today’s consumers, social media was also pinpointed as motivating factor in significant investment—with storytelling now catching fire across platforms and brands. In addition, technological advances, ranging from virtual reality to voice to 5G, were recognized as drivers and expected contributors to a continued robust advertising environment.
Other highlights from the report include:
Digital video on mobile devices continued its momentum, reaching US$10.2 billion in full-year 2018, a 65% rise from full-year 2017 at US$6.2 billion
Digital video ad revenues on mobile devices comprised 63% of all digital video ad revenues in 2018, up from 52% in the prior year.
Digital audio advertising grew 23% to reach US$2.3 billion, outpacing last year’s full-year revenue of US$1.8 billion
Social media revenue rose to US$29 billion in 2018, an increase of 31% from US$22.1 billion in the previous year
“Surpassing US$100 billion in annual revenue is a watershed moment for the digital advertising ecosystem—one built on its power to build direct relationships between brands and today’s consumers,” said Randall Rothenberg, CEO, IAB. “Innovative platforms like over-the-top television, podcasts, virtual reality, and augmented reality all have the potential to help marketers forge even stronger ties with audiences, as brands navigate the new ‘consumer first’ playing field.”
“Digital marketing has unequivocally secured the lead in media market share, just as it has taken the lead in consumer mindshare,” said Anna Bager, Executive Vice President of Industry Initiatives, IAB. “As audiences have shifted away from traditional media, digital has been a dominant force in capturing their attention—first from desktop to mobile devices and more recently to connected TV, smart speakers, and digital out-of-home.”
“Advertisers are placing a premium on mobile and video, and in turn the two are fueling the ongoing rise of digital marketing,” said Sue Hogan, Senior Vice President, Research and Measurement, IAB. “And the 5G promise of lightning fast speed and decreased latency presents opportunities for businesses and consumers alike: a smoother user experience, which could further consumer ease with use and frequency of ecommerce on small screens; and it would allow for greater innovation in ad formats. As companies prepare for 5G—and its rollout gains momentum—we can anticipate even more healthy digital growth.”
“Year after year, brands have been increasing their commitment to digital as a primary channel to reach consumers,” said David Silverman, Partner, PwC US. “The analysis in this report highlights important drivers and trends that could influence interactive’s trajectory in the years to come, as marketers look to new formats and technologies to help them connect with consumers.”
IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered a reasonable measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the internet. The survey includes data concerning online advertising revenues from web sites, commercial online services, free email providers, and all other companies selling online advertising.
What: We talked to Jason Howarth Panini America’s VP of Marketing about the 2018 World Cup sticker book and app. Why it matters: Panini has a proud tradition in the Latin and Hispanic market and is taking an innovative approach to integrating physical and digital products. Howarth will be speaking at our upcoming Portada Los Angeles on May 10 (Loews Santa Monica Hotel).
For many across the United States and countries across the globe, the onset of FIFAWorld Cup (@FIFAWorldCup) fever every four years occurs months before the tournament begins. The event that marks this excitement is the release of Panini’s World Cup sticker book. Since the book’s inception in 1970, completing the book with each player’s sticker has become an obsession, with friends spending hours working on deals to help fill out their collection. The release of the 2018 edition is just one reason why there is buzz around Panini, as their trading card business, both physical and digital, has seen dramatic growth as of late. We had the opportunity to speak with Jason Howarth, VP, Marketing at Panini America (@sportsmktgguy) about the company’s most recent developments and where it is looking to go in the future.
The Excitement Surrounding the Sticker Collection is Multi-Generational
Portada: What does your market in the United States typically look like demographically? Are there specific strategies in this 2018 World Cup Sticker cycle to engage with the Hispanic community?
Jason Howarth: “The FIFA World Cup sticker collection and the World Cup come every four years, so there’s this anticipation for it. That exists in the US marketplace and all over the world. The demographics might be different based on each country. One of the other things that we have in the US marketplace, where we’re very fortunate, is we have a diverse population that follows multiple teams in multiple countries as opposed to maybe another country that might not qualify for the World Cup, and their interest might be somewhat diminished…
There’s been an evolution. 2014 was really eye-opening. You have the Colombian president getting out of his motorcade in the middle of an election to be part of a Panini (@PaniniAmerica) swap day. That’s how ingrained in the culture it is. That’s an awesome product to have, and we’re fortunate to have had that product since 1970. The audience is really diverse. You’ve got kids that collect it; in the US marketplace, it’s a multi-generational collection. There are grandparents who collect this album every time it comes out, and they do it with their grandkids. They do it because they did it when they were kids. There’s that excitement and that energy around it.”
Portada: Given the rise of social media and influencer-marketing, have you developed any new strategies during the last two World Cup cycles to market to the younger demographic?
J.H.: “Even in just the last four years, our conversation and how we plan on executing is very different and very dynamic. There are some tried and true things: there is nothing that is ever going to trump getting the product into the hands of consumers, so sampling is tried and true.
There are some really strong influencers that love soccer, that love the Panini sticker album, so there’s a natural fit there. It doesn’t feel like it’s forced; it feels authentic.
The role that digital plays, though, in terms of how you drive excitement, energy, and integration, was a thing that wasn’t even as prevalent to us four years ago. It’s extremely important to us… Whether that’s campaigns via Facebook, Instagram, or other executions so to speak, integrations with partners, those are all driving great content. We’re so fortunate that we’ve got an 80-page album with 681 stickers that are all great pieces of content representing 32 countries and legends from past World Cups. There’s such a huge platform for us when you look at it from a social perspective. We just did our first online unboxing video for FIFA World Cup stickers and put that on YouTube, put it on our blog, and that was the first reveal of the product in the US marketplace. We didn’t do that in 2014. Those opportunities and incorporating social to help promote and highlight our content and our product is really compelling to us.
Certainly, if you look at the impact of influencers and the popularity that those guys have, there are some really strong influencers that love soccer, that love the Panini sticker album, so there’s a natural fit there. It doesn’t feel like it’s forced; it feels authentic. I feel like that’s definitely something that you’ll see here as we move into the World Cup.”
The Relationship with Players Allows for Organic Engagement
Portada: We noticed that you had a VIP lounge at the NBA All-Star game. Is trying to get your product in marquee events becoming more part of your overall marketing strategy? Are you realizing that in today’s day and age, athletes from different sports are able to market athletic events at a higher level?
J.H.: “The level of relationship that we have with players is probably very different than a lot of other partners. For us, on the trading card side of our business —in the US marketplace, that’s what drives Panini America— we have deals with a lot of these players to sign trading cards for us… There’s nothing more authentic than a guy holding his own card or his teammate’s card.
Even when we activate at the NBA All-Star Game, for example, there’s a mix between partners there and players getting the opportunity to decompress and understand who we are as a brand beyond just sitting there signing cards for us all the time. I remember we did an event in 2014 with Cobi Jones (@cobijones), and we pulled out some of his previous World Cup stickers. He got the biggest kick out of it and was making fun of himself from the previous World Cups thinking, “Wow, I can’t believe that that was me!” It’s so authentic to these players that there’s a natural feeling to it…
Soccer is a global sport, but it’s not the only sport that exists in the US marketplace: there’s football players, basketball players, baseball players, NASCAR drivers. A good portion of them have an affinity for the game of soccer and are excited by the tournament. If there’s an opportunity to utilize those guys to create an organic, authentic feel to be engaged with our product, we’re going to do it.”
Hispanics and Young People: Essential Audiences of Panini
Portada: Do you try to tailor content specifically to the Latin and Hispanic market in any way? Are you trying to find particular athletes who will resonate with that demographic? Do you try to do promotions in Spanish? Or, is it just part of a greater overall strategy?
J.H.: “It’s part of a greater overall strategy, though we do place emphasis on the Hispanic market when it comes to World Cup. The partners that we’ll be leveraging in this World Cup are definitely Hispanic-centric. It’s an important market for us. We’ve got a multi-lingual product: our FIFA World Cup sticker collection is featured in six languages. Thankfully for us, the product is also very visual in terms of the players, so that makes our lives easier in terms of pushing the product and promoting the product… It’s a multi-generational collection for those who grew up with it. For the Anglo-American who has just started to follow soccer since the 1994 World Cup, that’s a process that’s growing.”
There are grandparents who collect this album every time it comes out, and they do it with their grandkids. They do it because they did it when they were kids.
Portada: Another huge part of your business is the digital trading card game. For someone who may be completely foreign to it, why is it appealing to the younger demographic? How does it differ from trading cards, and why is it doing so well?
J.H.: “Some of it is that it replicates the physical experience to a certain extent. We’ve always said at Panini that we want to cater to however the collector wants to collect, whether that’s collecting digital trading cards on their phone; whether that’s collecting the physical product itself… We want to create that experience no matter how they collect, and that’s how digital trading cards came into play for us.
It delivers another element of stickiness within the app. When you’re a kid and playing with your trading cards, you’re viewing them as a piece of entertainment, not just a commodity that you could sell on the secondary market. In the scenario where we’ve got our NFL Blitz app and our NBA Dunk app, and we actually just launched our FIFA World Cup trading app… You can trade around the globe with fans all over the place that have the same interest in the sport that you do.
We have a thing in our NFL Blitz app, in our Dunk app, and in our FIFA app called PackBattle. There’s a little bit of a strategy involved there in terms of using statistics or power performance numbers of the player. The winner gets to keep the card…. It’s a best out of five, and it’s awesome. It’s an easy, quick, fun game. I can’t even tell you how long I’ve played the Pack Battle over this past weekend on FIFA: it’s ridiculous. It’s always, ‘One more. Just one more.’
I think the other thing that’s really cool, as we’re on the subject of the FIFA World Cup app… on the back of that sticker back there’s a code, and you download the app, and you can go to paninipromocode.com, and you can enter in that code, and you get a special, free digital pack to start collecting the digital piece of it.”
Portada: Is there a unique opportunity for you as a business to track consumer data in the digital game through the app? Is that one of your focuses?
J.H.: “Our focus more than anything is just making sure that we’re always where the collector is and where they want to collect. Obviously, there are interactions that we can have with the consumer from a one-to-one perspective that we don’t always get in the physical space… whether it’s rewarding them with special packs or coins in the app, it’s really compelling.”
Portada: Has the Latin American market responded to the digital trading card game that differs from other demographics? Are they just as crazy about it as the hard copy game?
J.H.: “I think it’s still too early to tell on the FIFA World Cup app, because we launched it less than a week ago. Collectors are collectors are collectors… It’s truly a global app for us because of the affinity for the product and how our physical collection is distributed in over 100 countries. There’s going to be quite an audience there as compared to some that are more targeted to certain regions and certain markets.”
Portada: Beyond the obvious answer, sales, what are your key performance indicators for the World Cup and for your company overall? Are there new goals such as growth in certain markets or social media views that are new KPI’s for the upcoming World Cup?
J.H.: “Driving the number of packets that are in the market from a global perspective is huge. In the US market, we’ve continued to see this growth and progression for the FIFA World Cup sticker collection every four years and the excitement for the growth of soccer… There are lots of kids walking around in Messi jerseys, Ronaldo jerseys, and Neymar jerseys in the US that probably wouldn’t support any of those teams if it weren’t for those players. So, as that continues to evolve and grow, that’s a KPI for the US marketplace: seeing how far that growth comes in the US marketplace compared to 2014.
We also have some things that are a disadvantage. Does the US team [not qualifying for the World Cup] have an impact on us this year? To be honest, none of us really know that. We don’t anticipate that it will. We wish that they were there because that would help amplify and generate another level of excitement in the US marketplace. Christian Pulisic (@cpulisic_10) is one of our exclusive athletes. He’s the first soccer player we’ve signed as an exclusive athlete. He’s a great kid and an amazing, energetic player. If he was on the World Cup stage this year, what would that do for him and US Soccer? We’ll have to wait and see on that.”
Keeping an Eye on the Future
Portada: Where do you think the trading card business will be in 5-10 years? Are there technological changes such as Voice, AR, VR, or thing that you may know of that will be the biggest driver of change coming up? Or, are there other factors that will change the business moving forward?
J.H.: “I think physical is huge. It’s not going to go away five years from now, ten years from now. We continue to see phenomenal growth on the physical side of the business, especially with our core products. We’re in the second year with the NFL and the NFLPA as an exclusive trading card partner. We’ve had great growth this past year… The NBA marketplace in the trading card space from a physical perspective has grown exponentially since we became an exclusive partner there. Our first year was 2009, and that’s grown from a global perspective. All of those things are really exciting to us.
I mentioned before, how do we make it so we continue to create a tradition of collecting and being where consumers want to collect, whether that’s physical or digital. I can’t go into too much detail about where I can see technological changes going, but I can tell you that there will be. I don’t think that it replaces one way of collecting over another. If anything else, maybe it creates a new level or a new generation of collectors and consumers because it’s a different way to collect. We’re on a great little ride here right now in terms of the excitement in the marketplace for trading cards, both physical and digital… Any opportunity we have to incorporate new tech and new experience, we’re going to try to make it work.”
Portada: Are there any other points you would like to cover?
J.H.: “As you mentioned, the heritage and tradition with the physical collection is huge. The new exciting component that we’re bringing to it this year is marriage between the physical and digital, where you’re getting the sticker in your hand and then you’re actually getting a free digital pack when you download the Panini FIFA World Cup app. That’s probably the single biggest difference from where we’ve come from 1970 to 2018, and we’re really excited to see how that plays out.”
Panini’s unique approach to promoting physical and digital products harmoniously is a strategy that should be taken note of across industries. Howarth is right that there are some products that will always carry value in the physical space, but in today’s more technologically-centric world, there are creative ways to still tailor these products towards younger demographics that spend a tremendous amount of time on mobile devices. This foresight on behalf of Panini should allow the company to have success with its 2018 FIFA World Cup initiatives, but this mindset will also allow the tradition of young and old to collect together to continue for future generations in the Latin market and beyond.
What: Seven in 10 of the 58 million U.S. Hispanics now use a smartphone, and more are bypassing desktop and laptop computers completely in favor of tablets and mobile. Why It Matters: With some help from their expertise in Hispanic mobile behavior, mobile ad network Adsmovil topped the latest comScore Mobile Metrix® in both the Hispanic Mobile and Total Mobile Audience reach categories. Could Adsmovil be the long-awaited viable alternative to the Facebook/Google duopoly? And what does a Hispanic adnetwork’s continued success with total audiences say about the key role that Multicultural plays in any mobile campaign’s success?
Since 2000, Hispanics have accounted for more than half of the population growth in the United States: According to the Pew Research Center, the number of Hispanics in the country reached 58 million in 2016. And with seven in 10 U.S. Hispanics now using a smartphone, this means that advertisers hoping to win in the United States must prioritize reaching this dynamic and tech-savvy demographic.
More and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s walled gardens.
“Taking into account that Hispanics are heavy mobile users and even use their mobile devices as their primary access to the internet, we always include mobile in all our communication strategies. In fact, we always recommend clients having a mobile-first approach when implementing any digital campaign,” Gonzalo del Fa, President of GroupM Multicultural (photo)asserted.
With this in mind, ad network Adsmovil launched Programmatic Mobile Hispanic solutions in 2015. In recent years, the network has become a leader in Hispanic targeting, coming up with award-winning programmatic creative and location-based targeting initiatives informed by a thorough understanding of their clients’ targets. And now, October 2017 data from ComScore has Adsmovil coming in at the top of the lists of Total Internet and U.S. Hispanic reach for Mobile:
Mobile Metrix Key Measures
Total Unique Visitors(000)
Total Internet(total audience: Mobile)
Adsmovil Network-Potential Reach
Univision Digital Network
Primia Digital – Potential Reach
Fullscreen Mexico – Potential Reach
H Code Media
SOURCE: U.S. Hispanics Mobile Only, Comscore, October 2017.
Total Unique Visitors(000)
Total Internet: Hispanic All: (Mobile…)
Adsmovil Network-Potential Reach
H Code Media
Univision Digital Network
Primia Digital – Potential Reach
Fullscreen Mexico – Potential Reach
SOURCE: Total Audience Mobile Only, Comscore, October, 2017.
The voices demanding alternatives to the “duopoly” of Facebook and Google are growing louder, suggesting that Adsmovil could emerge as a leader at just the right time. While Google and Facebook took over 77% of the US$12 billion-dollar increase in global online ad spend in 2017, more and more advertisers are questioning the assumption that they can operate a successful campaign within the confines of Facebook and Google’s “walled gardens.”
AdsMovil Credits Success to Unique Understanding of Hispanic Behavior
In today’s landscape, marketers are being forced to reckon with the fact that consumers cannot be reduced to simple profiles determined by gender, age, and ethnicity. AdsMovil’s targeting solutions are focused on helping advertisers reach Hispanic users, looking at mobile users through an ethnographic lens that identifies specific Hispanic audiences according to the following factors: generation, acculturation, language and country of origin.
Hispanics’ acculturation levels lead to different attitudes toward language: those that are acculturated were typically born in the United States, prefer to speak in English, and can “toggle between Latino and American culture.” They are typically tech-savvy and have at least a high school education. Non-Acculturated Hispanics may or may not have been born in the United States, may have immigrated recently and typically hold a high school degree or less.
The benefits of understanding and appreciating these drivers of Hispanic mobile behavior make all the difference, pushing Hispanic marketing shops like Adsmovil at the top of Total Audience measurement on comScore’s Mobile Metrix in October 2017.
It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic. “Mexicans have different taste and buying habits than Dominicans or Argentinians. Adsmovil helps you deliver more effective media because we realize the differences and can target more appropriately. As a result, you will have better-performing campaigns,” said, Adriana Daantje, Global Product Director at Adsmovil.
It is important to not only recognize the diversity that exists within Hispanic American population but also find a team with the know-how to build campaigns that really reach such a diverse demographic.
Acculturation, Generation, Language, Country of Origin Key Factors in Determining Hispanic Behavior
In focusing on factors like acculturation, generation, language, and country of origin, Adsmovil can create targeted solutions for profiles of users with very distinct behavioral patterns: For example, non-acculturated Latinos are less comfortable using technology and slower to adopt new devices and functions, tend to use older mobile devices, and often have their browsers set in the Spanish language. They also consume more Spanish-language content, often from their countries of origin.
Mobile use among US Hispanics also varies greatly based on generation, as first-generation Hispanics are not only more likely to speak Spanish, but also more likely to look for online content in-language, and to browse ethnically relevant news, entertainment and food content. Hispanic Millennials, on the other hand, care more actively about technology and “want to stand out and be noticed,” according to Adsmovil. While they incorporate many Hispanic music, family, and culinary traditions, they are more open-minded than older Hispanic Americans, and tend to evolve with the rest of the younger Millennial Americans in terms of political and cultural beliefs and practices.
Adsmovil’s key differentiator is how it builds and identifies audiences within the Hispanic community based on the content that Hispanics consume (language, keywords, context), instead of relying solely on targeting via location, app install or purchasing history. It has direct relationships and preferred access to Hispanic premium publishers offering qualifying traffic, and offers 100% SOV, and sponsorship and content integration opportunities with exclusively Hispanic publishers.
What: According to Mobile Posse, mobile use is becoming less social and more related to the search for information and products that are relevant to users’ lives, and that solve problems in real time. Why It Matters: Can the platform’s new solution, called Proactive Content Discovery, provide users with what they are looking for — as soon as they open their phones?
Mobile advertising mCRM solution Mobile Posse wants to figure out why people are unlocking their cell phones — and how they can deliver it as soon as people swipe.
After teaming up with Phoenix Marketing International to conduct research on the subject, Mobile Posse found that people unlock their mobile phones upwards of 70 times a day. But marketing strategists may be disappointed to find that 47% of the time, people are unlocking their phones without a specific app or activity in mind. So how can marketers figure out what they are seeking in their mobile experiences?
One solution is to focus on prioritizing faster loading mobile content: The total value of being the first app seen is estimated to be worth more than $2 billion to Facebook. With that in mind, Mobile Posse set out to explore their new solution, called Proactive Content Discovery, whose ultimate goal is to use data to predict what kind of content a user will be most interested in seeing upon unlocking their phones.
Mobile Users Seeking Info on News Are More Interested in Seeing Relevant Content On Screen Immediately
The Mobile Posse study found that 50.4% of all mobile users expressed strong interest in Proactive Content Discovery – this group is called “News Feeders.” This demographic is as large as the 50.3% of all mobile users that say they use Facebook primarily for social communication with friends and family.
According to the study, the strongest predictors of interest in this type of solution were “interest in consuming local/national/world news, entertainment news, and gossip.” Those that do not use their phones to seek information on those topics are 73% less likely to be interested in Proactive Content Discovery. In addition, mobile users that use Facebook primarily for access to “interesting/entertaining stories” were found to be 68% more likely to be interested in Proactive Content Discovery. In essence, those that spend their days hungry for new information are likely to want their phones to feed it to them all day.
The study also found that those who unlock their phones to “kill time” are 27% more likely to be interested in this type of content. In contrast, a subscriber’s wireless carrier, how often they unlock their phone, and the region they live in were not found to be particularly relevant to interest in this type of solution.
Social ‘Has Become Less Social In Nature’
What do these findings mean for marketers that want to better inform their mobile strategies? Greg Wester, SVP, Marketing & Business Development, said that “for starters, social has become “less social” by nature.” Social apps have had to expand their offerings to adapt to the fact that people use their cell phone for almost every activity and transaction. What’s more, with so many people opening their phones without any particular activity in mind, it appears that in many cases, people are essentially seeking stimulation.
Wester added that “the way our phones work today will not be how our smartphones work tomorrow.” User experience will be at the center of mobile innovation, and “research shows that today’s mobile user has an almost insatiable appetite for new and interesting information/stories.” To keep up, marketers will have to provide users with an experience consistent with what users’ expectations.
What:Sprint and T-Mobile continue to drop hints that they will indeed merge, with the latest rumors asserting that T-Mobile majority owner Deutsche Telekom would be the primary owner of the new company, with Sprint’s SoftBank Group Corp controlling 40 to 50 percent. Why It Matters: Aside from reshaping the mobile landscape through combining two of its largest players, how would the merger affect major (and minor) carriers’ ongoing battle for the loyalty of Hispanic consumers?
Rumors about a possible merger between third-largest US wireless carrier T-Mobile and fourth-largest Sprint have intensified as unnamed sources come out to drop hints about how the deal would look.
On Friday, Reuters cited unnamed sources that claimed that while T-Mobile majority owner Deutsche Telekom would be the primary owner of the new company, SoftBank Group Corp, which controls Sprint, would come out with 40 to 50 percent ownership.
A brand shaped by its focus on innovation and offering new kinds of value through mobile technology, T-Mobile has been targeted for merger deals by both Verizon and AT&T, the first and second-largest carriers in the country, in the past. With its focus on offering flexible, low-cost plans that appeal to Hispanics, Sprint could offer T-Mobile a deeper reach into this key growth market while the new company chips away at Verizon’s pricing advantage.
For Mobile Carriers, Hispanics Are Key to Growth
The numbers don’t lie: According to Nielsen, there are 56 million Hispanics (and counting) in the United States, and 72% of them own a smartphone (10 percent higher than the national average).
And so it is no surprise that both T-Mobile and Sprint have made Hispanic marketing a priority in their own way. According to Ad Age, as recently as 2013, T-Mobile ranked seventh among the top 10 advertisers to Hispanics, with $98.7 million spent on Hispanic marketing alone in 2013 compared to Sprint, which came in at #18 on the list spending $68.6 million.
But when Bolivian Marcelo Claure took over as CEO of Sprint in 2014, things began to change. It started with him starring in a Spanish-language Sprint commercial on Univision during the Latin Grammys broadcast that November that opened with him saying “Hola, soy Marcelo Claure.”
From there, Claure went on a hiring spree to create a team capable of leading Sprint’s battle for the Hispanic market. He started by hiring Manuel Campos, the T-Mobile account director at Hispanic agency Conill, as Hispanic marketing director for the company, and a few months later, Claure hired current marketing chief, Spaniard Roger Solé, who came to Sprint from TIM Brasil, Telecom Italia’s mobile operator in Brazil, where he was CMO.
Sprint’s Hispanic marketing strategy was to give the demographic an option that was built for their preferences and behavior: For just $100 a month, a Sprint family plan included 20 gigabytes of data. Sprint’s Boost Mobile division also released rate packages custom-designed for Hispanics: one combined calling and unlimited messaging from the U.S. to Cuba and was offered exclusively at Boost Mobile dealers in the Miami area.
In the meantime, T-Mobile launched Univision Mobile, which offered customers monthly plans that include 100 minutes of international calling to countries in Latin America and unlimited text messaging to phone numbers in more than 200 countries around the world. The service has since been absorbed into the Ultra Mobile service but was the first in a number of ambitious moves by the brand to capture this key demographic.
Merger Will ‘Coalesce Their Hispanic Efforts’
Tru Multicultural’s founder and CEO Yousef Kattan, whose past clients include T-Mobile, added that the mere amount of data they will be combining will “create an environment of intelligence” that will allow the combined company to be “smarter, efficient and ultimately more effective will be sizable.”
We’ve seen AT&T and Verizon be very aggressive in the tech environment and I would imagine this merger would allow TMO and Sprint to play in a very similar space.
“We’ve seen AT&T and Verizon be very aggressive in the tech environment and I would imagine this merger would allow TMO and Sprint to play in a very similar space,” Kattan added.
Mario Carrasco, Co-Founder and Principal of ThinkNow Research, highlighted that “Sprint has been focusing on targeting the Hispanic market seriously since 2015,” and that “their main rival in this space has been T-Mobile.” As the Hispanic demographic has been key to their battle for the third spot, Carrasco asserted that their unique strengths will complement each other with regard to Multicultural. “This merger will coalesce their Hispanic efforts by combining Sprint’s low-cost plans with T-Mobile’s branding will lead to a more effective Hispanic targeting effort overall,” Carrasco said.
Merger Will Make Space for Minor Carriers, Unconventional Services Popular Among Hispanics
One of the biggest questions surrounding the merger is how reducing the number of major carriers will affect the mobile landscape. With regard to the Hispanic market, experts seem to agree that the merger would create a unique window of opportunity for prepay segment, minor carriers, and unconventional mobile services, all of which are popular among Hispanic consumers.
Carrasco of ThinkNow predicted an increase in the adoption of simple mobile and TracFone, options that are particularly appealing to the Hispanic market. “Adoption of Wi-Fi phones is increasing, and unconventional services such as Google Fi will begin to take more of the market share,” Carrasco said.
Kattan added that prepay will likely continue to evolve and become a focus for major carriers trying to reach growing numbers of Multicultural consumers who prefer non-traditional mobile plans. “This merger will definitely give them a tight hold on the prepay segment and could create an environment where their focus in prepay is wholly focused on growing and owning multicultural targets, specifically Hispanic,” Kattan said.
This merger will definitely give them a tight hold on the prepay segment and could create an environment where their focus in prepay is wholly focused on growing and owning multicultural targets, specifically Hispanic.
Carrasco echoed that sentiment: “I believe these nontraditional services and carriers have more appeal to Hispanics who tend to adopt emerging technologies at a faster rate than the general population.”
With so few major carriers in the event that the merger occurs and is approved by US regulatory bodies, data and pricing wars would intensify as the “big three would fight even harder for these gross adds,” Kattan said. “Device offers will also get more competitive to help entice consumers to leave their current carriers.”
In the End, T-Mobile and Sprint ‘Are Going After Very Similar Segments’
Aligning the strategies of two large and complex operations with unique branding and identities like T-Mobile and Sprint is never a simple endeavor. “Coming out of the merger with a new set of core values will be critical in aligning their marketing efforts overall and with the Hispanic market,” Carrasco said.
Coming out of the merger with a new set of core values will be critical in aligning their marketing efforts overall and with the Hispanic market.
But their core values may be more aligned than we think. “Both T-Mobile and Sprint and their prepay services MetroPCS and Boost respectfully are going after very similar segments that value price first, but don’t want to sacrifice quality and flexibility,” Kattan explained. Aligning Verizon and T-Mobile’s core values? That would be more complicated, Kattan admitted.
In the end, both brands have unique advantages that should serve each other well as they grow. T-Mobile is a “game changer and innovator in the space; a brand truly built around the consumers’ needs that can provide value,” Kattan said. On the other hand, Kattan pointed to price, devices, and distribution as Sprint’s key claims.
If the deal goes through, an already evolving mobile market will be shaken up yet again, and Hispanic consumers will be key as carriers build strategies to adapt to the demographic’s quick adoption of new, alternative mobile technology and preference for flexible, price-conscious mobile plans.
More than 500 years ago, European colonizers got surprised by the richness and beauty of the “New World”. One they hadn’t been aware of because of their erroneous self-centered theories or their lack of courage and imagination to face the dangers and mysteries of the sea, and look further than the skyline in front of their eyes.
by Martin Carniglia , Data & Media Consulting Manager, DBi Latin America (Havas)
We are now close to what seems to be a new inflection point, where the wealth of connected people, and the abundance of business opportunities will surprise the ones who dare to care about Latin America’s Data arouse.
Now more Latin People than ever are connected
In a region that represents almost 8,5% of global population, Internet Users already rise over 10% from world total figures. Internet penetration overcomes 65% over total population in 8 countries across the region: Argentina, Brazil, Chile, Costa Rica, Ecuador, Panama, Puerto Rico and Uruguay. Yes, don’t go back and try to find on the list other big countries in the region, such as Mexico, Colombia or Peru. They are still under that level with forecast figures going up faster in the next few years, followed by the smaller markets.
Social networks are also hugged over the region: seven Latin American markets rank among the world’s top 25 for Facebook total amount of users users, close to Europe level.
Some countries such as Argentina, Brazil and Mexico show spend time and daily connection figures that rank in top 5 level worldwide. Facebook penetration rates have an average level over 50%, with some countries even higher than North America level.
Internet penetration overcomes 65% over total population in 8 countries across the region
Mobile technology is araising
The size of the overall market in the region, and its potential for ongoing growth, continues to attract investment from international Telcos (Telefonica, America Movil and Millicom being the leaders across the region) and local cable & Internet service providers that expand their offering.
Improved mobile 4G technology has stimulated the adoption of smartphones among consumers, which in turn has led to increasing mobile data traffic and consequently the ability of network operators to develop revenue growth.
In the fixed-line sector, fibre backhaul networks have proliferated, giving access and broadband highspeed connections to new areas. This has partly been stimulated by regulatory efforts to promote the sharing of network components, but also by the take-up among consumer of bundled packages requiring higher bandwidth. The need to future-proof networks to cope with the demands of digital communities has also encouraged telcos and cable companies to invest more.
Seven Latin American markets rank among the world’s top 25 for Facebook total amount of users users, close to Europe level
More Connected People means More Data Access
It’s logical to deduct that from here to less than five years we could be doubling the amount of connected people, and so the quantity of collected data touchpoints.
We are seeing new technology companies and startups that offer Universal Data Hub approaches to leverage information among Desktop, Mobile, POS, beacons and other IoT sources.
From Data integration, Data Management Platforms, through new Stadistical approaches and Machine Learning models connected to Programmatic Buying technologies. The whole ecosystem is already getting available across the whole region.
Integrating data, being able to learn from it and making smart business decisions will be the biggest challenge for all companies across our region.
Contextual and structural barriers are falling down. Online travelers are already engaged, Mobile Sails are Set, and low connection anchor is already coming out from the depths.
The question is, will we be ready as investors, entrepreneurs, marketers, small, middle or big companies to dare and face this upcoming growth? New skills will be required, new integral ways to gather data needed, and more than anything, new capabilities to transform it into insights and better profile or segment our clients.
Latin America is appearing as a promised land, and we should all be ready to start this amazing journey towards Data-Driven Marketing and Communications. Make sure you count with the right maps and the best sailors to face it!
Martin Carniglia, is a 31-year-old Argentinian with vast experience in Digital and Data consulting across LatAm Region. After obtaining a bachelor’s degree in Business Administration from the University of Buenos Aires he joined Havas Group, where he lead Performance team and launched a new department focused on Digital Data. He is currently part of DBi -Data Business Intelligence- consulting team, where he occupies the role of Regional Data & Media Consulting Manager.
What: Facebook has unveiled its latest premium video effort called “Watch,”a new platform for shows on Facebook that will be available on mobile, desktop, laptop and in Facebook’s TV apps. Why it matters: Video consumption is growing at a very high rate at the expense of traditional broadcast. Amazon, Google (YouTube) are heavily investing in the video (ad) space. Facebook’s Watch will offer programming and content from more than 30 media partners and also more original programming funded by Facebook that will revamp its current video tab.
More and more people enjoy Facebook’s video experience, like discovering videos in News Feed. But now, they also yearn a dedicated place they can go to watch videos. For this reason, the social net launched last year the Video tab in the U.S., which offered a predictable place to find videos on Facebook. Now the comany wants to make it even easier and has officially introduced “Watch,” its much-anticipated push into TV-like content.The company didn’t specify a date for the launch.
Watch, a new platform for shows on Facebook, will be available on mobile, on desktop and laptop, and in Facebook’s TV apps. Shows are made up of episodes — live or recorded — and follow a theme or storyline. To help users keep up with the shows they follow, Watch has a Watchlist to never miss out on the latest episodes.
Watch is personalized to help users discover new shows, organized around what your friends and communities are watching. For example, it has sections like “Most Talked About,” which highlights shows that spark conversation, “What’s Making People Laugh,” which includes shows where many people have used the “Haha” reaction, and “What Friends Are Watching,” which helps users connect with friends about shows they too are following.
Watch will be home to a wide range of shows, from reality to comedy to live sports and platform for all creators and publishers to find an audience and build a community of passionate fans.The new tab will showcase a slew of shows from the likes of BuzzFeed, Tastemade, Condé Nast Entertainment, and ATTN, according to people familiar with the matter.Facebook is also providing a link for those who want to “register” shows for Watch. Although initially it will be introduced to a “limited group of people” and a “limited group of creators.”
At launch, Facebook aims to have several hundred shows on its platform, including the following slate of shows from major partners: A&E’s “Bae or Bail,” All Def Digital ‘s “Inside the Office,” Brit & Co ‘s “Tiny Houses,” Condé Nast Entertainment’s “Virtually Dating,” David Lopez‘s “My Social Media Life,” Golden State Warriors’ “Championship Rewind,” Hearst ‘s “Daily Refresh,” Univision Deportes ‘ “Liga MX,” McClatchy ‘s ” Titletown TX,” MLB‘s “MLB Live,” MLS and Univision Deportes‘ “MLS en Univision,” National Geographic ‘s “We’re Wired that Way,” Nas Daily, NBA ‘s “WNBA All-Access,” Tastemade ‘s “Kitchen Little,” Time, Inc. ‘s “Celeb Moms Get Real,” WSL ‘s “WSL Surfing Sundays.”
We hope Watch will be home to a wide range of shows — from reality to comedy to live sports,” CEO Mark Zuckerberg said in a Facebook post. “Some will be made by professional creators, and others from regular people in our community.”
What: Mobile ad platform Sabio Mobile announced a “Validated Publishers” feature for its supply offering. Why it matters: Brands will be able to secure high-quality supply on Sabio Mobile’s platform through a rigorous vetting process without worrying about brand safety and fraud.
Sabio Mobile, the smarter mobile ad platform trusted by brands and agencies, announced a “Validated Publishers” feature for its supply offering — a proprietary methodology that brings a scientific and data-drivenapproach to defining premium publishers and securing high-quality supply.With the Validated Publishers methodology, brands will be able to secure high-quality supply on Sabio Mobile’s platform through a rigorous vetting process without worrying about brand safety and fraud.
Until now, brands were dependent on unreliable methods to secure supply for mobile campaigns because the industry has lacked an agreed-upon definition for “Premium Publishers.” “Premium” has typically been synonymous with quality and trust: publishers having high web rankings or simply sites and properties with long legacies which have been trusted sources of news and information for years.
Sabio Mobile’s Validated Publishers undergo a rigorous test of a minimum of seven criteria that they must pass before running any brand advertisements on them. The company developed these criteria based on issues that are top of mind for brand advertisers today such as fraud and brand safety.
The seven criteria are:
Certification by the Google Play or Apple App Store
User ratings for the app
Estimated monthly downloads
Each of the criterion has its own benchmark, but they are all important for their own reasons. For example, having an app that is Google or Apple certified adds an extra layer of protection to make sure it’s free of malware, doesn’t infringe on copyright issues, and the technical coding is up to spec. An app that is downloaded on an alternative marketplace or by direct download may not be playing by the same rules.
In the case of user ratings, when an app has a lower rating it means the app may have error-prone code, poor usability and possibly ad spamming. These are things that no brand wants to be associated with.
“There is a genuine problem in the ad industry related to ad fraud and brand safety because of the lack of clarity around premium and non-premium publishers,” said Kris English, Associate Media Director, DigitasLBi. “Sabio Mobile has been a great partner for us due to their premium publisher lists and transparency, two major components to the success of their model, translating to success for our clients.”
“Certain publishers are considered premium for their reputation in the industry, but it is still really hard to define what is premium,” said Joao Machado, Director of Mobile, OMD. “I am encouraged that companies like Sabio Mobile are trying to bring solutions to the marketplace.”
“With the onset of social media and user generated content that now demand larger digital budgets from brands, as well as the more recent ‘fake news’ phenomenon, the definition of ‘premium’ has become murkier,” said Aziz Rahim, CEO, Sabio Mobile. “With the changing times, we at Sabio Mobile realized there is a big need to differentiate inventory, so brands can run campaigns without second guessing quality of the inventory and developed with the Validated Publishers offering.”
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: Through Havas Group pure player AdCity, the marketing company launched its mOOHbile offer, for facing the challenges of geolocation. Why it matters: This new audience planning solution capitalizes on synergies between mobile devices and out-of-home media displays.
In an effort to combine out-of-home (OOH) media displays with mobile media, AdCity, a Havas Group pure player, presented its new audience planning solution its mOOHbile, allowing advertisers to optimize the efficiency of their OOH geolocalized campaigns.
“Tackling the mobility universe in silos doesn’t make any sense these days, as all studies show the efficiency of combining both outdoor display and mobile media. Today, a consumer in contact with an OOH advertisement is 17% more likely to activate the mobile advertisements (s)he sees and engages with the brand; and over 70% will do additional research on this same brand,” said Matthieu Habra, AdCity’s Head of Global Network, in a statement.
Tackling the mobility universe in silos doesn’t make any sense these days, as all studies show the efficiency of combining both outdoor display and mobile media.
The mOOHbile offer meets 3 objectives: • Maximizing the campaigns’ reach through audience extension and segmentation • Optimizing the overall frequency of messaging (retargeting and synchronization) • Contextualizing content through DCO (dynamic creative optimization), context and data streams
mOOHbile will be implemented using proprietary technology platform AdCity Solution.
What: Mobile has captured more than half of all U.S. internet advertising revenue for the first time ever, while total digital ad spend hit a landmark US$72.5 billion in 2016 according to the latest IAB Internet Advertising Revenue Report. Why it matters:While mobile ad revenuesoars to an all-time high of US$36.6 Billion digital video surges to a record US$9.1 Billion.
Mobile advertising accounted for more than half (51%) of the record-breaking US$72.5 billion spent by advertisers last year, according to the latest IAB Internet Advertising Revenue Report, released by the Interactive Advertising Bureau (IAB), and prepared by PwC US. The total represents a 22 percent increase, up from US $59.6 billion in 2015. Mobile experienced a 77% upswing from US$20.7 billion the previous year, hitting US$36.6 billion in 2016.
Other highlights from the report include:
Digital video hit a record US$9.1 billion in 2016, a 53 percent year-over-year rise from US$5.9 billion in 2015
On mobile devices, video revenue skyrocketed, more than doubling—up 145 percent year-over-year—to nearly US$4.2 billion
Social media advertising generated US$16.3 billion last year, climbing 50 percent over 2015’s $10.9 billion
Search revenues reached nearly US$35 billion in 2016, up 19 percent from US$29.5 billion in 2015
Digital audio, measured for the first time in this report, brought in revenues of US$1.1 billion in 2016
Retail, representing 21.3 percent of internet ad spend in 2016, Financial Services at 13.3 percent, and automotive at 12.5 percent, continue to have the largest category share, with Media (5.2%) picking up speed, up 13 percent over 2015
“Mobile fueled the internet economy in 2016, with advertisers showing their confidence in digital to achieve their marketing goals,” said Randall Rothenberg, President and CEO, IAB. “This increasing commitment is a reflection of brands’ ongoing marketing shift from ‘mobile-first’ to ‘mobile-only’ in order to keep pace with today’s on-the-go consumers.”
“In a mobile world, it is no surprise that mobile ad revenues now take more than half of the digital market share,” said David Doty, Executive Vice President and CMO, IAB. “Digital video’s powerful ability to attract engaged audiences is naturally attracting greater investments. Next week’s NewFronts presentations will showcase the latest in original digital video content, certain to spark even greater interest from marketers and media buyers.”
“Mobile, social, video, and programmatic trends combine to redefine the digital landscape, providing unprecedented access for advertisers to reach consumers,” said David Silverman, partner, PwC US. “Digital audio, generating US$1.1 billion in 2016 speaks to the continued evolution of new formats that enable marketers to find audiences at home, behind their desks, or wherever they are.”
Check out our new round up for brand marketers, where you’ll find the most relevant new insights and research published over the last week. If you’re trying to keep up, consider this your one-stop shop.
New research from Food Mix Marketing Communications reveals fifty-eight percent of brand lovers admit to hoarding their all-time favorite food product on hand. Findings prove that three-fourths of brand lovers would go out of their way to get a loved product, as well as pay more money for a loved brand. Brand lovers are more willing to try brand extensions, and less likely to switch to competitive brands.
According to research by Integral Ad Science, compared to the first half of 2016, video viewability increased from 40% to 58.2%, and the completion rate in view increased from 26.7% to 35.1%.
The 2017 Mobile Consumer Report from Vibes claims that 70% of consumers would have a more positive opinion of a brand if it allowed them to save a loyalty card in their smartphone, over one-third of people are said to store information from brands in a mobile wallet such as Apple Wallet and Android Pay, and 83% of smartphone users also say that receiving surprise rewards, exclusive content and special birthday or anniversary messaging would have a positive impact on their brand loyalty overall.
A report by Fetch found that 31% of users in emerging markets define themselves as mobile-first, compared to 15% in Europe and 18% in North America. Similarly, where 66% of European consumers claim to access social media every hour, this rises to 72% amongst emerging markets.
Foresight Research found that in the most recently completed auto show season (2015 – 2016) nearly 2 out of 3 attendees at auto shows were in the market to purchase in the next year – that was about 4 million households or about 6 million people. In addition, attendance among actual buyers has increased 57% over 2012.
ComScore’s Mobile Hierarchy of Needs report claims that mobile devices now account for a majority of consumers’ digital minutes, with most of that time spent in apps.
Brand USA‘s new report found that the amount of travelers less likely to visit the US because of the political climate increased from December to February among travelers from every of the 11 countries surveyed but China.
A summary of the most exciting recent news in online video in the U.S., U.S.-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.
US/US HISPANIC MARKET
Research by eMarketer claims that total numbers of U.S. digital video viewers will increase from 221.8 million in 2017 to 239.2 million in 2021 and that the penetration rate among internet users will increase from 81.2% to 83.5%.
Vimeohas added a 360° feature with tutorials for creators, support for 8K files, offline viewing, and bespoke apps for specific mobile headsets.
Googlehas expanded its image recognition AI tools into the realm of video, announcing that users will be able to search through video content that is automatically assigned tags by an AI system.
According to new research from Ooyala, mobile represented 54% of all online video viewing in Q4 2016 and is tipped to hit nearly 60% in Q1 2017.
According to the NFL, their investment in online video platforms paid off: video-on-demand (VOD) starts grew by 76% over the previous year; mobile was up 235%. The average viewing session was 65.6 minutes, up 43%; and streaming across all devices was up 43%.
Google’s YouTube and Daydream groups are introducing the equi-angular cubemap (EAC), a new projection technique that increases the practical level of detail for 360-degree footage.
Ericsson’s annual ConsumerLab TV and Media Report reveals that a mobile subscription plan that allows affordable streaming of TV and video content on a mobile device – with reasonable video quality and without having to ration data – is of great interest to 40% of consumers globally. Millennials are the most interested group at 46%. 40% of consumers globally are “very interested” in a mobile data plan that includes unrestricted video streaming.
Facebook has signed a broadcasting agreement with Major League Soccer (MLS) and Univision Deportes that will see the social giant live stream at least 22 matches of the upcoming 2017 MLS season, beginning March 18, Mashable reports.
Ooyala has released its Q4 2016 Global Video Index, finding that pre-roll mobile impressions for broadcasters grew to 47 percent, up from 44 percent in Q3. Both smartphone and tablet percentages increased, taking share from computers, which dropped to 39 percent from 44 percent in Q3. For publishers, mobile pre-rolls showed a slight decline, falling from 39.7 percent in Q3 to 38.4 percent in Q4.
Discovery platform Taboola announced an exclusive strategic alliance with Televisa, who will integrate Taboola’s high-impact content recommendation platform with the goal of increasing revenue through sponsored content and video as well as driving engagement through on-site personalization.
Facebookhas arranged distribution deals for both Mexico’s and Spain’s top soccer divisions, Liga MX and La Liga.
According to Ericsson’s annual ConsumerLab TV and Media Report claims that inColombia 60% of consumers would be very interested in a mobile subscription plan that allows affordable streaming of TV and video content on a mobile device.
According to the new Irdeto Global Consumer Piracy Survey, almost three-fifths of consumers who watch pirated content in Latin America stated they would watch less or stop watching pirated video content after learning that piracy results in revenue loss from studios, affecting investments in future content creation.
Outbrain’s ‘State of Global Content Marketing’ Report revealed that in Brazil, social and video are particularly popular, and that mobile advertising generates 12.5% of awareness for brands in the country, 8.9% more than the average generated by desktop.
What:AcuityAds will acquire 100% of Visible Measures’ outstanding common stock in exchange for cash in the amount of USD$10 million. It is expected that this transaction will be completed on or about March 31, 2017. Why it matters:AcuityAds gains meaningful footprint in the high-growth programmatic video advertising market. Pro-forma TTM Revenue for the combined organization exceeded CDN$75 million (US $56 million).
AcuityAds Holdings Inc. , a technology provider of targeted digital media solutions enabling advertisers to connect intelligently with audiences across mobile, video, social and display, has announced that it has entered into a definitive agreement to acquire Visible Measures Corporation (“Visible Measures”), a Boston-based programmatic platform provider for analytics-led video advertising.
It is expected that the acquisition of Visible Measures will help AcuityAds gain a more meaningful footprint in the high growth video advertising marketplace. Additionally, this transaction will provide AcuityAds with a strong foundation to capture a greater share of the high-potential, programmatic TV market.
According to eMarketer, the digital video advertising segment which topped $10 billion in the U.S. alone in 2016 is expected to approach US$20 billion by 2020 and by 2018, U.S. advertisers are projected to spend US$4.43 billion on programmatic TV ads.
By leveraging Visible Measures’ patented video analytics toolset, alongside AcuityAds’media execution platform, marketers will have access to one single pane of glass to successfully manage all of their digital marketing initiatives.The Visible Measures platform is fueled by a proprietary dataset and patented programmatic technology that combines five trillion data points to reach more than 500 million unique monthly users across 600,000 web and mobile properties. Utilizing these robust datasets and analytics tools, advertisers can optimize their ad spend based on competitive data collected in real-time, enabling these same advertisers to maximize ROI and boost market-share. Since 2009, Visible Measures has collected data on over 22,000 video campaigns from 6,000 unique advertisers, and has studied consumer behavior from four trillion video views. As a result, the Visible Measures True Reachâ (www.truereach.org) offering has become an industry recognized, MRC (Media Rating Council) accredited metric for video advertising campaigns.
The acquisition of Visible Measures is an all-cash transaction valued at USD $10 million. For the year ending December 31, 2016, unaudited pro-forma trailing twelve months (TTM) revenue for the combined organization exceeded CDN $75 million.
“We are pleased to announce the second acquisition for AcuityAds in the last 6 months, this time, in the fast-growing video advertising segment,” stated Tal Hayek, CEO of AcuityAds. “The addition of Visible Measures and their industry leading video analytics technology is a great fit and complement to Acuity’s Self-Serve programmatic marketing platform for marketers looking to leverage a ‘one-stop’ shop for all their digital marketing needs. We look forward to welcoming the Visible Measures team and their clients to AcuityAds as we strive to offer marketers the best solutions available to enable them to target and connect more effectively with their audiences across all channels and devices.”
“Since our founding in 2005, our vision has always been to build the leading measurement and analytics platform to enable marketers to maximize the effectiveness of video advertising,” stated Brian Shin, CEO of Visible Measures. “It has been an amazing journey in building Visible Measures into the company that exists today with a blue-chip customer base and extensive partnerships and I am incredibly proud of the team and our accomplishments. I firmly believe that in joining AcuityAds, advertisers will gain access to the industry’s most comprehensive suite of technology offerings to address their digital marketing needs more successfully.”
What: AppsFlyer has released the 2017 Mobile World Congress Edition of The AppsFlyer Performance Index, which presented a ranking of the top media sources in mobile advertising. Why It Matters: Facebook, Google AdWords and Vungle rounded out the top three on the rankings, whose results were based on analysis of six billion app installs and 22 billion app sessions/app opens.
The study generated some interesting results, and it was the first time that the company took a deeper look into regional variations in North America, Latin America, Western Europe, Eastern Europe, Southeast Asia, North Pacific Asia and the Indian subcontinent.
Facebook held the top spot across regions on both Android and iOS, while Google held the second spot everywhere on Android, and most regions on iOS.
Twitter, which came in at #5 globally, climbed three places to hit the #3 spot in the global Android Power Ranking because of their first place retention score, and also performed well in delivering volume and valuable users on iOS.
Mobile video was found to engage potential gamers with a 23% higher retention score than the global median retention score, and comparing iOS with Android, despite Android’s far larger market-share, the top 30 media sources on iOS delivered roughly half of all gaming app installs driven by paid media. But their average Power Rankings and retention scores on both iOS and Android were roughly the same.
Mobrain delivered particularly impressive results in Latin America, while Taptica and StartApp also showed growth.
What: Advertising technology company Viant, part of Time Inc., has signed an agreement to acquire Adelphic, a mobile-first, cross-channel programmatic advertising platform company. Why it matters: The combination will create the industry’s first people-based demand-side platform, powered by over 1 billion registered users globally.
Time Inc.’sViant, a people-based advertising technology company, has signed an agreement to acquire Adelphic, a company that provides a mobile-first, cross-channel programmatic advertising platform.
Adelphic’s self-service media planning and execution tools, including its ability to reach consumers across all screens and formats, will bolster Viant’s people-based data and analytics offerings. The deal is expected to close during the first quarter of 2017.
More than 70 percent of digital advertising may be transacted programmatically in 2017 and 75 percent of mobile spending will be transacted programmatically.
As a pioneer demand-side platform (DSP), Adelphic’s global media execution capabilities, in combination with Time Inc.’s and Viant’s first-party registered user bases, will bring marketers and their agency partners the first people-based DSP capable of reaching more than 1 billion consumers worldwide.
Forecasts suggest that programmatic digital advertising is growing rapidly and that more than 70 percent of digital advertising may be transacted programmatically in 2017, according to eMarketer. eMarketer also reports that 75 percent of mobile spending will be transacted programmatically.
The move toward people-based solutions dominated by “walled gardens” left a gap across the open web, which generally focuses on proxies like cookies for user identification. The combination of Viant and Adelphic will deliver the first people-based DSP, powered by Time Inc.’s and Viant’s large, deterministic data set.
Marketers can now manage reach and frequency across devices and channels with precision and scale, as well as measure true advertising impact by leveraging Viant’s ability to tie in-store purchases to real customers.
Time Inc. President and CEO Rich Battista said, “We know that in addition to premium content, advertisers are looking for more efficient buying processes for digital audiences. With Adelphic’s proven self-service capabilities, Time Inc. and Viant will be able to deliver greater programmatic competencies and benefits to our partners.”
“Adelphic will bring superior media execution capabilities to Viant’s advertising cloud platform as one of the only DSPs built mobile-first,” said Viant Co-Founder and CEO Tim Vanderhook. “This addition will give marketers and their agencies the globally scaled people-based platform they have been consistently asking from us.”
“We have a strong portfolio of clients who know us for a robust and easy-to-use suite of self-service tools that enable access to billions of ad opportunities per day,” said Adelphic CEO Michael Collins. “Cross-device capability at scale, combined with Viant’s people-based precision and persistency, will create a winning solution for advertisers.”
What: AppsFlyer has raised an additional US$56 million in Series C financing, bringing its total funding to US$84 million. Why it matters: The round was led by Qumra Capital, Goldman Sachs Private Capital Investing, Deutsche Telekom Capital Partners and Pitango Growth Join Investors Roster.
AppsFlyer, the mobile attribution and marketing data analytics company, announced it has raised an additional US$56 million in Series C financing, bringing its total funding to US$84 million. Having grown revenues by 500% and staff from 40 to 240 people across 12 global offices in two years, the company will invest in the enhancement of its products to help even more marketers measure every engagement with their target audiences.
The round was led by new investors Qumra Capital, as well as Goldman Sachs Private Capital Investing (PCI), Deutsche Telekom Capital Partners (DTCP) and Pitango Growth. Qumra Capital partner Boaz Dinte has joined AppsFlyer’s board of directors, with Goldman Sachs PCI joining as observers.
Existing investors Magma Venture Partners, Pitango Venture Capital and Eight Roads Ventures also participated in the round. The fresh round of funding will allow AppsFlyer to continue investing in products and innovations that help marketers connect and measure everything that can be measured, including mobile, web, television and offline activities. The company will also build upon its existing partnerships and operations in Asia to help marketers penetrate markets throughout the region with AppsFlyer’s measurement tools and through its prominent local partners. Finally, the company will explore merger and acquisition opportunities to potentially augment AppsFlyer’s current capabilities.
The round follows a period of remarkable growth for the company. AppsFlyer measures US$6 billion in mobile marketing spend annually, processes over 300 billion mobile events every month, has more than 2,000 integrated partners and supports over ten thousand marketers as clients. In addition to their existing measurement partnerships with major industry players including Facebook, Google and Twitter, AppsFlyer was recently selected as a measurement partner by Pinterest, Tencent, Adobe, Yahoo! and IBM.
“AppsFlyer has proven its ability to provide mission critical tools and data-driven innovations for measurement that marketers and developers need for success,” said Boaz Dinte, managing partner at Qumra Capital. “As mobile and marketing converge, it’s clear that AppsFlyer is primed for further growth and we are thrilled to provide more resources for the company to expand its capabilities as a data powerhouse for marketers that’s in a league of its own.”
“Our mission is to focus on our clients and provide the marketing measurement platform they need to become successful in a hyper-competitive space,” said Oren Kaniel, CEO and co-founder of AppsFlyer. “In the past two years we delivered some game-changing products that fundamentally make marketing more accessible, measurable and predictable. This funding round will continue to fuel our product development and advance our strategy to build the ultimate measurement platform for marketers.”
“The marketing landscape is evolving and mobile advertising spend is rising while the industry is shifting towards ROI-based marketing,” said Christian Resch, vice president of Goldman Sachs PCI. “We are excited to take part in AppsFlyer’s journey to build a leading global marketing data analytics business.”
What: Mobile Ads & Social Media can trigger purchase interest and aid product discovery, according to IAB’S latest “Mobile Commerce: A Global Perspective,” a mobile users survey carried out in 19 Countries. Why it matters: Three-quarters (75%) of smartphone and tablet users said they have purchased a product or service on their smartphone or tablet in the past six months. Brazil, Canada, Colombia, the U.K., and the U.S. reported the highest levels of clicking to purchase.
Three-quarters (75%) of smartphone and tablet users said they have purchased a product or service on their smartphone or tablet in the past six months. Among these recent mobile purchasers, nearly a quarter (23%) buy on mobile devices on a weekly basis.
Overall, 57 percent of the mobile purchasers surveyed say that they have been buying on mobile for over a year. More than a quarter (28%) made their first mobile purchase in the last six months.
Austria, Peru, and Colombia are key new adopter markets, with significantly more consumers making their first purchase on mobile within the past year, followed by Mexico, France, Turkey, and Chile.
The mobile shopping experience, enhanced by the combination of convenience, time saving, and price, won high marks from the majority (80%) of those polled. Sixty-two percent plan to purchase more products and services via their smartphone or tablet in the next six months. Mobile purchasers in the U.K., Brazil, France, Ireland, and Peru expressed the greatest propensity for increasing their mobile shopping activities.
Seventy-six percent of mobile purchasers said that they had engaged with a mobile ad in the last six months. On average, 33 percent clicked on the ad to find out more information, while 28 percent clicked to visit the advertisers’ websites, and 21 percent clicked to purchase. Brazil, Canada, Colombia, the U.K., and the U.S. reported the highest levels of clicking to purchase.
The leading destinations of mobile purchases include retailer sites/apps, auction sites/apps, and brand sites/apps.
Consumers purchase a wide range of products and services on mobile.
From mobile apps (43%)
fashion items (41%)
household items (25%)
It should be noted that in South America, public service payments is also key product areas for the region. Cross-channel research and purchase is becoming the new norm. Mobile devices serve not only as a platform for direct purchase, but also aid consumers in their purchase journey, driving multiplatform purchase behavior. Both ‘showrooming’ and ‘multiscreening’ are taking place – 44% of mobile purchasers have purchased a product on their mobile device after checking it out in store, 38% have done the same after researching via laptop/PC. On the flip side, research conducted on mobile devices leads to purchase via other channels – both digital and non digital.
80% of mobile purchasers are satisfied with their purchase experience to date. Consumers indicate a positive momentum of their future purchases on mobile. 62% plan to purchase more products and services via their smartphone/tablet in the next six months. This appetite for future purchase is seen across all markets – although it should be noted some may require greater attention than others in order to capitalise upon this momentum.
Convenience (49%) and time saving (46%) are the key drivers of mobile purchases.
Price (34%) also plays an important role.
44% of mobile purchasers cite ‘trust’ as a barrier for purchasing more via their smartphone/tablet
while 31% feel they have no need.
In terms of trust, security and privacy are the key concerns. In order to win back the hearts of those who are dissatisfied with their experience, proving value, reducing cost of transaction and improving purchase experience is a must.
Mobile & Social media
Social media plays an important role. Sixty percent of mobile purchasers from around the world saying they often discover products and services to buy on social platforms. More than one-third (36%) of mobile purchasers leverage social media to share their mobile purchase experience.
76% of mobile purchasers have engaged with a mobile ad in the past six months:
On average, 33% clicked on the ad to find out more information
28% clicked to visit the advertisers websites
21% clicked to purchase!
Social media plays a key role in product and service discovery. 60% of mobile purchasers often find new products and services to buy via this channel.
The influence of social media in product discovery is most pronounced in South America. And it also offers consumers a channel to share their mobile purchases and experiences. 36% indicate they like to share mobile purchases and experiences online. Given the strong levels of satisfaction consumers display with their mobile purchase experience, there are opportunities for digital merchants and retailors to encourage and motivate consumers to share their positive sentiment via social media.
“Pressing the ‘buy’ button on mobile devices is now a regular occurrence the world over,” said Anna Bager, Senior Vice President, Mobile and Video, IAB. “Marketers and media agencies need to fully embrace smartphones and tablets as a critical pathway for all shopping activities and increase investment if they want to build meaningful relationships with mobile consumers, driving them from discovery to purchase.”
The report shows that credit/debit cards on mobile web and online payment services are the most popular payment methods (40% and 37%, respectively).
Mobile wallet users
Mobile wallet users are the most heavily engaged in mobile commerce, purchasing more frequently on mobile (36% weekly vs. 23%) than average mobile shoppers. In addition, they are more likely to engage with mobile ads (82% interacted vs. 76%). Driven by the ease of purchase, 18 percent have used a mobile wallet for mobile purchases in the past six months. At 47 percent, mobile wallet usage for purchases on smartphones and tablets is strongest in China, followed by Norway (42%), the U.K. (24%), and Japan (20%). Online and off, mobile wallet users have leveraged the technology to pay for a range of items, including:
Mobile app downloads or updates (43%)
Digital content, such as films and music (42%)
Physical products ordered from a website or app (41%)
What:The Mobile Marketing Association (MMA) Millward Brown and NetQuest ran a study on mobile users in Argentina and Brazil. Why It Matters: Both studies aimed to generate insight on opportunities in the mobile market and preferences and profiles for different targets.
After the article dedicated to looking at the state of mobile app marketing, we present the results of the studies that the MMA ran in Argentina in the first half of 2016, and in Brazil in the second half of 2015, in the context of how both markets use mobile devices.
In both cases, men and women were interviewed and grouped by gender, age (those surveyed were between 14-55 years-old), place of residence and socio-economic level.
The information presented in this article is a summary of some of the most important revelations from the study. For more information, contact your local MMA.
Smartphones and Tablets
The smartphone is the mobile device with the highest penetration in the Brazilian market: 90% of users with internet access own one. In second place come tablets, with a 44% penetration.
In the case of Argentina, the smartphone is the most-used mobile device (with 100% penetration), while 49% of users with Internet access have a tablet (which makes the device the second most-used in the country).
Systems and Brands
In both Argentina and Brazil, the Android systems dominates the market, and Samsung is the most popular device brand used by “mobilers.”
Points and Forms of Connection
In both Argentina and Brazil, the best connections are found in homes, through private wireless connections. The workplace comes in second. And data plans for connections come in third, followed by public-access wireless.
Time Spent on the Internet through Cell Phones
On average, while Argentines spend 2.5 hours on the Internet through their phones a day, Brazilians spend 3 hours and 45 minutes a day on theirs per day.
In both cases, millennials (men and women between 14 and 24 years-old) are the most active.
Use of Applications
In Argentina, 59% of users are more likely to download free apps. 45% have up to 10 apps and use, on average, seven per week.
In Brazil, 87% of users download new apps. The amount of apps installed in every device (on average) is 20, of which six are used weekly.
The Three Most-Used Apps
In the case of both Argentina and Brazil, the three most-used applications are Facebook, WhatsApp and Instagram. The greatest contribution and concentration is observed among Millennials and Gen Y (25-34 years-old).
In the case of Argentina, the fourth most-used app is Twitter, while in Brazil it is YouTube.
The Three Preferred Messaging Platforms
In Argentina and Brazil, WhatsApp, Facebook Messenger and SMS (in that order) are the three primary modes through which users send and receive messages.
Ads: Visibility and Measurements
In Argentina and Brazil, YouTube and Facebook are the primary platforms that activate ad memory online. In both cases, the general applications come in at third place.