Last week in our "Pan-Regional Advertising" series, Marcelo Garcia Cisneros, VP of Sales of Smowtion, told us about the opening of the company’s Miami office and his take on the U.S. Hispanic and Latin American advertising market.
Portada continues the series with Engel Fonseca, VP for Digital Value Generation North Cone at Harrenmedia. Engel also shares his opinions and other facts about the online advertising market.
At a Glance
Type of company: Multi-platform media consultant and ad network
Offices: Argentina, Brazil, Mexico and Miami
Employees: 69 in total, between Argentina (40), Brazil (8), Mexico (18), and Miami (3).
Markets of operation: Argentina, Brazil, Mexico, Colombia, the Caribbean, Puerto Rico and U.S. Hispanic market. Expansion planned in Spain and France.
Major advertisers: Ford, Telefonica, Telmex, L’Oreal, Nokia, Sony-Ericsson, Roche, and Palacio de Hierro.
Portada: What is the size of the online ad network market?
Engel Fonseca: “In Latin America, the size of the regional ad network market is approximately 20% of the digital advertising budget. Harrenmedia is a multi-platform media consultant which has its own network. But in addition to providing guidelines for premium sites and creating results-based campaigns, we also offer positioning campaigns."
Portada: In which country markets are you currently working? Are you planning to expand to other Latin American countries? Do you work pan-regionally?
Engel Fonseca: “We are in Argentina, Brazil, Mexico, Colombia and Miami, and are planning to expand into Spain and France. We handle Central America partly out of Mexico and partly out of Colombia; and we handle the whole U.S. Hispanic and Caribbean market, such as Puerto Rico, out of our Miami offices.”
Portada: In what countries do you currently have offices? How many employees in each?
Engel Fonseca: “We have offices in Argentina (40 employees), Brazil (8), Mexico (18), and Miami (3).”
Portada: Who are your biggest advertisers? What is your percentage of advertisers by sector (textile industry, retail, etc.)?
Engel Fonseca: “Our top advertisers are Ford, Telefonica, Telmex, L'Oreal, Nokia, Sony-Ericsson, Roche and Palacio de Hierro."
Portada: Has digital advertising increased in the past year compared to previous years?
Engel Fonseca: “From 2008 to 2009, it grew 24%. From 2005 to 2009, it grew eight-fold. Given that it has grown 24% from approximately 2008 to 2009, I would estimate that it will grow 25% to 30% from 2009 to 2010, because the economy is improving.”
Portada: What formats are the most preferred by advertisers?
Engel Fonseca: “It depends on the campaign. Our ad network uses IAB-authorized formats (super banners, big boxes and sky banners). However, we believe that the industry’s value is not defined by the format, but by the tangible KPI it generates the advertiser through the user experience.”
Portada: Which do you think are most efficient when looking for a specific target?
Engel Fonseca: “The most efficient thing is segmentation, in addition to formats and creativity, but it depends on the industry. What is really becoming increasingly relevant is the handling of the human factor, both in the faces of the people appearing in ads, as well as using a more personal approach. These factors are becoming more relevant to users in regard to advertisers."
Portada: How do you expect this market to evolve?
Engel Fonseca: “We are convinced that the value of this market is not who is selling, but how it’s being sold. And the great value of digital is in its parameters for measuring deliverables. The market will evolve in a much smarter way where selling a site or a banner will no longer be enough, since everything on the Internet can be measured, and what can be measured can also be improved."
Portada: What are your goals for next year?
Engel Fonseca: “To maintain our leadership in the region, and generate greater value through technological innovation and the quality of the human factor handled by Harrenmedia in the industry. We also aim to consolidate our position as the premier partner for ad agencies, media planning agencies, and direct clients through our multi-platform, which consists of: An intelligent network of more than 10,000 sites; Searchformance, our division for advertising on "Google-Certified" search engines; Sniper, our tool for behavioral segmentation; Socialme, our social media marketing platform; and our integration of all available solutions."
Other articles in the "Digital Power Houses" series: