Three big predictions for the future of Mobile Advertising in LatAm

By , 2 October 2013 at 18:07
Three big predictions for the future of Mobile Advertising in LatAm
Business

Three big predictions for the future of Mobile Advertising in LatAm

By , 2 October 2013 at 18:07

By Shaun Gregory, Director of  Global Advertising, Telefonica Digital

Mobile advertising is changing the face of media planning all across the globe. People’s increased use of technology has driven major changes in advertising and the industry is becoming data driven. Mobile’s ability to deliver hyper-targeted audiences and personalised messaging is accelerating this shift and affecting ad-spend allocation.

Latin America is currently the world’s fastest growing mobile ad market. The region doesn’t have the same baggage, history or precedents that other global mobile advertising markets suffer from. What’s more, there are some huge opportunities coming up, such as the 2014 World Cup in Brazil and Olympics in 2016, which could really help the sector take off.

As a result, LatAm is uniquely placed to leapfrog the American, Asian and European markets in terms of innovation and shift in ad-spend.

It truly has the opportunity to be the first region in the world that gets mobile marketing right first time.

Having built a mobile advertising business in Europe, Telefónica announced last year that we would launch in LatAm to expand our global audience. Starting initially in Brazil before moving into other territories, we have now established teams and launched products into the market, such as intelligent messaging and sponsored products. Responding and delivering to market demands has given us valuable insight into how the region’s advertising industry operates. I personally have been inspired by the dynamic and innovative nature of Latin America to embrace new advertising solutions, and certainly think that the UK and European advertising industry can certainly learn a lot from their LatAm counterparts.

We can also expect to see operators, banks and possibly retailers joining forces to compete with the ‘Over The Air Army’.

Based on what we see in this market and our own experience, we can also confidently predict the three main consequences mobile advertising will have for business in Latin America.

Prediction 1

By 2017, there will be more people accessing the internet via mobile devices than fixed in LatAm. This trend will send digital marketers straight to mobile. Smartphone sales are sky-rocketing in the region, (up year-on-year by 89% in Brazil, 61% in Mexico and 98% in Peru), and the launch of low-cost smartphones such as Firefox OS will only spur this growth. By 2015, 35% of internet users will be accessing the internet only via smartphones creating a ‘mobile first’ attitude among consumers which must be reflected in advertising. Advertisers must consider disruption to traditional paths to purchase models and trends like showrooming are already transforming the conventional retail model.

Prediction 2

Mobile provides vast opportunities for businesses to innovate and collaborate, driven by lower market entry costs. This will revolutionise the way the mobile advertising industry runs businesses operationally; the way we buy media, the way we work with our competitors and the way we build our products. In 5 years, most (if not the majority) of advertising will have some element of programmatic buying.

We can also expect to see operators, banks and possibly retailers joining forces to compete with the ‘Over The Air Army’. Companies will also build new types of services which will create new revenue opportunities in themselves. However these trends play out, the businesses which make the most of opportunities to innovate the fastest and smartest will lead the way. Those which fail to innovate will be left behind.

Prediction 3

The ease of technology and better user experience will supercharge mobile advertising in Latin America. The change in consumer behaviour is already making advertisers evaluate where their media dollars are spent and with LatAm having got the media and user landscapes right, and the user landscape right, we’re not the only ones predicting mobile advertising will grow massively.

ZenithOptimedia forecasts that in the next 2 years ad-spend in LatAm will grow 10% in 2013 and 9% in 2014 across all media, faster than any other region. That’s double the growth of North America and three times that of Western Europe. So, it should come as no surprise that mobile advertising will follow suit and over the next 4 years, predictions suggest that mobile advertising in LatAm will hit 69% CAGR, faster than any other region in the world.

The dynamism demonstrated by LatAm and willingness to embrace these new advertising solutions that work leave me in no doubt this growth will be achieved, which is why LatAm is the most exciting market to operate in right now.

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