Interactive Advertising trends in Mexico 2012

1. Interac(ve
Marke(ng
Trends
2012
Reflexions
of
the
Mexican
Internet
Adver5sing
Industry
Adriana
Pena,
Sweden
Dec
2011

2. Being
on
top
of
trends
and
making
business
decisions
based
on
their
implica5ons
has
never
been
harder
but
in
the
other
hand
has
never
been
as
fascina5ng
I´ve been a passionate participant of innovation all my life.
Doing things different or for the first time has been the driver
of my career.
Now I have a unique opportunity to sit down from the pits and
watch the cars running at accelerating speed and drawing
conclusion from what I see.
From these cold lands of Sweden I have been able to analyze
great sources like Forrester, e-marketer, Mashable, Sociagility,
Comscore, Brand Republic and tons of bloggers and journalist
who had published an enormous amount of information. The
data is all there, making sense of it and drawing
conclusion for our market has been a thrilling
endeavor.
I hope you find this presentation interesting and useful, but
most of all I hope you share the same passion I feel for being
part of the generation that is driving such amazing changes in
our business.

3. Interac5ve
marke5ng
budgets
will
be
as
big
as
TV
sooner
than
expected
in
US
In Mexico we still
have a long way
to go, but online
advertising
budgets are still
expected to grow
double digits in
the next coming
years
Source:
Forrester

4. Disregarding
the
actual
size
of
online
adver(sing
budget
of
Mexican
adver(sers
the
trend
heads
towards
a
strong
growth,
making
online
marke(ng
a
discipline
that
cannot
be
minimized
anymore
In Mexico despite what official
sources have been publishing,
I estimate based on industry
information that online budgets
may not be more than 4.5% in
2011
On the other hand expected
growth for 2012 is 20-30% at
the expense of other media
like magazines, TV and
Newspapers
One
of
the
challenges
to
agree
on
the
size
of
the
internet
adver5sing
budgets
lays
in
the
defini5on
of
online
budget:
is
it
only
money
being
paid
to
media
partners,
or
does
it
inlcudes
brand
web
pages,
development
of
aplica5ons
and
agency
fees?

5. In Mexico we have to consider these
other factors as well:
1. Younger brand managers and
younger employees in general at
clients and agencies will pitch for
Interac5ve
Embeds
itself
in
their fresher ideas to be heard
2. Social Media and recent political
the
mix:
the
next
digital
effects of it makes anyone who is
not in touch with new media look
decade
is
here
outdated
3. Marketing effectiveness has not
being proved for consumer brands
The
following
factors
in
US
will
enable
the
but a 40% reach of internet in
growth
over
the
next
five
years:
Mexico makes a very compelling
argument
4. Tablets, Iphones androids and
1. Bigger
interac(ve
teams
other ”cool” devices in the hands
of tons of people will make it very
2. Excitement
about
emerging
media
hard to ignore the relevance of
new media
3. Interac(ve
marke(ng
effec(veness
5. Rebates paid by media players to
media agencies above 10%, makes
4. Customer
obsession
online adverstising the most
profitable media for media
agencies
Source:
Forrester

6. Percep5on
of
effec5veness
will
drive
a
different
mix
of
interac5ve
marke5ng
spending
Although in Mexico investments on
Internet Marketing will grow, lack of proper
use of ad serving technology as well as an
over use of clicks or cost per click as
measurement of campaign´s ROI makes
it very difficult for Marketing Directors to
be fully convinced of effectiveness of
online media
The overall effectiveness of online media is still somehow a
myth to be proven especially for the mass consumption
advertisers that happen to have the biggest marketing
budgets
• TV penetration is overwhelming in the country and is the
most easy to be measured and proven media
• Media agencies rarely use the required technology or
proper methodology to prove basic metrics like unique
total reach of an online campaign so traditional media
planning parameters like audience reach or number of
people touched by an online campaign are unknown or
severely under estimated since most campaigns are
being measured only by website visits or ad clicks
• There are very little studies on actual effects on brand health
from an interactive marketing campaign in Mexico
• Very few big advertisers have an e-commerce business and the
consequent experience of efficiencies in conversion rates that
internet has in e-commerce strategies

7. Social
Media,
Mobile
Marke5ng
and
Display
adver5sing
will
drive
US
Interac5ve
Marke5ng
Spend
Search’s
Share
Shrinks
Share
will
shrink
11
points
as
marketers
refocus
their
search
marke5ng
strategies
based
on
”geTng
found”
by
users.
Brands
will
expand
the
play
field
in
which
they
could
be
found
by
its
customers
by
moving
their
search
budgets
to
be
present
in
mobile
devices
and
social
networks
Source:
Forrester

8. Video
ads
will
be
the
fastest-­‐rising
category
of
online
spending
in
the
next
coming
years
1. US
online
video
ad
spending
to
grow
43%
in
2012.
Digital
video
ads
reproduces
the
richness
consumer
associate
with
TV
at
a
lower
cost
and
can
be
used
a
reach
extender
medium
for
TV
with
the
same
ad.
Source:
eMarketer.com

9. Search
spend
shicing
to
display
1. Search
behavior
and
their
associated
marke5ng
spend
moves
to
other
media.
A
por5on
of
marketer´s
search
budgets
will
move
to
mobile
and
social
networks
as
users
rely
more
on
non-­‐PC
devices
and
nontradi5onal
search
engines
like
Youtube
or
FaceBook
2. SEO
Technology
tempers
the
growth
of
agency
fees.
Development
of
be]er
SEO
pla^orms
will
make
it
easier
for
brand
pages
to
be
found
therefore
these
technologies
will
undercut
or
replace
agency
fees
dropping
SEO
costs
about
15%
3. Rich
search
ads
capture
brand
dollars.
Improved
search
engines
interfaces
will
deliver
new
display-­‐like
ad
formats
embedded
into
search
results
4. Small
and
medium-­‐size
business
(SMB´s)
adopt
and
grow
search
programs.
Affordable
search
management
solu(ons
like
Clickable
and
offline
directories
like
SuperMedia
from
Verizon
Superpages
are
managing
search
adver5sing
for
local
marketers
who
want
to
transi5on
away
from
yellow
pages
ads
5. Search
spend
shicing
to
display.
Increasing
keywords
costs
will
eschew
paid
search
for
biddable
display
search,
display
ads
bought
through
automated
auc(ons
Source:
Forrester

10. Marketer´s
love
affair
with
display
media
is
back:
Driven
by
ad
exchanges
that
simplify
media
buying
process
1. Increasing
cost
of
niche
and
remnant
inventory.
Online
ad
exchanges
like
AdBrite
enable
adver5sers
to
buy
niche
inventory
and
also
to
buy
all
inventory
for
its
real
market
value
2. Be]er
online
ad
management
tools.
New
data
management
pla^orms
improve
audience
targe(ng,
eliminate
overlap
across
mul5ple
publishers
and
measure
the
contribu(ons
of
a
given
impression
towards
business
goals
Source:
Forrester

11. According
to
Forrester
This
year
Mobile
overtakes
Email
and
Social
Media
in
US
1. Marketers
will
create
more
relevant
mobile
ads.
A
skyrocket
growth
in
acquisi5on
of
smartphones
and
tablets
will
allow
be]er
ads
for
mobile
devices.
Also
be]er
mobile
ad
servers
will
enable
be]er
ad
targe5ng
to
specific
clusters
of
users
2. Tablets
with
their
expensive
ad
units
will
become
mainstream.
These
devices
will
contribute
to
the
increase
of
mobile
marke5ng
investment
due
to
the
innova5ve
and
expensive
ad
formats
they
enable
3. Adop5on
of
smartphones
and
tablets
accelerates
the
demand
for
content
consumed
on
these
devices
including,
video,
audio,
social
media,
games,
news,
books
and
other
types
4. Buyers
will
embrace
mobile
commerce
and
adver5sing
that
drives
it.
Mobile
commerce
will
top
31
billion
and
the
upcoming
explosion
of
tablet
adop5on
will
amplify
this
virtual
circle.
Already
47%
of
tablet
owners
have
shopped
on
their
devices
5. Email
will
s5ll
be
part
of
the
mix
of
interac5ve
marke5ng
but
spend
on
email
marke5ng
delivery,
crea5ve,
analy5cs
and
so
won’t
increase
mainly
because
of
their
very
low
CPM´s
Source:
Forrester
and
KPCB

12. Although
all
brands
will
jump
into
some
kind
of
social
media
ac5vity,
Social
Media
total
investment
will
grow
moderately
1.
Due
to
the
rela5vely
low-­‐cost
of
Social
media
management,
brand
expenditures
on
it
won´t
grow
as
much.
2. Developing
own
social
assets
like
a
Facebook
page
or
TT
profile
involves
low
costs,
mostly
community
managing
related
only.
Listening
pla^orms
cost
only
5k-­‐10k
a
month
and
there
are
very
good
open
source
pla^orms
3. Social
networks
offer
limited
paid
inventory.
The
biggest
social
media
outlets
for
adver5sers
FB
and
TT
have
only
a
few
pay
per
click
adver5sing
op5ons,
significantly
smaller
than
tradi5onal
media
portals
4. Listening
will
develop
into
social
intelligence.
Social
data
will
be
integrated
to
exis5ng
CRM
databases
5. More
interac5ve
marke5ng
investment
will
spawn
more
ad-­‐supported
content
Source:
Forrester
and
KPCB

13. e-­‐commerce
reloaded:
Mobile
and
in-­‐store
digital
experiences
Mobile
commerce
is
the
next
big
thing
in
business.
This
will
have
an
impact
specially
on
retailers
and
the
way
consumers
interact
with
them.
70%
of
those
who
have
smartphones
have
used
them
on
store.
On
the
other
hand
following
what
Trendwatching.com
calls
“Retail
Renaissance”
consumers
will
enjoy
shopping
products
and
services
in
the
real
world
more
than
ever
and
this
will
be
driven
by
the
fusion
of
technology
and
engaging
experiences.
1. Offline
in-­‐store
experiences
will
have
its
online
experience
too.
8
out
of
10
consumers
research
their
purchases
online.
While
online
conversion
rates
for
e-­‐commerce
are
around
2-­‐3.5%
offline
conversion
rates
from
digital
ads
to
stores
for
fashion
retailers
are
20-­‐25%
2. Barcode
scanning
is
on
the
rise
3. Time-­‐or-­‐loca5on-­‐based
offers
and
rewarding
visits
through
some
kind
of
geo-­‐
located
social
media
like
Foursquare
will
be
more
frequently
used
4. Tablets
will
fuel
deeper
experiences
and
interac5ons
with
retailers
and
products,
especially
luxury
products
and
cars
Source:
Trendwatching
and
e-­‐Marketer

14. Reflexions
for
Mexican
Marke5ng
Industry:
Display
Adver5sing
Following
the
interna5onal
trend
in
Mexico
online
display
adver5sing
(be]er
known
as
banners
and
videos)
will
get
the
mayor
chunk
of
the
growth
in
interac5ve
spend.
These
are
great
news
for
media
players
and
bloggers
as
well.
The
local
drivers
of
this
growth
are:
1. Tradi(onal
media
players
like
magazines,
TV
and
radio
are
becoming
full
mul(media
companies
and
will
encourage
a
strong
growth
of
their
digital
new
business
2. Small
niche
content
players
are
jumping
in
since
digital
is
cheaper
to
produce
than
all
other
media
(bloggers
like
whatevertomorrow,
etc)
and
some
old
small
players
will
shut
down
their
printed
edi5ons
and
leave
only
their
online
versions

15. Reflexions
for
Mexican
Marke5ng
Industry:
Display
Marke5ng:
Ad-­‐exchanges
already
here
but
s5ll
with
a
long
way
to
go
1. As
in
the
US
ad-­‐exchanges
are
already
in
the
local
market,
providers
like
Ad-­‐
Ne5ck
are
successfully
selling
to
adver5sers.
This
technology
enables
a
much
more
cost
efficient
alloca5on
of
ads
and
makes
it
much
easier
to
buy
space
in
niche
content
players
including
bloggers
2. These
players
could
represent
a
threat
to
tradi5onal
media
buying
agencies
since
they
automa(zed
the
media
buying
process
and
reduce
the
need
for
“alloca5on”
advice.
On
the
other
hand
they
bring
more
transparency
to
the
buying
process
since
buying
prices
are
auc5oned
directly
by
the
adver5ser.
These
could
represent
a
long
term
challenge
to
agencies
that
buy
media
since
another
source
of
revenue
for
them
are
markups
in
adver5sing
rates

16. Reflexions
for
Mexican
Marke5ng
Industry:
Social
Media
brand
ac5vity
will
increase
tremendously
1. Relevance
of
social
media
has
grown
tremendously,
due
to
many
recent
public
events
the
percep5on
of
it
importance
in
society
has
grown
2. Mexico
is
one
of
most
ac5ve
countries
in
Social
Media
(see
Comscore
graphic
in
slide
11)
3. Brands
and
Cyber
stars
are
already
ac5ve.
Many
brands
already
have
a
profile
in
FaceBook
,
or
twi]er.
Celebri5es
are
already
charging
“Product
Placement”
fees
ranging
from
1k
to
60k
just
to
post
a
comment
about
a
brand.
4. Most
of
Mexican
adver(sers
will
jump
into
some
kind
of
social
media
ac(vity
in
the
near
future
since
Social
Media
is
the
“cool
thing”
to
be
doing
right
now
and
to
open
a
brand
profile
in
FB,
TT
or
YT
is
free.

17. Reflexions
for
Mexican
Marke5ng
Industry:
Social
Media
brand
ac5vity
will
increase
but
social
ad
investments
will
not
necessarily
grow
as
much
Social
Media
Brand
ac5vity
will
grow,
crea5ng
a
new
market
for
related
service
providers
1. Media
buying
within
social
media
pla^orms
is
somehow
a
limited
ground
since
mayor
players
offer
few
adver5sing
op5ons
(although
this
may
change
in
the
near
future
since
52%
of
traffic
goes
to
SM).
On
the
other
hand
a
significant
factor
in
Mexico
is
that
FB,
TT,
and
Google
´s
You
Tube
do
not
pay
direct
rebate
fees
to
media
agencies
(some
ad
networks
who
resell
social
media
ads
do
so)
therefore
social
media
ads
investments
won´t
grow
as
much
as
one
might
expect
2. Related
services
like
community
managing,
content
crea5on,
consul5ng,
development
services
like
social
media
applica5ons
and
“social-­‐media5on”
of
tradi5onal
webpages
will
sprout.
This
will
bring
room
for
new
revenue
streams
for
tradi5onal
online
agencies
and
as
well
as
new
independent
players
(many
bou5que
specialists
have
appeared
in
the
market
to
provide
with
community
managing
services
and
analy5c
services)
3. Mexico
is
par5cularly
fond
of
Twi]er
so
the
new
brand´s
profile
that
they
have
launched
for
21
global
adver5sers
will
drive
more
brands
to
Twi]er
(h]p://bit.ly/tv0yfn)
.
Some
of
these
global
adver5sers
already
have
interac5ve
marke5ng
investments
through
their
Mexican
branches
like
Coca-­‐Cola,
Dell,
American
Express,
Pepsi
and
Nike

18. Reflexions
for
Mexican
Marke5ng
Industry:
Search
will
keep
growing
but
at
a
lower
speed
1. Bigger
Adver5sers
in
Mexico
have
less
need
of
Search
based
online
strategies.
Search
is
a
fundamental
piece
of
the
interac5ve
mix
when
a
brand
is
doing
e-­‐commerce
or
when
the
main
objec5ve
of
a
campaign
is
to
drive
traffic
to
a
webpage.
Adver(sers
of
consumer
brand
products
who
are
currently
under-­‐spending
in
online
and
who
will
be
the
ones
driving
the
upcoming
growth
in
the
Mexican
market
are
not
into
e-­‐commerce.
Therefore
they
most
likely
tend
to
use
more
display,
social
media
or
develop
glossy
applica5ons
for
smart
phones
and
tablets
than
search
They
don´t
need
to
be
found
as
much
as
they
need
to
be
remembered
2. An
addi5onal
force
in
Mexico
to
keep
holding
back
the
share
of
Search
Marke5ng
is
that
the
main
player
Google
does
not
pay
to
any
agency
rebate
fees.
Therefore
profitability
of
media
alloca5on
in
search
is
significantly
lower
for
agencies
than
recommending
display
adver5sing
or
other
digital
online
ini5a5ves
to
their
clients

19. Reflexions
for
Mexican
Marke5ng
Industry:
Search
will
keep
growing
but
at
a
lower
speed
As
in
the
US
market,
affordable
search
management
solu(ons
for
small
and
medium
companies
(PYMES)
are
in
the
way
to
burst
into
the
market.
The
dominant
player
in
this
sector
has
been
Seccion
Amarilla,
from
grupo
Carso.
They
have
a
very
good
chance
to
lead
the
conversion
of
these
adver5sers
since
they
already
have
them
as
clients
and
they
have
all
the
resources
and
the
strategy
to
do
so.
Most
of
these
adver5sers
won´t
develop
a
webpage
on
their
own
or
a
Facebook
profile
but
would
gladly
migrate
to
something
digital
if
a
one-­‐stop
shop
solu5on
is
offered
to
them.
It´s
hard
to
speculate
if
this
market
will
be
shared
with
Google
or
other
big
players
including
Facebook
or
if
it
will
be
mainly
a
transi5on
of
business
model
within
Seccion
Amarilla
who
is
the
leader
in
Yellowpages
segment

20. Reflexions
for
Mexican
Marke5ng
Industry:
Mobile
Marke5ng
will
be
a
more
common
part
of
the
mix
than
before
1. Explosion
of
Smart
phones
and
Tablets
acquisi5on.
There
are
already
at
least
9
million
smart
phones
in
Mexico
and
penetra5on
of
this
kind
of
devices
will
grow
at
a
85%
rate.
Also
tablets
are
in
the
rise
worldwide
and
in
Mexico
as
well.
These
premium
consumers
will
be
a
very
a]rac5ve
market
to
be
reached
2. Innova5ve
ad
formats
will
a]ract
trendy
adver5sers
as
well
as
luxury
brands.
Smartphones
and
especially
tablets
allow
more
engaging
ad
formats
and
branded
content.
These
will
be
very
appealing
to
early
adop(ng
adver5sers
and
to
agencies
or
developers
that
will
try
to
sell
these
higher
revenue
ads
to
its
clients

21. 4
Take
outs
for
the
road
1. In
2012
Interac(ve
spending
will
surpass
magazines
and
maybe
even
Paid
TV
in
Mexico
2. Brands
will
fully
embrace
social
media
ac5vity
this
will
sprout
many
new
services
related
to
community
management,
content
produc5on
and
measurement
3. Mexican
adver5sers
will
increase
their
investments
on
display
adver5sing
triggering
more
demand
for
online
inventory,
specially
the
one
for
video
ads
4. Brands
will
explore
different
ways
to
get
advantage
of
the
rise
of
Smart
Phone
and
tablets
euphoria

22. Challenges
and
Opportuni5es
Agencies
Clients
Media
and
Content
producers
1. The
center
of
the
conversa5on
will
1. Clients
will
demand
more
mature
1. More
revenue
will
come
from
digital
be
how
the
online
marke5ng
agencies
that
can
provide
them
with
adver5sing
budget
should
be
split
among
all
solid
clear
integrated
interac5ve
2. Tradi5onal
media
companies
will
the
possible
interac5ve
ac5vi5es
strategies;
the
core
issue
will
how
seize
the
opportunity
reinforcing
and
how
these
make
sense
in
a
much
they
should
be
inves5ng
in
their
online
adver5sing
s
offer
to
bigger
scheme
of
things.
This
is
a
online
marke5ng
but
how.
their
clients
challenge
for
most
of
the
current
2. Level
of
complexity
of
interac5ve
3. Social
Media
and
Mobile
will
trigger
par(cipants
in
the
market
since
marke5ng
for
clients
will
rise
since
demand
for
content,
content
they
are
specialized
in
their
discipline.
brands
will
need
to
have
an
any-­‐
Time
any-­‐where
digital
points
of
producers
could
produce
content
for
clients
or
find
new
ways
to
get
2. More
budget
on
online
will
demand
contacts
with
their
consumer
digital
sponsored
deals
more
produc(on
of
ad
formats,
deploying
conversa5ons
and
4. Small
players
will
become
more
social
media
and
mobile
apps,
social
presence
according
to
each
digital
relevant
media
glossy
profiles
therefore
channel
many
independent
providers
will
jump
in
to
the
arena
3. More
clients
will
have
their
own
internal
experts
on
interac5ve
3. Social
Media
bring
opportunity
for
marke5ng
new
services
4. Mobile
e-­‐commerce
and
mobile
apps
will
be
explored
by
early
adopter
adver5sers

23. Some
References
US
interac5ve
Marke5ng
Forecast
2011
to
2016
Forrester
Research
State
of
Media-­‐Social
Media
Report
Nielsen
KPCB
Internet
Trends
2011
October
18
Millward
Brown
UK
Predi5ons
2012
Contagiousmagazine.com
2011-­‐2012
digital
predi5ons
eMarketer
2012
trends
Euro-­‐RSCG
TrenspoTng
for
2012
Trendwatching.com
12
crucial
consumertrends
2012
Trendwatching.com
Retail
Renaissance