Mobile Marketing in LatAm:

The Myths, the Facts & the Future_

Simon Birkenhead Director, Global Advertising Sales

   

Telefonica Digital_ Beyond Connectivity… Injecting digital into Telefonica

Strength of Telefonica across LatAm region

Source:  World  Bank  Popula2on  2012,  Telefonica  Annual  Report  2012  

LATAM 91m 24m 20m 19m 14m 13m 12m 10m 5m 2m 215 million customers

Brazil Argentina Mexico Peru Colombia Chile Venezuela Central America Ecuador Uruguay

42% in our operating

countries

Our mission is to add contextual relevance to mobile advertising

Location Behavioural Demographic Real-World Context

   

Latin America offers a unique opportunity_

Advertisers should think ‘Mobile First’

Sources:  eMarketer Aug 2013, Pyramid Research 2013  

Latin

Am

erica

Inte

rnet

Acc

ess (

milli

ons)

By 2016:

50% of internet

users will be mobile-only

1  

0

50

100

150

200

250

300

350

2012 2013 2014 2015 2016 2017

Even more important in Mexico

Sources:  eMarketer  2013    

1  

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015

50% of internet users already rely on a mobile device to access the internet

‘Mobile First’ requires a fresh approach to collaboration and business model innovation

BUY BUILD WORK

2  

Buy

Credit:  LUMA  partners    

Mobile LUMAscape M

ARKE

TER CONSUM

ER

Work

SPAIN

M-Commerce

UK

Advertising Data

*users  who  own  at  least  one  device  and  use  it  at  least  once  a  month  Source:  eMarketer,  Global  Media  Intelligence  Report2013  

Build

0%

20%

40%

60%

80%

100%

Argentina Brazil Chile Mexico Peru Colombia

Mobile Phone Users – LatAm 2013

Feature Phone Users Smartphone Users

Mobile advertising in LatAm is expected to grow faster than any other region

0% 10% 20% 30% 40% 50% 60% 70%

APAC

Central/East Europe

Global

Western Europe

North America

Middle East/Africa

LatAm

Mobile ad revenues: CAGR by region (2012-2017)

Source:    eMarketer,  IHS  2013  

$79M $600M+

But why is mobile not growing even faster? 3 myths to dispel_

Sources:    WIN/GIA  2013,  eMarketer  2013  

Asia Pacific Latin America

North America Western Europe

Positive about mobile advertising

Adspend per connection

$1.00  $0.10  

$7.10  

$2.20  

44%  

38%  

19%  

11%  

Latin Americans are very receptive to mobile ads

Even more positive in Mexico

Source: , GSMA “Mobile Broadband at the Bottom of the Pyramid In Latin America” 2012, eMarketer 2013

of those familiar with location-based mobile ads thought the service was valuable

In 2013, Mexican mobile ad spend per

connection is just:

60%  

$0.62  

Feature phones are mobiles too

Sources:  Ovum  2013,  WIN  Gallup  2013,  eMarketer  2013  

69%

31%

Feature phones still dominate in LatAm

61% 39%

In Mexico:

SMS is made-for-mobile and delivers results Media Amplification FOX wanted to raise awareness of their new TV series ‘The Bridge’, to support their TV ad campaign.

Result: 67% ad recall

10% watched the

show

Purchase Elektra wanted to drive participation in a competition whereby users received free air time if they topped-up their Elektra account.

Result: 2.7% topped-up

2.7% conversion rate

Engagement Dove wanted to raise awareness of their ‘Cosquillas’ campaign and drive engagement via social media.

Result: 93% incremental awareness

18% submitted a video

or photo

Brand-sponsored services are proving popular

Customers

Brand

Ad-funded service

€  ad  spend   €  buy  the  product  

FREE  SERVICE  

value  exchange  

15%    Engagement  

Rate  

Sponsored calls

Sponsored data

Sponsored Calls

Ringback Tones Content Fast Food Beauty Educational Content

User  dials  short  code  or  makes  a  reverse  charge  call  

User  listens  to    30  second  audio  ad    

User  requests  further  info  from  

brand    (if  desired)  

User  makes  free  call  to  friend  

120,000  calls  in    Sao  Paulo  alone  

96%  advert  comple2on  rate  

•  SMS  •  Follow-­‐up  call  •  Service  subscrip2on  

Avg.  2  free  calls  per  user  per  week  

20%

3%

77%

Location where smartphone owners ultimately purchased items researched via their devices

Online Other In-Store

Sources:  eMarketer  (US)  2013,  Google/MARC  2013  

0% 20% 40% 60% 80%

Find directions Find hours

Make price comparisons Find promo offers

Browse Find where specific products are sold

Find product information Find product availability in-store

Find product reviews

The majority of mobile conversions

are off-device  

How shoppers use their phones for shopping

Make purchase

Case study: Pizzeria Monte Verde

Remembered the ad

63%

Purchased a pizza after receiving the SMS

Source:  Vivo  Pizzeria  Monte  Verde  survey  using  PublicEye,  2013  

Increase in pizza sales

20%  

300%    

59%    

Increased intention to buy a pizza

Key takeaways for mobile success:

Think ‘Mobile First’

Test and learn now

Don’t ignore feature phones

Strive for contextual relevance

GoMo!

simon.birkenhead@telefonica.com @simonbirkenhead