Understanding Digital Marketing and its implications in Latin America

Breaking News!

#LatinAmerica is trendy

I think therefore I am - Descartes

I share therefore I am - Luis Alvarado

How can you define “Cardumen”?

Shoal of fish

Moving in the same direction

Benefits:

Defense against predators Increase

hydrodynamics efficiency

Avoid to be caught

Cardumen

So What is going in Latin America?

Media Penetration in LATAM

Media LATAM AR BR CH CO MX PE VE

Newspaper 38% 42% 33% 48% 39% 29% 72% 68%

Open TV 97% 95% 97% 98% 95% 97% 97% 95%

Cable 50% 71% 39% 64% 82% 44% 69% 63%

Magazines 31% 21% 38% 31% 34% 28% 20% 8.24%

Radio 55% 67% 49% 71% 67% 54% 79% 41%

Cinema 20% 16% 17% 16% 20% 24% 25% 31%

OOH 91% 91% 84% 90% 90% 97% 100% 98%

Is all the above media obsolete ?

TGI LATINA 2011 Wave II + 2012 Wave I (Y12w2_Y13w1) v.08.30.2012

What determines internet penetration in

LATAM?

Local market nuances • Economics • Infrastructure • Political Environment • Social development programs • Education

Accessibility

Internet Cafes Affordable / Flexible data plans Power of families Wi-Fi

Significant differences in digital consumption will persist due to cultural differences and unique consumer behavior.

However

How do we compare globally?

49%

78.6%

15.6%

63.2%

27.5%

World average: 34.3%

Internet Penetration

Internet users within LATAM are increasing at 9%

annual

Internet users per 100 pop: 49

Broadband

subscribers per 100 pop: 11

Mobile Penetration

Mobile subscribers

within LATAM are increasing at 4% annual

Mobile per 100 pop:

107

Online Activity

Internet important to make buying decisions (>90%

users)

Dominated by young people

Average usage in Brazil, Mexico,

Argentina & Peru greater than global

average

Internet used to find & compare

Social Networks as mediums to e-

commerce

Online shoppers to grow by 20%

E-Commerce

Low but promising

$4 billion

Expected to

improve shopping experience

M-Commerce

Google sites are the most visited sites in LATAM,

Facebook the destination with the highest affinity

40,975

41,612

42,718

43,218

45,777

69,972

98,094

107,392

116,380

Globo

VEVO

Ask Network

UOL

Wikimedia…

Terra - Telefonica

Yahoo! Sites

Microsoft Sites

FACEBOOK.COM

Google Sites 124,584

837

869

1,727

1,900

3,080

3,966

4,405

8,634

30,968

ASK.FM

TUMBLR.COM*

MercadoLibre

Terra - Telefonica

Globo

UOL

Yahoo! Sites

Microsoft Sites

Google Sites

FACEBOOK.COM 85,780

LATAM most visited sites (000) Total Pages Views (MM)

Social Media

Total Unique Visitors (000)

% Reach

Average Minutes

per Usage Day

Total Visits (000)

Average Minutes per Visit

Average Visits per

Visitor

Total Internet : Total Audience 131,193 100.0 74.0 6,795,308 26.3 51.8

Social Media 127,743 97.4 32.4 4,315,369 14.6 33.8

1 FACEBOOK.COM 116,380 88.7 41.9 3,744,893 15.2 32.2

2 Blogger 67,877 51.7 2.8 339,855 2.1 5.0

3 Federated Media Publishing 31,579 24.1 1.7 69,472 1.6 2.2

4 TWITTER.COM 25,258 19.3 6.1 187,741 3.3 7.4

5 Linkedin 24,546 18.7 2.8 58,831 2.5 2.4

6 ASK.FM 13,893 10.6 11.0 137,133 5.9 9.9

7 TUMBLR.COM* 12,047 9.2 12.8 54,192 8.5 4.5

8 Orkut 11,926 9.1 9.3 72,497 5.6 6.1

9 UOL Comunidades 8,346 6.4 1.8 22,128 1.5 2.7

10 Terra Community 7,131 5.4 8.7 36,003 6.3 5.0

Social Networking Eclipses Portals as the Most Engaging Web Activity in Latin America

Entertainment Media

Total Unique Visitors (000)

% Reach

Average Minutes

per Usage Day

Total Visits (000)

Average Minutes per Visit

Average Visits per

Visitor

Total Internet : Total Audience 131,193 100.0 74.0 6,795,308 26.3 51.8

Entertainment 126,015 96.1 13.5 2,621,649 9.9 20.8

1 YOUTUBE.COM* 93,584 71.3 24.6 1,149,204 14.1 12.3

2 VEVO 41,612 31.7 4.9 158,931 4.0 3.8

3 Terra Entertainment 35,350 26.9 5.5 182,436 4.1 5.2

4 UOL Entretenimento 29,368 22.4 8.4 217,871 6.2 7.4

5 Viacom Digital 26,434 20.1 4.1 66,272 3.6 2.5

6 R7 Entretenimento 25,842 19.7 4.2 109,105 3.4 4.2

7 Globo Entretenimento 25,474 19.4 6.2 154,169 4.5 6.1

8 MSN Entertainment Channel 13,403 10.2 2.4 130,700 2.1 9.8

9 CBS Interactive 12,889 9.8 3.2 30,496 2.8 2.4

10 MUSICA.COM 12,370 9.4 2.7 31,147 2.3 2.5

Followed by Entertainment. Peruvians, Colombians and

Chileans spent the most time on Entertainment sites each averaging more than four hours per visitor at the end of the year

Remember!

Facebook Reigns as Top Global Social Network

Five LATAM countries at the top 10 worldwide of Facebook penetration

Social Media penetration

to reach 98% in 2015

Social Networking

So What is Next?

Doing Marketing in Latin America

10 Elements for your Marketing Strategy

Combine Offline, Online and Physical

1. Hybrid Marketing Mix

Do not make assumptions

2. Know the country framework

Live their lives

3. Meet your Audience

Do a continuous loop: observe, plan, do, ananlyze and Evaluate. Adjust as needed

4. Everything is dynamic

Make an offer they cannot refuse

5. Be irresistible

Partner with local companies, involve in the community

6. Act Local

Develop your brand: balance emotions and rationales

7. Create a connection

Rock them out

8. Engagement is a must!

The Latin America countries are not homogeneous, but there are common trends

9. Viva la Diferencia

It is up to you

10. Find yourself

Business Innovation Dr. Luis Alvarado

lalvarado@itesm.mx

Jose Luis Lopez

Joseluis.lopez@ncontacto.com

nContacto - Business Innovation - 2013 /