Mexico Manages Investments in Digital Media by 11,000 Million Pesos

August 20, 2015 – The Economist

Investment in digital media in Mexico grew 32% between 2013 and 2014, going from 7.480 to 11.000 million pesos, according to IAB information . Of the 11,000 million investment, about 7,700 million pesos (70%) was allocated 3,300 desktop or laptop and mobile.

Investment in digital media in Mexico is concentrated:

  • 68% in display,
  • 55% on banners,
  • 32% search or classified,
  • 26% in social media and
  • 19% of video that recorded an increase of 124% compared to 2013.

In Mexico, investment in digital advertising is 17% of the total investment in the field. The UK and the US are countries where investment in digital advertising has more participation.

WHAT COUNTRY GET MORE INVESTMENT IN DIGITAL ADVERTISING?

For every $ 100 in advertising investment in the UK to 47.3 goes digital. Mexico already surpassed Brazil, the largest economy in Latin America.

COUNTRY PERCENTAGE
United Kingdom 47.3%
U.S 28.5%
Spain 19.2%
Mexico 17%
Brazil 14%

SOURCE: SOURCE: IAB

New investments

Investment in digital advertising in the United States recorded 52% of total media spending until 2014. It is expected that by 2015 exceeded the barrier of 70%, according to Mauricio Vazquez, Mexico and LATAM CEO of Digilant.

In addition, in 2014, investment in mobile advertising in the US exceeded 28,700 million, according to data Sizmek.

The Mexico case

The countries with the highest investment in digital media are the US and UK.

Mexico has had a growth of 30% in recent years and is expected to continue the trend.

The challenges facing Mexico to grow on the issue of investment in digital media are lack of education leaders, transparency and an ecosystem healthier, said Juan Bongiovanni, director of Digital Marketing, Netflix LATAM.

“Mexican companies must realize that it has an extended range if the budget for television is replaced  by program advertising in digital media , “said Mauricio Vazquez.

Agencies, the main operators of the budget

Agencies (publishers) are still the main players in the budget for digital advertising, using the Programmatic Advertising, advertising that can be programmed under a marketing strategy saving the operating time.

In Mexico there are 60 providers with programmatic tools to handle a greater volume of data more efficiently.

“The publishers of Mexico are prepared but opening businesses for the digital investment is needed,” said Alfredo Sanchez, director of accounts and Yahoo! Shopping

Total revenues for digital media agencies in 2014 increased 50% over 2013. The 23% was for social media, 15% in web development, web design 14%, 11% in application development, strategic planning 8% , 7% in creativity 5% in e-commerce and video and 3% of web analytics.

The new models of digital advertising are growing, where the principal is the Content Marketing, explained Mauricio Vazquez, Mexico and LATAM CEO of Digilant.

“You want the advertising to be native, if you see a Facebook content, advertising also expected to be there,” said Fernando Juarez, MD LATAM for MediaMath.

Mazda commitment to digital investment

Mazda is an example of digital investment growth. The automotive destined only 1% of its budget to digital media in 2015 it increased to between 12 and 15%, according to Elizabeth Lara, Director of Marketing for Mazda Mexico.

The data, personal information of Internet users, is the key investment for digital advertising. Mexico is outdated between 12 and 36 months in the advertising program based on the “first party data”, the data that companies concentrate directly; according to Mauricio Vazquez Digilant.

“Ultimately, all advertising will be digital and all digital advertising will be programmatic,” said Brian Lesser, Global Chief Executive Officer Xaxis.

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