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
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