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8th. Edition Study on Online Advertising Investment in Mexico 2013 Results June 2014
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PwC
Contents
1. Background and about the Study
2. Methodology, participants and Research Subcommittee in 2013
3. 2013 Context
4. Evolution of annual turnover 2009 – 2013
5. Investment in display per platform
6. Analysis of investment in display (from the participants' information via survey):
a) By type of contract
b) By quarter
c) By advertiser activity
d) Main advertisers
7. Conclusions and reflections
8. Glossary
2
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Contents
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1 Background and about the Study
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The study concerning the internet industry in Mexico
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• Analyzes the evolution of internet advertising
investment. • Collects actual billing data of the main portals
and sites operating in Mexico. It also includes the estimate provided by the Research Subcommittee of IAB Mexico, in collaboration with the main Ad Networks and Technological Platforms.
• Annual report that has been published by IAB Mexico since 2007. • At international level this is the industry standard and it is an
indispensable reference for advertisers, media and agencies.
PwC
PwC Mexico
“It is undeniable that technology has instilled any society, modifying consumers preferences and their relationship with brands; therefore, companies must generate a circle of trust with sufficient innovation and agility to address all their consumers demands. There is no turning back: the change has occurred and it is constant”.
Carlos Méndez Managing Partner PwC Mexico
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PwC
Terra
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"The year 2013 showed again a great growth in online advertising investment, we are certain that our industry will continue growing at an accelerated rate, mainly in as much as the media still accompanying the increasingly specialized demands of our market. Terra, as leading player of the industry, has the commitment of continue driving our media, by means of the most sophisticated platforms, the best content and the most innovative advertising formats" Gerardo Adame Terra General Manager
PwC
IAB Mexico
“For several years we have got used to see a double-digit growth in Digital Advertising in Mexico, which has complete sense with the digital audience growth in the country, which already exceeded 500 million users. Therefore, online each day is consolidated as a massive media strongly segmentable and with high transparency in measurement, thus, in IAB Mexico we continue working with local advertisers to provide them with the necessary data and support to continue choosing Internet as advertising platform”. Iván Marchant Chairman of the Research Committee of IAB Mexico
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PwC
About the Study on Advertising Investment
The study analyzes the evolution of internet advertising.
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It provides key indicators which facilitate the decision-making process for advertisers, media and agencies.
Collection of billing data of the main portals or sites that operate in our country.
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Contents
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2 Methodology, participants and Research Subcommittee in 2013
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Methodology 1. We had the participation of 56 Sites, Portals, Ad Networks and
Technological Platforms, representative of the advertising investment in Mexico.
2. Each participant answered a survey, PwC collected and added the information up.
3. The Research Subcommittee of IAB Mexico made an estimate of non-participating sites, in order to quantify the remaining value of Display and Search.
4. An analysis was conducted to generate this report.
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Methodology Construction of the total figure
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PwC Mexico figures Board of Experts
Total study figures
+
=
Estimates of non-participating sites
+
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*Companies which participated with their surveys and/or in the board of experts
• Antevenio
• Autocosmos
• Autoplaza
• Azteca Internet
• BBC
• Bumeran
• C-Móvil
• Canalmail
• Condé Nast
• Digilant
• Despegar
• Discovery Digital Media
• Disney Media+
• Dridco
• E! Online Latino
• Editorial Armonía
• El Informador
• .Fox
• Grupo ACIR
• Grupo Editorial Notmusa
• Grupo Expansión
• Grupo Fórmula
• Grupo Milenio
• Grupo Radio Alegría
• Headway Digital
• Hispavista
• Hotwords
• IASA Comunicación
• Invent MX
• MediaScience
• Medios Masivos Online
• MercadoLibre
• NRM Comunicaciones
• Orange Advertising
• Playboy
• Prodigy MSN
• Publimetro
• QuimiNet
• Reader’s Digest
• Red Viacom
• Sección Amarilla
• Televisa Interactive
• Televisa Radio
• Terra
• Ticketmaster
• Time Out México
• Vanguardia
• Yahoo!
Methodology Participants:*
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Methodology 8 new participants in 2013
13
New participants*
*Companies which participated with their surveys and/or in the board of experts
• El Financiero • Exponential • Grupo Radio Centro • IMPAKTU • OCC Mundial • Revista Neo • Spotify • Webzodes
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Methodology Companies which did not participate but were estimated by IAB Mexico Subcommittee
• Batanga
• BB Mundo
• Cinemex
• El Economista
• El Universal
• ESPN
• Monografías
• Reforma
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Methodology Research Subcommittee
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It complemented the results of online advertising investment collected by PwC with estimation data of the sites that did not participate in the study, by means of a group of experts who gathered to assess the information and obtain consensual conclusions.
• Alfredo Sánchez – Yahoo!
• Anaid Moncada – Notmusa
• Clara Méndez – Televisa Interactive
• Fernando Bermúdez – Dentsu Aegis
• Iván Marchant – comScore
• Jacobo Fernández – SMG
• Jorge Pedrero – ProdigyMSN
• Miguel Arcos – Orange Advertising
• Maru Ortega – GroupM
• Pamela Baltazar – Clarus Digital
• Santiago Durán – Havas Media Group
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Contents
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3 Context 2013
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Source: INEGI. Mexico National Account System
Context The Mexican economy had a lower growth in 2013 compared to the prior year
2010
2011
2012
2013
2009
GDP
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Context In Mexico, 59.2 million people use Internet, which represents 52% penetration
30% 33% 40% 46%
52%
2009 2010 2011 2012 2013
+3% +7%
+6% +6%
Source:
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eMarketer_Internet_Users_and_Penetration_in_Mexico_2011-2017_155097.jpg Diapositiva1.jpg
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Context Mexican users use in average 2.4 devices to connect to the Internet
Source: Estudio de Consumo de Medios entre Internautas Mexicanos (Study of Media Consumption Among Mexican Internet Users) IAB Mexico/ Millward Brown/ Televisa.com January 2014
Laptop is the most used device, followed by desktop and smartphone. The use of tablets and other mobile devices to connect to the Internet is increasingly frequent
% OF USERS WHO SURF THE WEB IN THEIR MOBILE DEVICES 65%
Laptop
Desktop
Smartphone
Cellphone
Tablet
Video game
console
MP3 player
Internet connectable TV
Handheld game
console
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Context About Mexican Internet users…
Source: Estudio de Consumo de Medios entre Internautas Mexicanos (Study of Media Consumption Among Mexican Internet Users) IAB Mexico/ Millward Brown/ Televisa.com January 2014
9 out of 10 are in social media
88% have downloaded applications, software, programs and/or games
44% Watch television and surf the web
at the same time
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Context About Mexican Internet users…
55% Has shopped or made transactions in
the last 3 months
62% Is planning to shop
within the following 6 months
Source: Estudio de Consumo de Medios entre Internautas Mexicanos (Study of Media Consumption Among Mexican Internet Users) IAB Mexico/ Millward Brown/ Televisa.com January 2014
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Context In 2012, Internet was placed in the 3th place in advertising investment per media
Percentage
53%
9% 9% 8% 8% 7%
3% 2% 1%
Investment (MP)
36,834
6,451 6,397 5,629
4,831 5,266
2,006
1,039 568
Public TV
Newspapers
Radio
Magazines
OOH
Film industry
Pay TV
Internet
Other
DISTRIBUTION OF ADVERTISING INVESTMENT PER MEDIA
$69,021 mp
Source: CICOM Investment Study 2012
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Online Advertising Investment on an international level in 2013 Online Advertising
Investment (Billion USD)
Growth 2012-2013
%
Total Advertising Investment
(Billion USD)
Internet Total % of Investment in
Media 2013
$ 2.6 26% $ 18.2 14.3%
$ 42.8 17% $ 172.6 24.8%
$ 9.8 15% $ 22.2 44.3%
$ 1.2 2.3% $ 6.2 19.4%
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Contents
Evolution of annual turnover 2009 – 2013
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4
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Display Advertising Type of digital advertising that shows static and/or animated graphic advertisements in image, video or text format contracted in spaces of web sites and other digital advertising media in the Internet. Including social media.
Search Advertising
Type of digital advertising that shows advertisements, generally in text format, related to key words or phrases used by the users in their Internet searches.
Classified Advertising
Type of digital advertising in sites dedicated to transmit advertisements of different types of products and/or services such as: real estate, technology and vehicles.
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Definitions
IAB Mexico Glossary
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Evolution of annual turnover, 2009-2013* In 2013 the figure of 632 million dollars of Online advertising investment was surpassed
*These figures include the study participants, classified advertisements and the estimate of Search and Display by the Research Subcommittee of IAB Mexico. Growth percentages calculated over Mexican Pesos
38% 36%
31%
35% 31%
632,473 490,745
372,027 44,604
AVG Xrate = 13.07 AVG Xrate = 13.16 AVG Xrate = 12.42
35,369
700
600
500
400
300
200
100
AVG Xrate = 13.15 AVG Xrate = 14.05
USD
(000
’s)
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Classification of annual turnover 2013* Display represents the major part of the online advertising investment
Search 26%
14%
*These figures include the study participants and the estimate of Display, Search and Classified advertisements made by the Research Subcommittee of IAB Mexico.
15%
Display
Search
24%
2013
USD$ 632 M Annual investment 2013
Search & Classifieds
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Evolution of annual turnover – Display* The investment in Display shows a remarkable growth during the last year
31% 38%
48%
28% 428
288
222 159
AVG Xrate = 13.07 AVG Xrate = 13.16 AVG Xrate = 12.42
116
700
600
500
400
300
200
100
AVG Xrate = 13.15 AVG Xrate = 14.05
USD
(000
’s)
*These figures include the study participants and the estimate of Display made by the Research Subcommittee of IAB Mexico. Growth percentages calculated over Mexican Pesos
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Contents
Investment in display per platform
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5
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* These figures include the study participants, which are a representative sample of Display
155%
6%
100%
Investment per Display platform* Social Media and Video grow significantly in investment among Display platforms
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Investment per Display platform* The participation of Social Media and Video grows within the Display
*These figures include the study participants and the estimate of Display, made by the Research Subcommittee of IAB Mexico. Growth percentages calculated over Mexican Pesos
2012
2013
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Investment in Display
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Analysis of investment in display from the participants' information via survey
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Contents
Investment in display per type of concentration
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6a
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Investment per contract type – Display* CPM and Fixed Positions prevail as schemes of concentration in Display
2013 2012
CPA
5%
CPM 61%
Fixed
Position 22%
CPA 4%
Other 4%
CPM and
Sponsorship
80%
CPA 5%
CPC 15%
• These figures include the study participants, which are a representative sample of Display • Growth percentages calculated over Mexican Pesos
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Contents
Investment in display per quarter
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6b
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Quarterly distribution of income - Display* In 2013, the most remarkable growth took place during the first and third quarter of the year
These figures include the study participants, which are a representative sample of Display. Growth percentages calculated over Mexican Pesos
41%
25%
Million pesos
USD
(000
’s)
23.9
36
46.67
35
51 55.6
35
46.9
58.5 47.5
59.77
71.3
18% 8% 29%
24%
19%
36%
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Contents
Investment in display according to the advertiser activity
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6c
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Investment according to the advertiser activity – Display*
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Industry Participation 2012
Participation 2013
Investment Growth / Detriment
Media and entertainment
Automotive
Financial Services
Telecommunications
Health
Government and Public Services
Transport, travel and tourism
Food
Retail
Technology
7%
11%
10%
8%
2%
8%
5%
5.3%
5.0%
6.2%
16%
12%
7%
6%
6%
5%
5%
4.9%
4.8%
4.5%
197%
28%
-14%
-1%
194%
-21%
0%
10%
15%
-14%
Ranking
• These figures include the study participants, which are a representative sample of Display • Growth percentages calculated over Mexican Pesos
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Investment according to advertiser activity - Display* Investment in Media and entertaining grows significantly
194%
197%
97%
• These figures include the study participants, which are a representative sample of Display • Growth percentages calculated over Mexican Pesos
Media and entertainment
Health Cleaning products
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• These figures include the study participants, which are a representative sample of Display • Growth percentages calculated over Mexican Pesos
10% 15%
28%
Investment according to advertiser activity - Display* Automotive industry continues increasing its investment
Automotive Food
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Contents
Main advertiser in 2013
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6d
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Financial services
Remarkable advertisers due to their Investment in Display in 2013*
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* These figures include the study participants, which are a representative sample of Display
Automotive
FMCG/CPG Media and entertainment
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Contents
Conclusions and reflections
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7
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Conclusions
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• Online investment continues at an accelerated double-digit development, this year with 31% growth.
• Online advertising investment in Mexico grows at a more accelerated rate compared to other mature markets.
• Internet is consolidated year after year as an advertising platform essential in the advertisers marketing strategies.
• Internet is wide ecosystem with great variety of advertising platforms and formats which comply with different communication purposes, like brand building, engagement, direct response, among others.
• The main growing factor of investment in 2013 was Display, specially the participation of Video and Social Media platforms.
• Based on the participants in the study via survey, the industries that invested the most in Display (banners ads and rich media) in 2013, are: Media and entertainment, Automotive and Financial services.
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Research Subcommittee Reflections
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• The audience segmentation has become a key issue for the advertising industry and the development of all its participants.
• The strategic vision to creatively integrate the different digital tools is essential to built a dialog with an increasingly digitalized consumer.
• For content generators there is an opportunity in the construction of metrics relevant for the brands and in line with objectives like branding, engagement, among others.
• This year we had a greater number of participants, which contributed to the content of this report which is a benefit for the industry and each year continues to strengthen.
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Contents
Glossary
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Display Advertising
Type of digital advertising that shows static and/or animated graphic advertisements in image, video or text format contracted in spaces of web sites and other digital advertising media in the Internet.
Including social media. AdSense included in the Display part.
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Glossary How do we define display?
IAB Mexico Glossary
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Glossary How do we define search?
Not included: • SEO (Search Engine Optimization) • AdSense (located in Display) • Affiliate search listing
Type of digital advertising that shows advertisements, generally in text format, related to key words or phrases used by the users in their Internet searches.
IAB Mexico Glossary
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Glossary How do we define classified?
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Type of digital advertising in sites dedicated to transmit advertisements of different types of products and/or services such as: real estate, technology and vehicles. Any type of classified advertisement, except those related with employment, job banks or recruitment.
Including only B2B and B2C, C2C not included
27.37%
72.63%
IAB Mexico Glossary
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Glossary
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Ad Networks Intermediary companies that allow centralized contracting of advertising spaces in different web sites of associated third parties or to one or several networks. CPA (Costo por acción/Cost per action) Commercialisation model based on specific actions (conversions) made by the user in the banner and/or site previously defined by the advertiser. Some examples of this type of actions (conversions) are: filling out applications/forms (Cost per acquisition, Cost per record Cost per lead), purchase/sale order closing (Cost per order or Cost per sale), service quotation, file download, etc. This model only considers the actions finished by the user regardless of the number of impressions or clicks received per advertising piece. The most common way is to count these user actions using record codes (counting pixels/trackers). CPC (Costo por clic/Cost per click) Commercialization model based on the cost per each click received by advertisement or one campaign. This model only considers the clicks received per advertisement piece (Banner, text advertisement, key word) and not the number of impressions. The CPC can be fixed or dynamic depending on the site where the campaign is advertised.
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CPM (Costo por millar/Cost per mille/thousand) Commercialization model based on the cost per each thousand impressions served of one advertisement or one campaign. In the case of Email marketing, it is the cost per each one thousand sent emails. Fixed position of personalized content and/or experiences created for an advertiser who may include or not advertising elements such as graphic publicity, brand logos, advertising video or pre-roll. Rich media: Advertising form which has an interaction additional to the click. Examples: take overs, expandable, video, among others. Different to a standard format (without interaction). Social network A web site where the user is not anonymous and it is possible to interact with other users by means of tools characteristic of the network, like: chat, messaging, voice chat, the shared use of files, blogs, discussion groups, etc.
Glossary
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Special thanks to …
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• The 56 participants of the study • To comScore for the access to the tool AdMetrix. • To our sponsors:
PwC
Thank You!
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Questions?
PwC Mexico IAB Mexico
© 2014 PricewaterhouseCoopers, S.C. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers, S.C. which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
Contact: Verónica Rivera TLS Partner [email protected] Telephone: (55) 5263.6089 Carlos Cano TLS Senior Manager [email protected] Telephone: (55) 5263.5811 Carlos Méndez Managing Partner [email protected] Telephone: (55) 5263.6044
Contact: Gabriel Richaud Director IAB Mexico [email protected] Telephone: (55) 5281.8899 Daniela Orozco Manager Research IAB Mexico [email protected] Telephone: (55) 5281.8899
PwC
© 2014 PricewaterhouseCoopers, S.C. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers, S.C. which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
Disclaimer We do not audit the information showed in this study, which was prepared and is responsibility of the company; therefore, we do not express an opinion on it.
This study is for the exclusive use of IAB Mexico and it should not be used by third parties who did not agreed on the procedures and did not assume the responsibility for the sufficiency thereof for their purposes.
