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MMA Mobile Regional Insights

MMA Mobile Regional Insights

MMA Mobile Regional Insights

  1. 1. MMA MOBILE REGIONAL INSIGHTS JULY 2016
  2. 2. Fabiano Destri Lobo Managing Director LATAM The initiative of the Mobile Marketing Association (MMA) in Latam, aligned with the global mission of accelerating the transformation and innovation of marketing through mobile, draws attention to urgent and important issues, enabling more education supporting the further growth of the marketing and advertising ecosystem in the countries where it operates. During this year, we will produce a series of educational materials, research and reports in order to bring knowledge and celebrate the maturing of the mobile market for the marketing and advertising industry in the region. We are producing a total of four exclusive researches on mobile consumer behavior in Brazil, Mexico, Argentina and Colombia; one Regional Insights Report that demonstrate the great growth and true potential of the mobile medium in the region; five Playbooks and three white papers on subjects important to the industry. We will also have interviews with major leading brands, agencies and other members of the ecosystem in Latam; as well as winner cases studies of the Smarties Awards and much more. All this material will be compiled and distributed at the end of the year in the edition of the MMA Mobile Latam Yearbook 2016 for members only in pdf format and also through an application. In this Mobile Insights Report Latam 2016, the subject could not be different since we live in a world where consumers are increasingly connected through their mobile devices. Mobile is accelerating its relevance exponentially in relation to other digital channels. According to eMarketer, in 2020 we will have approximately 250MM smartphone users across the region. The economic impact and the contribution to GDP in the region will grow to US$ 275 billion by 2020. If there were still doubts about the “year of mobile” announced at least 10 years ago, the numbers and opportunities of this growing market show that much more than the year or the decade of mobile, we live in the mobile era, and the best yet to come. Enjoy! Introduction
  3. 3. Table of contents Big numbers Users Spendings Behaviour Technology Marketing Demographics Trends Final Takeaways 4 7 13 22 34 38 44 46 50
  4. 4. BIG NUMBERS
  5. 5. Information Age around the globe Digital transformation in action 2.3 billions GB of web traffic. 8.8 billions videos watched. 36 millions shopping. 186 millions photos. 152 millions phone calls. 207 billions emails sent. 4.2 billions from searches. 803 millions tweets. Mobile in Latin America Report - 2016 Source: World Bank 5 1990 1995 2000 2005 2010 80 100 60 40 20 0 Percentagemdapopulação Melhoria do saneamento Melhoria do abastecimento de água Eletricidade Ensino médio Internet Telefone celular Banda larga móvel 2015
  6. 6. Mobile Subscribers Hyper-Connecter World Mobile in Latin America Report - 2016 Source: GSMA  Mobile Economy, 2016 Source: comScore, 2015 LATAM Digital Future in Focus 6 Internet Penetration Asia 644,393 412,446 421,990 216.600 224,905 134.050 188.272 147.249 171.842 805,071 Europe USA & Canada Oriente + Africa Latin América 25% 40% 17% 2% 4%
  7. 7. USERS
  8. 8. #Worldwide Mobile Subscriptions #Mobile Phone + Density Mobile in Latin America Report - 2016 Source: UIT,WirelessIntelligence, GSA/InformaeTeleco: http://www.teleco.com.br/pais/celular.asp Source: Teleco and Regulator Agency 8
  9. 9. #Mobile Phone Users (millions) #Mobile Phone Penetration (% of pop.) Mobile in Latin America Report - 2016 Source: eMarketer 9 2013 2014 2015 2016 2017 2018 Brazil 130.1 137.3 141.3 144.7 148.0 151.0 Mexico 74.4 78.2 81.3 83.5 85.6 87.3 Colombia 30.8 31.7 32.4 33.0 33.7 34.3 Argentina 29.4 30.0 30.7 31.3 31.9 32.4 Peru 17.1 18.2 19.1 19.6 20.2 20.6 Chile 12.4 12.6 12.8 13.0 13.2 13.4 Other 85.4 87.5 89.4 91.2 93.6 95.5 Latin America 379.5 395.5 406.9 416.5 426.1 434.4 2013 2014 2015 2016 2017 2018 Chile 72.2% 72.8% 73.3% 73.9% 74.3% 74.6% Argentina 68.9% 69.7% 70.6% 71.4% 72.0% 72.5% Colombia 67.3% 68.6% 69.3% 70.0% 70.6% 71.2% Brazil 64.7% 67.7% 69.2% 70.3% 71.4% 72.3% Mexico 62.8% 65.3% 67.2% 68.3% 69.3% 70.0% Peru 57.4% 60.4% 62.6% 63.8% 64.9% 65.8% Other 58.5% 59.2% 59.8% 60.3% 61.1% 61.7% Latin America 63.2% 65.2% 66.4% 67.3% 68.2% 68.9%
  10. 10. Mobile Subscriptions LATAM Smartphone Users in Latin America 700M Mobile broadband connections across Latin America by 2021 Mobile in Latin America Report - 2016 Source: Ericson, Nov/ 2015 Source: eMarketer, July/ 2015 * FGV 10
  11. 11. In 2017, smartphone user penetration will reach 49,7%. This number is growing each year. Non-connected person will become the exception, not the norm. Mobile in Latin America Report - 2016 11 Source: eMarketer, July/ 2015
  12. 12. Global Data Snapshot Latin America Distinctiveness Wireless Internet Access LATAM Device Distribution LATAM Mobile in Latin America Report - 2016 Source: Ericson, Nov/ 2015 Source: Pew Research Center, 2015 Source: 2015_LATAM_Digital_Future_in_Focus 2015 WorldwideL atam Total Population Internet Users Unique Mobile Substribers 7300M 3200M 4700M 634M 345M 380M 12
  13. 13. SPENDINGS
  14. 14. Mobile Broadband Connections Predictions and Current Revenue - LATAM Mobile in Latin America Report - 2016 Source: GSMA, 2014 14 Mobile ecosystem contribution to GDP US$242B 1M 1.3M U$41B U$53B US$275B 4.1% GDP in 2013 Jobs directly supported by mobile Jobs directly supported by mobile 4.5% GDP in 2020 2013 2013 2013 2020 2020 2020 Public funding ecosystem Mobile ecosystem contribution to public funding in L.A. before regulatory fees. Plus an addittional 1.2M indirect Jobs supported in 2013. Employment
  15. 15. #Smartphone Users Worldwide #Smartphone Users Worldwide Will Mobile in Latin America Report - 2016 Source: eMarketer, Dec/2015 15
  16. 16. Mobile ad Spending by Country Estimate correction: how 2016 would be according Mobile in Latin America Report - 2016 Source: eMarketer, Sep/2015 16
  17. 17. Retail Online 2015-2020 US Mobile App Buyers, 2013-2018 Mobile in Latin America Report - 2016 Source: eMarketer, Sep/2015 Source: WeAreSocial | eMarketer | Ericson 17
  18. 18. The Global Mobile App Market Total Number of Apps by Store Worldwide Mobile in Latin America Report - 2016 Source: Statista, 2015 Source: App Figures, 2014 18 Google Play and the Apple App Store remain in very tight competition, with Google Play remaining ahead of the Apple App store in terms of the number of apps offered. As of May 2015, Google Play offers 1.5 million apps, and the Apple App store offers 1.4 million apps. All the results are as follows: We can see all three stores really expanded their app catalog. It’s the kind of healthy growth you’d expect from a relatively new industry. The most obvious takeaway here, however, is that Google finally closed the gap and actually jumped ahead of Apple, ending the year with more than 1.43 million apps compared to 1.21 million. Amazon, although a distant third, grew its catalog by nearly 90% to 293k apps.
  19. 19. More apps than ever! Mobile in Latin America Report - 2016 Source: App Figures, 2014* By Number of Developers 19 2014 App Store Growth By Number of App Fastest Growing IOS Categories* Fastest Growing Google Categories*
  20. 20. Mobile Apps Download from all Stores - LATAM US Mobile App Installers and Penetration Mobile in Latin America Report - 2016 20 Source: eMarketer, Feb/ 2015 Source: comScore_IMS_Mobile_in_Latam_ENGUS
  21. 21. The State Of App Downloads The State Of Monetization Per Capita in Latin America Mobile in Latin America Report - 2016 21 Source: inmobi, 2015
  22. 22. BEHAVIOR
  23. 23. Digital Army Knives 50 Millions Users in 4 years Average Online Hours (per month) Mobile in Latin America Report - 2016 Source: DigitalBuzz Source: WeareSocial 2015 23 • Every new component, every new sensor, turns into several new venues to explore. • Users are less concerned in doing new things than they are in doing old things in a new way. • Equilibrium between bigger screens and portability is finally converging. • Apps are, right now, more atractive than websites on mobile.
  24. 24. Internet to Go Categories Consumed Online Mobile in Latin America Report - 2016 Source: Dataxis Source: comScore, 2015_LATAM_Digital_Future_in_Focus 24 Brazil, where the combo sales model is common for Pay TV plus Internet, lost 460,000 subscribers in 2015. Harsher economy is one of the factors. Given a excludent choice between a smartphone and a new computer, brazilian consumers prefer the mobile device. People are also more concerned about being always online and as a result home connection may suffer a cut from household budget to insure the mobile broadband connection, which steadily grows. At the same time, 75% subscribers of Pay TV in South America and Mexico have access to TV Everywhere services. Brazil is the country with most platforms in the region, 12 of the 53 total.
  25. 25. Categories – Child and Teen, Brazil Online Video Consumption in LATAM Mobile in Latin America Report - 2016 Source: Statista, 2015 Source: comScore_IMS_Mobile_in_Latam_ENGUS 25
  26. 26. Online Video Consumption in LATAM Social Media actions in Latin America - 2014 Facebook Users in Latin America Mobile in Latin America Report - 2016 Source: comScore, Inc., Video Metrix, AR, BR, CL, CO, MX, Home & Work, Persons: 15+, Apr. 2014 vs Apr. 2015 Source: comScore, 2015_LATAM_Digital_Future_in_Focus Source: Statista 2016 26
  27. 27. Who is on Facebook? Latin america 90% of Mobile Time is in Apps – Global Behavior Mobile in Latin America Report - 2016 Source: Kaszek Ventures Source: Flurry Analytics, June 2015 27 2012 Q3 Q4 Ad Revenue Evolution ($M) 2015 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 Desktop Mobile 1084 176 1220 356 1022 438 944 656 1030 990 1217 1373 1025 1475 1106 1804 1088 2112 1113 2477 896 2424 912 2888 Facebook has replaced your mobile browser as your window on the world. 42% of app time occurs in most used app. 75% of app usage occurs in top 4 apps. 1/3 of mobile time is spent in social/messaging apps. But 70% of time in social apps is spent consuming media (videos, articles, ...).
  28. 28. The Constant Connectivity of Millennials in Latam Mobile in Latin America Report - 2016 Source: “Digital natives” by comScore (study commisseioned by Facebook), Mar-Jun-2014 *Facebook Internal data, Jan 2015 Illustration Designed by Freepik 28 Milennials (age 13-34) on Facebook across Mexico, Colombia and Argentina are... ...Constantly Connected Argentina Access continues to grow. Colombia Technology and tradition live side-by-side Mexico Online vídeo is os par witch TV • 19% use feature phones* • 95% access Facebook from home • 78% access Facebook on Android* • 76% watch TV every day • 62% watch TV every day • 61% watch vídeo online every day ...Mobile-inclined ...Multiscreeners 90% Access Facebook daily 86% Access Facebook on mobile* 59% Access Facebook while watching TV
  29. 29. Location-based Services Locations Used - LATAM Mobile in Latin America Report - 2016 29 Source: eMarketer, June/ 2015 Source: comScore_IMS_Mobile_in_Latam_ENGUS
  30. 30. Mobile Games Monetization World Map Mobile in Latin America Report - 2016 Latin America expected to be highest-growing mobile games market with 50% CAGR* by 2017 30 Source: Newzoo
  31. 31. Mobile Games Monetization World Map Mobile in Latin America Report - 2016 31 Source: Newzoo
  32. 32. Multiscreen and Multitask - LATAM Network Quality and Satisfaction Mobile in Latin America Report - 2016 32 Source: Ericson, Nov/ 2015 Streaming video Streaming music Web browsing Social networking 37% 25% 22% 16% 34% 37% 49% 47% Reasons for sharing data with companies according to US users IMPORTANCE SATISFACTION
  33. 33. Mobile App Download Share in Latin America Mobile in Latin America Report - 2016 33 Source: eMarketer, June, 2015
  34. 34. TECHNOLOGY
  35. 35. OS in LATAM Worldwide traffic and revenue by device and OS Worldwide traffic and revenue share by OS Mobile in Latin America Report - 2016 36 Source: comScore, 2015_LATAM_Digital_Future_in_Focus Source: Mobile Village, 2015 Android PhoneT ablet Revenue iOSO ther iPhone iPad iPod Blackberry Symbian Windows Other 62% 2% 2% 17% 27% 4% 17% 1% 1% 2% 2% 4% 1% 0% 42% 0% 6% 5%
  36. 36. IT Access – Home devices ownership, Brazil Mobile in Latin America Report - 2016 37 Source: Cetic, 2014
  37. 37. MARKETING
  38. 38. Mobile Ads Users Love M-Commerce Current Users in LATAM Brazilian growth sales by mobile Mobile in Latin America Report - 2016 39 Source: 2013 – mobile internet Consumer Latin America MMA Source: M-Commerceinlatinamerica–EricssonReport(ConsumerLab) Source: E-bit Informação - Quarter Evolution, 2015 Mobile-commerce is still awaiting for strong development. However, considering rapidly increase in smartphone penetration in Latam and consumer interest, m-commerce is at an all-time high. In July/2015 we achieved the highest sales by mobile devices (tablet and smartphone) Orders 11.9% Revenues 12.5%
  39. 39. Brazilian overview m-commerce Mobile in Latin America Report - 2016 40 Source: E-bit Informação - Quarter Evolution, 2015 Criteo, State of Mobile Commerce, Q3 2015 *to be considered a committed app retailer, a retailer had to have at least 25% of eCommerce transactions on a mobile device. Of those mobile transactions, more than 10% are from mobile apps. Source: E-bit Informação– July/ 2015 Visitors: 35% Share of Orders: 10,1% Average Ticket: R$ 400,80 55% of desktop finalized purchases had a cross device journey Apps convert twice more than desktop on retail, and have higher average ticket User complete purchase on % of users who used multiple devices in path to purchase. Brazil cross-device share of eCommerce Transactions: 59% 60% 55% Tablet Smartphone Desktop
  40. 40. Activities Inside Physical Stores Through Mobile Devices Superior Experience Leads to Better Results for Apps Mobile in Latin America Report - 2016 41 Source: E-bit Informação– June/2015 – Special Mobile Survey Source: Criteo, State of Mobile Commerce, Q3 2015 Products viewed per user 4.3 Add-to-basket Purchase Products viewed per user 14.4 Add-to-basket Purchase CONVERSION RATE 3.7 CONVERSION RATE x3.5 x2.4 x1.6 APPMOBILE BROWSER Conversion Funnel from landing on site
  41. 41. Engagement time - Brazil What Would One Mobile App Be In The Largest City In South America? Mobile in Latin America Report - 2016 42 Source: comScore, 2015 Source: Spotify Spotify is the fifth largest “radio broadcaster” in São Paulo regarding weekly reach. Weekly reach 15 – 65 range. 399 interviews.
  42. 42. Tips for Mobile marketing Mobile in Latin America Report - 2016 43 Source: Sendible, 2015 • Use effective keywords. • Identify your audience. • Ensure that your e-mail is mobile-compatible and customised. • Build your audience. • Ensure that your landing pages can be accessed directly. • Mobile technology. • Customised content. • Call for Action. • Watch out for new tecnologies which enhance your mobile marketing. • Play with website designs. • Offer options for a 10 seconds break or a 30 minutes commute. • Carefully consider the paywall worthiness. • Respect your target bandwidth capabilities. • It’s actually easier to ask first than to apologize later. • Do not over push notificate your target. • Keep an open mind about synergies with other apps and services.
  43. 43. DEMOGRAPHICS
  44. 44. Mobile Internet Users Profile Mobile in Latin America Report - 2016 45 Source: comScore. 2015_LATAM_Digital_Future_in_Focus; emarketer, 2015; We are Social, 2016
  45. 45. TRENDS
  46. 46. GARTNER RESEARCH MILLWARD BROWN Mobile in Latin America Report - 2016 46 Source: GARTNER • The Device Mesh • Advanced Machine Learning • Robo-writers create content: by 2018, 20 percent of business content will be authored by machines. • Customer digital assistants hold conversations: by year-end 2018, customer digital assistants will recognize individuals by face and voice across channels and partners. Source: MILLWARD BROWN • Marketers will differentiate between lean-back activities and more active involvement uses. • Header Bidding Will Drive Change in Programmatic Buying • Connected TV Won’t Kill Linear TV Advertising in 2016 • Brands Waste Billions by Failing to Adapt Video Creative Across Formats • Content Marketing Reaches the C-suite PROXXIMA Source: PROXXIMA • Mobile rules over desktop and Google’s Mobilegeddon • Increase in video ads acceptance • Ad spending in digital media – social, web and search – is to surpass TV spendings in 2016
  47. 47. JWT Mobile in Latin America Report - 2016 48 Source: JWT • On-demand world and the end of cable television as we know it • Context is king • Smart cities • Baby and beauty tech • New buzzword: empathy • Silicon Valley’s next frontier: Infrastructure McKinsey&Company Source: McKinsey&Company • As shopping moves in-app, digital payments displace cash • Nonbanks will continue to lead in peer-to-peer • Loyalty enters a new age • Domestic infrastructures move to real-time • Cyber attacks will increase TRENDWATCHING Source: TRENDWATCHING • Researchers are able to tell from a smartphone user’s mobile activity whether the user is bored with an 83% accuracy rate • Start by ensuring your internal culture is something to flaunt, rather than hide. • Playfully reposition your product or service in order to offer perspective shifts that shock customers into a radically new appreciation of the value you’re offering
  48. 48. TECHCRUNCH Mobile in Latin America Report - 2016 49 Source: TECHCRUNCH • Bitcoin Will Be Boring • AI Will Whisper To You • The Era Of Hardware Memes Approaches • We’re All Probably Wrong: in 1894, the Times of London estimated that by 1950 every street in the city would be buried nine feet deep in horse manure. Google - Education • Journey to collge registration is 60% online • 37% look for video information in the decision process • 50% of potential students use search engines to compare learning institutions Source: Google
  49. 49. FINAL TAKEAWAYS
  50. 50. Top 15 Takeaways Mobile in Latin America Report - 2016 51 1. The information age is here to stay and it’s a global phenomenon. Some big numbers: 2.3 billions GB of web traffic; 8.6 bullion videos watched; 4.2 billion searches made; 803 million tweets; 207 billion emails sent and 186 million photos taken 2. There are approximately 5 billion unique mobile subscribers in the world today according to GSMA. 3. Mobile subscriptions in Latam have surged. 700 million mobile broadband connections across Latam are forecasted by Ericson for 2021. 4. Smartphone users in Latam have played an important role in this hyper connected world. According to marketers, there are 182 million smartphones in the region. Brazil leads the penetration with approximately 60 million, followed by Mexico with 46 million and Colombia and Argentina with 19 and 16 million respectively. 5. In 2017, smartphone user penetration will reach 49,7%. The number is growing each year. The non-connected person will become the exception, not the norm. 6. Mobile ecosystem contribution to GDP in 2020 is expected to reach US$ 275 Billion or 4.5% of GDP in the region. 7. According to emarketer, mobile ad spending in Latam will grow from 620 million in 2014 to 7.92 billion in 2019 8. By 2020, there will be 395 billion mobile internet users in the region. 9. App download have reached new highs making Brazil the most popular download destination with 75% share in Latam. Apps are, right now more attractive than websites. 90% of mobile time is in apps. 10. Emarketer has showed that 85% of that is games, 9% is communication, 3% is for entertainment, 2% is business and 1% is technology. 11. Online video consumption in Latam is more mobile than ever. 12. Social media eyeballs and revenues too 13. Location is the new search. The will be 8 times more mobile data traffic between 2015 and 2021 14. Latam expected to be the richest growing mobile games market with 50% CAGR by 2017 15. Marketers are closer to their consumer through mobile and will differentiate between lean-back activities to more active involvement
  51. 51. Sources Mobile in Latin America Report - 2016 52 • App Figures • Cetic • CI&T • comScore • DigitalBuzz • E-bit Informação • eMarketer • FGV • Flurry Analytics • Ford Motors • Gartner • Google • GSMA • INC. • inMobi • JWT • Ericsson ConsumerLab • McKinsey&Company • Millward Brown • Mobile Internet Consumer Latin America MMA • Mobile Village • Newzoo • Pew Research Center • Proxxima • Sendible • Spotify • Statista • Techcrunch • Trendwatching • Vend • We are Social • World Bank
  52. 52. About Hibou Mobile in Latin America Report - 2016 53 Hibou: Owl. fr Hibou is a market research company that goes beyond the traditional. Hibou aims to see the consumer as a whole, an individual that has its own history, fears, qualities and drivers, a creature that observes and learns as he consumes products, campaigns and ideas, and so chooses his own way towards the product or service in study. Using tested and true research methods in tandem with the fast paced changes of today - be them of any nature, from social to technological - Hibou tracks niches and opportunities that can generate scale, awareness and growth for brands and to align the values of companies and their customers, current or potential. From product concept until campaign strategy, every step can benefit from an insightful look, testing and validation, and the rewarding answer for questions both old and new. Let the owl (hibou) find your answers. Ligia Mello, CEO ligia@lehibou.com.br
  53. 53. About the MMA Mobile in Latin America Report - 2016 54 The MMA is the world’s leading global non-profit trade association comprised of more than 800 member companies, from nearly fifty countries around the world. Our members hail from every faction of the mobile marketing ecosystem including brand marketers, agencies, mobile technology platforms, media companies, operators and others. The MMA’s mission is to accelerate the transformation and innovation of marketing through mobile, driving business growth with closer and stronger consumer engagement. MMA LATAM Team: Fabiano Destri Lobo, Managing Director LATAM fabiano@mmaglobal.com Thais Schauff, Director Business Development & Operations LATAM thais.schauff@mmaglobal.com Argentina: Soledad Moll soledad.moll@mmaglobal.com Brazil: Graziela Mazzer graziela.mazzer@mmaglobal.com Mexico: Carolina Mathieu carolina.mathieu@mmaglobal.com Zelmi Etchegoyhen zelmi@mmaglobal.com
  54. 54. Do you want to know more about membership? Reach out to us: mmalatam@mmaglobal.com

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