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

42%

LATAM

in our operating
countries

91m
24m
20m
19m
14m
13m
12m
10m
5m
2m

Brazil
Argentina
Mexico
Peru
Colombia
Chile
Venezuela
Central America
Ecuador
Uruguay

215 million customers

Source:	
  World	
  Bank	
  Popula2on	
  2012,	
  Telefonica	
  Annual	
  Report	
  2012	
  
Our mission is to add contextual
relevance to mobile advertising

Location

Demographic

Behavioural

Real-World
Context
 

Latin America offers a
unique opportunity_
1	
  

Advertisers should think ‘Mobile First’

Latin America Internet Access (millions)

350
300

By 2016:

250

50%

200

of internet
users will be
mobile-only

150
100
50
0
2012

2013

2014

Sources:	
  eMarketer Aug 2013, Pyramid Research 2013
	
  

2015

2016

2017
1	
  

Even more important in Mexico

70%

50% of internet users already rely on a
mobile device to access the internet

60%
50%
40%
30%
20%
10%
0%
2011

Sources:	
  eMarketer	
  2013	
  
	
  

2012

2013

2014

2015
2	
  

‘Mobile First’ requires a fresh approach
to collaboration and business model
innovation

BUY

WORK

BUILD
Buy

Credit:	
  LUMA	
  partners	
  	
  

CONSUMER

MARKETER

Mobile LUMAscape
Work

SPAIN

UK
M-Commerce

Data

Advertising
Build
Mobile Phone Users – LatAm 2013
100%
80%
60%
40%
20%
0%
Argentina

Brazil

Chile

Feature Phone Users

*users	
  who	
  own	
  at	
  least	
  one	
  device	
  and	
  use	
  it	
  at	
  least	
  once	
  a	
  month	
  
Source:	
  eMarketer,	
  Global	
  Media	
  Intelligence	
  Report2013	
  

Mexico

Peru

Smartphone Users

Colombia
Mobile advertising in LatAm is expected
to grow faster than any other region
Mobile ad revenues: CAGR by region (2012-2017)

$79M

LatAm
Middle East/Africa
North America
Western Europe
Global
Central/East Europe
APAC
0%

Source:	
  	
  eMarketer,	
  IHS	
  2013	
  

10%

20%

30%

40%

50%

60%

70%

$600M+
But why is mobile
not growing
even faster?
3 myths to
dispel_
Latin Americans are very receptive
to mobile ads
Positive about mobile advertising
Adspend per connection

44%	
  
38%	
  

$7.10	
  

$1.00	
  

Asia Pacific

$0.10	
  

19%	
  
11%	
  

Latin America

$2.20	
  

North America
Western Europe

Sources:	
  	
  WIN/GIA	
  2013,	
  eMarketer	
  2013	
  
Even more positive in Mexico

60%	
  

of those familiar with
location-based mobile
ads thought the
service was valuable

In 2013, Mexican
mobile ad spend per
connection is just:

$0.62	
  

Source: , GSMA “Mobile Broadband at the Bottom of the Pyramid In Latin America” 2012, eMarketer 2013
Feature phones are mobiles too
Feature phones still
dominate in LatAm
31%
69%

In Mexico:

39%

Sources:	
  Ovum	
  2013,	
  WIN	
  Gallup	
  2013,	
  eMarketer	
  2013	
  

61%
SMS is made-for-mobile and delivers results
Media Amplification

Purchase

Engagement

FOX wanted to raise awareness of
their new TV series ‘The Bridge’, to
support their TV ad campaign.

Elektra wanted to drive participation
in a competition whereby users
received free air time if they toppedup their Elektra account.

Dove wanted to raise awareness of
their ‘Cosquillas’ campaign and drive
engagement via social media.

Result:
67% ad recall

10%

watched the
show

Result:
2.7% topped-up

2.7%

conversion rate

Result:
93% incremental awareness

18%

submitted a video
or photo
Brand-sponsored services are proving popular
15%	
  	
  

Engagement	
  
Rate	
  

FREE	
  SERVICE	
  

Sponsored
data

Ad-funded
service

value	
  exchange	
  

€	
  ad	
  spend	
  

Sponsored
calls

Customers

€	
  buy	
  the	
  product	
  

Brand
Sponsored Calls

User	
  dials	
  short	
  
code	
  or	
  makes	
  a	
  
reverse	
  charge	
  call	
  

120,000	
  calls	
  in	
  	
  
Sao	
  Paulo	
  alone	
  

Ringback Tones

User	
  requests	
  
further	
  info	
  from	
  
brand	
  	
  
(if	
  desired)	
  

User	
  listens	
  to	
  	
  
30	
  second	
  
audio	
  ad	
  	
  

96%	
  advert	
  
comple2on	
  rate	
  

Content

User	
  makes	
  
free	
  call	
  to	
  
friend	
  

•  SMS	
  
Avg.	
  2	
  free	
  calls	
  per	
  
•  Follow-­‐up	
  call	
  
user	
  per	
  week	
  
•  Service	
  subscrip2on	
  

Fast Food

Beauty

Educational Content
Location where smartphone owners ultimately
purchased items researched via their devices
20%

The majority of
mobile conversions
are off-device	
  

Online
Other

3%

In-Store

77%

How shoppers use their phones for shopping
0%
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
Make purchase
Sources:	
  eMarketer	
  (US)	
  2013,	
  Google/MARC	
  2013	
  

20%

40%

60%

80%
Case study: Pizzeria Monte Verde
63%

Remembered the ad

59%	
  

Increased intention to
buy a pizza

	
  

20%
	
  

Purchased a pizza after
receiving the SMS

300%	
   Increase in pizza sales
	
  

Source:	
  Vivo	
  Pizzeria	
  Monte	
  Verde	
  survey	
  using	
  PublicEye,	
  2013	
  
Key takeaways for mobile success:
Think ‘Mobile First’
Test and learn now
Don’t ignore feature phones
Strive for contextual relevance
GoMo!
simon.birkenhead@telefonica.com
@simonbirkenhead

Presentación de Simon Birkenhead

  • 1.
    Mobile Marketing inLatAm: The Myths, the Facts & the Future_   Simon Birkenhead Director, Global Advertising Sales
  • 2.
  • 3.
    Strength of Telefonica acrossLatAm region 42% LATAM in our operating countries 91m 24m 20m 19m 14m 13m 12m 10m 5m 2m Brazil Argentina Mexico Peru Colombia Chile Venezuela Central America Ecuador Uruguay 215 million customers Source:  World  Bank  Popula2on  2012,  Telefonica  Annual  Report  2012  
  • 4.
    Our mission isto add contextual relevance to mobile advertising Location Demographic Behavioural Real-World Context
  • 5.
      Latin America offersa unique opportunity_
  • 6.
    1   Advertisers shouldthink ‘Mobile First’ Latin America Internet Access (millions) 350 300 By 2016: 250 50% 200 of internet users will be mobile-only 150 100 50 0 2012 2013 2014 Sources:  eMarketer Aug 2013, Pyramid Research 2013   2015 2016 2017
  • 7.
    1   Even moreimportant in Mexico 70% 50% of internet users already rely on a mobile device to access the internet 60% 50% 40% 30% 20% 10% 0% 2011 Sources:  eMarketer  2013     2012 2013 2014 2015
  • 8.
    2   ‘Mobile First’requires a fresh approach to collaboration and business model innovation BUY WORK BUILD
  • 9.
    Buy Credit:  LUMA  partners     CONSUMER MARKETER Mobile LUMAscape
  • 10.
  • 11.
    Build Mobile Phone Users– LatAm 2013 100% 80% 60% 40% 20% 0% Argentina Brazil Chile Feature Phone Users *users  who  own  at  least  one  device  and  use  it  at  least  once  a  month   Source:  eMarketer,  Global  Media  Intelligence  Report2013   Mexico Peru Smartphone Users Colombia
  • 12.
    Mobile advertising inLatAm is expected to grow faster than any other region Mobile ad revenues: CAGR by region (2012-2017) $79M LatAm Middle East/Africa North America Western Europe Global Central/East Europe APAC 0% Source:    eMarketer,  IHS  2013   10% 20% 30% 40% 50% 60% 70% $600M+
  • 13.
    But why ismobile not growing even faster? 3 myths to dispel_
  • 15.
    Latin Americans arevery receptive to mobile ads Positive about mobile advertising Adspend per connection 44%   38%   $7.10   $1.00   Asia Pacific $0.10   19%   11%   Latin America $2.20   North America Western Europe Sources:    WIN/GIA  2013,  eMarketer  2013  
  • 16.
    Even more positivein Mexico 60%   of those familiar with location-based mobile ads thought the service was valuable In 2013, Mexican mobile ad spend per connection is just: $0.62   Source: , GSMA “Mobile Broadband at the Bottom of the Pyramid In Latin America” 2012, eMarketer 2013
  • 18.
    Feature phones aremobiles too Feature phones still dominate in LatAm 31% 69% In Mexico: 39% Sources:  Ovum  2013,  WIN  Gallup  2013,  eMarketer  2013   61%
  • 19.
    SMS is made-for-mobileand delivers results Media Amplification Purchase Engagement FOX wanted to raise awareness of their new TV series ‘The Bridge’, to support their TV ad campaign. Elektra wanted to drive participation in a competition whereby users received free air time if they toppedup their Elektra account. Dove wanted to raise awareness of their ‘Cosquillas’ campaign and drive engagement via social media. Result: 67% ad recall 10% watched the show Result: 2.7% topped-up 2.7% conversion rate Result: 93% incremental awareness 18% submitted a video or photo
  • 20.
    Brand-sponsored services areproving popular 15%     Engagement   Rate   FREE  SERVICE   Sponsored data Ad-funded service value  exchange   €  ad  spend   Sponsored calls Customers €  buy  the  product   Brand
  • 21.
    Sponsored Calls User  dials  short   code  or  makes  a   reverse  charge  call   120,000  calls  in     Sao  Paulo  alone   Ringback Tones User  requests   further  info  from   brand     (if  desired)   User  listens  to     30  second   audio  ad     96%  advert   comple2on  rate   Content User  makes   free  call  to   friend   •  SMS   Avg.  2  free  calls  per   •  Follow-­‐up  call   user  per  week   •  Service  subscrip2on   Fast Food Beauty Educational Content
  • 23.
    Location where smartphoneowners ultimately purchased items researched via their devices 20% The majority of mobile conversions are off-device   Online Other 3% In-Store 77% How shoppers use their phones for shopping 0% 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 Make purchase Sources:  eMarketer  (US)  2013,  Google/MARC  2013   20% 40% 60% 80%
  • 24.
    Case study: PizzeriaMonte Verde 63% Remembered the ad 59%   Increased intention to buy a pizza   20%   Purchased a pizza after receiving the SMS 300%   Increase in pizza sales   Source:  Vivo  Pizzeria  Monte  Verde  survey  using  PublicEye,  2013  
  • 25.
    Key takeaways formobile success: Think ‘Mobile First’ Test and learn now Don’t ignore feature phones Strive for contextual relevance
  • 26.