The document analyzes the 2013 results of an annual study on online advertising investment in Mexico. It finds that online advertising investment continued growing at a rapid 31% rate in 2013. Display advertising represented the largest portion at 61% of the $632 million total online advertising investment. Social media and video grew significantly as platforms for display advertising. The media and entertainment industry saw the greatest growth in investment at 197%. Overall, the study concludes that online advertising continues to grow substantially each year in Mexico.

1. 8th.
Edition Study on Online
Advertising Investment in Mexico
2013 Results
June 2014
www.gettyimageslatam.com

2. 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
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3. Contents
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1 Background and about the Study

4. 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.

5. 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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6. Terra
"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"
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Gerardo Adame
Terra General Manager

7. 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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8. About the Study on Advertising Investment
PwC
The study analyzes the
evolution of internet
advertising.
8
Collection of billing data of the
main portals
or sites that operate
in our country.
It provides key indicators
which facilitate the decision-making
process for
advertisers, media and
agencies.

9. Contents
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2 Methodology, participants and Research
Subcommittee in 2013

10. 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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11. Methodology
Construction of the total figure
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+
PwC Mexico figures Board of Experts
sites +
Total study figures
=
Estimates of non-participating

12. Methodology
Participants:*
• 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
*Companies which participated with their surveys and/or in the board of experts
• Reader’s Digest
• Red Viacom
• Sección Amarilla
• Televisa Interactive
• Televisa Radio
• Terra
• Ticketmaster
• Time Out México
• Vanguardia
• Yahoo!
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13. Methodology
8 new participants in 2013
• El Financiero
• Exponential
• Grupo Radio Centro
• IMPAKTU
• OCC Mundial
• Revista Neo
• Spotify
• Webzodes
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New participants*
*Companies which participated with their surveys and/or in the board of experts

14. Methodology
Companies which did not participate but were estimated by
IAB Mexico Subcommittee
• Batanga
• BB Mundo
• Cinemex
• El Economista
• El Universal
• ESPN
• Facebook
• Google
• Monografías
• Reforma
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15. Methodology
Research Subcommittee
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.
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• 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

16. Contents
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3 Context 2013

17. Context
The Mexican economy had a lower growth in 2013
compared to the prior year
GDP
2010
2011
2012
2013
2009
Source: INEGI. Mexico National Account System
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18. Context
In Mexico, 59.2 million people use Internet, which
represents 52% penetration
30% 33%
40% 46%
52%
+3%
+7%
+6%
+6%
2009 2010 2011 2012 2013
Source:
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19. Context
Mexican users use in average 2.4 devices to connect to the
Internet
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
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
Smartphone
Desktop
Cellphone
Table t
Video game
console
MP3 playe r
Internet
connectable TV
Handheld game
console
IN THEIR MOBILE DEVICES 65%
% OF USERS WHO SURF THE WEB
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20. Context
About Mexican Internet users…
88%
have downloaded applications,
software, programs and/or games 44%
Watch television and surf the web
9 out of 10
are in social media
at the same time
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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21. 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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22. 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
5,266
4,831
2,006
1,039
568
Public TV
Radio
Internet
OOH
Pay TV
Newspapers
Magazines
Film industry
Other
DISTRIBUTION
OF ADVERTISING
INVESTMENT
PER MEDIA
$69,021 mp
Source: CICOM Investment Study 2012
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23. 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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24. Contents
Evolution of annual turnover 2009 – 2013
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4

25. 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

26. Evolution of annual turnover, 2009-2013*
In 2013 the figure of 632 million dollars
of Online advertising investment was surpassed
36%
s)
000’35%
(31%
USD 44,604
AVG Xrate = 14.05 AVG Xrate = 13.15 AVG Xrate = 12.42 AVG Xrate = 13.16 AVG Xrate = 13.07
35,369
700
600
500
400
300
200
100
*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%
31%
632,473
490,745
372,027
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27. Classification of annual turnover 2013*
Display represents the major part of the online advertising
investment
USD$ 632 M
Annual investment 15%
2013
14%
24%
Search
Search 26%
Display
*These figures include the study participants and the estimate of Display, Search and
Classified advertisements made by the Research Subcommittee of IAB Mexico.
2013
Search &
Classifieds
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28. 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 = 12.42 AVG Xrate = 13.16 AVG Xrate = 13.07
116
700
600
500
400
300
200
100
USD (000’s)
AVG Xrate = 14.05 AVG Xrate = 13.15
*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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29. Contents
Investment in display per platform
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5

30. Investment per Display platform*
Social Media and Video grow significantly in investment
among Display platforms
6%
* These figures include the study participants, which
are a representative sample of Display
155%
100%
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31. Investment per Display platform*
The participation of Social Media and Video grows within the Display
2012
*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
2013
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32. Investment in Display
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Analysis of investment in display
from the participants' information
via survey

33. Contents
Investment in display per type of
concentration
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6a

34. Investment per contract type – Display*
CPM and Fixed Positions prevail as schemes
of concentration in Display
2013
2012
CPA
5%
CPM 61%
Other 4%
Fixed
Position 22%
CPA 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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35. Contents
Investment in display per quarter
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6b

36. Quarterly distribution of income - Display*
In 2013, the most remarkable growth took place during
the first and third quarter of the year
Million pesos
29%
41%
19%
8% 24%
18%
25%
USD (000’s)
23.9
36
46.67
36%
35
51
55.6
35
46.9
These figures include the study participants, which are a representative sample of Display.
Growth percentages calculated over Mexican Pesos
58.5
59.77
47.5
71.3
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37. Contents
Investment in display according to the
advertiser
activity
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6c

38. 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

39. Investment according to advertiser activity -
Display*
Investment in Media and entertaining grows significantly
194%
197%
97%
Media and
entertainment
Health Cleaning products
• These figures include the study participants, which are a representative sample of Display
• Growth percentages calculated over Mexican Pesos
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40. Investment according to advertiser activity -
Display*
Automotive industry continues increasing its investment
15% 10%
28%
Automotive Food
• These figures include the study participants, which are a representative sample of Display
• Growth percentages calculated over Mexican Pesos
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41. Contents
Main advertiser in 2013
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6d

42. Remarkable advertisers due to their Investment in
Display in 2013*
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Financial services
42
Automotive
Media and entertainment FMCG/CPG
* These figures include the study participants, which are a representative
sample of Display

43. Contents
Conclusions and reflections
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7

44. Conclusions
• 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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45. Research Subcommittee Reflections
• 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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46. Contents
Glossary
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8

47. 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

48. Glossary
How do we define search?
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.
Not included:
• SEO (Search Engine Optimization)
• AdSense (located in Display)
• Affiliate search listing
IAB Mexico Glossary
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49. Glossary
How do we define classified?
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.
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Including only B2B and
B2C, C2C not included
27.37%
72.63%
IAB Mexico Glossary

50. Glossary
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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51. 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.
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Glossary

52. 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:

53. Thank You!
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Questions?

54. PwC Mexico IAB Mexico
Contact:
Verónica Rivera
TLS Partner
veronica.rivera@mx.pwc.com
Telephone: (55) 5263.6089
Carlos Cano
TLS Senior Manager
carlos.cano@mx.pwc.com
Telephone: (55) 5263.5811
Carlos Méndez
Managing Partner
carlos.mendez@mx.pwc.com
Telephone: (55) 5263.6044
© 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:
Gabriel Richaud
Director IAB Mexico
gabriel@iabmexico.com
Telephone: (55) 5281.8899
Daniela Orozco
Manager Research IAB Mexico
Daniela.orozco@iabmexico.com
Telephone: (55) 5281.8899

55. PwC
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.
© 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.