The State of Programmatic Advertising in Latin America


Programmatic Advertising in Latin America: Latin America map

Programmatic advertising is on a trajectory. Innovation and technological advancements are the key factors driving the growth of the digital ecosystem which creates new opportunities and needs within programmatic.

During recent years, Latin America (LATAM) has become one of the fastest-growing and most dynamic regions for programmatic advertising. Programmatic’s share of digital ad spend worldwide is expected to grow to 68% this year with Latin America not far behind at 63%. 

Brazil is projected to be the sixth largest programmatic video ad market in the world this year. In Mexico, Latin America’s second largest ad market, television is still the dominant ad channel, but digital ad spending is projected to reach US$2,478m in 2020. Smaller markets, such as Chile, Peru, Colombia, and Ecuador, are also expected to develop quickly in the coming years as advertisers deploy their knowledge and experience gained in larger markets.

The expectations and potential for the LATAM programmatic market are high, yet it’s a relatively young region in terms of expertise. 

Case Study

We at Aarki recently ran a successful campaign in the region for a well-known gaming app. The campaign generated a 91% increase in conversion rate (CR) and an 84% increase in install rate (IR). A deeper analysis of the campaign performance showed a 342% increase in the return on investment (ROI), which was 152.12% above the client’s ROI goal, and a 20% decrease in the cost per install (CPI). The foundation of this success is localization. 

Why Master Creative Localization in Latin America

The importance of localization in the Latin American market is not to be underestimated. Running global ad campaigns in Latin America will not give the expected results, as the level of English language proficiency in Latin America is relatively low when compared with Europe, for example. Thus, English-language ads are highly unlikely to be effective in this continent. 

Moreover, localization in Latin America is not as simple as performing a direct translation into Spanish or Portuguese. Each Spanish-speaking Latin American nation has to an extent a different culture, turns of phrase, and preferences. When looking to expand into Latin America it is essential to apply linguistic and cultural sensitivity to the variety of languages across this large continent.  

Mobile ads have little room for graphics and text, which means every letter counts. At Aarki we design creative variants from the ground up with localization in mind. 

     

Steps Towards Programmatic in LATAM

Once you have addressed localization,  the ongoing challenge is understanding of how and why programmatic can be applied to marketing investments. There are several approaches that might help you navigate programmatic advertising in LATAM.

   1. Keep it mobile

Latin America is the third region in the world in terms of mobile penetration. What is more, smartphone adoption rates are growing steadily,  laying a firm basis for the programmatic. In 2018, smartphones accounted for 66% of all mobile connections in Latin America, and the share is expected to increase to 79% by 2025.

   2. Give dominance to video 

Mobile video usage is on the rise in Latin America. Across Argentina, Brazil, Colombia, and Mexico, mobile has overtaken other devices when it comes to watching online videos. People find entertainment, information, and inspiration through mobile video, and marketers can leverage this to connect with their target audiences. Mobile video is more affordable to produce and distribute than video for television and premium online channels, and the real-time customization features of mobile programmatic create excellent opportunities for mobile video campaigns.

   3. Don’t forget to personalize

Users need to be treated as individuals and enrolled in an experience specific to their interests and behavior especially in the market like LATAM where each region has its national and cultural peculiarities. Personalization should be an extension of your localization.  

Dip your toe into the LATAM programmatic advertising market and follow our Insights for more tips.   

 

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