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2018 was a year full of disruption and consumer habits changes in the LATAM region, especially when it comes to digital marketing. While the main markets (Brazil, Argentina, Mexico and Colombia) are still leading the way in investment and technology adoption. The overall region has experienced a shift from offline to online advertising and is expected to continue to grow for the years to come. Although most advertisers are aware of the change, it is hard to let go of old ways. Due to limitations in tools and data in the region, online advertising budgets often need additional justification and support from media agencies, compared to traditional media budgets.
When it comes to online advertising, we all know data has played a crucial role in optimizing advertisers' budgets; by reaching the right audience, at the right time, with a relevant message. In theory this sounds great, but in reality brands are having a hard time delivering tailor made messages. This is due to creative development and approvals procedures, ad technology challenges and lack of multi functional teams. Retailers and travel advertisers have been leading the way in personalization by using Dynamic Remarketing to show tailor made ads based on the user's navigation of the advertiser's website. The main media vendors for the region are Google Ads, Facebook Ads, Mercado Libre and Criteo. For branding advertisers who do not have an online store, the best way to jump into this trend is to use data driven creative from DV 360, using third party data to deliver a tailor made message. Real time events can also be used to trigger personalization. During the last FIFA World Cup we had the opportunity to experiment with triggers from DV 360. This allowed us to show an ad depending on the results of a specific game or even when a certain player scored.
Although mobile leads the way, agencies and brands are facing challenges in terms of performance. When it comes to mobile, speed is the most critical factor for success. Slow landing pages, short attention spans and poor internet connectivity are leaving users frustrated. In order to help brands face these challenges there are new technologies emerging. AMP (Accelerated Mobile Pages) from Google is helping publishers deliver faster mobile experiences by making loading time almost instant. If you are interested in the technical details of how it works watch the video below.
Facebook instant experiences previously known as canvas, allow advertisers to deliver users an optimized mobile experience with video, images, carousels, products and forms. Facebook also allows advertisers to re-target users who previously interacted with instant experiences; making it a perfect fit for either direct response or branding advertisers.
Progressive web apps combine the best of the web and apps by delivering reliable, fast and engaging experiences to users. This technology allows users to install web apps in their home screen, receive push notifications and even work offline. They are easier to build, maintain, and cheaper to produce than traditional apps. This makes progressive web apps a very appealing option for brands.
The challenge now is to use the most effective video format according to the consumer journey and touch points. Social media is a place where video has evolved, with vertical taking over as stories become prime time, sound off videos and short attention spans. The best practices for video in Social Media are the following: keep it short and sweet (5 - 15 seconds), grab attention early, create with sound off in mind, go vertical or square and do not be afraid to go live. When it comes to programatic video, pre-roll is the easiest option to get started since the 30 seconds TV spot will work with this format. When it comes to outstream video we have several options from vertical, square, native and even 360 videos. The main video vendors in Latam are: YouTube, Teads, Facebook, Instagram, Twitter, Impaktu and Oath. Overall the video strategy for 2019 should go beyond using the TV spot in digital; exploration and creative adaptation to the different formats available is key.
Safety Pay is the leader in the region but there also local players in each market encouraging this payment option. When it comes to the top e-commerce sites Mercado Libre is still the leader with presence in more than 17 markets across the region.
Amazon is in second place but will probably be number 1 in 2019. Amazon Prime was introduced in Mexico in June 2018 and is planning on opening in Brazil in 2019. Another important matter changing E-commerce transactions in the region is the rise of delivery services such as: Rappi, Corner Shop, Domicilios.com, Mercadoni and Uber Eats. These platforms are allowing CPGs advertiser such as Coca-Cola and P&G to get into the E-commerce space and will probably start gaining revenue from advertisement. Uber Eats just announced that is starting to test advertising formats for restaurants within its network.
There many other trends for 2019 like AI, VR, AR, Chat Bots, Big Data, Voice, etc. But when it comes to LATAM, Personalization, Mobile, Video and E-commerce will definitely be game changers in any digital strategy.
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