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02 September
2016
Digital Advertising
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SMARTPHONE PENETRATION INCREASES MOBILE ADVERTISING BUDGETS

I recently read an article “Emerging Markets present a great opportunity for mobile and app advertisers. But how do you enter them” which contained some good data points which I will share with you (just the data pertaining to Latin America).

Finally, there seems to be no secret to what many, including us at Adsmovil have been saying since 2011. Skeptics may have pointed out that data plans were very expensive in Latin America, that “all you can eat” data plans did not exist, and that most people used prepaid phones so they would not have credit for data consumption.

Well, according to the study I read and using data from the PEW RESEARCH CENTER, this is the penetration data from Latin America:

Percent of users with internet access and who own a smartphone (Pew, 2014)

pew reseacrh

And these figures are from 2014, so they are much higher now since smartphone penetration has increased very rapidly.

And with this increase in usage and smartphone ownership, mobile advertising has increased greatly.

Mobile Internet Ad Spending 2013-2018 (US$ millions, eMarketer March 2015)

marketer

This data is consistent to what we are seeing in Adsmovil (and if you follow Facebook’s and Google’s quarterly earning reports it all points to the same). In Latin America mobile advertising growth is projected to grow almost 70% from 2016 to 2017, and then another 50% from 2017 and 2018.

This is very good news, and I remember distinctly our first visits in 2011 and 2012 to ad agencies. There were no advertising budgets for mobile marketing. A lot has changed in the last 4 years!




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