Americas Market Perspective / Vol. 8, Issue 32, Edition 10
Pyramid Research, Inc, October 2008
Mobile Advertising in Latin America: Looking for the Right Business Model
Earlier this year, Telefónica announced that it is launching a single global platform for deploying advertising on mobile phones. The Madrid-based operator has signed a worldwide deal with Amobee Media Systems for an ad server that will provide a consolidated point of contact for agencies and advertisers wishing to buy, deploy and monitor campaigns across all mobile channels. The deployment is planned to begin in UK, Spain, Mexico and Colombia this year.
So far, the advertising industry in Latin America has been based mainly on print, radio, television and the Internet. This is now changing. The author estimates there will be 465m mobile subscribers in the region at the end of 2008; couple this with some remarkable developments in mobile broadband infrastructure and the unique capabilities of mobile technology to target audiences and mobile networks can be considered a significant mass-media channel for the advertising industry. In our view, mobile networks, like other digital media, have achieved a significant role in countries like Argentina, Brazil, Chile, Colombia, Mexico and Venezuela, giving operators the chance to position themselves as attractive advertising outlets for local, regional and global brands. Moves like the one announced by Telefónica show that to sell advertising, Latin American operators will have to collaborate with a wide array of players. We believe an intelligent mobile advertising strategy would test best practices starting with a select group of subscribers, analyzing their behavior and building a dynamic database to track their preferences. Taking a long-term approach on the findings can then boost the market for mobile data and content, which will help operators maintain or even improve their ARPS.
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