Mexico’s Online Advertising Market Heats Up with 38% Investment Increase in 2012

If you’re thinking of expanding your business into a Latin American market, Mexico may very well be the place to be, especially given the growth of its digital industry.

For the seventh year in a row, IAB Mexico has presented a report on internet advertising investments, completed hand-in-hand with PwC Mexico and Terra. The data reveals a Mexican market that is expanding rapidly. In 2012, approximately US$492 million (6.4 billion Mexican pesos) were invested in online advertising in the country, a 38% increase from the year before.

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Market Participation

Confidence in the medium is diversified across different industries:

-The sectors that invested most in online advertising are Automotive (11%), Finance (10%), Government and Public Services (8%), Telecommunications (8%), Drinks (7%) and Media and Entertainment (7%).

-The industries that most increased their budgets for online advertising in 2012 are Drinks (61%), Beauty and Hygiene (38%) and Transportation, Travel and Tourism (31%).

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Main Findings

Display investments increased by 38% in 2012, thanks to growth in fixed and rotating displays (33%) and, above all, in new formats like video and social networks (208% and 94%, respectively).

E-mail is a valuable format, growing by 112%.

In terms of contract schemes, in the case of displays, CPM (cost per mille) and sponsorship represented 80% of ad investments in 2012 (83% in 2011), followed by CPC (cost per click) with 15% (12% in 2011) and CPA (cost per acquisition) with 5%.

Search continues to grow, reaching 49%, while investments in classifieds remain stable at 17%.

-With respect to contracting systems, 65% of the contracting of internet advertising takes place through agencies.

For categories, display is at the top with 59% participation, while search reached 30% in 2012 and classifieds 11%.

Other Markets

Taking a look at the larger picture, one can see that the increase in online advertising investments is a global trend.

Digital investments are up in markets like the U.S., the U.K. and Brazil, due in large part to increased confidence in the internet as a platform for advertising.

In the United States, online advertising investments grew by 15% in 2012, in the U.K. 13%, and in Brazil 32%. In Spain, investments fell by 3%, due to the country’s economic crisis.

“2012 produced big results for the digital industry. We believe that the transmission of the Olympic Games in London was a watershed not only in Terra’s history but also in digital media overall, the internet audience having surpassed the television audience worldwide. With bets like this, the digital industry will continue to gain strength,” remarked Terra’s Gerardo Adame.

You can take a look at the full report here.

This text has been adapted and translated into English by Emily Stewart from its original Spanish publication