Smartphone growth drives mobile spend in MexicoStaff writer ▼ | October 20, 2014
Mobile ad spending in Mexico will grab $178.2 million in 2014, 87.7% more than in 2013. Next year, advertisers will add 66.3% in mobile expenditures to lift that figure to $296.4 million.
$178.2 million in 2014 In Mexico mobile ads to be 87.7% more than in 2013
Against the backdrop of sluggish overall mobile phone adoption, smartphone uptake in Mexico is relatively high. This phenomenon is the result of a wide income gap that has kept swaths of low-income consumers off the smartphone market at a time when uptake among top earners has reached near-full penetration.
Thus, mobile internet ads are not yet the ideal way to reach a mass audience. But they are a conduit to a relatively well-off audience right now.
Telecommunications reforms enacted last year are increasing the number and diversity of smartphone users. Already, original equipment manufacturers (OEM) are introducing low-cost smartphones retailing for as little as $100—and prices are falling.
Compared with other Latin American markets, brands have been more aggressive about experimenting with mobile in Mexico. Mobile ad spending is expected to represent 17.1% of paid digital media communications in Mexico this year, compared with 3.1% in Argentina and 8.3% in Brazil.
Going forward, eMarketer predicts mobile internet ad spending will expand faster than any other channel in Mexico, posting a 59.1% compound annual growth rate between 2013 and 2018 and bringing expenditures in that channel up to $966.5 million by the end of the forecast period.
The expansion in mobile advertising budgets will rely on a swelling base of mobile phone users and, particularly, mobile internet users and smartphone users. The latter two categories will expand at double-digit rates through 2018. ■