Latin America still "scratching the surface" in use of video for ads, Google says

Wednesday, July 13, 2011

Latin American advertisers are still only scratching the surface in terms of using video for internet campaigns, Julio Zaguini, Google's (Nasdaq: GOOG) Latin America director for relations with advertising agencies, told BNamericas.

Speaking on the sidelines of the Digital Rock Stars conference this week, hosted by the Interactive Advertising Bureau (IAB), Zaguini spoke of three company predictions in terms of internet video advertising.

The first is that by 2015, 50% of online ad campaigns will have pay-per-view video content. Zaguini referred to YouTube's TrueView ads, which allow users to select the ads most relevant to them.

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Advertisers only have to pay for a view when a video ad is watched for 30 seconds or until completion.

"That is fantastic for ROI proposals, for the evaluation of your video. We're seeing that advertisers are increasingly concerned about ROI," Zaguini said.

These ad tools are only available in Latin American countries that have a local YouTube presence - which include Brazil, Argentina and Mexico - the executive said. He would not say when local YouTube sites will be available in other countries, such as Chile.

"The video communication model is completely dated, based on creativity for TV. We are at different stages across the region, but in general we're still trying to use videos that were designed for TV, for internet," Zaguini said.

"Internet offers you so much more in terms of technology. So combining what local agencies have with the technology available in internet, we would create a fantastic opportunity for the region to progress. But we're still at the preliminary stages. We're still making TV for internet, when it is about internet for internet," Zaguini said.

The second prediction is that by 2015, 50% of the TV and internet audience will purchase in real time. Using its keyword "triggers" for TV ads, Google can connect to offline TV advertisers - namely cable TV - advising them to adjust their campaigns based on sudden changes in consumer behavior.

The third prediction is that video on mobile phones will have a huge impact on advertising in the future. This is something that is in its infancy in the US and "not even scratching the surface" in Latin America, Zaguini said.

"We're more into the development of online in general - the internet and getting the basics right. We see some unique initiatives in certain countries with some agencies, some advertisers starting to pay a little more attention to mobile," Zaguini said.

The executive said that the amount of video use on mobile is growing at 43% per year, and that the opportunity is tremendous considering there are 2bn people in the world connected to the internet, but 5bn with mobile phones.