Latin American mobile marketing facilitator IMS predicts that mobile will account for 40% of all media advertising in the region within five years, or 40% of a market that could be worth US$63.2 billion in 2019, extrapolating current growth rates.
Today, mobile is only 3.2% of total media advertising in Brazil, Mexico and Argentina, according to digital economy consultancy eMarketer, but it is rapidly gaining ground.
The consultancy estimates that spending on digital advertising will be US$5.07 billion in Brazil, Mexico and Argentina this year, up 19% from US$4.25 billion in 2014. On the other hand, mobile advertising in those three countries will grow 108%, to reach US$1.06 billion. Globally, advertising across all forms of media is projected to grow at about 6% per year for the next few years, according to research firm ZenithOptimedia.
eMarketer in fact estimates that mobile advertising will represent 63.9% of digital advertising in Latin America by 2019, compared to roughly 20% today. As a comparison, in the US, mobile is expected to reach 60% of digital advertising next year. But growth is particularly fast in Latin America: In the three main markets the weight of mobile within digital is expected to double this year, to 21% instead of 9.9% in 2014.
Years ago experts predicted that advertising and location based services (LBS) would be among the most important VAS components for telcos, but we rarely see media reports about them, perhaps overshadowed by m-money, M2M, IoT and wearables. Nevertheless, the above figures suggest that advertising and LBS are indeed living up to their potential.
In this report BNamericas gathers up to date information about this space and consults specialists about the further developments we can expect.