How 4G will strengthen the advertising and content market in Latin America

Jun 9, 2015 | News

By Pablo Potente

CEO Harrenmedia

Originally published on America Economia Magazine

The introduction of 4G technology or LTE, Long Term Evolution, signals a development opportunity for both users and businesses in Latin America.

This new radio interface provides an eager user population with improved mobile data service, access to services, information and applications that guarantee their consumer rights and meet new consumption habits marked by video and real time. This is a great opportunity to consolidate online marketing and advertising content.

In our experience, 2 years ago, marketing interaction reached 10% on mobile phones. Today, this figure is nearly 50%. Therefore, if we look at this tendency, we can say that in the future, Web consumption will be concentrated on cellular phones and not on personal computers.

This data coincides with the views of web measurement firms, such as ComScore, that indicate that the majority of communication goes hand in hand with the penetration of smartphones in the region. According to Marcos Christensen, Country Manager de ComScore for Argentina and Uruguay, this has a direct impact on the fact that this percentage of page views and banner impressions comes from mobile devices and not desktop computers.

If a comparison is made to 3 years ago, we see that mobile impressions have grown exponentially, fulfilling the “Mobile First” principle.

With existing technology, in Argentina, the growth of page views from non PC devices grew 67% from 2013-2014.

In advertising, the introduction of 4G will be key for rich media creatives to have the ability to provide advertisements that are more pleasing to the public and that will gain impact.

It is a fact that good advertising content is a substantial part of the content market linked to entertainment and information.

This seems to be a mere esthetic intuition, but it is a statistical fact. According to the study published by Adform last September, the CTRs (Click Through Rates or rates of clicks over impressions) and engagement indexes are clearly bigger in “rich media” advertisements versus conventional banners, 267% bigger. It is important to clarify that these measurements correspond to the United States market.

The public’s preference to see rich media advertisements pushes brands to invest in higher quality online advertisements. According to eMarketer, it is expected that the amount of money spent on rich media advertisements in the United States will increase 41.7% this year, which represents an approximately US $3.73 Billion.

Back in Latin America, a better mobile connection will allow media and advertisers to incorporate their own technology, as well as ones developed in other places, that until today have not had relevance and thus, have not scaled.

A better connection will also help establish confidence for mobile payments, as well as increase the number of transactions. With this, it is logical that brands will bet on more advertising on this channel. LTE is expected to strengthen different types of services, such as web browsing, FTP, video streaming, VoIP and the enormous market of online, multi-player games.

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