Online ad spend in Mexico exceeded 30% for the third year in a row, according to the May 2012 Interactive Advertising Bureau México (IAB México). The report, entitled “Estudio de Inversión Publicitaria Online en México—Resultados de 2011,” indicates that online ad spend in Mexico rose 36% last year to reach MXN4.6 billion ($370 million).
The IAB México study found that online ad spending from companies in the automotive industry in Mexico expanded 101% in 2011.
Other industries with remarkable increases in online ad investments were media and entertainment (172%), public services and government (105%), and financial services (84%).
According to the same report, display (60%) remained the most popular format in 2011, despite a marginal reduction in market share when compared with the previous year.
Search (28%) was up four percentage points, at the expense of classifieds, which dropped from 15% in 2010 to 12% in 2011. The survey also found that 66% of ads in 2011 were bought through agencies, up from 61% in 2010.
The sharp improvement in online advertising revenues in 2011, as well as the increasing interest in more sophisticated online advertising tools, confirms the substantial and growing importance of digital media to industry marketers in Mexico.
The findings are published below:
Investment in Display increased 31% and remained the top advertising format.
Advertising in Search, Video and Social Networks grew significantly: 59%, 26% and 164% respectively.
The purchase of online advertising through agencies continues to grow reaching 66% of total investment.
The sectors that have invested in online advertising are Automotive, Financial Services, Media & Entertainment.
Use and investment according to format and recruitment
Display advertising format graphic display per share, fixed and rotary remained the most widely used format (60%) and investment in this type of advertising had the highest growth in the last 3 years: 31% from the previous year.
The type of recruitment display shows that the model CPM (Cost Per Thousand) and sponsorship was the most used, with 83% in 2011 (81% in 2010) remains CPC (Cost Per Click) with 12% and CPA ( Cost Per Acquisition) with 5%.
Participation rose to 28% Search (24% in 2010), also grew 59% investment in this format compared to 2010.
Using Video and Social Networking for advertising had a very prominent increase in investment, 26% and 164% respectively.
Online Classifieds slightly reduced their participation, but investment grew 19%.
66% of the online recruitment advertising was done through agencies.
Investment activity by advertiser
As for market share, the sectors that are invested in online advertising Automotive (11%), Financial Services (10%), Media and Entertainment (9%).
Compared to last year, Media and Entertainment are the most increased their online advertising budget 56%, followed by Government and Public Services (18%), automobiles (15%) and telecommunications (11%).
Government investment and public services increased significantly (from 8% in 2010 to 18% in 2011).
“Times are encouraging, definitely expect big brands continue to increase significantly its investment in the Internet, every day increases the number of companies discover the benefits of the environment and will increase their experience in the use of it,” said Gabriel Richaud , CEO of IAB Mexico.
“The investment in the digital environment in Mexico is a growing recognition that is proving an effective platform for developing marketing plans for advertisers. It is our responsibility as industry players, to ensure this growth and their great potential through quality efforts and clear communication about digital participates in the overall objectives of marketing, “said Isabel Menendez, President of the Research Committee.