Festival Intelligence: Bridging the linear and digital worlds in LatAm | M&M Global

Festival Intelligence: Bridging the linear and digital worlds in LatAm

The media landscape in Latin America is unique due to the sheer power of TV within the region. Yet as the world becomes more digital, and LatAm catches up to its global counterparts, data and programmatic is proving to be the solution to bridging the linear and digital worlds.

Rising internet penetration and smartphone adoption rates have led forecasters to predict that digital in Latin America will grow from $10.01 billion in 2018 to $14.6 billion in 2022 – by which time it will represent one-third of total media spend (eMarketer). But given that this is one part of the world where traditional media still steals the lion’s share of overall ad spend, a range of data-focused techniques and new technologies are paving the way for traditional media’s digital makeover.

Looking at the Festival of Media LatAm Awards 2018 shortlist in two specific categories — ‘Best Use of New Technology’ and ‘Best Use of Programmatic’ — reveals a geographic spread led by Mexico and Chile, with additional work in Argentina, Colombia and Puerto Rico. A further cluster of campaigns were originated from the US and executed across the LatAm region as a whole.

By brand sector, the spread is again quite varied – dominated by FMCG, Tourism, Travel and Leisure, Automotive and Pharmaceutical. And when it comes to media, the campaign mix covers everything from TV to radio, mobile, social and digital out-of-home.

Given that in LatAm markets fraud is a significant issue when it comes to digital and multi-market campaigns (33.5% fraud on mobile impressions, 41% on mobile clicks and 63% ghost clicks on mobile visits – online) managing the process is in itself quite a challenge. So it’s motivating to learn from those brands who are exploring new technologies and techniques in an effort to combat this.

From the FOMLA Awards shortlist, the key areas that brands have been exploring are: addressable TV, mobile and geo-location, and real-time data triggers, creating segmented audiences in order to deliver relevant, contextual messages in a personalised way.

John Paul, managing director of advanced advertising & data for Liberty Global, said: “The television ad industry has been connecting brands with consumers for 60 years – with little change. When digital landed we created more of a gap between basic demographic targeting and the new hyper-personalised, click-based targeting that frequently produces odd results. Now brands and video providers have the data, agencies are playing catch up and TV has grown up as a multi-platform medium. An important part of this story is the growing addressable TV ad market to combine the reach and data of a cable operator with the quality of TV advertising to deliver the right ad to the right home.”

And these new programmatic focused techniques are not just being used as a method to drive sales but to meet objectives around increased brand awareness, perception and consideration.

Another point to note is how brands are hooking into external events – from Mexican Black Friday to Red Nose Day to the World Cup sporting event – to provide real-time reactions based on consumer behaviour or interests. This is creating an opportunity for brands to optimise campaigns, achieving less wastage and better performance, and as the case studies show this is often linked with an e-commerce or retail element to drive footfall in store.

“Latin America is a gold mine for global brands, video-centric and mobile-first publishers, and forward-thinking agencies,” says Patrizio Zanatta, SVP and Managing Director of LatAm for Rubicon Project. “With three primary languages (Spanish, French and Portuguese) across 19 countries, territories and socioeconomic climates, programmatic advertising is one of the best tools available for targeting specific audiences in Latin America with content, messages and campaigns that speak their language.”

Data and programmatic is opening up a new world for marketers in Latin America and it’s clear that huge strides are being taken in bridging the linear and digital worlds. Judging by what we’ve seen so far, perhaps the time for digital dominance across the region could be sooner than we think.

We put the spotlight on two Festival of Media LatAm Awards 2018 shortlisted entries, which highlight this trend:

CIF AdressabiliTV | Cif | Initiative | Chile

Shortlisted for: Best Use of New Technology

Summary:

Annually there are two milestones in Chile that move a lot of sales volume in stores, they are called the “Walmart Traffic Lists”, an instance where the product is sold at a promotional price of $1,000. This activity does not have advertising to amplify. Cif’s Challenge was to increase sales with focus on a Santiago suburb that was coming down in sales, Ñuñoa, and this promotional activity seemed the perfect opportunity to rebound sales. There was an additional problem: for the first time its direct competitor, Mr. Músculo, would also participate in the Walmart traffic list with the same price.

VTR, the largest pay TV distributor in Chile, presented an opportunity to test a pilot with a new technology that allowed Initiative to apply a layer of segmentation to a traditional medium like TV: Addressable Content through the d-BOX associated to each TV. This technology, never used before in Latin America, would allow the agency to reproduce segmented content by means of 52,079 d-BOX existing in the District, with a potential reach covering almost 37.3% of the total in the District.

The creative decision was to use the generic TVC, adding a tail of 9”, in which time it would show a personalised message that would only be visible to the audiences of the District where it would activate the test. In the communication of the TVC queue, it invited people to find the product with a special price, indicating the address of the Walmart rooms where you could buy for that value.

Hewlett-Packard Core Pavilion Drive-to-store | HP | S4M | LatAm

Shortlisted for: Best Use of Programmatic, Best Use of Data, The Effectiveness Award

Summary:

Hewlett-Packard wanted to test a unique Attribution Model in LatAm using mobile advertising to bridge an online campaign with real traffic in stores during the HP Core Pavilion campaign. To be accurate measuring footfall traffic in real stores, a location-based technology needs consistent XY coordinates only available in-app using the GPS native feature of the smartphone.

With these insights, agency S4M combined detailed audience insights with location data uniquely available from mobile devices to ensure that each consumer exposed to the ad would experience a personalised ad unit driving him/her to the nearest point of sale. It fully integrated into the platform a third party measurement solution to have a more transparent and trustworthy approach.

The agency designed the campaign with data-driven audience clusters based on past behavioural data to reach the most relevant consumers. It designed mobile-first creatives to integrate seamlessly into the user’s browsing activities, which meant it could expose prospective consumers to static MPU and banner formats without interrupting their browsing experience.

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