Internet users have shown they are
keen to watch videos online but lack of professional content, the
current state of marketing practice and a buoyant traditional TV ad
market are all holding the medium back.
But things are changing. Online video
is very much a part of the Latin American internet culture. In most
of markets, more than 80% of the online population watch video. The
top viewers are Mexican internet users, according to ComScore, who
watch 10.5 hours each month.
Online video ads are also becoming
part of digital advertising campaigns across the region, although
they are not yet an automatic element of the schedule.
Advertisers are working hard to
understand the benefits of the medium but many are still using
different creative concepts online. Such tactics - often driven by
the presence of a separate digital creative agency on the roster -
show that there we still have some way to go if we are to achieve
true integration at scale.
The big opportunity, however, is that
LatAM TV culture is still very traditional. Families still watch
television together in the evenings, so programming is inherently
social.
Consumers may tweet and write on
social networks about the shows they love - LatAm is the global
hotspot for social media participation and consumption - but as yet
most media owners are failing to provide additional video content
for them to engage with online.
The potential is there to leverage the
popularity of telenovelas and other shows but healthy traditional
TV ad budgets and the expense of streaming online have provided a
disincentive to create additional content.
In the few instances where consumers
do watch the limited amount of TV content online, it's because they
missed an episode. The result is that video consumption is still
dominated by short films, usually user-generated and watched mainly
by younger demographics.
Ironically, the behaviour of TV
distributors is about to boost online video advertising in Mexico.
Changes in the way that Mexican cable operators interpret the rules
on commercial minutage are likely to leave the whole market with
considerably less ad inventory than previously.
Fierce competition for slots is
boosting prices, and, ultimately, advertisers will have to find a
home for budgets that need to reach more people at a more effective
rate.
Their challenge - and the key task for
their agencies - will be to do this, while also maintaining proven
communications strategies.
Smart advertisers will be looking to
use the assets they already have online: placing commercials in and
around targeted, brand-relevant media using in-stream ads and
in-banner video. They will be measuring reach and frequency gained,
and whether online video increases consideration and purchase at a
better price than traditional TV.
The experiences of brands in Mexico
may be key in determining how fast the region as a whole adopts
true video planning - as opposed to separate TV and digital
planning.
A combined approach will align goals
for television and digital using assets that already exist. And by
assessing effectiveness across both channels, marketers and
agencies will be able to create a single language for comparing
video in television and video online.
First published here in M&M.