MMA Mobile Insights Latam

MMA MOBILE
REGIONAL INSIGHTS
AUGUST 2017

Fabiano Destri Lobo
Managing Director LATAM
The initiative of the Mobile Marketing Association (MMA) in Latam, aligned with the global mission
of accelerating the transformation and innovation of marketing through mobile, draws attention
to urgent and important issues, enabling more education supporting the further growth of the
marketing and advertising ecosystem in the countries where it operates.
During this year, we are producing a series of educational materials, research and reports in order to
bring knowledge and celebrate the maturing of the mobile market for the marketing and advertising
industry in the region.
There will be a total of four exclusive researches on mobile consumer behavior in Brazil, Mexico,
Argentina and Colombia; one Regional Insights Report that demonstrate the great growth and true
potential of the mobile medium in the region; seven Playbooks and three white papers with insights
from international events. All this material will be compiled and distributed at the end of the year in
the edition of the MMA Mobile Latam Yearbook 2017 for members only.
In this Mobile Insights Report Latam 2017, the subject could not be different since we live in a world
where consumers are increasingly connected through their mobile devices. Mobile is accelerating its
relevance exponentially in relation to other digital channels and the numbers and opportunities of
this growing market show that the best yet to come.
Enjoy!
Introduction

Table of contents
Big Numbers
Users
Technology
Spredings
Behavior
Marketing
Marketing - Brazil
Trends to be aware in the mobile world
Challenges to be aware in a mobile world
Takeaways 17/18
4
11
16
21
33
50
74
76
79
83

3,677,841,048
Internet Users in the world
44,828,285,182,618
Emails sent this year
950,238,422
Blog posts written this year
1,157,705,927,157
Videos viewed this year on YouTube
20,878,521,553
Tumblr posts this year
530,725,102
Google+ active users
250,103,262
Pinterest active users
44,112,910,375
Skype calls this year
308,811,963
Twitter active users
1,948,245,040
Facebook active users
13,091,553,004
Photos uploaded this year on instagram
127,085,278,825
Tweets sent this year
1,014,849,034,739
Google searchs this year
1,220,883,449
Total numbers of websites
Mobile in Latin America Report - 2017
Source: Internet Live Stats
Taken July 10th, 2017 at 15h00 GMT
5

15,755,293
website hackeds this year
774,335,128
Smartphones sold this year
767,246,679,615 gb
Internet traffic this year
567,354,937 tons
CO2
emission this year from the internet
659,687,976 MWh
Electricity used this year for the internet
93,916,134
Tablets sold this year
104,550,959
Computers sold this year
Source: Internet Live Stats
Taken July 10th, 2017 at 15h00 GMT
6

Global Data Snapshot
Source: GSMA Intelligence 2017
Source: We Are Social, Jan 2017
7
2017 Worldwide LATAM
Total population 7476M 647M
Internet Users 3773M 386M
Unique Mobile Subscribers 4917M 453M

Mobile in Latin America Report - 2017 8
Source: Newzoo, 2016

Source: comScore-Report-Mobile-Hierarchy 2017

Source: IDC White Paper 2017

#Worldwide Mobile Subscriptions
Unique subscribers by region(Millions)
Source: UIT,WirelessIntelligence,GSA/InformaeTeleco:http://www.teleco.com.br/pais/celular.asp
Source: GSMA Mobile Economy, 2017
0.7
1.0
1.2 1.3
1.7
2.2
2.8
3.4
4.0
4.7
5.3
6.0
6.3
6.6
6.9
7.2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
billions
12

#Worldwide Mobile Subscriptions
Source: GSMA, 2017
13

Latin America: unique subscribers by country
Source: GSMA, 2016
14

Mobile Phones
Mobile Phone Density
Source: Teleco and Regulator Agency
15
Thousands 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Quarter
Year
(1Q and 2Q)
Brazil 273,583 275,707 278,482 280,732 283,4 282,455 2,45% 3,02%
Mexico 105,173 103,955 99 101,8 103 103,4 -0,53% -1,30%
Argentina 60,557 61,592 61,594 62,5 62,542 62,545 1,55% 2,41%
Colombia 51,595 52,194 53,584 55,331 56,14 55,982 7,26% 8,03%
Venezuela 30,531 30,325 30,173 30,528 30,294 30,125 -0,66% -0,72%
Chile 23,747 23,364 22,979 23,681 23,631 22,973 -1,67% -1,08%
Cell/100 inhab. 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
Argentina 145.0 147.4 147.4 149.6 148.5 148.5
Brazil 135.3 136.1 136.9 138.0 139.0 138.2
Chile 134.4 131.9 128.6 132.2 131.6 127.6
Colombia 108.3 109.5 112.4 116.1 116.5 116.1
Venezuela 101.0 100.0 100.4 101.2 100.1 99.2
Mexico 89.8 88.7 84.5 86.9 87.1 87.4

LATAM: Technology and Smartphone penetration
Smartphone users in America Latina by Country, 2014-2020 (millions)
Source: GSMA, 2017
Source: eMarketer, Apr/ 2016
17
Millions and AGR
2014 2015 2016 2017 2018 2019 2020 AGR
Brazil 41.3 54.3 64 72.8 80.2 85.8 90.5 13.96%
Mexico 30.9 37.7 44.2 49.9 55.4 59.2 62.1 12.33%
Colombia 14.6 16.9 19 20 22.7 24.4 26 10.09%
Argentina 11.1 13.9 16.2 18.1 19.9 21.6 23.4 13.23%
Peru 5.7 7.2 8.6 9.9 11.1 12.1 12.9 14.58%
Chile 6.3 7.1 7.9 8.7 9.3 9.8 10.3 8.53%
Other 19.8 25 29.7 34 38.1 41.5 44.9 14.62%
Latin America 129.8 162.1 189.6 214.3 236.6 254.5 270.1 12.99%

Mobile Subscriptions LATAM
Mobile subscriptions LATAM by technology
Source: Ericson, Nov/ 2016
Source: Ericson, Nov/ 2016
18
Device evolution, Latin America
(million)
Mobile subscriptions by tecnhology,
Latin America (million)

Mobile Operating System Marketing South America,
May 2016 to May 2017
Source: StatCounter 2017
18

Mobile Operating System Marketing South America,
May 2016 to May 2017
Source: StatCounter 2017
20

Mobile Broadband Connections Predictions and
Current Revenue - LATAM
Source: GSMA, 2017
Mobile industry contribution to GDP
US$3.3tn
28.5M 30.9M
U$450bn
U$500bn
US$4.3tn
4.4% GDP in 2016
Jobs directly
supported by
mobile
Jobs directly
supported by
mobile
4.9% GDP in 2020
2016
2016
2016
2020
2020
2020
Public funding ecosystem
Mobile ecosystem contribution
to public funding in L.A. before
regulatory fees.
Plus an addittional 1.2M indirect
Jobs supported in 2013.
Employment (Jobs directly supported by mobile)

Mobile Broadband Connections Predictions
and Current Revenue - LATAM
Source: GSMA, 2017
23

Mobile Broadband Connections Predictions
and Current Revenue - LATAM
Source: GSMA, 2017
24

Proximity Mobile payment value - US
Proximity Mobile payment users - Global
Source: eMarketer, Nov/ 2016
Source: Ovum, 2016
25
Factors driving growth include
wider merchant support for NFC
across point-of-sale acceptance
infrastructure, which in the US is
being helped by the upgrades
to EMV. The adoption of host
card emulation (HCE) is also
helping, providing a more flexible
way of implementing NFC. At
the same time, NFC is being
championed more widely across
the ecosystem by players such
as Apple, Google, PayPal, and
Samsung

The global transaction value of m-commerce will grow
from $50.92bn in 2014 to $693.36bn by 2019
Source: Ovum, 2016
Source: PwC Internet Ad Revenue Report, FY 2016
26
The total global user base for
mobile payments will increase
from an estimated 689.99 million
users in 2014 to 4.77 billion users
in 2019.
Shift from desktop to mobile
Mobile makes up more than 50% of internet advertising revenue for the first time

Mobile ad Spending by Country
2014-2019 in Billions USD
Source: eMarketer, 2017
Source: eMarketer, Dec/ 2016
27
Search and display ad spending are roughly in
balance in Brazil. Display spending is projected
to reach $1.47 billion this year, compared with
$1.44 billion for search.
Expenditures on mobile internet advertising in
Brazil will more than double to reach $929.5
million in 2016, eMarketer predicts. Mobile
spending will rise another 61.0% to $1.5 billion in
2017.
DIGITAL AD SPENDING BY FORMAT
MOBILE AD SPENDING

Mobile ad Spending by Country
2014-2019 in Billions USD
Number of apps available in leading app stores as of
March 2017
Source: Statista, 2016
28

Number of mobile app downloads worldwide in 2016,
2017 and 2021 (in billions)
29
Mobile Games Monetization Map

30
Mobile Games Monetization Map

Source: IDC White Paper 2017
31

Source: PageFair 2015, 2017 reports.
32
About Brazil
Brazil remains a primarily TV market, with 53.9% of total media ad spending going to TV
advertisements in 2016.
Digital ad spending will reach $3.13 billion and a 21.0% share of total media ad spending in 2016,
improving to 22.8% in 2017.
One thing that sets Brazil apart from neighbors in Latin America is a more even split between search
ad spending (47.1%) and digital display ad spending (46.1%) in 2016. Regional averages skew more
heavily toward digital display.
Just 29.7% of digital ad spending in Brazil will be devoted to mobile channels this year. But by 2020,
nearly three-quarters of digital ad spending in the country will go to mobile.

Source: ComScore, 2016
Source: GlobalStats, 2016
34

Source: Flurry Analytics, 2016
35
The top app categories in the region were Utilities/Productivity and Personalisation apps. Flurry
found that generally app categories mirrored the growth of regions given user adoption of
smartphones and full integration of devices into users’ lives.

Source: GloboWebIndex, 2015
36

Source: MMA, 2016

Source: Statista 2017
Source: MMA, 2016
Facebook Users in Latin America

Source: ComScore 2017
Maslow’s hierarchy of needs (and how mobile meets it)

E-mail opens – Global Insight

Source: MMA, 2016
Source: MMA, 2016
ATIVIDADES NOS DISPOSITIVOS – BRASIL
ATIVIDADES NOS DISPOSITIVOS – COLOMBIA

Source: MMA, 2016
Source: MMA, 2016
ATIVIDADES NOS DISPOSITIVOS – MÉXICO
ATIVIDADES NOS DISPOSITIVOS – ARGENTINA

Source: MMA, 2016
Source: MMA, 2016
FREQUÊNCIA – BRASIL
FREQUÊNCIA – COLOMBIA

Source: MMA, 2016
Source: MMA, 2016
FREQUÊNCIA – MEXICO
FREQUÊNCIA – ARGENTINA

% of people who have used the app for
sharing or discussing news in a given week
Reuters Institute Digital News Report 2017
48
Brazil – device and media for news

Reuters Institute Digital News Report 2017
49
Argentina – device and media for news
Chile – device and media for news
Mexico – device and media for news

Source: Criteo, 2016
Apps drive more transactions
Mobile apps beat browsers at every stage of the funnel
App transactions account for the 52% of all mobile commerce sales. In 48% of the
cases happened in the mobile web.
The funnel of mobile apps is much larger at every single stage.
This trend show us that investing in an app and convincing your customers to use it is more likely to
increase you revenue.

Source: Criteo, 2016
Sources: eMarketer, Gestion, El Financiero, La Nación, interviews, AMI analysis
App buyers spend more per transaction
Not only that apps convert better but also people tend to spend more on them
than on both mobile web and desktop.
On average people spend $102 on apps, $100 on desktop and $92 when using mobile browsers.
Because retailers have a higher control over the app they can provide users with more engaging
product content based on their browsing behavior and buying history.
This turns out to be more effective than generic signals founds on desktop and mobile web.

Sources: eMarketer, Gestion, El Financiero, La Nación, interviews, AMI analysis
Source: comScore MMX Multi-Platform, January 2017
We are now firmly in the ‘app age’

Source: PWC Internet 2016
Mobile broke the barrier and flooded the digital ad
space with 51% market share in 2016

Source: MMA, 2016
Source: MMA, 2016
PROPAGANDA - BRASIL
PROPAGANDA - COLÔMBIA

Source: MMA, 2016
Source: MMA, 2016
PROPAGANDA - MÉXICO
PROPAGANDA - ARGENTINA

Source: MMA, 2016
Source: MMA, 2016
PROPAGANDA - BRASIL
México

Source: MMA, 2016
Source: MMA, 2016
PROPAGANDA - BRASIL

Source: MMA, 2016
Source: MMA, 2016

Source: MMA, 2016
Source: MMA, 2016
PROPAGANDA - BRASIL

Source: MMA, 2016
Source: MMA, 2016

Source: MMA, 2016
Source: MMA, 2016
PROPAGANDA - BRASIL

Source: MMA, 2016
Source: MMA, 2016

Source: Kantar Millward Brown 2017
43% of Gen-Z wants music readily available on their mobiles, almost twice of the
Gen-X.
Gen-Z is also receptive to offline formats, and to well designed advertising. The
online overwhelming bombardment of ads, on the other hand, is a detrimental
factor.

Source: MillwardBrown AdReaction Video Creative in a Digital World (5/16)

Source: MillwardBrown AdReaction Video Creative in a Digital World (5/16)
Gen Z is much more positive to ads when given the option to skip or close, but they are also more
likely to use it. Likewise, non-skippable content is likely to result in a backlash.
The only real way forward is for brands to create content that will stop Gen Z in their tracks.

Source: Google/ Purchased Digital 2017
CREATIVE DEVELOPMENT: IMPROVING ENGAGEMENT
Actions That Most Commonly Preceded a Purchase

Source: Sendible, 2015
Tips for Mobile marketing
• Use effective keywords
• Identify your audience
• Ensure that your e-mail is mobile-compatible and customised
• Build your audience
• Ensure that your landing pages can be accessed directly
• Mobile technology
• Customised content
• Call for Action
• Watch out for new tecnologies which enhance your mobile marketing
• Play with website designs
• Offer options for a 10 seconds break or a 30 minutes commute
• Carefully consider the paywall worthiness
• Respect your target bandwidth capabilities
• It’s actually easier to ask first than to apologize later
• Do not over push notificate your target
• Keep an open mind about synergies with other apps and services

Source: Sebrae 2016
PERFIL DO CONSUMIDOR ON-LINE BR
ONDE ESTÁ O E-COMMERCE BR?
COMPORTAMENTO DE COMPRA
• 3% Ensino fundamental
• 32% Superior completo
• 20% Pós-graduação
• 22% Ensino médio 22%
• 23% Superior incompleto
• 38% entre R$ 1 mil e R$ 3 mil
• 9% mais de R$ 8 mil com 9%
• 8% menos de R$ 1 mil com
• 36% 35 e 49 anos
• 32% 25 e 34 anos
• 16% 50 e 64 anos
• 11% 18 e 24 anos
• 2% mais de 64 anos
• 1% até 17 anos
• 15% eletrodomésticos
• 12% informática
• 8% eletroeletrônicos
Escolaridade Renda familiar (recebem) Faixa Etária
Categorias mais
procuradas

TRENDS TO BE AWARE IN THE MOBILE WORLD
• Disruptive Brands are causing the consumer to consider what other sectors have its “hacking”
overdue
• Mobile to empower the entrepreneurship culture, gig economy and the formation of “peer armies”
• Social catches up with search for discovery
• Social commerce shows new promise
• Dark social rising
• Video ignites social advertising
• Organisations turn to connected workforces
• AR efforts to shift from development to application
• Multi-SIMS to fade out in favor of data
• Advanced Machine Learning
• Robo-writers create content
• Customer digital assistants hold conversations
• Commerce via Messaging Apps will become commonplace
• Marketers will differentiate between lean-back activities and more active involvement uses.
• Header Bidding Will Drive Change in Programmatic Buying
• Brands Waste Billions by Failing to Adapt Video Creative Across Formats
• Video will become the native advertising platform of choice.
• Virtual reality will continue to be a buzz-worthy platform, but don’t expect it to have a great ROI.
• On-demand world and the end of cable television as we know it
• AI to increasingly replace retail workers
• Context is king
• Smart cities
• Baby and beauty tech
• Empathy consolidation and buzz worthy for a while longer
• Silicon Valley’s next frontier: Infrastructure
• As shopping moves in-app, digital payments displace cash
• Nonbanks will continue to lead in peer-to-peer
• Loyalty enters a new age
• Domestic infrastructures move to real-time
• Cyber attacks will increase
• Researchers are able to tell from a smartphone user’s mobile activity whether the user is bored
with an 83% accuracy rate
• Start by ensuring your internal culture is something to flaunt, rather than hide.
• Merchants will adopt in-store mobile devices

Trends - Sources
• CI&T
• GARTNER RESEARCH
• GSMA - The Mobile Economy 2017
• INC.
• JWT
• McKinsey&Company
• MILLWARD BROWN
• MMA
• PROXXIMA
• TECHCRUNCH
• TRENDWATCHING
• VEND

Financial Inclusion: End poverty in all its forms
everywhere
Agriculture: End hunger, achieve food security and
improved nutrition, and promote sustainable agriculture
Health: Ensure healthy lives and promote well-being for
all
With over 400 million registered users, mobile money facilitates access to
financial services, many of which contribute to building the resilience of the
poor by reducing their vulnerability to economic, social and environmental
shocks and disasters.
Research5 on the impact of mobile money in Kenya shows that the service,
since 2007, has helped bring 194,000 Kenyans out of poverty, by allowing users
to send and receive payments at low cost, to move from farming to business
occupations, and to save more of their income.
Agriculture is the main contributor to GDP in emerging markets and the largest
employer. Mobile is uniquely positioned to deliver the critical information
quickly that rural smallholder farmers need, enabling them to make better
decisions and investments that boost their productivity and profit.
Telenor Pakistan launched its Khushaal Zameendar (Prosperous Landlord)
mobile agriculture service in December 2015. The service is now empowering
more than 2 million farming households by improving access to timely and
actionable information for sustainable impact through better yields and
increased income for the rural family. The service offers access to agricultural
advisory information via IVR, SMS and outbound alerts that notify users twice
per day.
Mobile can increase the quality, reduce the cost and extend the reach of
healthcare to benefit millions. There are currently more than 1,000 mobile
health services in developing countries targeting families through the provision
of health content and diagnostics services.
Wazazi Nipendeni is a mobile health service in Tanzania offering clinic
appointment reminders to pregnant women, mothers with new-born babies
and caregivers, with the objective to promote healthy behaviours in pregnancy
and early childhood care. Led by the Ministry of Health and supported by
operators (Airtel, Tigo, Vodacom and Zantel) the service has reached over 1.2
million people since it launched in 2011.

Women Empowerment: Achieve gender equality and
empower all women and girls
Water and Sanitation: Ensure access to water and
sanitation for all
Energy: Revitalise the global partnership for sustainable
development
Mobile can help empower women, helping them feel more connected, safer,
and with access to information and life-enhancing opportunities, such as health
information, education opportunities and financial services.
The GSMA Connected Women Commitment Initiative focuses on reducing the
gender gap in mobile internet and mobile money services. Mobile operators are
making formal commitments in low- and middle-income countries to increase
the proportion of women in their mobile internet and/or mobile money
customer base by 2020, connecting millions more women. As of January 2017,
there were 32 formal commitments to these goals by 24 mobile operators.
Mobile-enabled solutions can improve the efficiency of water and sanitation
services and extend their reach, bridging the gap in universal access to water
and safe sanitation.
In Kenya, Sanergy has been piloting the use of cellular sensors in Fresh Life
Toilets. This improves toilet efficiency by more accurately predicting when
waste collection is needed; recording when waste collectors visit latrines and
when service is requested, ensuring affordability and hygiene.
In the off-grid energy sector, the mobile-enabled solar pay-as-you-go model
has been enabling access to clean energy solutions since the early 2010s. Over
800,000 solar home systems use mobile payments and M2M technology to
provide reliable, clean energy.
In Uganda the majority of people have no access to grid electricity. Fenix
International partnered with MTN to offer pay-as-you-go solar energy,
providing a cleaner, affordable alternative to existing kerosene lamps. Only
31% of customers reported using alternative sources of lighting, significantly
decreasing the proportion of those subject to unreliable, dangerous energy
sources.

Infrastructure: Build resilient infrastructure, promote
sustainable industrialisation and foster innovation
Enhance inclusion: Reduce inequality within and among
countries
Disaster response: Take urgent action to combat climate
change and its impacts
A key challenge for this SDG is to address the rural-urban divide. The mobile
industry helps by extending and upgrading its infrastructure, connecting
remote and underserved communities, stimulating economic participation, and
supporting IoT-related innovation.
In January 2017, the GSMA announced the launch of the first roaming
agreement in Tanzania and the first in East Africa. Airtel, Millicom and Vodacom
launched six 3G roaming pilot sites to test the sustainable provision of mobile
broadband services. The pilots will help cover 70,000 new users across rural
areas of Tanzania. They are structured around a replicable methodology to
provide critical mobile network access to the unconnected. The GSMA expects
to launch similar projects in other markets over the next three years.
For many marginalised groups around the world, mobile is the first step to
inclusive participation in a connected society. Mobile has a key transformational
role in providing formal identity and access to various essential services,
including banking.
Addressing the over 60 million people who are forcibly displaced worldwide,
approximately 21.3 million of whom are refugees, would go a long way to
reducing inequalities. The GSMA Disaster Response programme has launched
the Refugees and Connectivity portal to demonstrate how mobile technology
is making a difference to the lives of refugees.
Asia Pacific is the world’s most disaster-stricken region, with natural disasters
alone accounting for over 340,000 deaths in the last 12 years. Given the
frequency and intensity of disasters in Asia Pacific, mobile operators have
launched services to both prepare for and respond to disasters.
Sri Lankan mobile operator Dialog developed a Disaster and Emergency
Warning Network in the aftermath of the 2004 Indian Ocean tsunami. This
utilizes mobile communications to form an early warning network. The network
connects mobile subscribers, emergency responders, community leaders and
the general public to a national emergency monitoring centre.

Takeaways
• We are walking a path where 2/3s of Latin American consumers connect themselves to the
internet via a mobile subscription, causing a surge to the majority of mobile platforms.
• The budget for internet advertising has migrated towards mobile platforms, surpassing the
world’s total sum of non-mobile investments. Similarly, the mobile has exceeded desktop use. Both
tendencies also happen in Latin American countries.
• Latin American gamers represent almost 1/3 of the total population. The expenses, however, are
comparatively lower than in Asia by both market, and cultural aspects.
• Three of the four countries with the highest number of average hours spent on social media per
day belong to those in Latin America. Social media has also become the path to several pieces of
information, news and discovery.
• Message apps have also been growing as a source of news and discovery, promoting the power
of word of mouth. The understanding of diversity within social platforms must grow as a necessity
along the consumer’s path.
• Moreover, message apps have grown as a means of communication to the micro and small, retail
or service supplier, straight through their consumers.
• The mobile comprises itself as less of an appliance and more as an extension of the consumer.
• The mobile’s different functionalities allow the delivery of diverse levels of human needs, in all
its abilities. Many of them have yet to be fully explored in their fullest capacity, making space for
innovation and growth.
• In a mobile world, apps with good navigation and appealing UIs have better critiques from
responsive websites – the attention from the UX allows the identification of specific gaps in the
m-commerce for better feedback, productivity and progression.
• Mexico stands out for its rising mobile usage. Brazil still has a significant and more expressive
desktop audience, but users are spending more than double their time on their mobile versus their
desktop.
• Disruptive Brands are causing the consumer to consider what other sectors can provide them with
mainstream channels and products.
• It is expected that through the rise of the mobile, both extraction and submissions of large scale
information with a profound level of detail will play an important role in the search of solutions for
big global questions in different areas, separate from technology.

Do you want to know more about
membership?
Reach out to us:
mmalatam@mmaglobal.com

MMA Mobile Insights Latam

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie MMA Mobile Insights Latam

Ähnlich wie MMA Mobile Insights Latam (20)

Mehr von Mobile Marketing Association

Mehr von Mobile Marketing Association (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

MMA Mobile Insights Latam