Latin America

What: Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017; thanks to a more robust economic recovery in the region, according to MAGNA.
Why it matters: Television remains the top media category in the region with 54% of total advertising sales while Digital advertising in Latin America remains lower than the global average.

MAGNA is expecting Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017, thanks to a more robust economic recovery in the region. The latest IMF update forecasts real GDP growth of +1.9% next year in the region, compared to +1.7% in 2017 and -0.9% in 2016. Economic recovery remains extremely fragile, however, and political instability continues to loom over several countries, including Brazil.

A +9% growth would not be that impressive considering the high levels of economic inflation in the region, and the growth rates experienced pre-2014 that usually range between 10 and 15%. However, that would the strongest growth rate since 2013.

Ad spend trends continue to vary by country. Digital switch-overs, the introduction of new TV channels, government reconstruction programs in natural disaster areas, and elections are all expected to impact marketing activity and advertising spending. Nevertheless, most LATAM markets are expected to see slightly higher ad spend growth in 2018 versus 2017, as economies in the region are stabilizing and benefitting from the recovery of commodity prices.

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017, way above the global average (35%). Television is forecast to hold its media leadership until 2021, when digital finally becomes the top media format in Argentina and Brazil. Free-to-air TV is the dominant segment (+4% in 2018) controlling 80% of total TV NAR but Pay TV is experiencing faster growth (+6% in 2018) as subscription fees and programing are gradually becoming more attractive. Another driver is the change in selling models, from a cable model (where advertisers buy packaged airtime with little control over which channels their campaign appear on) to a direct sales model (where advertisers and agencies buy from individual Pay TV vendors). This is taking place in Chile and Uruguay, for example.

Television will benefit from increased viewing and brand interest around the FIFA World Cup as usual, although the excitement may not be quite as high as four years ago when the tournament was hosted by Brazil; time difference may also be an issue but the event is still guaranteed to boost TV ad sales especially in the eight nations that qualified this year: Brazil, Argentina, Uruguay, Colombia and Peru in South America, as well as Mexico, Costa Rica and Panama for Central America.

Digital advertising in Latin America remains lower than the global average, inhibited by a relatively low digital penetration and the sheer power of television. It is expected to grow by +23% to reach 32% total media share at the end of 2018, still well below the global average of 44%. Social media (+30%) and digital video (+33%) will grow significantly again next year, while search (+21%) remains the number one media type with 36% of total digital ad sales.

Brazil: +12%

With BRL 49 billion in NAR (approx. $14 billion), Brazil is the sixth largest advertising market in the world and accounts for over half of LATAM’s advertising spend.

Brazil’s economy has begun to stabilize from the recession in 2015 and 2016. Real GDP will grow by +1.5% in 2018, accelerating mildly after the stabilization of 2017 (+0.7%) and the severe recession of 2016 (-3.6%), while Consumer Price Index (CPI) inflation has dropped from its peak of 9% in 2015 to just 4% expected in 2018. Media cost inflation, on the other hand, remains high (between 6% and 10% across media categories). Business confidence however, continues to be hindered by political instability with unelected President Michel Temer, successor to impeached president Dilma Rousseff, himself facing various corruption scandals. The next presidential election, scheduled for October 2018, will hopefully clarify the political environment but is not expected to directly affect advertising spend, as parties are not allowed to buy television advertising time.

Latin America

What: Adsmovil, in conjunction with the Mobile Marketing Association (MMA) LATAM, has published the e-book "Brand Safety and Mobile".
Why it matters: The playbook provides a complete guide to verification, viewability, best practices, and case studies on brand management in the digital environment.

Advertisers could lose approximately US$ 6.5 billion in bot-driven advertising fraud in 2017, according to projections developed by the Association of National Advertisers (ANA). This is only one of the reasons why Brand Safety has been pegged as one of the top concerns for brand managers and company CMOs, thus making viewability crucial to ensuring greater transparency in the media audit process. In an effort to nurture discussion on this topic, Adsmovil, a company specialized in technology, data and advertising solutions for mobile devices, has published the e-book "Brand Safety and Mobile" in conjunction with the Mobile Marketing Association (MMA) LATAM.

Advertisers could lose approximately US$ 6.5 billion in bot-driven advertising fraud in 2017.

The playbook can be downloaded for free and offers a complete guide on viewability metrics in the mobile environment, and how that measurement can guarantee a return on investment in digital media. In addition, it provides information on viewability and verification, best practices, case studies, and a glossary of terms related to brand safety and viewability.

The book also features testimonias of executives who are pacesetters in the digital ecosystem, including: Maria Fernanda Paba, Media Leader for Foods Category, Unilever; Pedro Travesedo, VP, Latin America at Sizmek; Leo Scullin, VP, Industry Programs at MMA; Carlos Pitchu, CEO, Salve Tribal Worldwide; and Alberto Pardo, CEO and Founder of Adsmovil; among other experts.

For Pardo, despite the fact that many agencies and brands are very serious about brand safety and viewability, there is still the challenge of ensuring that the entire digital ecosystem understands the importance of these issues. “Adsmovil was the first company in the region to seriously incorporate brand safety and viewability. We decided to implement a strategic plan 18 months ago to combat advertising fraud, and to that end, we signed alliances with technology platforms such as Moat and Sizmek. The goal was very clear: to help our advertisers perform in safe environments,” said the Adsmovil CEO.

According to Maria Fernanda Paba, Media Leader for Unilever’s Foods Category in Brazil, viewability is one of the two most relevant topics in digital marketing, both globally and in the different markets in which the company operates. "A few years ago, we understood that paying attention to viewability meant taking care of our investments, and paying for what consumers actually see, in a clear and transparent way," she noted.

For Paba, the biggest challenges in Latin America are the difficulty with transparency and open data, the monitoring of these metrics in mobile, and working with certified partners to ensure getting the necessary measurements in a more fluid and integrated way from within the companies and the advertising market. "Tracking, tracking, tracking: this is the best practice. We cannot leave this issue exclusively in the hands of agencies. Verification means investment and efficiency, and is essential for digital to grow within advertising," she added.

Despite the fact that many agencies and brands are very serious about brand safety and viewability, there is still the challenge of ensuring that the entire digital ecosystem understands the importance of these issues.

The e-book has a chapter dedicated to best practices, which addresses different cases of brand management success in the digital environment, in industries such as mass consumption, food and tourism, among other sectors.

Latin America

What: Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017; thanks to a more robust economic recovery in the region, according to MAGNA.
Why it matters: Television remains the top media category in the region with 54% of total advertising sales while Digital advertising in Latin America remains lower than the global average.

MAGNA is expecting Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017, thanks to a more robust economic recovery in the region. The latest IMF update forecasts real GDP growth of +1.9% next year in the region, compared to +1.7% in 2017 and -0.9% in 2016. Economic recovery remains extremely fragile, however, and political instability continues to loom over several countries, including Brazil.

A +9% growth would not be that impressive considering the high levels of economic inflation in the region, and the growth rates experienced pre-2014 that usually range between 10 and 15%. However, that would the strongest growth rate since 2013.

Ad spend trends continue to vary by country. Digital switch-overs, the introduction of new TV channels, government reconstruction programs in natural disaster areas, and elections are all expected to impact marketing activity and advertising spending. Nevertheless, most LATAM markets are expected to see slightly higher ad spend growth in 2018 versus 2017, as economies in the region are stabilizing and benefitting from the recovery of commodity prices.

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017, way above the global average (35%). Television is forecast to hold its media leadership until 2021, when digital finally becomes the top media format in Argentina and Brazil. Free-to-air TV is the dominant segment (+4% in 2018) controlling 80% of total TV NAR but Pay TV is experiencing faster growth (+6% in 2018) as subscription fees and programing are gradually becoming more attractive. Another driver is the change in selling models, from a cable model (where advertisers buy packaged airtime with little control over which channels their campaign appear on) to a direct sales model (where advertisers and agencies buy from individual Pay TV vendors). This is taking place in Chile and Uruguay, for example.

Television will benefit from increased viewing and brand interest around the FIFA World Cup as usual, although the excitement may not be quite as high as four years ago when the tournament was hosted by Brazil; time difference may also be an issue but the event is still guaranteed to boost TV ad sales especially in the eight nations that qualified this year: Brazil, Argentina, Uruguay, Colombia and Peru in South America, as well as Mexico, Costa Rica and Panama for Central America.

Digital advertising in Latin America remains lower than the global average, inhibited by a relatively low digital penetration and the sheer power of television. It is expected to grow by +23% to reach 32% total media share at the end of 2018, still well below the global average of 44%. Social media (+30%) and digital video (+33%) will grow significantly again next year, while search (+21%) remains the number one media type with 36% of total digital ad sales.

Brazil: +12%

With BRL 49 billion in NAR (approx. $14 billion), Brazil is the sixth largest advertising market in the world and accounts for over half of LATAM’s advertising spend.

Brazil’s economy has begun to stabilize from the recession in 2015 and 2016. Real GDP will grow by +1.5% in 2018, accelerating mildly after the stabilization of 2017 (+0.7%) and the severe recession of 2016 (-3.6%), while Consumer Price Index (CPI) inflation has dropped from its peak of 9% in 2015 to just 4% expected in 2018. Media cost inflation, on the other hand, remains high (between 6% and 10% across media categories). Business confidence however, continues to be hindered by political instability with unelected President Michel Temer, successor to impeached president Dilma Rousseff, himself facing various corruption scandals. The next presidential election, scheduled for October 2018, will hopefully clarify the political environment but is not expected to directly affect advertising spend, as parties are not allowed to buy television advertising time.

Latin America

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the market and/or targeting Latin American consumers right now.

2018 NETWORKING SOLUTIONS. To find out about Portada's new networking solutions targeting the decision makers of the below campaigns, please contact Sales Manager Daniela Landa at [email protected]

For prior Sales Leads LatAm editions, click here.

Multinational sportswear manufacturer Adidas is conducting a global media agency review, according to sources. Dentsu Aegis’ Carat is the incumbent in the U.S. The brand spends about US$300 million annually on ads worldwide, per an estimate by Campaign. Carat is expected to defend its assignment.

  • The LEGO Group

IPG Mediabrands’ Initiative has been awarded The LEGO Group global media duties following a pitch process.Publicis Groupe's Starcom was the U.S. incumbent since 2004.The toy marketer spent around US$85 million in the U.S. (its biggest market) on ads last year, according to Kantar Media.

2018 NETWORKING SOLUTIONS. To find out about Portada's new networking solutions targeting the decision makers of the below campaigns, please contact Sales Manager Daniela Landa at [email protected]

Interjet’s Toronto and Montreal flights to Mexico City and Cancun just started this summer and already the airline is seeing load factors of close to 70%. The airline wants agents to know that Interjet fares are now in Sabre and Amadeus, and that access through Travelport (parent company of Galileo and Worldspan) “should be ready by early 2018”.Interjet pays 4% on its air-only as well as vacation packages including air, hotel and ground transportation through Interjet Vacations.The airline jumped into the B.C. market with return fares starting at $519. The carrier bills itself not as a low-cost carrier, but as a value carrier. The carrier is also still flying high on its TripAdvisor recognition as a 2017 Travelers’ Choice winner, for best airline in Mexico. All of Interjet’s Canadian gateway flights, from Toronto, Montreal and Vancouver to Mexico City’s Aeropuerto Internacional Benito Juárez, as well as to Cancun International Airport, operate four times weekly.

  • Homewood Suites by Hilton

Homewood Suites by Hilton, part of Hilton’s All Suites portfolio, announced its newest property, Homewood Suites by Hilton Silao Airport. As part of the brand’s expansion in Latin America, the hotel represents a landmark opening as the 55th Hilton hotel in the country and the first new build hotel featuring Homewood Suites’ region-specific prototype.Homewood Suites now has two properties open in Mexico and a growing pipeline of upcoming hotels that includes locations in Dominican Republic and Peru, as well as additional properties in Mexico.The Project was developed and owned by Edco Turismo Bajío and is managed by Hilton.Hilton currently has a portfolio of more than 100 hotels and resorts open and welcoming travelers in Latin America. The company is actively pursuing additional Latin American growth opportunities and currently has a robust pipeline of more than 70 hotels throughout the region, including nearly 30 projects in Mexico.

  • Keep Walking Argentina

Johnnie Walker has developed an exclusive digital piece for Argentina as part of his Keep Walking America campaign. Diageo, leading beverage company worldwide, worked with the R / GA agency and production company El Clan. The spot was mostly filmed in the city of Buenos Aires, with local actors. With this piece, the Scotish Whisky brand aims to connect with the Argentine consumer and inspire them to progress. Today, Johnnie Walker is the world's best-selling Scottish whiskey brand and its slogan has been adopted and coined around the world to inspire personal progress.

NEW FEATURES TO PORTADA'S INTERACTIVE DATABASES
We have incorporated new features to the interactive database of corporate marketers and agency executives targeting LatAm consumers:
New Leads: Weekly more than 20 new leads uploaded to the Database by the Portada team as well as the contacts related to the above weekly Sales Leads column written by our editorial team.
Download the Database: Download the full Database in Excel Format.
Search Database: You can search through a user-friendly interactive Interface: Search Fields include: Name, Company/Agency, Job – Title, Address, Zip, E-mail, Accounts (Agency), Phone, Related News.

Latin America

What: Latin American technology investment firm Mountain Nazca, owner of Groupon Latam, announced the acquisition of Peixe Urbano, Brazil's leading e-commerce player.
Why it matters: With this acquisition, Mountain Nazca becomes the largest service marketplace in Latin America.

Latin American technology investment firm Mountain Nazca, owner of Groupon Latam, announced its acquisition of Peixe Urbano, Brazil's leading e-commerce player. The merger will consolidate Mountain Nazca’s regional e-commerce operations, with a presence in Argentina, Brazil, Colombia, Chile, Mexico and Peru.

Peixe Urbano, previously owned by Chinese technological giant Baidu Inc. (NSDQ: BIDU), is the leader in Brazil’s online-to-offline (O2O) market, which connects the physical world with the digital world.

"Peixe Urbano and Groupon Latam will create a digital platform on a scale that allows us to dream big in Brazil and the rest of Latin America," said Alex Tabor, CEO of Peixe Urbano. The company has over 28 million registered users and works with more than 70,000 companies. "The merger will allow us to better serve our customers, expand our reach and develop our new O2O services business," he added.

"This is a shared history of entrepreneurship, in which two founders buy back our companies from world-class players such as Baidu and Groupon, with the support of knowledgeable regional investors. This merger will generate synergies to position us as the main technological ecosystem in Latin America," said Felipe Henríquez, Chairman of Groupon Latam.

Editorial Staff

Portada Staff

Original Article

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Sky News

One of Donald Trump's closest confidantes has thrown a lifeline to the scandal-hit Weinstein entertainment empire, amid signs it could be up for sale.

The Weinstein Company has confirmed it has entered an agreement with Colony Capital, a private equity firm run by Tom Barrack.

Colony will inject cash into the company while discussions continue over it buying all or part of the Weinstein firm.

:: UK police investigating five Weinstein sex assault claims
:: Corden sorry for Weinstein jokes

The torrent of accusations against Harvey Weinstein had raised questions about the future of the company he founded.

On Friday, his brother Bob denied suggestions the company would be closed or sold, saying it was "business as usual".

:: The Accusers:

  • Actress Lina Esco attends the 2017 CBS Television Studios Summer TCA Party Red Carpet, August 1, 2017 in Los Angeles, California. / AFP PHOTO / VALERIE MACON (Photo credit should read VALERIE MACON/AFP/Getty Images)

    Lina Esco, Actress

    She says Weinstein told her: "I think we should see a movie in the theatre, like back in the day, and we should kiss."

    She allegedly brushed him off but he pressed on and forcefully tries to kiss her.