The 4 Latino Giants:
The series that started talking about the Online Video Hottest Markets of the world opened by Brazil, indeed the most promising market for the next 3 years regarding all sorts of investments, because of the two biggest sport events that injected billions of dollars in the economy of the country, did not mention anything about Latin America.
But Brazil is located in Latin America, and we will never know if by coincidence or not the Brazilian wave will bring within a huge grow for some of its neighbors. If the country of soccer and carnival is still the leader of the online video explosion, some other countries must be considered of equal importance in the whole picture: Argentina, Mexico and Chile form with Brazil the 4 potential countries that will lead LATAM to be the second biggest market of the world for online videos in 2014.
And why is that? Few good reasons for each of these countries that might convince you:
An Impressive Rise in The Audience: the rise that can be seen in online video watching in the biggest Internet markets in Latin America is compared to a few others in the world: Mexican Internet users increased their online video consumption by 80% between December 2010 and December 2011 and reached 3 billion videos viewed. Argentine netizens are also hungry online video watchers: they reached a total of 1.5 billion videos watched in December 2011, a 75% increase compared to December 2010. However, Chileans grew the most in this category: they raised their online video consumption by 91% between December 2010 and December 2011 to reach 1 billion videos watched.
Broad Reach: according to ComScore, online videos have 85% reach with Internet users in the U.S. and 84% reach among Internet users worldwide. In contrast, online videos reach 96% of Argentine Internet users, 92% of Chilean Internet users, 81% of Brazilian Internet users and 82% of Mexican Internet users.
Do the math:
- Argentina has 28 million Internet users* and 96% of that total is 26.8 million
- Brazil has 85 million Internet users** and 81% of that total is 68.8 million
- Mexico has 40.6 million Internet users*** and 82% of that total is 33.2 million
- Chile has 10 million Internet users* and 92% of that total is 9.2 million
(Sources: *Internet World Stats, **comScore, ***AMIPCI)
Adding up these totals means that you can reach about 138 million people with online video in just these 4 markets—without counting the millions of Internet users in the other countries of Latin America.
Room to Grow: in these 4 countries, each viewer spends an average of 11 to 13 hours a month watching online videos. “Viewers in all four markets surpassed the 8 hour mark in March 2011, with Mexican users watching an average 10.5 hours through the month. Mexican users also watched substantially more videos, with an average 115.5 per viewer, compared with second ranked Chile’s 92.4 videos per user. Average video durations ranged from 5 to 6 minutes, showing that long-term formats such as TV-series episodes have yet to catch on.” This means that there is good potential for online videos to take up more and more online time of Latin American Internet users. The same applies when you look at the amount of videos watched per user: between 120 and 168 per month in these 4 countries.
“Online video has emerged as one of the fastest growing digital consumer behaviors in Latin America,” said Alejandro Fosk, ComScore senior vice president of Latin America. Viewers engaged in a broad variety of content categories, including, entertainment, news, and sports, which are “effectively and efficiently monetizing video content represents an important next step for this developing industry.”
Market Evolution: numbers from IBOPE (The Brazilian Institute of Public Opinion and Statistics) show that free TV has a penetration of over 90% in Argentina, Brazil, Chile and Mexico. Numbers from LAMAC (Latin American Multichannel Advertising Council) show that pay TV is growing its reach in these countries: 74% penetration in Argentina, 61% in Chile and 40% in both Brazil and Mexico. Beyond the reach of TV, a ComScore study shows that 71% of online video viewers do this because they missed an episode of a TV show and 57% watch online videos for its convenience. In addition, online video watchers indicate in surveys that they are open to seeing at least 6.5 minutes more per hour of ads. Finally, according to ComScore, advertisers fail to reach at least 30% of the audience via just television. Then, according to ComScore’s projections, the effective reach of the target audience can go up by 16% when advertising on TV is combined with online video ads in LATAM.
More recent data can close this post with promising predictions for the future of the online video advertising market: of the five global regions, Latin America had the fastest growing internet population, increasing 12% in the past year to more than 147 million unique visitors in March 2013.
Consumers in Latin America spent 10 hours online per month on Social Networking sites, doubling the global average time spent; 5 of the top 10 most engaged markets with social content worldwide are located in Latin America. That brings to the scene also the trendy concept of Social Video, showing that LATAM is one of the most prominent markets talking about new digital behaviors.
Online Advertising is on the rise not only in Brazil, growing 97% the past year to 130 billion display ad impressions delivered in March 2013. Netflix, Inc. was the largest display advertiser in Brazil and Mexico with 2.7 billion and 463 million ad impressions delivered during the month, respectively.
As we said before, we should really pay more attention to our hermanos on that part of the globe.