Mixed picture for adspend in Mexico

24 July 2013
MEXICO CITY: Online ad revenue is continuing to grow steadily in Mexico while TV advertising has slowed over the past two years, according to new analysis.

Adspend estimates compiled by eMarketer, based on figures supplied by Interactive Advertising Bureau Mexico, the trade body, and PricewaterhouseCoopers, the business services firm, have revealed that digital grew more than 30% each year since 2009 after falling from a high point of 91% annual growth in 2008.

Digital adspend recorded growth of 38% to 6.4bn pesos ($486bn) in 2012, a strong year-on-year rate of expansion since the 1.9bn pesos recorded in 2008.

With smartphones expected to account for 45% of all mobile phone users next year and with broadcasters planning to stream the FIFA 2014 football World Cup live, the Mexican digital advertising market is forecast to be worth more than $1bn by the end of 2014.

But TV advertising has not fared so well in terms of recent growth. It recorded negative growth of -4.8% in 2011 and -5.6% in 2012, according to a June 2013 report from ZenithOptimedia, the media agency.

But, despite the fall, with an overall value of $3,526bn, TV ad spend in 2012 was still almost seven times larger than the digital figure of $542.2bn. And TV advertising is expected to recover this year with estimated growth of 18.9%, taking the market to $4,192bn.

Almost 95% of Mexican households own a TV compared with only 32% that have a computer and only 26% with an internet connection, suggesting that TV advertising will continue its dominance of advertising revenue volumes over the next few years.

Data sourced from eMarketer/IAB Mexico; additional content by Warc staff
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