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Online Ad Spending Surpasses $654 Million in Mexico

Nearly MXN2 billion ($153.4 million) added to online ad spending

Online ad spending growth in Mexico cooled off slightly in 2013, when it added 31% to near MXN8.36 billion ($654.8 million), according to a June 2014 Interactive Advertising Bureau México (IAB México) and PricewaterhouseCoopers (PwC) study. Despite the 7-percentage-point year-over-year growth rate drop, 2013 marked the fifth annual period in a row with improvements of at least 30% for online ad investments in the country.

The slowdown, however, is only apparent. In absolute terms, 2013 registered an increase of nearly MXN2 billion (over $150 million) in online advertising investments—the greatest amount since IAB México and PwC started measuring the category. This figure also excludes mobile ad spending (IAB México publishes a separate report for it), a small digital spending subcategory that is now expanding at a faster pace than online advertising on fixed devices.

eMarketer benchmarks its digital ad spending estimates—including online and mobile—against IAB México’s figures. We expect overall digital ad spending to improve by 35.3% this year to reach $899.3 million. During the same period, mobile ad spending will grow 87.7% to reach $172.8 million and take 19.2% of digital ad spending.

Within online ad spending on fixed internet access devices, display advertising accelerated last year thanks to the rising use of social media and video among advertisers. According to IAB México and PwC, nearly MXN5.61 billion ($439.3 million) went toward online display ads in 2013, a 48% improvement over 2012. Social media ad spending and online video ad spending surged 155% and 100%, respectively, last year. The two emerging categories still trailed banner ads in total pesos spent, however, as the most commonly used type of online display ad used in Mexico expanded 6% to approach the MXN3.5 billion ($274.3 million) mark—or three times the investments placed in social media or video.

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