Mobile Internet Advertising in Mexico Maintains Fast Ascent - eMarketer

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Mobile Internet Advertising in Mexico Maintains Fast Ascent

There will be more than 67 million mobile phone users this year

October 2, 2013

The Interactive Advertising Bureau México (IAB México) and PwC found that mobile marketing revenues, including ad spending and development costs, expanded 98% in Mexico between 2011 and 2012, to reach MXN794 million ($60.33 million) in 2012.

Mobile Marketing Revenues in Mexico, 2011 & 2012 (millions of MXN and % change)

Of the two components in the IAB México/PwC measurement, mobile internet ad spending was the driving force behind gains last year, with a 104% improvement. That growth rate outpaced the also impressive 63% gain in mobile development investments.

Ad spending took the lion’s share of mobile marketing, with 86% of industry revenues generated from ad inventory sales, up from 83% in 2011. Mobile internet ad spending in Mexico totaled MXN683 million ($51.9 million) in 2012.

Within the mobile internet ad spending category, display was the leading mobile ad format, with a 73% share of the market. Interestingly, and perhaps as an acknowledgement of the still dominant presence of feature phones last year, advertisers invested 15.4% of their mobile ad spending budgets in SMS and MMS marketing efforts, a 3.4-percentage-point increase over the share devoted to SMS and MMS marketing in 2011.

Going forward, eMarketer predicts mobile internet ad spending in Mexico, which is still growing from a very low base, will continue in a strong upswing to register growth of about 75% annually through 2014. That year, the amount spent by advertisers in mobile platforms is expected to reach $122.4 million.

Mobile internet ad spending will continue to outpace all other advertising categories including the overall digital ad spending average, which is expected to expand by a solid 38.9% in 2014 to surpass $1 billion for the first time.

Digital Ad Spending in Mexico, 2011-2017 (millions and % change)

Strong mobile internet ad spending is primarily driven by a mobile phone user base that will surpass 67 million consumers this year, according to eMarketer estimates, along with heated smartphone uptake that will see the advanced devices reach 45% of those mobile phone users the following year.

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