Latin America is fast becoming a vibrant, emerging technology hub. Digital devices and platforms, much like the rest of the world, are forming a central part of almost every dimension of daily life for consumers and businesses across the region, and marketers have been quick to catch on, as exploration with new technology is opening up new opportunities to engage with consumers.
Latin America is not the technologically backward region it may have once been implied. It’s not only the third-largest internet market in the world, but eMarketer estimates that 245 million people across Latin America will be smartphone users by 2019 (up 63% from 2016).
According to the Festival of Media LatAm Awards 2018 shortlist, some of the best examples of new technology is being explored in Chile, accounting for half of the shortlisted entries in the ‘Best Use of New Technology’ category, followed closely by Mexico. These new technology uses were most prominent by automotive, FMCG and tourism, travel and leisure brands.
Alejandro Betancourt, Associate Brand Director Brand Operations Latin America at P&G and a judge at the Festival of Media LatAm Awards 2018, said: “I am surprised by how tech is coming across consistently, no matter which category we are judging. But also just seeing the companies and marketers use tech partners to bring to life the strategies, communication and the media. I think it’s quite telling of the times we’re living in and transformation that the industry is suffering.”
Examples of these new technologies involved elements of motion capture and eye tracking technology, addressable TV, digital bots and beacons. Programmatic targeting, mobile and social media techniques had an important role to play in the delivery of campaigns.
A few of the key trends we can take away from these entries are participation and personalisation, with many marketers adding a range of interactive experiences and gamification elements to their campaigns, while others created challenges and competitions centred on user generated content to add a participatory component.
Similar to one of the session topics explored at the Festival of Media LatAm 2018, successful alliances between tech companies and media owners are proving to be effective in closing the gap on issues around data, reach, targetisation, safety and video content demand. Partnerships were forged across all campaigns in this category which highlighted the power of collaboration.
As advertising goes deeper into the fourth media revolution it’s not the rules but rather the game itself that is changing. As explained by Juan Vallejo, EVP Commercial Partnerships at Fox Networks, the fragmented media landscape once established by adversary competitors is now blurring into strategic business partnerships between the so-called ‘frenemies’ as a result of the evolution of the marketing industry in the digital age.
“If you think about the media landscape 13 years ago, it was a little bit segmented; everybody used to play in their own sandbox – consultancies and brands, agencies and media owners, and technology companies. But with the proliferation of new platforms and new technologies, we’re seeing a much more fragmented and complex consumer,” said Vallejo. “The industry is under a seismic redefinition and it’s not a coincidence right now that there’s a lot of media consolidation. In this new world order, we will all experience some growing pains, from transparency to brand safety, from data to technology, all the tricks of the trade. For us, evolution is a must.”
There is no shortage of new technologies and innovations coming onto the scene in Latin America. Digital transformation is only set to propel further and marketers who are ahead of the game in exploring and adopting the new technologies available are likely to reap the rewards.
Going back to P&G’s Betancourt, he concludes: “Latin America has always been seen as a fertile ground for innovation. Then out of that ever changing landscape, being resourceful is at the heart of what Latin America is all about.”
We put the spotlight on two winning campaigns from the Festival of Media LatAm Awards 2018, which highlight this trend:
A cell phone with more memory or more memories with friends and family | Aeroméxico | UM | Mexico
Shortlisted for: Best Use of New Technology (SILVER WINNER), Best Use of Real-time Marketing (BRONZE WINNER)
“El Buen Fin” (the Mexican black Friday) is the most important sales season in Mexico, with the highest SOV for most categories during the year. Brands communicate discounts with really aggressive advertising budgets, up to 13 times more than Aeromexico during the same period. Aeromexico wanted to change how Millennials perceive the brand, since they see Aeromexico as a costly and old-school airline. The challenge was to increase sales but also to create a genuine and strong connection with the target audience.
UM realised that the best-selling products during El Buen Fin cost the same as flights to the most incredible destinations. But in order to make an impact and maximise the investment it needed to reach the specific consumers that were willing to spend their money during Buen Fin. This time during “BUEN FIN” buy memories, not in things.
For the execution it took into account technologies that will best adapt to the constantly connected lifestyle of the millennials, so decided to use programmatic platforms because it fits and gave precision in the media buying. Therefore the agency dabbled in a new technology – Addressable TV – a great example that allowed it to analyse several data variables from the STB (Set Top Box) of each viewer such as viewership and geographical location to activate the first Addressable TV campaign in Mexico and Latin America.
Omo Beacons | Omo (Unilever) | Initiative | Chile
Shortlisted for: Best Use of New Technology (BRONZE WINNER)
In Chile, the purchase of detergent, like many other consumer products, is done in supermarkets and is defined at the same point of sale in front of a gondola. Omo, a leading brand in detergents and in constant search of innovation for its consumers, wanted to be digitally present in the last sales funnel to encourage the purchase in one of the most competitive categories of the market.
With the challenge of incorporating a technological layer to the traditional purchase in supermarkets and thinking of mobile as a point of contact to deliver relevant and contextual messages in real time, it incorporated Beacons into traditional advertising formats located in the rooms in backlights, digital screens and shelves. The devices were small enough to be invisible, and emit a broadcast signal via Bluetooth to transmit messages or ads directly to a mobile device without the need for synchronisation.
The agency teamed up with media partners including one of the most read newspapers in the country, a high-tuning newscast and a football application. Given that the usage profile of each of these applications are different, would allow it to deliver differentiated messages related to their content in order to be relevant when they are impacted. The use of the applications allowed the agency to generate an incentive funnel with messages differentiated according to the proximity of the user with respect to the beacons installed.