In both Latin America and the United States, media consumption habits of Latino audiences are increasingly driven by the use of mobile devices. In fact, mobile advertising spend in the Latin American region is predicted to reach $6.4bn by 2018, according to eMarketer. Adsmovil, a mobile ad firm, has partnered with PubMatic, a marketing automation software company that powers the advertising strategy of premium publishers, to focus on bringing business benefits to Latinos with digital content on mobile.
Together, they have created the first-ever Mobile Hispanic-American Ad Exchange, which provides a clear monetization solution for publishers and help brands reach the Hispanic American community. Adsmovil handles the audience portion of the partnership by providing more than half a billion impressions a month, and PubMatic is in charge of the technology solution and provides the RTB platform.
According to Alberto “Banano” Pardo, CEO of Adsmovil,
There is a natural migration within the media-buying community toward programmatic, and we wanted to be the first in the market with an Hispanic programmatic solution. There is a lot of potential for this because marketing campaigns that target Latinos are very popular with U.S. companies.”
From 2010 to 2014, the top 500 U.S. advertisers boosted their spending in Hispanic targeted media by 63% from $4.3 billion in 2010 to $7.1 billion in 2014. During that same time frame, average Hispanic media spending by this group grew from $9 million to $14 million now, according to the Hispanic Ad Spend Allocation Report. Their study shows that increases in Hispanic allocation leads to greater ROI, and the Hispanic Mobile Ad Exchange is addressing this upward trend.
Kirk McDonald, President of PubMatic, sat down with Alberto Pardo recently to discuss the state of the industry and the companies’ partnership.
America is no longer just America – it has the highest multicultural engagement in the world,” Pardo told AdExchanger. “There are more than 54 million Latinos in the US – that’s 18% of the population – and by 2020, Hispanics will account for more than half of the entire population growth in America [according to the US Census]. Think about it: This means that millennials are now Hispanic.”
U.S. Hispanics’ use of mobile devices is higher than that of the general population, according to eMarketer, and getting in front of this growing market is a huge opportunity. The Mobile Hispanic-American Ad Exchange was launched at an optimal time and we look forward to seeing what these two companies will accomplish together.