Digital Perspective Blog

Something else is big in Mexico aside from Mexico City – digital media.  According to a recent study by Millward Brown, IAB Mexico, and di Paola Márquez: internet is the preferred medium in Mexico.  There are three primary reasons as to why digital media has grown so much in the last year:

• Evolution and availability of devices with access to internet
• Popularity of social sites such as Facebook (largest growing percentage-wise in Mexico)
• Diversity of available online activities

Mexico internet penetration is currently at about 25% (according to Internet World Stats) which accounts for 28 million users.

Some interesting findings from the report – of those surveyed:

• 81% say that they go online to remain informed
• 71% use the internet more than any other medium
• 96% research products / 88% brands

The complete report is available on the IAB Mexico site for download (content in Spanish).

YouTube continues to localize its presence throughout Latin America, yesterday YouTube Mexico was launched. One of the more famous videos coming out of Mexico on YouTube was Edgar, so it was only appropriate from him to welcome Youtube to Mexico. Several copycats have popped up such as BuscaTube, notice logo; it was only really a matter of time before YouTube would come in. I wonder what Latin American country will be next: Chile, Argentina?

The launch of YouTube Mexico definitely opens more advertising / promotional opportunities for marketers – I wonder what company will be the first to use it and how. At the moment I can only see a English Smirnoff promotion (US IP address).

…but I do not think I would name my son after a portal or any company for that matter.  A Mexican couple that met online have named their child Yahoo.   From a PR perspective, should YAHOO (the company) run with this?

As a side note, in Nicaragua (East Coast) some people have been named their children Usnavy and Usmail and a colleague’s barber here in Miami is Exxon. 

I would say that online shopping has become second nature in the United States with $100 billion being spent in 2006. In other places around the world, such as Latin America, this is not the case. For one, cash is still king and postal services are not all that reliable – put these two together and you are likely not going to get many people buying things online.

During my time at Terra.com (I worked for the US Hispanic portal), the top reasons for not buying online were:

• Did not have a credit card
• Did not believe their package would be delivered
• Security concerns about giving out information online (specifically credit card numbers)

As with most of my post on LATAM – things are changing. Mexico reported that $482 million were spent online in 2006, a 53% increase from the year before. Internet sales are expected to grow even more in 2007, estimated at about $765 million. Interestingly enough, 61% of all sales came from users in Mexico City. 60% was spent on the travel section and 34% on computers / electronics.

Online consumer confidence is definitely growing…