Programmatic Advertising

Hint: The answer is mobile.

When you think of programmatic advertising, what are the first places that come to mind? The obvious are the United States and Europe. They are huge consumer based regions, and they have easy access to the internet. This seems like the prime territory for programmatic advertising, but what about Latin America? Latin America’s technology world is growing, and it is growing quickly. With growing access to the Internet, Latin America is a region with huge potential.

So, why exactly is Latin America primed for a programmatic advertising boom? The answer is mobile. Latin American’s makeup 23 percent of the world’s smartphone users (and expected to reach 50 percent by 2018). By the end of this year, it is expected that there will be 179 million people using social networks on their mobile phones. Latin America already makes up about 20 percent of Facebook users across the world.

Mobile has not reached its full potential in the programmatic market because, as of right now, most programmatic advertising is designed for web display. In Latin America, smartphones are becoming more affordable than computers, and Latin Americans are taking advantage of this. Brazil is leading the trend in the move to smartphones, and with the development of 4G, smartphone adoption is increasing all across Latin America. Argentina, the second largest country in Latin America, will add about 8 million smartphones users in the next three years. Programmatic advertisers are missing a huge potential market if they do not soon take advantage of this mobile trend.

The increased access to the Internet is not only increasing opportunities for programmatic mobile advertising but also programmatic video advertising in Latin America. This region has more people viewing videos on mobile devices than regions such as Asia. “Argentina and Mexico see daily mobile video use at 38% and 33% respectively,” according to a study done by Econsultancy. With a third of Argentina and Mexico watching videos daily, there is a lot of potential for video programmatic advertising to take off in Latin America.

Companies have begun to realize the potential of programmatic advertising in Latin America. Excluding Brazil, programmatic ad spending will increase 598.9% ($3.9 million), but this includes all forms of programmatic advertising. In the future, programmatic mobile and video advertising will be just as important as web display in Latin America.

This blog post originally appeared here.