Digital marketing evolves and follows market trends to better serve the interests of various corporations. Therefore, it has experienced exponential growth in the Latin American region in recent years. The outbreak of the covid-19 pandemic accelerated the digital transformation of organizations and changed people’s spending habits, forcing companies to develop new business strategies.
To get a current view of this discipline in Latin American companies, NTT DATA and “MIT Technology Review” conducted the study “Digital marketing in Latin America: Digital user experience at the heart of business strategy 2022.. Respondents from Brazil, Mexico, Argentina, Chile, Colombia and Peru participated in the project, 48% of whom are digital marketing managers and directors, communications and marketing coordinators, and commercial directors. The report details how Latin American organizations are developing digital marketing strategies and allows them to be aware of what lies ahead.
Increase in investment
In much of the world, digital marketing is no longer a new concept. According to the study, the growth of digital marketing in Latin America is driven by the investments companies are making in this department. Among the companies interviewed, 70% say they have increased their investments over the past year.
Companies from the technology and retail sectors stand out as organizations that invest the most in digital marketing. Of the companies surveyed, 10% claim to allocate more than 60% of their marketing department’s investment to digital marketing. This same percentage of companies expects to increase to over 85% in the future.
Another important fact is that 90% of Latin American companies already have a defined marketing strategy and, among their goals, converting or attracting customers is the main goal. Then comes customer retention and improved customer service. brand awarenessthat is, make the brand recognizable and memorable.
The use of social networks in Latin America is higher than in any other region of the world. With the increase in mobile device consumption, social networks have become the preferred tool for developing digital marketing strategies in the region, according to 94% of consulted companies.
For 87% of surveyed companies, Instagram is the preferred social network for developing digital marketing strategies. Among the reasons cited is the increase in the number of Latin Americans using smart phonesthe range of age groups present on the social network and the ease of displaying products and brands.
According to Statista, Brazil is the country that uses Instagram the most, with approximately 127 million users as of February 2022. That’s more than all the users in the top five Latin American countries combined: Mexico has 41 million users; Argentina, 25.34 million; Colombia, 19.02 million; Chile, 12.13 million; and Peru, 8 million users.
Facebook, despite being the second dominant social network, is losing ground with the arrival of TikTok, the platform of the moment among the youth. The surveyed organizations believe that it has the potential to attract new audiences thanks to its attractive algorithm and content creation format.
After social networks, 85% of organizations consider Web page the second most important tool in the marketing strategy.
On the other hand, content marketing i e-commerce they have become key to connecting, creating empathy and noticing customers of Latin American companies. The surveyed companies already have a defined plan regarding content marketing. However, the development of e-commerce in enterprises is still low compared to other geographies.
A combination of technology and marketing
With the emergence of Martech, a new concept that combines technology and marketing to achieve better results in digital marketing strategies, more and more companies in the region are promoting their presence in this new ecosystem, thanks to its ability to streamline processes.
Forty percent of the consulted companies, in addition to having assets or digital assets, such as social networks or a website, also use technological tools in their digital marketing strategies, such as CRM instruments (Customer relationship management), IF (search engine optimization), campaign management tools or CMT (Campaign management tools) and social listening (Social listening), which is used by 38% of the interviewed organizations.
In this sense, Latin American companies recognize that the real secret of marketing success is an intelligent strategy that combines traditional and digital marketing. However, the integration of the Martech ecosystem is often done by leaving traditional tools aside, a potentially costly mistake for organizations.
Challenges and trends in the future of marketing
In order for digital marketing practices to continue to thrive in Latin America, it is important that organizations face the challenges ahead, such as offering an omnichannel experience to customers, making the right decisions through the intelligent use of advanced analytics, and applying the company’s core competency of adaptability, agility.
In addition, according to the study, they should keep in mind the trends that will change the market, namely: Metaverse, TikTok, personalized content, the Martech ecosystem, the practice of augmented analytics, e-commerce It is blockchain.
In short, the Latin American region is improving its digital marketing practices, including their adaptation to consumer realities. However, the constant evolution of the digital market requires organizations to stay up-to-date in order to maximize its benefits and be present in an increasingly transforming market.