La data hace la diferencia

Understanding Data in Advertising

The Importance of Competition and Data

• The speaker emphasizes the need for competition in the market, suggesting that a lack of it indicates potential instability for businesses.

• Humanizing data is crucial; it should be easily understandable for advertisers and agencies to utilize effectively in their strategies.

Introduction to Santiago Cortés

• Santiago Cortés, head of sales at Samsung Ads Mexico, has over 20 years of experience in entertainment and advertising.

• He aims to lead strategies that connect brands with consumers by understanding user habits.

Focus on Data Utilization

• The conversation centers around how data can help make better marketing decisions rather than relying solely on statistics or percentages.

• Effective decision-making relies on understanding consumer behavior through comprehensive data analysis.

Transition from Linear TV to CTV

• Santiago shares insights from his transition from linear television to Connected TV (CTV), highlighting significant changes in measurement methods.

• Unlike traditional methods using small household panels, Samsung now utilizes data from 9.1 million connected Smart TVs in Mexico.

Insights into Consumer Behavior

• This large dataset allows for a more accurate representation of consumer behavior regarding viewing habits and preferences.

• Samsung's technology provides transparency about what content consumers are watching, including streaming services and device usage.

Cultural Significance of Television

• Television remains a cultural institution in Mexico, with screens being active for over 650 million hours monthly across the population.

• The evolution of advertising on television has transformed; brands can now engage audiences more dynamically compared to traditional methods.

Understanding the Evolution of Television Consumption

The Shift in Consumer Behavior

• The evolution of television has transcended traditional formats, moving beyond digital banners and pixelated videos that require close inspection on mobile screens.

• Mexican consumers have become more sophisticated in their relationship with television, now often engaging with multiple screens simultaneously.

• Many viewers are not just watching TV but also using devices like phones to consume additional content, highlighting a trend towards multi-screen usage.

Market Insights and Streaming Trends

• Samsung's market share in both phones and televisions provides insight into consumer behavior during viewing moments.

• Currently, 85% of screen time is dedicated to streaming services, while only 15% is spent on linear consumption.

• On average, Mexican households hold over 3 subscriptions for streaming services, indicating a growing reliance on diverse content sources.

Popular Applications and Content Discovery

• YouTube remains the most popular free application in Mexico, followed by Netflix and Samsung TV Plus as significant players in the streaming landscape.

• Users often spend considerable time browsing platforms without making a selection; this highlights an opportunity for better content recommendations.

Free vs. Subscription Services

• There is a notable appetite for short news segments or older series available on free platforms due to their accessibility compared to subscription services.

• In 2022, free apps accounted for 54% of total viewing time compared to subscription-based apps for the first time ever.

Recommendations and User Engagement

• Consumers are increasingly discovering content through free applications before deciding whether to subscribe for additional seasons or episodes.

• The challenge lies in reducing the time users spend selecting what to watch; effective recommendations could enhance user experience significantly.

Understanding Consumer Behavior in Media Consumption

Insights on Viewing Habits

• The speaker discusses the detailed tracking of media consumption, including when viewers start and stop watching content, as well as which apps are used.

• There is a contrast between consumers who are decisive about their viewing choices and those who explore options last minute, highlighting varying levels of engagement.

• A significant percentage (80%-90%) of app usage occurs on large screens like Smart TVs, indicating a preference for larger displays over smaller devices for content consumption.

Preference for Large Screens

• The speaker emphasizes that Smart TVs provide a superior viewing experience compared to tablets or phones due to better sound quality and screen size.

• While mobile devices can be convenient for short videos, full-length movies or series are more likely to be watched on larger screens where comfort is prioritized.

Multi-Screen Usage Dynamics

• The discussion touches on how multi-screen usage often involves simultaneous activities, such as chatting while watching sports, but the main focus remains on the large screen.

• Viewers tend to choose what they want to watch actively rather than passively consuming content pushed by algorithms on social media platforms.

Community Engagement Through Content

• Watching shows like "Game of Thrones" creates a sense of community among viewers, leading to shared experiences and discussions post-viewing.

• The importance of communal viewing experiences is highlighted; people prefer engaging with content that fosters connection rather than isolated consumption.

Trends in News Consumption

• In Mexico's recent electoral year, news viewership surpassed other genres like movies or sports, reflecting a societal need for information during critical times.

• Trust in news sources remains significant despite skepticism towards media outlets; this indicates an ongoing reliance on traditional news formats.

Unique Role of Television Screens

• Televisions occupy dedicated spaces in homes unlike laptops or workspaces; this distinction enhances their role in consumer relationships with content.

• Advertisers recognize the impact of display size on viewer engagement; larger screens yield different impressions compared to smaller ones.

Understanding the Impact of Screen Size on Advertising

Flexibility in Advertising Choices

• The size of monitors influences advertising costs and selection, allowing clients to choose models based on their needs.

• Clients can decide on screen sizes and locations, enhancing flexibility in advertising strategies.

Targeting Luxury Markets

• Connected TV (CTV) has a strong relationship with luxury markets, enabling targeted advertising to affluent demographics.

• Data shows that households with multiple screens are significant markers for targeting high-end products like luxury cars.

Market Share Insights

• Samsung holds over 70% market share in high-quality television segments such as QLED and OLED, indicating dominance in premium offerings.

Consumer Behavior and Television Purchases

• The experience of purchasing large televisions highlights the need for adequate space; larger screens require careful consideration of living space dimensions.

• In Mexico, buying a new television remains a priority during sales events like "Buen Fin," showcasing its importance in consumer preferences.

Shared Device Dynamics

• Smart TVs serve as shared devices within households, complicating demographic data collection compared to personal devices like smartphones.

• Automatic Content Recognition (ACR) technology allows for detailed insights into viewing habits without infringing on personal data privacy.

Advertising Opportunities through ACR Technology

• ACR provides valuable data for segmenting audiences based on viewing patterns while maintaining user anonymity.

• Successful case studies demonstrate how ACR can enhance advertising strategies by identifying viewer engagement with specific content.

Advertising Strategies in the Age of Streaming

Understanding Audience Reach and Segmentation

• The discussion begins with a focus on identifying which screens have seen specific advertisements, emphasizing the importance of knowing the channel and time to build an audience that can achieve incremental reach.

• The concept of remarketing is introduced, where advertisers can target users who have already viewed their ads, allowing for more effective segmentation based on prior exposure.

• A practical example is provided regarding overlapping investments in Pay TV and Open TV. By analyzing data from ACR (Automatic Content Recognition), advertisers can determine how many screens actually saw their ads.

• It’s noted that only 15% of viewing time is spent on linear television, with 11% on open TV and just 4% on pay TV, indicating a significant shift in viewer habits towards streaming platforms.

• The decline of cable subscriptions is highlighted as consumers prefer internet-connected devices that offer content without long-term commitments or installation hassles.

Shifts in Consumer Behavior

• Consumers are increasingly moving away from traditional cable services due to convenience offered by internet-connected devices that provide access to vast content libraries without additional costs.

• The speaker compares this trend to the survival of landline telephony, which remains relevant due to its connection with internet services, unlike cable which has lost its appeal.

• Statistics reveal heavy streamers consume up to 8 hours daily, showcasing a dramatic increase in streaming habits compared to traditional viewing patterns.

• Anecdotal evidence illustrates how families engage with streaming content throughout the day, further supporting the notion that viewers are consuming more media than ever before.

Impact of Streaming Services in Mexico

• The conversation shifts to Mexico's adoption of streaming services post-Qatar World Cup when Televisa began directing content towards streaming platforms.

• Data indicates that 85% of viewers in Mexico are engaged with streaming services compared to 70% in Brazil, highlighting regional differences in media consumption trends across Latin America.

Data Utilization and Consumer Insights

• Questions arise about how consumer data evolves when individuals upgrade their televisions. There’s curiosity about whether new technology enhances understanding consumer habits through better data collection methods.

• Samsung's advantage as a manufacturer lies in its ability to gather comprehensive data across all models since 2017 using ACR technology for advertising solutions.

• When consumers change devices or share them, previous usage data may be transferred but will adapt based on new user behavior over time.

This structured approach provides clarity into evolving advertising strategies amidst changing consumer behaviors influenced by technological advancements and shifting preferences toward streaming platforms.

Advertising Challenges in the Evolving CTV Landscape

The Impact of Data on Advertising Strategies

• The speaker discusses the extensive usage of data, noting over 650 million hours consumed monthly, which necessitates a lookback window of a year and a half to manage this information effectively.

• There is a concern that brands struggle with advertising due to a lack of understanding about how to engage their audience, presenting both a challenge and an opportunity for improvement.

Navigating the Complex CTV Market

• Many brands find it difficult to advertise effectively because they are unsure about targeting and engagement strategies amidst numerous digital offerings that appear user-friendly but are not always practical.

• The speaker reflects on the rapid evolution of the market since 2020, highlighting competition from major players like Roku and Paramount's Pluto TV as well as new entrants such as Netflix and Prime Video.

Saturation and Integration Issues

• Advertisers face challenges integrating various platforms in the saturated CTV market, where multiple options complicate campaign execution.

• Samsung is positioned as a key player in this landscape; advertisers often end up using Samsung TVs for campaigns across different streaming services like Netflix or Prime Video.

Financial Dynamics in Advertising

• Major clients include significant companies like Amazon and Netflix, indicating that these brands are also looking to expand their audience reach through effective advertising strategies.

• A substantial budget shift is occurring from linear television towards digital platforms, particularly social media channels like TikTok, which offer quick solutions that resonate with audiences.

Humanizing Data for Effective Campaigning

• The challenge lies in making complex data understandable for advertisers so they can use it tactically within their plans to allocate budgets effectively.

• Television remains effective for brand recall and purchase intent; targeted ads during relevant moments can significantly influence consumer behavior.

• The speaker emphasizes the importance of measuring ad effectiveness accurately while acknowledging discrepancies in how different media types are evaluated regarding branding versus performance metrics.

Advertising Influence and Consumer Behavior

The Impact of Advertising on Consumer Choices

• The speaker discusses how advertisements can create a desire for products, leading consumers to think they may have certain conditions or cravings after seeing ads.

• A personal anecdote is shared about a Vietnamese restaurant that plays TV ads, illustrating how these ads linger in memory more than those skipped on platforms like YouTube.

• Emphasizes the effectiveness of traditional advertising methods in creating brand awareness and prompting immediate consumer action compared to digital ads.

E-commerce vs. Traditional Marketing

• Highlights the efficiency of traditional media in building brand recognition and facilitating calls to action, contrasting it with e-commerce's focus on immediate sales.

• Discusses how the internet was initially designed as a marketing tool for e-commerce but has evolved, often overshadowing traditional marketing strategies.

The Role of Competition in Marketing

• Reflects on a conversation regarding competition, noting that its presence indicates market viability; lack of competition suggests potential market decline.

• Stresses that competition signifies financial opportunities within the market rather than threats.

Evolution of Media Consumption

• Mentions advancements in connected television (CTV), allowing advertisers greater flexibility in ad formats compared to linear television's rigid structures.

• Shares experiences from working at Televisa, emphasizing the historical significance and influence of linear television in Mexico's advertising landscape.

Personalized Advertising Opportunities

• Discusses modern capabilities for personalized messaging through CTV, enabling varied ad lengths tailored to specific narratives or campaigns.

• Reflects on past events aimed at delivering personalized messages through advertising, noting that current technology allows for better execution than before.

The Evolution of Content Consumption and Advertising

The Shift in Hardware and Content Delivery

• The evolution of hardware has reached a point where consoles are no longer necessary for enjoying subscription-based video game services.

• Modern devices like TVs and smartphones have simplified the connection between content and users, eliminating previous intermediaries.

• There is a concern about whether small to medium brands can effectively advertise without large budgets, as many listeners express doubts about applicability to their situations.

Democratization of Advertising through Connected TV

• Connected TV is seen as democratizing advertising similar to how the internet did, allowing smaller businesses to purchase ad impressions more easily.

• For the first time, companies with limited budgets can target their market efficiently rather than casting a wide net with uncertain results.

• This shift opens opportunities for industries like pharmaceuticals in Latin America, which will benefit from reduced barriers compared to traditional linear television.

The Future Landscape of Television Advertising

• The speaker expresses excitement about being part of this transformative phase in television advertising, emphasizing that the revolution has already begun.

• Acknowledgment is given for providing alternative advertising options that are more democratic and accessible for brands.

Challenges and Opportunities Ahead

• Despite challenges posed by dominant media players in Mexico, there’s an acknowledgment that these changes cannot be ignored by major broadcasters.

• The speaker anticipates significant shifts in the industry over the coming years as technology continues to simplify processes for both users and brands.

Conclusion and Call to Action

• Gratitude is expressed towards participants for engaging in discussions around innovative advertising strategies that could differentiate brands in competitive markets.

• Listeners are encouraged to explore Samsung Ads Mexico on LinkedIn for further insights into effective advertising strategies tailored for today's market dynamics.