Digital media, and especially buying it programmatically is still seen as an 'emerging platform' in Latin America, this is despite audiences there spending more time online compared to those elsewhere, according to Victor Lopez, Affiperf, programmatic media director, Miami.

In this piece he examines why brands in Latin America are so reluctant to make the jump into programmatic media buying compared to their peers in North America and Europe.

A close look at the region’s history in digital media shows that programmatic buying won’t take hold until the areas of inventory, data and talent development improve.

Only then, will its programmatic advertising practitioners earn the clients’ trust and programmatic media can truly become a mature channel for both branding and performance.

In 2014, Magnaglobal reported that Latin America accounted for only 5% of the programmatic spend worldwide. Additionally, analysts forecast a 600% increase in programmatic media spend this year in Latin America (that's an estimated $3.9m year-on-year increase).

However, this is still quite small compared to the total $5bn digital advertising spend in the region, and Brazil accounts for roughly half of this sum. So what these numbers clearly show is the huge growth potential programmatic buying has in Latin America. With this in mind, let's further examine some of the steps that can be taken to resolve the three crucial issues of inventory, data and developing the talent in the region.

Buyers still not seeing the cost-benefit of programmatic

Inventory in Latin America works just like anywhere in the world. There are big brand sites, local sites and long-tail sites. Although, unlike the developed markets, such as the US, many major publishers there have only recently started opening up inventory to programmatic buying. For example, it was only in 2014 that MSN opened up its inventory to programmatic buying in the region. So as you can see, regional publishers have only recently started adapting to the programmatic environment, and in many cases are still playing catch-up.

In addition, much of the premium inventory is still being sold traditionally, and what remains is kept offline. Private deals - such as those media buys performed in private marketplaces (PMPs) - help in this instance, but prices are sometimes still as high, as though it were a managed campaign.

Even new publishers that are launching new properties in the region are not making media inventory available programmatically because the region has been slow to adopt the programmatic model. Hence it's no wonder that premium inventory being sold via programmatic means remains so scarce.

Data collection still not a priority

Another reason for the comparatively immature use of programmatic advertising is the fact that when inventory is bought, both first and third-party data collection is often very limited in Latin America. Prior to running digital campaigns, collecting data wasn’t a priority among advertisers, but it should be now.

In many cases the data belonging to the client was not being collected, or when it was, it was not being stored appropriately. The reason being that in many cases the clients don’t see the benefit in collecting and using data. Although increasingly, more-and-more advertisers are starting to realise that when you use first party data, it is often the key to high performing campaigns.

When more clients realise that collecting data and using it in a campaign actually delivers results, they’ll see the value in programmatic media. Third-party data collection has been limited for many of the same reasons, in fact only a handful of companies in this sector of the business have even offered Latin American data segments.

However, this is one area where improvements are visible, and more players have started offering segments, making them accessible through DSPs. So as we can see, this is a step in the right direction.

People power

Although, no matter how many systems we put in place to improve inventory offerings and data collection, or how much we talk about it, it is useless if we don’t have the people with the necessary skills to implement these systems and deliver results.

The human element in programmatic media is essential because the most important asset of all is of course the people, regardless of the technology. Any advertising company can have the best technology in the world, but if nobody within their ranks knows how to use it, or sell it correctly, it will fail.

Perhaps even worse, the misuse of the technology could even damage the reputation of the wider programmatic media buying industry.

In many regards the human resource aspect of programmatic has not kept pace with the advances in technology. This is a problem even in mature markets where qualified talent is often difficult to find, but even more so in Latin America.

In addition, the push for programmatic in the region has been fast and as a result, it has left many professionals in digital media, scrambling to pick up general principles of programmatic and working those campaigns as best they can.

To remedy this reality, many clients that want to use programmatic often do so from a centralised, pan-regional office with US-trained staff, such is the case with the Affiperf office in Miami*.

Developing the human resource talent in Latin America is vital because programmatic media is the future, and its players need to understand it and know how to use it effectively, so they can reap the same rewards that developed markets are enjoying.

By overcoming the challenges laid out here, performance will be improved, more offerings become available, and more insights will be gained. However, in Latin America we are more comfortable with the status quo, than we are with embracing innovation (same as anywhere else in the world).

We don’t adapt well to change, it’s a human thing – no one jumps into deep waters without knowing how to swim, but we also have the capability to evaluate the risk and learn new things that will improve our lives. Programmatic buying is the new method that has to be tried and learned.

Digital media practitioners realise that programmatic buying is here to stay, why else would a big player like Procter & Gamble commit 75% of its digital budget to programmatic buying? The simple answer is that it delivers what it promises, and so if the above challenges are met, then trust and faith in programmatic media will be achieved.

Lopez (pictured right) and his office focuses on programmatic solutions in Latin America from its US base in Miami. He has over 12 years experience in a variety of digital marketing roles. Follow him on twitter @programarketer.

*This is in contrast to Europe and North America where entities formerly known as agency trading desks - such as Publicis Groupe's Vivaki, and WPP's Xaxis - are being used as central hubs for programmatic when it comes to areas such as billing relationships.

However, programmatic expertise among the wider agency personnel is being widespread to reflect the increasingly central role programmatic media buying has to play within most media plans.