This week’s Latin American RoundUp brings details of an interview with Walter Motta Junior, co-director, Cadreon Brazil, in which he analyses the local ad tech scenario. He emphasises that even though players have evolved to preferred and private deals, there are still a lot of gaps in open-auction approaches, including opportunities for publishers to use their first-party data more effectively. Also, news about a partnership between MediaMath and DynAdmic in the country; and, finally, the latest data about OTT video services in Latin America, which will see Brazil surpassing Mexico in terms of revenue by 2018.

Cadreon: “Brazilian publishers need to work on packaging their offers to boost programmatic"

In an interview with ExchangeWire Brazil, Walter Motta Junior, co-director, Cadreon Brazil (pictured left), analysed the local market scenario, emphasising how the players still need to work on offers thinking about advertisers’ gains with programmatic media.

According to Motta Junior, despite the growth and the evolution that has happened in the Latin American market in the last years, players still need to work on 'packages' that are capable of offering tangible advantages to advertisers — including open auctions. The market has been evolving to preferred deals and private marketplaces; however, there are still some gaps in open auction deals.

To the local publishers, Motta Junior advises that they still need to work better to reflect the full potential of their first-party data. This can be done by better viewability metrics, packages in which the publishers guarantee a minimum percentage of views, as well as the use of first-party data to better target campaigns. He commented: “Segmenting campaigns according to the context, for example. This is one kind of targeting that we can’t do using only a third-party provider. That is a great way to differentiate your inventory”.

“We evolved from the impressions, mainly CTR, and now we are entering a more advanced stage in which we start to understand the real business objectives and how programmatic media can help reaching them. But there are still a lot of companies in the market that are still selling by their clicks”, Motta Junior said.

For Cadreon Brazil, preferred deals are the biggest bet for 2016. The company is positioning itself in the local market as a broader ad tech player, “not only a trading desk”, after five years with local operations in the country. Cadreon has two offices, in Sao Paulo and Rio de Janeiro, and also commercial staff in the South of the country and in the capital, Brasilia. In 2015, the company increased its revenue by 200% — and the goal is to increase it by 50% this year.

MediaMath and DynAdmic announce partnership in Brazil

MediaMath has closed a deal with DynAdmic in Brazil that will give them access to the premium video inventory based in an audio recognition tool. The technology will classify online videos according to its content. The partnership will also allow the DSP’s clients to use the BrandSafety solution of the video ad tech companies, being able to analise the pages content, including video, where they intend to place their ads.

“We have big expectations with this partnership”, said Cris Silva, platform solutions director, MediaMath Brazil, in a press statement. DynAmic Brazil mentioned the increase of their coverage enabled by the partnership, emphasising the size of MediaMath’s operations in the country.

Brazil to surpass Mexico in OTT video revenue in 2018

Mexico, which has the biggest market for over-the-top video services in Latin America, is expected to be surpassed by Brazil in two years, according to MTM’s London estimates. eMarketer compiled some numbers earlier this week, emphasising that Brazil’s OTT video market should grow close to 33% annually.

Mexico’s OTT video services revenue last year was USD$276m (£199m), expected to grow by 18%, until 2018 (CAGR), and reach USD$454m (£327m). Brazil is expected to jump from USD$180m (£130m) to USD$462m (£333m). Argentina, despite having the strongest CAGR growth (36%), has a much smaller base — expected to increase from USD$45m (£31m) to USD$113m (£81m) between 2015 and 2018.

Brazil and Mexico are already among the biggest markets for Netflix — with 2.9 million and 1.7 million subscribers, respectively.