Alejandro Suarez Sanchez-Ocana. TIME-sector employer since 1998, CEO of Group Publispain and the network of blogs Entertainment Networks SL, President of Inversora Foley, director and Founding Partner of Yes.fm, adviser and investor in several companies for innovation, new technologies and the Internet.
A few days ago I met a very interesting fact of the penetration of the Internet in Spanish-speaking countries. The fact is I nternet World Stats, and I saw it in an interesting blog Amado Martin, who visited with some frequency.
Always said that one of the key factors in order to ascertain the economic level of a home, is the volume of waste (garbage) that is generated every day. Sounds like a joke, but literally if you think about it. And a key factor in assessing a country's development is the% of Internet penetration in its population.
These are the objective facts:
Mexico: 23.7 million users / 21.8% penetration
Spain: 22.8 million users 56.5% penetration
Argentina: 16 million users / 39.7% penetration
Colombia: 10.1 million users / 22.8% penetration
Peru: 7.3 million users / 25.5% penetration
Chile: 7 million users / 43.2% penetration
Venezuela: 5.3 million users / 20.4% penetration
Dominican Republic: 2 million users / 22.4% penetration
Ecuador: 1.5 million users / 11.3% penetration
Guatemala: 1.3 million users / 10.4% penetration
Costa Rica: 1.2 million users / 29.4% penetration
Uruguay: 1.1 million users / 31.8% penetration
Puerto Rico: 0.9 million users / 23.2% penetration
El Salvador: 0.7 million users / 10.1% penetration
Bolivia: 0.6 million users / 6.4% penetration
Honduras: 0.4 million users / 4.6% penetration
Panama: 0.3 million users / 8.2% penetration
Paraguay: 0.3 million users / 3.9% penetration
Cuba: 0.2 million users / 2.1% penetration
Nicaragua: 0.1 million users / 2.7% penetration
From these data, several conclusions emerge.
First the more developed technologically in Spanish, would be in this order Spain, Chile, Argentina, Uruguay.
Countries like Spain with 22 million penetration and 45 million people have traveled a lot smaller than others such as Mexico with 110 million people and 23.7 million of penetration. But other countries such as Argentina (penetration 16 million people vs 40 million people), or to a lesser extent Colombia and Peru have the same potential tour Spain in absolute numbers.
Of course not all users "worth" the same thing. The purchasing power of each country and that is very different (though it sounds ugly, we can talk in terms of value). Years ago, virtually the only profitable IP Spanish, today the Latin IP can be profitable even at very distant from the IP Spanish (except Mexico and Chile each day closer except for the difference in changing the currency of reference Euro vs Dollar).
Normally from Spain widespread on the Latin IP (LATAM) and is a serious mistake. Nothing to do cost per thousand impressions (CPM) that we can obtain in countries like Mexico, Chile, with which we can obtain in others as Peru and Cuba . A campaign that in Mexico makes $ 0.70 CPM could easily convert to $ -0.1 $ 0.08 in Peru. We are talking about differences abysmal 700%.
Many Spanish companies and Internet technology, historically have not been interested in the Latino market. This has been for many causes, for e-commerce are obvious difficulties in export, customs, transport costs, poor implementation of payment systems at user level in many Spanish-speaking countries and so on. In 1999, was overcome these points simply an illusion. Today many are being overcome, although not entirely.
Regarding the advertising market is beginning to return, low-cost, but rentabiliza Spain from the Latin IP. That low-cost compounded by the fact that you mentioned before the huge difference of the current exchange Euro vs Dollar, which in the past 3 years has positioned itself to the stronger euro as their currency, making the markets from Spain to influence U.S. dollars are less interesting.
Today at a meeting at the offices of Entertainment Network, to which I finally moved my professional office, reminded in 1998 when some companies in the sector chose to "close" the access of IPs Latino their servers. It was the dawn of the Internet and at the time, with the high cost of bandwidth and server capacity much lower, were a significant cost (especially since then Mexico) and no income. I never closed to traffic from the IP anywhere. I always thought that it would reach profitability or at least that we should always look to these markets.
I firmly believe that they are the future. We speak of 362 million people in Spanish-speaking countries of Latin America, and 45 million Spaniards, in a market total of 407,000,000 people who share language (eye, do not count with many Spanish-speaking countries like Brazil, for example). Nothing that the penetration of the Internet reaches only 35% on average, we would be talking about a potential market of almost 150,000,000 people. With a penetration of 56% as the current Spain, only the Indian markets, Chinese and Anglo-Saxon will be higher worldwide on the Internet.
These days we are working on our project for a download site, which incidentally I have received very good ideas lately (the most interesting of Manuel Jimenez, of Coveralia hope that we can implement), and we defined that the key must be comprehensive Not only focused on the Spanish market, but the entire Latino market and we're working on it.
For this our first step is a solutions provider Global SMS and an advertising agency that can globally, exploiting the best possible advertising at Global. Overall focus, we are on track.
Alejandro Suarez's blog.