Latin America: E-commerce takes off, Retargeting follows suit
According to the Latin American E-commerce Insititute e-commerce sales in Latin America surpassed the milestone of $ 70 billion, up from just $ 1.6 billion in 2003. This means that the Latin American ecommerce market grew by almost 40 times in just 10 years!
There are various reasons that have contributed to this quantum leap. Firstly, the digital environment in the region has witnessed a widespread acceptance with increase in the number of internet connected mobile devices in Latin America. According to e- Marketer, the number of internet users in LATAM will increase to about 300 million this year. Besides, ecommerce has other practical benefits such as the ease to buy. You need not step outside and visit multiple stores – you can do so while you watch television back home. Further, most e-commerce transactions are done using credit cards. In mature e-commerc markets, it is common for customers to use credit cards for online purchases. In recent years, Latin American markets have witnessed an increase in usage of such cards as well.
With the user willing to explore e-commerce, it is important that advertisers engage these users and provide products & services that delight the users and transform website visits into sales transactions and further into relationships. Marketing channels like desktop retargeting, mobile retargeting and social retargeting with dynamic banner creative optimization are extremely beneficial to achieve marketing goals and in building a customer relationship. To know more about retargeting click here, here and here.
Since each of these channels are relatively new there was an initial reluctance among advertisers to take the first step. But once advertisers realized the huge benefits that retargeting can provide, we witnessed a swift adoption of these channels by all the leading advertisers in LATAM. However, it is important to reinforce that retargeting must be used intelligently and combined with a good e-commerce marketing platform for dynamic creative banners optmization and Real Time Bidding with great intelligence, flexibility and creativity to achieve the desired results.A combined strategy of desktop, mobile and social retargeting has proven to be most beneficial for our clients.
Some of the big players in retail and e-commerce operating in LATAM are already working with us and combining all these channels very well. This experience and knowledge of their customer helps e-commerce or retail companies to work better and achieve thier ROI. Further, these companies are able to engage more effectively with their users and take the next big step and work with omni-channel and omni-consumer strategies. With all the insights generated and the commercial benefits possbile through effective utilization of these marketing channels – a combined retargeting strategy will no doubt be the next big thing in Latin America’s E-commerce market.