The future of digital marketing in Latin America

MIT Technology Review and NTT DATA study digital marketing today as essential for company growth and evolution

The study “DIGITAL MARKETING IN LATIN AMERICA, customer experience as the center of business strategy 2022” looks at how digital marketing is growing exponentially in organizations. A key technological ecosystem for promoting digital marketing and, consequently, improving company sales is martech, which blends technology and marketing.

According to the study, 48% of organizations aim to attract customers, showing that they want to expand relationships with new users and gain position among new audiences. In order to do this, technologies like augmented analytics and artificial intelligence (AI) are becoming more important for automating processes, making decisions and meeting customer needs.

In Latin America, digital marketing helps companies reduce costs, improve brand positioning, and increase profitability. Latin American organizations have a long way to go before digital marketing becomes mature.

Digital marketing isn’t new. Latin America is really into it

Latin America already had digitization. As a result of the pandemic, companies have had to adapt to a fully digital environment and change their business strategies, so many paradigms have been broken.

As a result, tools like digital marketing have grown exponentially and are expected to keep improving. Latin America invested almost 11,000 million dollars in digital marketing in 2021, and it’s expected to exceed 15,600 million by 2024, according to Statista.

Following are some of the main results of the survey, in which over 60 leaders from Argentina, Brazil, Chile, Colombia, Mexico and Peru took part:

  • A digital marketing strategy is in place in 90% of the organizations analyzed. As a result, 70% of companies say they’ve increased their investment in the last year and a lot more say they’ll keep doing it.

  • In addition to social networks, websites, and apps, 40% of the companies surveyed use analytics, marketing automation, and digital commerce tools.

  • One in five organizations can’t identify their customers correctly, according to the survey.

  • More than 70% of companies surveyed have defined content marketing plans, but 2 out of 3 don’t link it directly to business results.

  • According to the survey, 43% of companies haven’t integrated their campaigns into a comprehensive digital marketing plan.

Latin American organizations’ e-commerce and content marketing commitments

Latin American companies need content marketing and e-commerce to connect, empathize and be in the minds of their customers. The companies surveyed already have a content marketing plan. A company’s success is mainly measured by how well it generates leads, sales, and traffic.

E-commerce is still not as common in business as it is in other parts of the world. Because the market isn’t ready and there’s no business culture, there hasn’t been much development. As a result of the pandemic, cultural change is being pushed and developed, and in some ways, a generational shift is also needed to break down traditional barriers to online shopping. Retail, for example, considers it essential to their business, despite its premature status. In the digital world, more and more companies will bet on it.

Latin American digital marketing trends

Metaverse: a new channel of communication

Digital marketing will make it possible for customers to explore and try products before they buy them, thanks to these new technologies. They’ll change the way you interact and see the world.

TikTok to get people’s attention

This platform gives brands a chance to connect with their audience. The algorithm and characteristics of this social network make it stand out among other platforms, so Latin American brands are turning to it as part of their digital marketing strategy

Content tailored to you

In order to increase conversion and retention rates, personalization of content aims to create specific and individualized actions and experiences. Nowadays, thanks to new technological tools, it’s possible to create personalized experiences for each client, improving UX (User Experience).

Martech presence for C-Commerce

Marketing and technology are getting closer. Thanks to its ability to optimize marketing processes with technology, Martech has gained popularity among Latin American companies. The region is already embracing social listening and campaign management tools.

Analytics with a twist

This is essential for automating company information and generating better marketing strategies. Due to its ability to analyze data better and select trends according to companies’ needs, this tool is gaining popularity over traditional analytics.

Commerce online

Business models like conversational commerce use messaging apps like Instagram and WhatsApp to make sales. In many cases, they’re also the communication bridge between a brand and customers, making it a good fit for companies in the region.

The blockchain

Blockchain is a fast-growing technology that’s changing businesses. In fact, many think it’ll be as big a deal as the internet. The role blockchain plays in web 3.0 marketing makes it more efficient and transparent

It’s important to market based on data, offer personalized experiences, and offer what customers want. To do this, it’s important to establish a strategy focused on the consumer, telling them the right thing, taking their emotional and functional needs into account,” says Jorge Corral, Head of Customer Americas at NTT DATA.

Furthermore, the multinational company goes further and emphasizes the importance of the metaverse, hand in hand with its augmented and virtual reality products, to create a seamless user experience. The world of virtual experiences will become a multitude of interfaces for the sale of goods and services in the future. One of the biggest challenges brands face is communicating with clients who are entering and leaving virtuality.

“Customers are at the center of business strategies.” Customers want unique experiences, not just good products and services. Digital marketing strategies that focus on customer experience is one of the key points for any business today”, added Heliane Esperón, Head of Digital Marketing & E-commerce at NTT DATA Mexico.