This post is also available in: Spanish
It’s not as big as Brazil or Mexico—maybe that’s why it hasn’t gotten as much attention as an online market. However, Colombia has all the ingredients to become a power performer for Internet advertising. Here’s why.
#1: Growth in users. According to comScore, Colombia’s online population grew by 18% between May 2010 and May 2011, just behind Brazil (19%) and Mexico (21%) and with 9 times the amount of growth of Argentina (2%). This is part of a pattern of continual impressive growth. The amount of Colombia internautas grew by 27% between 2009 and 2010, and since 2000, the amount has grown by a whopping 2,267%.
#2: Strong penetration. Colombia now has 50% Internet penetration, behind Argentina (66%), and Chile (54.8%) and well ahead of Mexico (35%) and Brazil (37%). It’s also important to note that Colombia has 22.5 million Internet users, more than double the amount in Chile and just behind Argentina (27.5 million). In fact, it’s in the top 4 in Latin America among users, along with Mexico, Brazil and Argentina.
#3: Huge online ad spend increases. In 2010, Colombia’s online ad spend shot up by 56% to $41 million. This was the largest growth in online ad spend in all of Latin America. And Colombia’s online ad spend is expected to grow by another 40% in 2011. Marketers are realizing that online is an excellent way to reach consumers in this market—studies show that 90% of Colombian Internet users go online to research products before buying.
#4: Top rankings in key areas. Colombians search more online than anyone: they perform 233 searches per users, much more than Mexico (178), Argentina (175), Brazil (150) and even more than the United Kingdom (162). They’re also active on social media: these have a 90% penetration rate in the country.
However, it’s important to note that display ads appear to be the preferred way for advertisers to reach the Colombian market. In fact, in 2010 almost 83% of the online ad spend in Colombia was used for display ads. No surprise there, since this type of ad helps advertisers reach premium audiences via portals and high-traffic sites.
In Colombia, our team represents a range of media, including Wall Street Journal, Gamespot, CNET and last.fm. We also help clients reach a variety of important segments with Jumba, our performance ad network.