In Mexico, Social Networks stake Digital Marketing Claim.

As greater percentages of the population in Mexico become internet and mobile internet users, advertisers are devoting more resources to digital campaigns. eMarketer estimates that digital investments will grow by over 30% every year through 2014.

Similarly, August data from the Asociación Mexicana de Internet (AMIPCI) found that 40% of companies in Mexico reported already devoting at least 10% of the ad budget to digital, with one in five devoting 20% or more. That does not mean that all companies have fully embraced digital, however. More than one in three companies still put less than 4% towards online budgets.

Among digital marketers, mobile and related geolocation services each received attention from nearly two in five companies—a not insubstantial percentage given that it is still early days for mobile advertising. In the Latin America region, Mexico will see the greatest percentage of its digital budget devoted to mobile, according to eMarketer estimates, at 7.8% this year and reaching nearly 20% in 2016.

Social networking, a marketing activity that’s been around comparatively longer than mobile, saw even more significant attention from companies, according to AMIPCI’s findings. Although email marketing ranked as the No. 1 digital marketing activity in Mexico, social network profile maintenance and serving ads to social networks came in at a close second and third, cited by 75% and 69% of respondents, respectively.

Previous research found that social network advertising is uncommonly effective in Mexico, both online and on mobile.

For those marketers who decide to focus advertising dollars and resources on social networks in particular, a majority of users (52%) told AMIPCI they would follow a brand if offered a rebate or discount. The poll also suggested a reasonable sense of brand loyalty among social network users in Mexico. More than four out of 10 said they would follow a brand because they “identify with [it].”

eMarketer estimates that by 2016, 22% of ad spending in Mexico will go towards digital. A growing portion of that will seek a receptive audience on social networks.

For more information at http://www.emarketer.com