Francis Petty
Expert Contributor

Can AI Offer Mexican Companies a True Competitive Edge?

By Francis Petty | Mon, 08/15/2022 - 10:00

Investing in digital advertising is becoming increasingly relevant for the business and industrial sectors in Mexico. According to the Digital 2022: Global Overview Report, published by WeAreSocial and Hootsuite, there are over 96.87 million internet users in the country — 74 percent of the population.

In 2020 alone, investments in digital advertising in Mexico totaled US$2.42 billion across the following channels: US$684.6 million in search engine marketing (SEM); US$762.3 million in social media advertising; US$491.4 million in ad banners; US$374.2 million in video ads; and US$106.9 million in classifieds.

At the same time, a research study carried out by eMarketer had already predicted that, by 2022, Latin America would be the fastest-growing region in terms of digital ad spend. This trend is expected to continue in the next few years, with spending estimated to grow seven times faster than the region’s GDP and three times faster than inflation.

Meanwhile, according to global market forecasts published by Statista, investments in artificial intelligence (AI)-powered advertising will reach US$3.7 billion in the second half of 2022.

When it comes to user habits, the average Mexican spends approximately nine hours per day online across devices, including smartphones, tablets, laptops and games consoles. And although new options come up every day, 95 percent of Mexicans still prefer to use social media and make online purchases on their smartphones.

Lockdowns and confinement have undoubtedly fostered new buying behaviors, which have transformed the way we discover and choose new stores and services. Internet users today discover new brands through social ads, websites, search engines, recommendations or comments on social media and through in-app ads.

Given its fast pace, this digital transformation has challenged several industries — and although some companies have been quick to adapt, plenty are still unaware of the benefits of combining next-generation technologies, such as AI, with digital advertising to boost sales and improve their positioning.

Therefore, it is not hard to see why AI is growing to be a powerful ally in creating and expanding sales opportunities and why it has become a cornerstone of digital marketing strategies.

AI can create content, place it in front of the right audience, and select the most efficient platforms. Although the ad copy must be created by marketing strategists, AI can take content to the next level by automating specific tasks.

Industry leaders, such as Amazon, Facebook, and Google, already apply AI to many of their processes; for example, using it to identify people and objects in images and videos with up to 99.7 percent accuracy. This is how these major players improve efficiencies while providing a personalized experience to each of their millions of users.

Image recognition can also be used to optimize marketing efforts by enabling a more efficient way to synchronize online content with store visits. Some companies even combine this technology with automated notifications to deliver offers, discounts, and personalized messages to consumers, with the goal of improving the purchase experience and, ultimately, giving the brand a competitive edge.

AI provides key insights for understanding the consumer behaviors of specific target segments and learning about their preferences. This enables a seamless integration of advertising into the user’s preferred content universe.

Marketing strategies can leverage AI for a wide range of applications, such as predictive analytics, content creation, chatbots, email marketing, and more.

In the last few years, at Groovinads, we have demonstrated that an AI-based digital marketing strategy improves a company’s advertising return on investment (ROI), which is a key indicator to determine the profitability of an investment and the feasibility of a strategy.

The key is to automate ad personalization to provide a user experience in which advertising is seen not as an intrusive hassle but as content of interest. In that respect, AI plays a fundamental role in making banners relevant, as it enables brands to show ads that are smartly tailored to users’ interests.

Capgemini’s “Turning AI into concrete value: the successful implementers’ toolkit” revealed that 75 percent of organizations implementing AI increase their sales of new products and services by more than 10 percent. Furthermore, companies that leverage AI for their operations see a 10 percent improvement in customer satisfaction, while 79 percent also generate new, more actionable insights that enable more accurate analytics on consumer preferences.

AI’s advances today allow advertisers to achieve ROI results that meet the expectations of corporate leadership by creating campaigns that are better planned, better targeted, and better executed. This tips the scales against traditional advertising, which cannot measure its actual impact on the target audience.

Despite AI’s great range of possibilities, there are unfortunately very few companies using it today in Mexico to optimize their advertising strategies. As we have seen, this tool will soon be the norm across industries, and early adopters will certainly reap the benefits of having such a competitive edge.

Leveraging technology for marketing purposes is already something brands can do; those that understand this will be able to ensure better decisions for launching campaigns, posting ads, and driving traffic to their websites.

In the challenging business landscape we live in, even the smallest decision can make or break a company’s future.


About the author

Francis Petty is CEO of Groovinads, a martech platform that executes campaigns in over 20 countries.

About Groovinads

Founded in 2009, Groovinads is a MarTech service platform leveraging artificial intelligence. The company offers programmatic advertising and dynamic creative optimization services, combined with personalized support, to connect brands with engaged users by delivering only relevant ads and content. Groovinads runs campaigns in over 20 countries across Europe, Latin America, Asia, and North America. For more information, please visit

Photo by:   Francis Petty