Mexico is the largest Hispanic country with a large population of 128.9 million, placing it 12th in the world in terms of total GDP. Although the GDP per capita here is only $20,616, the launch of contextual advertising in Mexico is quite promising due to the large market. All this makes the country interesting for starting a business and doing business.
Setting up contextual advertising in Mexico
Before setting up contextual advertising in Mexico, as in any other country, it is important to study local customs, business practices and culture. This will help to understand the target audience with which we have to work and influence it more effectively through our advertising activity. Keep these tips in mind when setting up an advertising campaign in Mexico:
Residents of the country, especially in the outback of Mexico, are very surprised if you do not speak Spanish, because in their picture of the world the whole civilized world speaks it. Therefore, if we are targeting the local population when setting up Google Ads, then the advertising campaign must be in Spanish. Keep in mind that Mexican Spanish has some grammatical differences compared to the language spoken in Spain. This is important to consider when filling the site and creating ads.
And the situation is completely different if our main target audience is visiting tourists. In 2021, 31.8 million tourists visited Mexico, more than 7 million more than a year earlier. This promising market is constantly growing and developing, so opening a tourism-related business in Mexico is very promising.
Tourist cities in Mexico include Cancun, Mexico City (capital), Acapulco, Puerto Vallarta, Oaxaca, Puebla, Merida, Guadalajara. When setting up a Google Ads project in these cities, focusing on tourists, it is better to choose English, since most tourists travel to Mexico from the USA and Canada. In addition, English is the language of international communication, which is understood by people from most countries.
If your budget allows, in Mexico it makes sense to show ads in at least two languages: Spanish and English (to reach the widest target audience). However, setting up Google AdWords ads in two languages is, in terms of the amount of work, tantamount to running two separate projects.
Shuttle migration is the movement of people between areas of a large city during the day and during the week, as well as migration from the suburbs to the city center and back. It is common in cities with a population of more than a million people. There are at least ten such cities in Mexico: Mexico City, Ecatepec de Morelos, Tijuana, Puebla, Guadalajara, Ciudad Juarez, Leon, Zapopan, Monterrey, Nezahualcoyotl.
When setting up Google Ads in such cities, keep in mind that your client may, during working hours, while in an office in Mexico City, look for food delivery for the evening in the nearest suburb of this metropolis. This must be taken into account when setting up geographic targeting and the range of our advertising campaign.
- Online retailers in Mexico generate about 40% of their sales from Google Ads through Google Shopping and Performance Max ad campaigns. Therefore, these tools should be given the closest attention. Make sure that the data feed is updated in a timely manner (several times a day, at least). It is important that the website has up-to-date prices and availability for all items.
- For a local business, it’s important to have a Google My Business account, regular customer reviews, and a high rating (greater than 4.5 stars). It will be great if your customers can leave reviews in different languages (at least in Spanish and English), so that it would be easier for a potential customer to find a response in a language they understand. As a result, the likelihood that he will use your services will be much higher.
- Remember that advertising traffic in Mexico is very expensive, so it’s important to continue working with the target audience who visited your site and did not order a product or service. Set up remarketing lists, offer them a discount or a gift when ordering on your site, and also limit the promotion in time – so the chance that the customer will make a purchase will greatly increase.
Google Ads contextual advertising cost in Mexico
The cost of setting up Google Ads depends on the number of advertising tools that are involved in the campaign (search, banner ads, remarketing, Smart Shopping, Performance Max, dynamic search ads, YouTube video ads). In addition, the price of works is influenced by the schedule for displaying ads and the number of categories of goods or services for which advertising was launched.
Also, the total advertising budget is influenced by the cost of a click in Google AdWords directly on your topic. In order to estimate the total cost of traffic in an advertising campaign, we need to know the average cost per click for each product category separately. Below is the CPC forecast from Google Ads Planner for popular queries in Mexico:
- washing machine repair – $0.96;
- ventilation cleaning – $0.90;
- Plumbing services – $1.01;
- beauty salons (manicure) – $0.91;
- carpet cleaning – $1.05;
- permanent makeup – $0.99;
- dentist – $1.24;
- refrigerators – $0.91;
- Korean cosmetics – $1.10;
- shelves for cats – $0.94;
- dog food – $1.17;
- fertilizer for flowers – $0.88.
Important! The actual cost per click in the advertising account may be lower than the one indicated above. For example, the most expensive keywords in each group are taken, for other keywords, the transition may be cheaper. And given that the final price is affected by the account structure, the chosen bidding strategies and the quality of analytics, the final price may differ from the indicated one by +-40%.
If you’re setting up Google Ads yourself, check out the blog post on our website and YouTube channel, where there are plenty of free, actionable tips. Or order a video consultation from our PPC specialist. He focuses on the points of growth and will give recommendations on project management. To do this, leave a request on our website.
Peculiarities of online advertising market in Mexico
Mexico is the most active e-commerce country in Latin America, with 85% of people ordering at least one product or service online in a year. The most popular social network in Mexico is the YouTube platform, so this platform should be one of the central places in your advertising campaign.
Google is the leading search engine in Mexico, accounting for 94.15% of all search traffic in the country. It is followed by Bing. It is chosen by 3.97% of Mexicans. Third place goes to Yahoo! It serves 0.89% of local search traffic. The remaining search engines are used by an even smaller percentage of local residents. That is why when setting up an online advertising campaign for Mexico, the main focus should be on the Google Ads system.