Google Predicts Positive Future for Latin America

Google admits that the economic crisis has hit everywhere, but assures that the movements shaking the global economy will not be halting growth in its business ventures in Latin America. This positive forecast reached Costa Rica News when Alexandre Hohagen, head of Google for Latin America, had his first meeting with the Argentinean press. Online advertising will continue its expansion in the region, was his conclusion.

Hohagen admits that the crisis has arrived, and arrived everywhere. However, he also asserts that Google’s biggest advantage is that their industry is strongly related to those of their clients, and that more companies are looking to buy advertising that gets them precise results. Hohagen adds that all companies are being forced to cut back on advertising costs, but that less is being taken away from online advertising investment. Additionally, Google’s smaller clients must shift focus to those advertising activities that bring about more direct results, such as online advertising.

Hohagen predicts very positive results for the final quarter of the year for Google, founded in 1998 by Larry Page and Sergey Brin, and added that Latin America is the region with the highest growth in Google from the point of view of users, consumers and clients. Of course, Hohagen approaches next year with caution, relaying that there is a lot of economic uncertainty. However, in spite of all this, projections show a growth of more than three digits, following trends in the region over the last three years.

Unwilling to share Google’s Latin America turnover figures, Hohagen chooses instead to share results from Pyramid Research. The online market in Latin America is one that is continuing to expand its user base, and the prediction is that 160 million people will have home access in 2013, with an additional 11 million using internet cafes for access. This means that online advertising will account for 9% of all public investment in Latin America, a figure that is currently sitting at just 1.5-2%. Additionally, rates of online trading between companies and consumers will reach $13 billion.

The Pyramid Research poll interviewed 3620 Latin American internet users. It revealed that 40% of users participating in online shopping are between 18 and 29 years old. 87% of electronic purchases are now conducted online, and 66% of online shoppers are turning to the internet for better prices and tax advantages.

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Filed under: Business on November 13th, 2008