Companies are battling for the hearts, minds and wallets of Mexico's biggest consumer youth segment.

As Mexico's economy is closely linked to U.S. economic performance, so is its online use. With all the news lately focusing on BRIC (the combination of Brazil, Russia, India and China) and its lucrative internet opportunities, it would benefit marketers to start analyzing other countries in emerging markets.

Mexico, for example, is the second main online market of Latin America (Brazil being No. 1). With more than 20 million internet users, according to WorldStats, Mexico ranks thirteenth out of the top 20 countries in terms of internet users. What is interesting to note is that in just six years, the online population has grown from a mere 2.7 percent in 2000 to 19.2 percent in October 2006 (Mexico's total population is more than 106 million people).

And, according to eMarketer's report "Latin America Online," online ad spending in the region is poised to grow far more rapidly than traditional advertising, providing greater opportunity for online marketers.

Along with internet penetration, it is imperative to note that the two main facets that contribute to Mexico's leading digital growth opportunities are a fast-adopter demographic and an increase in broadband and mobile infrastructures. 

Demographics: younger and smarter
According to the U.S. Census Bureau, 53 percent of Mexico's population is under 24 years old. In a report titled "Latin America Online," eMarketer states: Internet users in Latin America tend to be younger than the population as a whole, and they are more likely from middle- or upper-socioeconomic groups, making them desirable for online targeting.

Aside from belonging to a middle- or upper-socioeconomic group, this demographic is well educated, tech savvy and able to make informed buying decisions online. This group has an increasing participation in education as the growing demand for post-secondary education drives tuition up much faster than the GDP (World Bank, 2006). A large number of young Mexicans turn to reading books, newspapers and journals, surfing the internet and receiving multimedia education in a bid to improve themselves.

According to a BusinessWeek article titled "Mexican Marketers have Youth Fever," companies are battling as never before for the hearts, minds and wallets of Mexico's biggest consumer segment: the 25-and-under set.

The article states that Antenna Consulting, a Mexico City market research firm, estimates that spending by Mexicans ages 13-18 totals $10 billion a year.

Broadband and mobile infrastructure
New telecommunications policies that focus on deregulation and privatization of state monopolies have also opened the way for increased internet use. Additionally, as part of the e-Mexico National System, there has been the installation of public kiosks and 3,200 Digital Community Centers around Mexico.

Another positive sign for online marketers wishing to target Mexico is that broadband adoption is growing and is proving to be an ecommerce driver around the world. Last year, there were more broadband subscribers than dial-up subscribers for the first time. Technologies such as WiMAX and VoIP are also emerging in the market.

With regard to mobile, Mexico's mobile industry is growing at a yearly rate of 22 percent. According to Frost & Sullivan, the Latin American mobile messaging market has gained $2.4 billion in 2005 and is predicted to reach $7.8 billion in 2011 for the mobile operators. Adopted content strategies that promote mobile messaging as entertainment rather than just a communication tool are partially responsible for that growth.

It is evident that Mexico has a very promising future, both for online advertising opportunities as well as mobile marketing and other emerging technologies. Mexico is poised to be a major player in these industries and will grow dramatically in the future. Not only do the number of internet and broadband/mobile users increase daily, but the many initiatives that are taking place to grow this online market are commendable.
 
Stay tuned for an article by this same author that will focus on the emerging online market in Chile.

Elizabeth M. Lloyd is chief marketing officer for Latin Edge. Read full bio.