Latin American executives still fail to understand the importance of “reputational risk” in social media in a region with 340 million Internet users, communications expert and writer Alberto Arebalos told Latin Business Daily.
Arebalos, who is working on a book about this topic, has worked as head of communications for Latin America for Facebook, Google and Cisco.
Arebalos, who co-authored “The Horizontal Revolution: The Power of Communication in the Hands of the People,” which in 2008 said many executives in the region looked at the Internet as a “marginal curiosity,” said by e-mail that Latin executives still lag behind.
“Those same executives still do not appreciate the reputational risks that their companies are running," Arebalos said. "This is the subject of a coming book that I am about to finish,” Arebalos said.
This occurs even as studies have shown that Latin Americans spend more time on the Internet than users elsewhere, Arebalos said. Since September, Arebalos has led the communications unit of Latamkey, a Miami-based company that helps technology businesses accelerate growth.
Latin Americans on average spend four hours more per month on the Internet than other users in the world, Arebalos said, citing “estimates by companies in the industry."
“There have been two explanations for this," Arebalos said. "One is that since connections are slower, more time is spent navigating. The other is that Latin Americans are more social. It could be a mix."
“The Internet has more than 3.2 billion users worldwide, of which 340 million are in Latin America,” Arebalos said.
Arebalos also said social networks take up a large chunk of Latin Americans' time spent online.
Another characteristic of Latin America is a technology gap, Arebalos said.
“Companies first launch their products in the main markets," Arebalos said. "However, as far as hardware, Latin Americans have access to the same products available worldwide,” Arebalos said.
As for the series of acquisitions of technology companies in Latin America by bigger companies from abroad, Arebalos said this could fuel more developments.
“The fact that there is interest for Latin American companies is good, as it will encourage others to develop and invest in their companies," Arebalos said. "It is a good incentive."
Another issue in Latin America that affects businesses is that many continue to use technologies that make it harder for consumers to find their services.
“There has been progress, but many small stores and restaurants, for example, insist on using PDF and Flash, which cannot be indexed," Arebalos said. "This makes them hard to find when they are searched."
“If I am in Buenos Aires, and I search for a good steak, restaurants which do not have their menu in HTML will not be indexed and will lose the contact," Arebalos said.
“Twitter is a good tool for a fast communication with a specific audience, but it cannot replace the broader dialogue that can be obtained through platforms without extension limits, like, for example, Facebook and blogs,” Arebalos said.
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