Author Archives: Bruno Almeida@US Media Consulting

About Bruno Almeida@US Media Consulting

A native of Brazil, Bruno is the CEO of US Media Consulting.

10 must knows Brazil media

10 Media Must-Knows for Planners Targeting Brazil

The Brazilian government just published the results of its latest survey on media consumption, called Pesquisa Brasileira de Mídia (PBM). Partnering with IBOPE, the government interviewed more than 18,000 Brazilians to discover their media consumption habits. As we kick off 2015, the study offers some good data to factor into plans for campaigns.

#1 TV Still Rules in Brazil
For years, TV has ruled ad spend in Brazil and IBOPE consistently shows TV has having nearly 100% penetration in the country. The PBM confirms the dominance of TV. Brazilians watch TV 4.5 hours a day during the week and 4 hours and 14 minutes a day on weekends. More than 7 in 10 (73%) of Brazilians watch TV every day.

#2 Radio Has Intense but Less Extensive Use than TV
Brazilians listen to radio an average of 3 hours and 42 minutes a day during the week and their consumption drops to around 2.5 hours a day on weekends. The peak time for listening to the radio in Brazil is from 6 a.m. to 9 a.m. However, radio doesn’t have the same level of use as TV in Brazil: 55% of Brazilians report listening to the radio anywhere from 1 to 7 days a week and only 30% listen to the radio every day.

#3 Online Radio Does Not Seem to Have Strong Reach
Despite the attention that online radio has received from the media, 80% of Brazilian radio listeners report using traditional radios and only 1% say they listen to the radio online. A larger percentage of Brazilians (8%) report using cell phones to listen to the radio.

#4 More Than Half of Brazilians are Not Online
The Pesquisa Brasileira de Mídia (PBM) reports that 51% of Brazilians said they do not use the Internet, suggesting 49% Internet penetration in Brazil. This is actually close to estimates by other firms using different methodology. For example, eMarketer estimates that Brazil’s 2014 Internet audience was 107 million—similar to the 105 million reported by IBOPE in 2013. Given that Brazil’s population is estimated to be 202 million, this means that Internet penetration is at 52% in Brazil, close to the figures from the PBM survey.

#5 Brazilian Internet Use Is Intense
Of the Brazilians who do use the Internet, 49% use the Internet 1 to 7 days a week, with 37% using the Internet every day—a higher percentage than Brazilians who listen to the radio every day (30%). Brazilian Internet users report using the Internet 4.5 hours a day during the week and 4 hours and 20 minutes a day on weekends, which makes the Internet the #2 medium after TV in terms of time spent.

#6 The Top Time for Brazilian Internet Use is 8 to 9 PM
Internet use reaches a brief peak in Brazil at 8 p.m. (the highest percentage of users are online at that time) and immediately drops after 9 p.m., reaching the low point between 12 a.m. and 6 a.m. At that point Internet use in Brazil climbs quickly to reach a peak at 10 a.m. and then dips a little after 11 a.m. but remains stable until it starts to rise at around 6 p.m. As such, you may want to experiment with these times when running ads or posting on social media in Brazil.

#7 A Majority of Brazilians Go Online with Mobile Devices
The respondents were asked what kind of device they use to access the internet and allowed to select more than one option. The largest percentage of Brazilians (71%) said they access the Internet via computer, but a large percentage (66%) also selected cell phones, while only 7% selected tablets. These results are in line with other surveys in which more and more Brazilian Internet users report going online with their cell phones.

#8 Facebook and WhatsApp Rule Among Brazilian Internet Users
When asked about their favorite social media or messaging apps, most Brazilians (83%) chose Facebook and WhatsApp was #2 with 58% reported usage among survey respondents. Other social sites seem to have much lower usage rates among Brazilian Internet users, like YouTube (17%), Instagram (12%), Google+ (8%), Twitter (5%). Skype (4%) and LinkedIn (1%).

#9 Less Usage for Print Media
The majority of respondents (76%) to the PSM indicated that they do not read newspapers while 19% reported reading them 1 to 7 days a week. Most Brazilian newspaper readers (79%) prefer to read them in print form, while only 10% prefer reading newspapers online and 4% in both print and online formats. When it comes to magazines, 85% of Brazilians surveyed said that they did not read magazines and only 13% reported reading them from 1 to 7 days a week.

#10 Brazilians Trust Newspaper Advertising the Most
Despite their lower usage of print as indicated in the survey results, 47% of Brazilians trust newspaper advertising most or all of the time, the highest level of trust among advertising in any form of media. Radio and TV advertising came in second (42% trust rate for each), followed by magazines (36% trust rate). Advertising on websites were only trusted by 23% of Brazilians and trust rates for social media ads was also low (22%).

Please contact us to find out more how we can increase efficiencies for Latin American agencies through media services like planning or buying or via advertising technology solutions like programmatic buying.

 

Bright black eye make-up

The 6 Hottest Products for 2015 in Latin America

Predicting growth is a tricky business, especially when it comes to which companies or industries will invest more in advertising.

However, studying sales growth patterns may offer some hints. That’s why we examined some recent figures for the product categories that have posted strong growth in Latin America in 2014 and in recent years. Reviewing these may give media agencies some ideas for pursuing new business and help marketers understand what Latin American consumers are spending their money on.

woman applying eyeshadow with brush
Cosmetics
According to Euromonitor, sales of cosmetics in Latin America will grow by 7.2% a year between now and 2018. By 2018 the value of the beauty products market in Latin America will reach US$111.8 billion. The specific areas that will see the highest demand from Latin American consumers over the next 5 years are sun care, hair removal, male grooming, baby care and dental products.

2 digital music
Digital Music

According to the International Federation of the Phonographic Industry, digital music revenue in Latin America grew by 27.6% in 2013. And between 2010 and 2013 digital music revenue grew by 124% in Latin America. Currently Samsung and Google Play have started a partnership to reach this market: anyone who buys certain new Samsung devices gets a free six-month subscription to Google Play.

03 seguros
Insurance

According to Moody’s, average annual growth for the insurance sector in Latin America has been at nearly 15% over the past 10 years.

04 snacks
Snacks

According to Nielsen, total snack sales in Latin America reached US$30 billion in March 2014. As such, sales of snacks grew by 9% in Latin America between March 2013 and March 2014. The leading segment was cookies and cakes, responsible for US$9 billion of sales in Latam, followed by confections (US$8 billion) and savory snacks (US$7 billion). The favorite types of snacks in Latin America are yogurt, chocolate, cheese and ice cream.

5 games
Video Games

According to a report from GlobalCollect and Newzoo, Latin America will have 14% growth in video game revenues by the end of 2014, higher than the projected growth for any region in the world except for Asia-Pacific, which will grow by 15% in this area. In generating US$1.38 billion in video games revenues, Brazil is the leading market, followed by Mexico at US$1.0 billion. Overall, the report estimates that there are 185 million gamers in Latin America and that gaming revenues in all of Latin America will reach US$3.3 billion in 2014.

woman with vitamins
Vitamins and Supplements

According to Euromonitor, between 2008 and 2013 sales of vitamins and dietary supplements grew annually by 5% in Latin America and only Oceania (consisting of Australia, Melanesia and New Zealand) grew at a higher rate in this sector. Euromonitor projects that vitamin and supplements sales will grow annually by 3% in Latin America between 2013 and 2018 to reach a total value of US$5.5 billion by 2018.

Please contact us to find out more how we can increase efficiencies for Latin American agencies through media services like planning or buying or via advertising technology solutions like programmatic buying.

 

50041-Vector-Brazil-Flag-paint-on-Girls-face

What Brazilians are Buying in 2014

Besides understanding consumer behavior and the trends in consumer attitudes among Brazilians, it’s also helpful for agencies to see which products they are purchasing in greater quantities. So we took a look at recent sales figures and highlight important increases with key products.

1 books
Books

While no figures are yet available for 2014, in 2013 book sales went up by more than 4% in Brazil. This is consistent with earlier growth trends, including a 3% sales increase in 2012 and 7% increase in 2011.
Source: Fundação de Pesquisas Econômicas

2 beer
Beer

During the first 3 months of the year, beer sales in Brazil went up by nearly 11%. The World Cup also helped boost beer sales, as Nielsen reported beer sales increasing by 11% during June 2014.
Sources: AB InBev, Nielsen

3 meds
Generic Medications
Compared to the first half of 2013, sales of generic medications in Brazil went up by more than 11% during the first half of 2014, with more than 416 million units sold. Revenues from generic drug sales in Brazil reached R$ 7.5 million in the first half of 2014, an increase of 18% compared to the same period in 2013.
Source: Associação Brasileira das Indústrias de Medicamentos Genéricos

4 printer
Printers

Printer sales went up by more than 8% in Brazil during the first quarter to reach more than 1 million units sold.
Source: IDC

5 shoes
Shoes

Brazilians are projected to spend more than R$ 43 billion (US$19 billion) on shoes in 2014, a 7.6% increase compared to 2013. Classe C has the highest consumption potential among all socioeconomic classes in Brazil, with 43%, whereas Classe B is at 40%, Classe A is at 9% and Classes DE are at 8%.
Source: Pyxis Consumo 2014-IBOPE Inteligencia

6 scooter
Scooters

During the first half of 2014 more than 20,000 scooters were sold in Brazil. This represents an increase of nearly 32% compared to the first half of 2013. So far in 2014, the Honda PCX 150 was the biggest seller among scooter models, with more than 9,600 units sold. This seems to be part of a longer trend, since scooter sales went up by more than 800% in Brazil between 2008 and 2013.
Source: Associação Brasileira dos Fabricantes de Motos

10x10
Smartphones

While smartphone fever seems to have cooled a bit in Brazil, there’s no question that the product enjoys healthy popularity. In the first half of 2014 smartphone sales in Brazil went up by 71% compared to the same period in 2013. Overall, between January and May 2014, more than 28 million cell phones were sold in Brazil—and 19.5 million of these were smartphones. Overall, it’s projected that nearly 65 million cell phones will be sold in Brazil in 2014 and that smartphone sales will reach nearly 47 million units. For comparison purposes, in 2013 more than 35 million smartphones were sold in Brazil.
Sources: IDC and Associação Brasileira da Indústria Elétrica e Eletrônica

7 brinquedo
Toys

Sales of toys in Brazil went up by 6% in the first half of 2014. Overall, it’s projected that toy sales in Brazil will grow by 12% in 2014.
Source: Associação Brasileira dos Fabricantes de Brinquedos

8 traveler
Travel

Brazilians spent US$12.5 billion dollars during foreign travel between January and June of 2014, more than the same period of 2013, in which they spent US$12.3 billion. In June 2014 Brazilians spent US$2 billion in foreign travel, the largest amount ever.
Source: Banco Central

9 tv
TVs
The excitement over the World Cup helped spike TV sales in Brazil by 60% from the second half of May 2014 until June. This comes after a 55% increase in TV sales in January 2014. Overall, it’s expected that Brazilian stores specializing in selling TVs will see an increase of more than 253 million euros in revenues this year.
Sources: GfK, Confederação Nacional de Bens, Serviços e Turismo

10 car
Used Cars

While sales of both new cars and motorcycles in Brazil are down compared to 2013, used car sales went up by 4.6% in the first half of 2014, with more than 6 million vehicles sold. Overall, it’s projected that used car sales in Brazil will go up by 6 to 7% this year.
Source: Federação Nacional das Associações dos Revendedores de Veículos Automotores

11 vinho
Wines

Sales of wines went up by 2% in Brazil during the first half of 2013, with table wines and sparkling wines showing the biggest increase (6%).
Source: Instituto Brasileiro do Vinho

To find out more how we can help your agency increase its efficiencies via media services and new technology developed for the Brazilian market, please contact us.

 

 

Rebeldes_Brasil_novela_Rede Record_2012

Traditional Media in Brazil Is Growing, Not Shrinking

The recent PriceWaterHouse Coopers survey 2013-2017 and other recent data allow brands and media agencies to get a sense of  the different forms of media that are expanding their reach in Brazil.

Out-of-Home (OOH) Advertising
Brazil’s  OOH advertising will grow by more than 10% between 2013 and 2017. Only India will grow more than Brazil when it comes to out of home advertising over the next few years.

Newspapers
PriceWaterhouse Coopers projects that only 4 markets in the world will see growth in newspaper revenues between now and 2017—and Brazil is one of them. The firm projects that the Brazilian newspaper market will grow by 4% annually between now and 2017 and only the newspaper markets in Indonesia, China and India will grow more. In comparison, PriceWaterhouse Coopers projects that the newspaper markets in the United states, Japan and Italy will contract by 3% and in Germany the newspaper market will go down by 2% annually through 2017.

TV
Brazil will be among the top 5 markets in the world in terms of TV advertising. Between now and 2017 TV advertising in Brazil will grow by 10% a year, only exceeded by markets like Kenya (16% current adjusted growth rate or CAGR), Indonesia (15%) CAGR), India (12% CAGR) and Nigeria (11% CAGR).

Magazines
Despite recent reported dips in circulation, PriceWaterhouse Coopers still projects robust returns for the Brazilian magazine market in the coming years. According to the firms projects, Brazil will be among the top 5 magazine markets in the world. Between now and 2017 the Brazilian magazine market will grow by 7% revenue, the same rate as China and South Afria and just behind the growth for Nigeria (9%) and Kenya (9%).

To find out more how we can help you connect with Brazilian consumers through a campaign in any of these media types, please contact us.

 

top selling products

The Hottest Products among Latin American Consumers in 2013

Back in 2012 we researched top-selling products in Latin America and we also explored some of Latin America’s hottest growth markets. However, given that new sales results for different sectors have become available, we decided to share them to help marketers, advertisers and media professionals in their planning for 2014.

 


Appliances

As in 2012, appliances are still selling strongly in many Latin American markets. In Argentina appliances sales went up by more than 17% in the first quarter of 2013 and by another 20% in the second quarter. IBOPE recently projected that appliance consumption in Brazil will increase by nearly 12% in 2013 and that class C will account for 44% of appliance consumption in the country. In Peru, sales of appliances are expected to increase by 11% in 2013 and may total more than US$1.4 billion. Appliances sales in Colombia should increase by 6% in 2013. Data for Mexico with regard to appliances sales seems to be scarce, although a recent report from Euromonitor noted that in 2012 large cooking appliances sales in Mexico went up by 4% to reach more than 2.2 million units.
Sources: Instituto Nacional de Estadísticas y Censo, IBOPE, Cámara de Comercio de Lima, GfK


Autos
In the first half of 2013, Argentina set a record for car sales with nearly 500,000 units, up 8% compared to the first half of 2012. Brazil posted a 5% increase in car sales in the first half of 2013 and overall it’s projected that the country will have a 4% increase in car sales in all of 2013. Car sales rose by 17% in Chile during the first half of 2013, with overall sales of 214,273 units. For its part, Peru posted a 15% increase in new car sales from January to July 2013, with 115,548 units sold. Another Latam market showing strong growth in car sales is Panama: the country posted a 17% increase in car sales between January and July of 2013, with 31,745 cars sold.
Sources: Asociación de Concesionarias de Automotores de la República Argentina, Fenabrave, La Asociación Nacional Automotriz de Chile, Asociación de Representantes Automotrices del Perú, Asociación de Distribuidores de Automóviles de Panamá.


Computers
While 2012 saw growth in all types of computer sales in Latin America, things have changed in 2013. Overall PC sales are down in many markets in Latin America. However, smaller, more portable computers are seeing a sales lift. In the second quarter of 2013, tablet sales went up 171% in Latin America while overall computer sales were down by 5% in this quarter. Argentina was the market with the most impressive surge in tablet sales during Q2 2013, posting a 384% increase. During the second quarter in Brazil, tablet sales went up by 151% while PC sales were down by 10%. While no recent tablet sales figures seem to be available for Mexico, in June 2013 it was projected that Mexicans would buy 3.8 million tablets this year, up significantly from the 1.6 million they bought in 2012. For their part, Peruvians will buy 450,000 tablets in 2013, up from 225,000 in 2012.
Sources: IDC, AOC


Luxury Products

With the region’s strengthening economies and increase in affluent consumers, luxury markets are growing in different Latin America countries. Brazil’s luxury market grew by 24% in 2012 and is projected to post 25% growth over the next 5 years. In Chile, sales of luxury clothes and watches are growing by 14% per year. Mexico posted 15% growth in its luxury market in 2012 with US$12 billion in sales and is expected to post US$14 billion in luxury sales in 2013. Overall, it’s projected that luxury sales will grow by 12% in Central and South America in 2013.
Sources: Digital Group, Sociedad de Marcas de Lujo (AML), Hays, Bain & Co.


Pharmaceuticals

In 2012 the pharmaceutical market in Latin America grew by 15.8%, an even bigger rate of growth than the Asian pharma market (10%). Among the markets with the most growth, not surprisingly, is Brazil, which should see pharmaceutical sales double to reach R$ 100 billion (US$50 billion) by 2017; in fact, the country’s growth has even attracted U.S. pharmacy chains like CVS, which bought the Paulo drugstores chain, and Walgreens, which is currently looking to purchase a local chain. Other countries feature strong growth projections for their pharmaceutical markets in 2013, including Mexico (4.4%), Chile (8%) and Colombia (6%). Another study that looked at the growth of pharmaceutical markets worldwide showed that Venezuela’s pharma market posted 26% growth between June 2012 and June 2013, while in the same period Argentina’s pharma market grew by 23%, Brazil’s by 15% and Mexico’s by 5%. For its part, Peru posted nearly 16% growth in its retail pharmaceutical market during the first half of 2013.
Sources: IMS Health, Brasilpar, Deloitte, Cámara Farmacéutica de la Andi, Asociación Nacional de Laboratorios Farmacéuticos


Sodas

A recent report listed the countries that consume the most carbonated drinks. Argentina topped the list, with an annual carbonate consumption of 131 liters per person, followed by Chile (121 liters per person) and Mexico (119). For comparison purposes, the United States was in 4th place with 112. Uruguay also made the top 10, with 87 liters per person. Paraguay registered 71 liters per person, not far from Ireland, #10 on the list with 74 liters per person. And Brazil and Guatemala weren’t that far out of the top 10 either, each posting 67 liters per person.
Beyond this ranking, other market indicators suggest the popularity of sodas in Latin America. A recently published study that showed that sodas represented nearly half of Mexico’s total beverage spending. While soft drink consumption went up a modest 1.9% in Colombia in 2012, it grew by 9.2% in Chile and will grow by 3% in Peru.
Sources: Euromonitor, Kantar Worldpanel, Corporación de Cervecerías Unidas, Asociación Nacional de Bebidas Refrescantes, Ajegroup


Travel

A 2013 study by Visa that focused on travel habits of 25 major markets found that Brazil is among the top 5 countries in travel spending. Brazilians spend an average of US$3,000 during international trips and rank in 4th place behind travelers from Saudi Arabia, Australia, China and South Africa.
August 2013 was the most recent month in which travel spending numbers were released by Brazil’s Central Bank. In that month, Brazilian travelers spent US$2.22 billion on their trips abroad, nearly 16% more than they did in August 2012. In addition, Brazilian travelers spent nearly US$17 billion on foreign travel between January and August 2013, nearly 15% more than in the same period during 2012.
Beyond Brazil, Argentines increased their foreign travel by 15% in 2012 and spent a record amount during their travels in 2012: US$3.1 billion. The pattern seems to be holding in this year as foreign travel by Argentines increased by 15% during the second quarter. The most recent figures released were for July 2013, during which the amount of Argentines traveling outside the country went up nearly 10% compared to July 2012.
For Chileans, foreign travel went up by 6% in 2012 yet domestic travel increased even more: by 15%. Costa Ricans have increased their foreign travel by 50% since 2004 and Colombians increased their foreign travel in 2012 by 24%. More than 15 million Mexicans traveled abroad in 2012, the largest amount since 2000. Mexican travelers spent more than US$8 billion on foreign travel in 2012, a 7% increase compared to 2012.
Sources: Visa, Banco Central do Brasil, Instituto Nacional de Estadística y Censos de Argentina, Ecolatina, Sernatur, Insitituto Costarricense de Turismo, Ministro de Comercio, Industria y Turismo, Banco Central


Wine

Consumers in a number of Latin American countries have significantly increased their purchases of wine. In Mexico, wine consumption went up by more than 100% between 2000 and 2010. In Argentina, 3 out of 4 homes buy wine and the country is the region’s #1 consumer of wine. Uruguay is in second place in Latin America in terms of wine consumption and ranks #12 in the world, while Chile ranks #20. Wine consumption in Colombia has gone up by 61% since 2007 and in Brazil, it has doubled since 2000. In Peru, sales of high-end wines have tripled since 2009.
Sources: Consejo Mexicano Vitivinícola, Kantar Worldpanel, Grupo Agenda Internacional, Euromonitor, Instituto de Assessoria Mercadológica & Mercadométrica

To find out more how we can help you reach Latin American consumers with a strategic media campaigns, please contact us.

main shot 3

The Top-Selling Products in Brazil

Despite reports that the retail market in Brazil is cooling off, our team keeps seeing a flood of statistics that suggest otherwise. We went through a wide range of reports to identify some of the products in Brazil that show either dramatic increases over the past few years or especially strong leaps this year.

 


Appliances

IBOPE recently projected that appliance consumption in Brazil will increase by nearly 12% in 2013 and that Class C will account for 44% of appliances consumption in the country.
Source: IBOPE


Autos

Brazil posted a 5% increase in car sales in the first half of 2013 and overall it’s projected that the country will have a 4% increase in car sales in all of 2013.
Source: Fenabrave


Cell Phones
A recent study by Nielsen and the Mobile Marketing Association (MMA) Indicated that in the first half of 2013, sales of cellphones in Brazil went up by 121%.  Nielsen and MMA also reported that 38% of the cell phones sold in Brazil in this time period were smartphones. However, it’s important to note that IDC/Abinee reported a much more modest increase in cell phone sales in Brazil during the first half of 2013: 8%. What IDC/Abinee did note is that 13.7 million smartphones were sold in Brazil in this period—versus 15.9 million feature phones. As such, IDC, a firm that specializes in technology research, is saying that around 46% of the cell phones sold in Brazil in this period were smartphones. Given IDC’s specialization in tech, their figures could be more accurate than those of Nielsen. Either way, that fact that smartphones make up 38% to 46% of cell phone sales in Brazil is significant and points to the need to divert more investment to mobile campaigns.
Sources: Nielsen, MMA, IDC/Abinee


Cleaning Products
The average amount that Brazilians spend on cleaning products has gone up by 41% over the past 5 years and grew by 8% just in 2012. The Brazilian cleaning product market is #4 in the world, just behind those of the United States, China and Japan. Overall, Brazil’s cleaning product sector had sales of R$ 14.9 billion (US$7.5 billion) in 2012, which represents an increase of 3.5% compared to 2011.
Sources: Kantar Worldpanel, Anuário Abipla 2013


Computers

In most world markets, consumers seem to moving away from PCs and towards tablets, and Brazil is no exception. In the first half of 2013, notebook sales went down by 7% compared to 2012 and desktop sales went down by nearly 13%. But tablet sales in Brazil spiked by 165% during the first half of 2013 and totaled 3.3 million, which is more than the tablet sales total for all of 2012 in Brazil (3.1 million).
Source: IDC


E-books

Sales of e-books skyrocketed by 350% in Brazil between 2011 and 2012. While a recent survey of Brazilian publishers revealed that e-books make up less than 1% of their sales, publishing consultant Carlos Carrenho has predicted that in 2013 e-books will make up nearly 3% of publisher sales in Brazil.
Source: Câmara Brasileira do Livro


Luxury Products

Brazil’s luxury market grew by 24% in 2012 and is projected to post 25% growth over the next 5 years. In terms of specific categories, luxury watch sales in Brazil grew by 30% in 2012. In addition, in 2013 a number of luxury car brands posted massive sales increases between January and July 2013:

  • Porsche: 140%
  • Rolls-Royce: 100%
  • BMW: 68%
  • Audi: 46%

In Brazil, the luxury car model with the biggest increase in sales so far in 2013 has been the Jaguar XF, with a 572% increase, while sales of the Porsche Cayman are up by 240% and Porsche 911 sales are up by 132%.
Sources: Digital Group, World Watch Report, Associação Nacional de Veículos Automotores


Nail Polish
Sales of nail polish have grown by nearly 12% in the past year to reach R$ 600 million (US$285 million). In fact, Brazil is #2 in the world in the consumption of nail polish, trailing only the United States. Overall, in Brazil the beauty products sector is growing by more than 10% a year, with hair care responsible for 22% of sales. In addition, over the past 5 years, the amount of new beauty salons in Brazil has grown by 78%.
Sources: Associação Brasileira de Embalagem, Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosmético, Associação Nacional do Comércio de Artigos de Higiene Pessoal e Beleza


Pharmaceuticals

In 2012 the pharmaceutical market in Latin America grew by 15.8%, an even bigger rate of growth than the Asian pharma market (10%). Among the markets with the most growth, not surprisingly, is Brazil, which should see pharmaceutical sales double to reach R$ 100 billion (US$48 billion) by 2017; in fact, the country’s growth has even attracted U.S. pharmacy chains like CVS, which bought the Paulo drugstores chain, and Walgreens, which is currently looking to purchase a local chain.
Sources: IMS Health, Brasilpar


Scooters

In 2007 only about 3,200 scooters were sold in Brazil but in 2012 the number reached 29,566, an increase of 801%.
Source: Associação Brasileira dos Fabricantes de Motos (Abraciclo)


Travel

A 2013 study that focused on travel habits of 25 major markets found that Brazil is among the top 5 countries in travel spending. Brazilians spend an average of US$3,000 during international trips and rank in 4th place behind travelers from Saudi Arabia, Australia, China and South Africa.
August 2013 was the most recent month in which travel spending numbers were released by Brazil’s Central Bank. In that month, Brazilian travelers spent US$2.22 billion on their trips abroad, nearly 16% more than they did in August 2012. In addition, Brazilian travelers spent nearly US$17 billion on foreign travel between January and August 2013, nearly 15% more than in the same period during 2012.
Sources: Visa, Banco Central do Brasil


Videogames

Between 2012 and 2013, video game sales in Brazil went up by 24%. This increase came on top of an even more massive one of 131% between 2011 and 2012. The top selling video games in Brazil for 2013 are:

  • FIFA 13
  • PES 13
  • Grand Theft Auto 5
  • God of War: Ascension
  • The Last of Us
  • Call of Duty: Black Ops 2
  • Just Dance 4
  • Assassin’s Creed 3
  • Grand Theft Auto 4
  • Assassin’s Creed 2

Source: Gfk

To find out more how we can help you reach Latin American consumers with a strategic media campaigns, please contact us.

Social-Media

4 New Social Media Trends Sweeping Latin America

Recent studies reveal some changes in the way Latin Americans are using social media. To offer professionals in marketing, media and advertising market insights that may be helpful for their next campaigns, we decided to highlight 4 of the recent trends we have observed.

#1 More Latin Americans Are Accessing Social Media Sites with Mobile Phones
In August, Facebook published data about its Latin American users. The social site indicated that it has 200 million users in Latin America, not a huge surprise given its deep penetration in the region. But what was surprising was the information Facebook revealed about its Latam users’ habits. Nearly 3 out of 4 Facebook users in Mexico (74.5%) connect to Facebook using mobile devices. Nearly 60% of Argentine Facebook users log onto the site with mobile devices and in Brazil, 58% of Facebook users go onto to site with either smartphones or tablets.
Of course, Facebook is not the only source that signals this trend. A study from Nielsen called The Mobile Consumer showed that 75% of the Brazilians they surveyed use their cell phones to go on social media, while a GfK Argentina study showed that 1 out of 3 Argentines access social media via their cell phones.

#2 More Than Half of Latin Americans Use Social Media for Business Purposes
A recent study from ESET Latin America—an antivirus company—showed that 51% of Latin Americans say they use social media for work purposes and nearly 50% share information about work through social media channels.

#3 Packaged Good Firms in Latin America Are Using Social Media More Than Ever
Market research firm Euromonitor recently noted the increase in social media use by companies that produce packaged goods. Among the main tactics the companies are using in Latin America are contests, special offers and free recipes. The report cites several examples, including a campaign for 15-minute recipes done by Wasil in Chile, a Facebook contest in Ecuador from Casero (an ice cream brand) and a campaign by Lay’s in Peru that allowed people to choose the next flavor for the brand’s chips. Download the report here.

#4 More Latin Americans Combine Social Media with Watching TV
The 2012 edition of the Ericsson Consumer Lab study involved consumers from several Latin American countries, including Chile, Brazil and Mexico. According to the study results:

  • 83% of Mexican consumers surveyed combine social media and TV
  • 79% of Chilean consumers combine social media and TV
  • 73% of Brazilians combine social media and TV

To find out how we can help you reach Latin Americans via any type of media, please contact us.

 

Why Retargeting in Facebook Exchange Will Change Online Advertising in Latin America

Internet advertising is clearly successful in Latin America, but often it’s based on typical profiles of target audiences that visit certain sites. In other words, if your target is men aged 18-34 in Brazil, you buy impressions on web sites whose visitors fit this profile.

But you don’t know if that target knows and is interested in your product.

What if you did know this? What if you knew for a fact which Internet users in Brazil and the rest of Latin America had shown interest in your product? And what if you could reach just those Internet users with your ad? And if your ad could be optimized so that only the best-performing version would be shown to the Internet users you know are interested in your products?

This is all possible through retargeting on Facebook Exchange, a service that’s now available for advertisers targeting Latin America.

What is Facebook Exchange?
Launched in September 2012, Facebook Exchange is a platform that makes available part of Facebook’s social ad inventory. But Facebook Exchange is not open access for anyone like Google AdWords—less than 20 demand side platforms (DSPs) in the world have access to Facebook Exchange. Basically, the clients of these particular DSPs can purchase impressions on Facebook Exchange, and they do it via a real-time bidding (RTB) system, with the market setting the price of impressions of different target audiences.

Precision Targeting via Triggit
US Media Consulting has partnered with Triggit, one of the DSPs that has access to Facebook Exchange. What sets Triggit apart is its dynamic creative optimization technology. Dynamic creative optimization generates the ads in Facebook that the users see and also measures which of these ads deliver the best response. Based on this data, future users only see the ads which have performed the best.

How It Works
Triggit’s software is installed on an e-commerce or travel site and tracks the specific products that each user looks at—but doesn’t buy—when navigating the site. So let’s assume that Rolando from Argentina visits an e-commerce site and looks at a brand of sneaker without buying it. Then later that day he goes into Facebook to check status updates from friends. When he does, he’ll see an ad for that same sneaker brand. In fact, that ad may even offer a special discount for those sneakers. The result? Rolando is a lot more likely to click on that ad…and buy that product. How much more likely? Initial results indicate that CTRs for these types of ads are 8 times higher than a regular banner—and that conversion rates are 10 times higher.

Below we offer some screenshots that show how the process works.

#1 The user views the product on an e-commerce site without buying it.

#2 Later, upon entering Facebook, the user sees an ad for the same product he or she viewed earlier.

What This Means for Latin America
Retargeting via Facebook Exchange is a major development for Latin America for three major reasons.

First, e-commerce is growing spectacularly in the region. According to a study by América Economía and Visa, e-commerce sales in Latin America will grow by 28% in 2013. Key individual markets with powerful growth include Brazil (24% projected growth for 2013), México (30% projected growth for 2013), Peru (20% in 2013) and Argentina (45% in 2013).  Chile’s e-commerce growth in 2013 is projected to be around 15%, on top of 20% growth in 2012. While no 2013 e-commerce projections are available yet for Colombia, the country’s e-commerce sales grew from US$1.4 billion in 2011 to more than US$2 billion in 2012.

Second, Facebook rules social media in Latin America. Before discussing Facebook, it’s key to recognize social media’s immense popularity in Latin America: it’s the #2 most popular activity among Internet users (after search) and 5 of the top 10 countries in social media usage are from Latin America.
In other words, if you’re not including social in a campaign to reach Latin American Internet users, you are missing a gigantic opportunity. And if you do plan on including social, Facebook is by far the best choice. The numbers show why: in August 2013, Facebook reported that it had 200 million users in Latin America. More importantly, comScore indicated in its Futuro Digital report that Facebook takes up 94% of the time that Latin Americans spend on social media.

Third, online travel sales have taken off in Latin America. According to a recent study from Barclays Capital, Latin America will lead all world regions in online travel sales growth through 2016. Online travel sales in Latin America will grow by 30% in 2013, by 25% in 2014, by 20% in 2015 and by 18% in 2016. In addition, this year Latin America will surpass the Asia Pacific region in terms of online travel sales as a percentage of the total, 26.8% vs. 26.6%. By 2016, online will represent 39% of the total travel sales in Latin America, not far the 53.9% projected for the United States.

So overall, it’s clear that the surging e-commerce and e-travel firms in Latin America now have a unique, powerful tool to grow their sales even further via the strategic use of the region’s most popular social media site.

The next step? Contact us to see how we can help you leverage retargeting in Facebook Exchange to spike your sales.

ecommerce

E-Commerce Set to Keep Surging in Latin America in 2013

Last year, America Economía and Visa published a study of e-commerce in Latin America that predicted overall sales of US$69 billion in 2013, a 53% increase from the US$43 billion in e-commerce sales posted in 2011. While 2013 e-commerce sales results aren’t available for most of Latam yet, a number of sources in major markets are predicting significant growth for this year. Here’s a quick rundown of them:

ARGENTINA
E-commerce in Argentina will grow by 45% in 2013, according to the Cámara Argentina de Comercio Electrónico (Argentine Chamber of E-Commerce). As such, projected sales should exceed 20 billion Argentine pesos, given that 2012 e-commerce sales in Argentina were more than 16.3 billion pesos (US$2.8 billion).

BRAZIL
In the first half of 2013, e-commerce sales in Brazil were 24% higher than in the first half of 2012, reaching a total of R$12.7 billion (US$5.3 billion), according to e-bit. Clothes and accessories were the #1 product that Brazilians bought online in the first half of 2013, followed by appliances (#2), beauty products (#3), tech products (#4) and books and magazines (#5). Overall, e-commerce in Brazil will grow by 25% in 2013.

CHILE
According to the Cámara de Comercio de Santiago (Santaiago Chamber of Commerce), total e-commerce sales in Chile are projected to reach US$1.5 billion in 2013. This represents a 15% increase compared to 2012, in which e-commerce sales totaled US$1.3 billion.

COLOMBIA
According to a recent story in Portafolio.com, e-commerce sales in Colombia will grow by 40% in 2013 to top more than US$2 billion, compared to the 2012 total of US$1.4 billion. Also of note is that a study by the firm Cushman & Wakefield ranked Colombia among the top 50 most advanced e-commerce markets in the world.

MEXICO
B2C e-commerce should grow by 30% in Mexico in 2013 to reach nearly US$8 billion, according to eMarketer. However, Bernardo Cordero —cofounder of e-commerce site Linio— has a rosier projection, estimating growth of 40-45% for online sales in Mexico in 2013.

PERU
Projected e-commerce growth for Peru in 2013 is 20%, according to the Cámara de Comercio de Lima (Lima Chamber of Commerce or CCL). The CCL indicates that overall online sales in Peru should top more than US$800 million in 2013.

To find out how we can help you reach Latin American consumers with a precisely targeted campaign in any form of media, please contact us.