Author Archives: Veronica Lizama@US Media Consulting

About Veronica Lizama@US Media Consulting

Veronica Lizama is the Ad Sales Director for the Offline Department—which handles Latin American media campaigns for TV, newspaper, magazine, radio and out-of-home advertising—at US Media Consulting.

Tom-Ford-WSJ-Magazine-September-2013-01 (1)

WSJ. Magazine Expands in Latam to Reach Growing Luxury Market

WSJ., the high end luxury lifestyle magazine published by the Wall Street Journal for the past five years in the U.S., will launch Latin American editions starting this fall. The first issues of WSJ. América Latina—aimed at Spanish-speaking Latin America—and WSJ. Brasil will come out in October 2014, followed by issues in December 2014, April 2015 and July 2015.

These quarterly publications will reach more than 95,000 high-end readers in Mexico, Argentina, Brazil, Chile, Colombia and Panama, and have emerged in response to a rapidly growing luxury market in Latin America. This market is obviously driven by an increasing affluent population in the region:

  • The 2014 World Wealth Report from Capgemini indicates that there was a 3.5% increase in High Net Worth Individuals (HNWI)* in Latin America and a 2.1% increase in wealth
  • Overall, Capgemini indicates that there are a little more than 500,000 HNWI in Latam
  • According to the 2013 World Ultra Wealth Report, the ultra-high net worth (UHNW) population of Latin America will grow by 4.6% annually over the next 5 years
  • There are more than 14,000 UHNW individuals in Latin America, with 4,015 in Brazil and 3,733 in Mexico

*defined as those with $1 million to $30 million in assets
**defined as those with more than $30 million in assets

Not surprisingly, Latin America’s affluent market is impacting the growth of the luxury sector:

WSJ. América Latina and WSJ. Brasil will be distributed with the region’s most popular newspapers, including Reforma, El Mercurio Group, El Norte, El Tiempo Group, La Nación, La Prensa, Mural and Valor Econômico.

To find out more about these publications and how they can help your reach with Latin America’s growing affluent market, please contact us.

 

rocket use

8 Reasons Why Latin America’s Media Market Is Set to Skyrocket

While overall economic growth for Latin America is not projected to be stratospheric, it’s clear that there has been a historic rise of the middle class taking place. That shift is leading to lots of purchases by a whole new set of consumers. As a result, there will be a very positive impact on Latin America’s media market, good news for advertising, marketing and media agencies.

This month PriceWaterhouseCoopers (PwC) released its latest report, Global Entertainment and Media Outlook 2014-2018. A number of the firm’s predictions suggest a very favorable outlook for the Latin American media and advertising industry, including:

1
#1 The ‘BRIM’ Markets Will Drive Growth

This refers to Brazil, Russia, India and Mexico, all of which will contribute significantly to the world’s media growth over the next few years. In fact, these 4 markets will account for 8.5% of global entertainment revenue, a big increase from 2009 (in which they accounted for 5.2%). By 2018 these BRIM media markets should strengthen considerably:

  • By 2018 the Mexican media market will see revenues of US$34 billion
  • By 2018 the Brazilian media market will see revenues of US$66 billion

In comparison, the Indian media market will produce US$39 billion in revenues in 2018, while Russia’s media market will produce US$42 billion in revenues.

2
#2 Argentina’s Media Market about to Join the Major Global Media Markets
According to PwC, Argentina, South Africa, Turkey and Indonesia are the four countries that will be transitioning into higher-growth, large-scale markets over the next few years. The forecast growth rates for these markets are between 7% and 11% over the next 4 years.

3
#3 Argentina and Venezuela Are the Fastest-Growing Radio Markets in the World

According to PwC, Argentina’s radio market will grow by an average of 14% a year between 2014 and 2018. Venezuela’s radio market will grow by an average of 13.7% a year between 2014 and 2018. While other countries like Mexico will have good growth in their radio markets in the next few years, Argentina and Venezuela are the leaders in this area. For its part, Brazil’s radio market will grow by 3.4% a year between 2014 and 2018.

4
#4 Five Latam Markets to Have High Growth in Out of Home (OOH) Advertising

The firm’s report indicates that the following five Latin American countries will experience annual growth of 5% or more in their OOH markets between now and 2018: Argentina, Brazil, Chile, Colombia and Peru.

5
#5 Six Latin American Markets to See Growth in Magazine Advertising
PwC predicts annual growth of nearly 5% a year for Brazil’s magazine market between 2014 and 2018, and positive growth for the magazine markets of Argentina, Chile, Colombia, Mexico, Peru and Venezuela.

6

#6 Seven Latin American Markets to See Growth in Newspaper Advertising
Despite the challenges with newspaper advertising in markets like Canada, the United States, Germany and Italy, several markets in Latam will see growth in the coming years. According to PwC, Brazil and Mexico are among the higher-growth, larger-scale newspaper markets in the world. The Brazilian and Mexican newspaper markets will have positive annual growth between 2014 and 2018 and each will be worth  more than US$2 billion by 2018. In addition, the newspaper markets of Argentina, Chile, Colombia, Peru and Venezuela will all post growth between 2014 and 2018.

7
#7 Seven Latin American Markets Will Post Strong Growth TV Advertising

Brazil’s TV advertising market will grow by more than 5% annually between 2014 and 2018 and be worth more than US$4 billion by 2018. For their part, the TV advertising markets of Argentina, Chile, Colombia, Mexico, Peru and Venezuela will also grow by 5% or more per year between 2014 and 2018.

8
#8 Seven Latin American Markets will Post Significant Growth in Internet Advertising

The growth in advertising in Latin America that is predicted won’t just be for traditional media. PwC projects that between 2014 and 2018 the Internet advertising market will grow by 11% or more per year in Brazil, Mexico, Argentina, Colombia and Venezuela. In Chile and Peru the online advertising market will grow well between 2014 and 2018 but will be less than 11% a year.

To find out more about how we help agencies in Latin America maximize their efficiencies through media services and technology, please click here.

Ad spend skyrocket latam

Ad Spend to Skyrocket in Latin America in 2014

According to recent data from Magna Global, ad spend will grow powerfully in Latin America in 2014, building on impressive growth in 2013. The firm reported that Latin America closed 2013 with 9.5% growth in ad spend. And because of the World Cup and the economic growth anticipated for the region, Magna Global forecasts that ad spend will increase by nearly 13% in 2014. The 12.7% growth rate in ad spend forecast for Latin America will only be rivaled by Central and Eastern Europe, which is predicted to grow by 10.5% in ad spend this year.

Latin America’s ad spend growth is significantly higher than what’s been projected for more mature or larger markets, including North America (5.5% forecast growth for 2014), Western Europe (5.7%) and Asia Pacific (8.7%).

Here’s a look at the ad spend growth in 2013 for key Latin American markets:

  • Argentina’s ad spend went up by 30% in 2013
  • Brazil’s ad spend went up by 7% in 2013
  • Colombia’s offline ad spend went up by nearly 13% in 2013, while its online ad spend went up by 31%
  • Peru’s ad spend went up 8% in 2013
  • Uruguay’s ad spend went up 2.6% in 2013
  • Venezuela’s ad spend went up 19% in 2013

No data for overall ad spend is available yet for Mexico, but a report from Q4 2013 indicated that in 2012 ad spend in Mexico went up by nearly 8%. Data for Chile’s ad spend in 2013 is also unavailable.

The ad spend increase is not a surprise considering that consumers in Latin America increased their spending in a variety of areas in 2013. In addition, media consumption continues to increase in the region, allowing advertisers myriad ways to connect with Latin American shoppers.

To find out more how we can help you target Latin America’s growing consumer market with a campaign in any form of media, please contact us.

Crossmedia

Cross-Media Consumption Takes off in Latam

A while back we shared some statistics on media consumption in Latin America, showing the results for each country. However, TGI Latina has done some more recent measurements in the larger media markets in the region that show increases in certain areas.

Argentina

  • Newspaper consumption has gone up by 5%
  • Magazine consumption up by 7%
  • Pay TV consumption up by 5%

Brazil

Mexico

  • Newspaper consumption has gone up by 15%
  • Magazine consumption up by 8%
  • Pay TV consumption up by 11%

 

More Offline Going Online
These results show the changes in consumption between 2011 and 2013 in these countries. But what’s driving this growth? TGI cites the growth of the middle class and the fact that the Latin American media market still has plenty of room for growth.
One other key factor is that these numbers reflect the consumption of these forms of media either offline or online. Basically, more Latin Americans are consuming traditional forms of media—but they’re doing it online. Here are the increases TGI Latina has found between 2011 and 2013 for Argentina, Brazil, Colombia and Mexico:

  • Online viewing of TV shows is up 24%
  • Online radio listening is up by 16%
  • Online magazine readership is up by 9%
  • Online newspaper readership is up by 6%
  • Reading the news on mobile devices is up by 6%
  • Watching or downloading a TV show on a mobile device is up by 5%

Cross-Media Consumption
In its analysis, TGI Latina also looked at consumption of major forms of media in terms of the platform, offline vs. online, in Argentina, Brazil, Colombia and Mexico. In these 4 countries, while offline media still tend to be consumed more in offline platforms, a significant percentage of consumers consume traditional media in both offline and online platforms. The graphics below show how this cross-media consumption is becoming more prevalent in these 4 large Latin American markets.

NEWSPAPERS

MAGAZINES

 

RADIO

FREE TV

 

 

 

 

 

 

 

Given these patterns, it’s clear that brands need a calculated cross-media approach to maximize reach and ROI in Latin America’s major markets.

To find out more how we can help you reach Latin Americans with a strategic cross-media campaign, please contact us.

Valla Emprende-t - EnterBio

The Secret of the Success of Advertising in Latin America

Recently Nielsen published its 2013 Global Trust in Advertising report, which measures consumer attitudes towards all types of advertising. Nielsen surveyed 29,000 consumers in 58 countries. And for the second straight year, Latin Americans were shown to have the most confidence in advertising of all the consumers in the world.

Here’s a breakdown of some of the key figures in the report:

  • 75% of Latin Americans trust TV advertising compared to 62% of the rest of the world
  • 74% of Latin Americans trust radio advertising compared to 57% of the rest of the world
  • 72% of Latin Americans trust magazine advertising compared to 60% of the rest of the world
  • 74% of Latin Americans trust newspaper advertising compared to 57% of the rest of the world
  • 65% of Latin Americans trust out-of-home (OOH) advertising compared to 57% of the rest of the world
  • 61% of Latin Americans trust online search advertising compared to 48% of the rest of the world
  • 50% of Latin Americans trust online ad banners compared to 42% of the rest of the world
  • 54% of Latin Americans trust online video advertising compared to 48% of the rest of the world
  • 60% of Latin Americans trust social media advertising compared to 48% of the rest of the world
  • 54% of Latin Americans trust mobile phone display advertising compared to 45% of the rest of the world

Ads Spark Action in Latin America
Beyond trust, what obviously is key is the action that someone take after being exposed to advertising. Well, Latin America also leads the world in this category. According to Nielsen’s results, Latin Americans are much more likely to take action after being exposed to advertising than the consumers in the rest of the world.

PERCENTAGE OF CONSUMERS THAT TAKE ACTION AFTER MEDIA AD EXPOSURE (click to enlarge)

On average, Latin America’s consumers are 16% more likely to take action after being exposed to an ad in 10 of the major media types.

 

Real Life=Real Impact
Nielsen also asked consumers about the messaging elements in ads that had the most impact for them. The ads that present real world situations were the ones that had the largest amount of resonance with Latin American consumers (57%). Globally, the ads that use humor had the most resonance with consumers (47%), but ads that show real-life situations were a close second (46%).

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

3d_pie_chart

The Latest on Media Consumption in Latin America

As part of implementing effective campaigns, advertisers and media agencies have to factor in which forms of media reach different audience segments the best. In Latin America, one basic metric to factor in is how much time people spend with different forms of media. Unfortunately, determining this is fairly tricky. First, there isn’t a regional authority measuring all media use across Latin America. Second, the data that’s out there comes from different sources that measure some forms of media and not others. Third, media consumption is usually measured in specific countries—but not in all 20+ countries in Latin America. For example, despite our best research efforts, we don’t have detailed media consumption data for El Salvador. Finally, firms use different criteria to measure media consumption—it’s not always simply the amount of time Latin Americans in different countries spending using different forms of media.

That said, there is still enough data out there to give us a reasonable data portrait for media consumption in key markets in Latin America.



ARGENTINA
Recent aggregate data published by LAMAC used 2012 survey data from TGI LATINA about media use in Argentina. The survey asked Argentines if they have watched free or pay TV in the past 7 days and if they have listened to the radio the day before the survey in any location. It also asked Argentines if they had gone online in the past 30 days, if they had read a newspaper in the past 30 days and if they had read a magazine in the past 6 months. LAMAC compared the responses to these questions in 2012 to responses in 2006 and indicated drops in the consumption of magazines (36%), newspapers (17%) and free TV (1.6%). It noted increases in consumption for pay TV (7.7%)  and Internet (27%). However, these responses are driven by the particular questions and the time frames as opposed to the actual time spent by Argentines with each form of media each day or week.
Below are media consumption figures for Argentina from different sources that may round out our understanding.

TV: Argentines watch 6 hours of TV every day, significantly higher than the world average of 3 hours and 12 minutes. While we could not find a study that indicates how much time is spent watching free TV versus pay TV, LAMAC does indicates that pay TV has 83% penetration in Argentina.

Print Media: 7 out of 10 Argentines say they buy the daily newspaper, though no recent studies seem to highlight how much time per day Argentines spend reading newspapers or print media. There was also no recent data on magazine readership in Argentina, whether it was overall percentages or amount of time spent reading them.

Radio: Nearly 90% of Argentine homes have a radio and 56% report listening to the radio daily, though we didn’t find recent studies that highlight how many hours a day Argentines spend listening to the radio.

Online Radio: More than 3.6 million Argentines listen to online radio stations.

 

Internet: 58% of Argentines have Internet access, 54% report that the Internet is their primary information source and Argentines spend 26 hours a month on the Internet (less than 1 hour per day)



BRAZIL
TV: Brazilians watch TV an average of 20 hours per week, just behind the U.S. average of 23 hours per week.

Print Media: Depending on the source cited, 31%, 46% or 57% of Brazilians read newspapers. Which percentage you choose to see as correct depends on the source. IBOPE claimed it was 31%, while the Brazilian government claimed 46% and Fundação Perseu Abramo claimed that it was 57%. Even at 31%, this means that 60 million Brazilians read the newspapers, a significant audience that suggests strong reach for this medium and explains why circulation of newspapers in Brazil increased in 2012. Unfortunately, neither study covered how much time Brazilians spend with newspapers.
While Fundação Perseu Abramo indicates that 76% of Brazilians read magazines and of these, 50% read Veja, a government source indicates that nearly 35% of Brazilians read magazines. While 76% seems seems quite optimistic and is certainly much higher that the penetration of magazines in Brazil recently listed by IBOPE, 35%  seems like a more realistic figure and is consistent with previous statistics about magazines in Brazil. No recent studies seem to cover how much time Brazilians spend reading magazines.

Radio: According to Target Group Index, radio reaches 49% of the Brazilian population between 12 and 75 years of age, so around 71 million Brazilians listen to the radio overall. However, a different study indicates that 69% of Brazilians say they listen to the radio every day, suggesting a more massive audience of 133 million. The latter study appears to be more consistent with previous research into the reach of radio in Brazil. The studies we reviewed did not indicate how many hours a day or week that Brazilians spend listening to the radio.

Internet
Brazilians spend an average of 27 hours per month on the Internet (less than an hour per day), with a significant portion of that time spent on social media. Brazilians spend an average of 9.7 hours per month on social media, compared to the world average of 5.5 hours.


CHILE
TV:
Nearly 74% of Chileans watch TV every day and Chileans watch TV an average of 3 hours and 51 minutes a day.

Radio: Around 48% of Chileans listen to the radio every day, though the studies we reviewed did not indicate how much time Chileans spend listening to the radio.

Newspapers: 20% of Chileans read the newspaper every day and La Tercera is the preferred newspaper in Chile, with 15.8% listing it as their top choice, followed by La Cuerta (14.9%). None of the studies we
reviewed indicated how much time Chileans spend reading newspapers.

Internet: While comScore indicates that Chileans spend an average of 19.5 hours a month on the Internet, the Wave 6 study from UM Chile reports that Chileans spend 11 hours a week online.



COLOMBIA

TV: While no numbers seem to be available for TV consumption by all Colombians, recent research indicates that the largest group of TV viewers in Colombia are between 5 and 17 and they watch 4 hours a day and that 81% of Colombian women watch TV as opposed to 79% of men. That said, we didn’t observe results for all Colombians in terms of time spent watching TV.

Newspapers: No figures seem to be available for time spent with newspapers by Colombians, but a recent study shows that newspaper readership in Colombia reached 6.3 million in 2013, up from 6.1 million in 2012. Given that Colombia has a population of 46 million, this suggests that 13% of Colombians read newspapers. That said, another source indicates that 26% of Colombians read newspapers.

Radio: According to the results of a small study by Google and D’Alessio IROL, on average Colombians listen to the radio 2.4 hours per day.

Internet: The Google study indicated that Colombians spend an average of 4.3 hours per day online, while another recent study indicated that the average time online for Colombians was 2.6 hours per day. Futuro Digital Colombia 2013, the most recent study from comScore, indicates that Colombian Internet users spend 17 hours per month online, per user.

 


MEXICO
TV: More than half of Mexicans (53.6%) watch TV between 2 and 4 hours per day, while 20% watch 1 hour per day and nearly 10% watch between 5 and 10 hours a day.

Newspapers: 27% of Mexicans read daily newspapers and el Estudio General de Medios for 2013 indicated that El Universal increased readership by 50% between January 2012 and June 2013.

Radio: 56% of Mexicans report listening to the radio, with 92% of listeners using traditional radios and 5.4% listening to online radio. Nearly 57% of Mexican radio listeners report listening to the radio between 1 and 3 hours a day, while 26% listen to radio more than 3 hours a day and 16% listen to radio for less than 1 hour per day.

Internet: While comScore reports that Mexicans spend an average of 17 hours per month online, Asociación Mexicana del Internet (AMIPCI) reports much more robust participation: its 2013 study Hábitos de los usuarios del Internet en México indicated that Mexican Internet users spend 5 hours a day online.

 


PERU

TV: Peruvians spend an average of 3 hours and 20 minutes a day watching TV.

Print Media: According to one recent study, Peruvians report spending between 30 and 41 minutes a day reading newspapers, with younger readers (ages 12-17) reporting 30 minutes and those older than 35 reporting 41 minutes. That said, research from the Consejo Consultivo de Radio y Television indicates that Peruvians spend 1 hour and 23 minutes a day reading print media (both newspapers and magazines)

Radio: Peruvians spend 2 hours and 53 minutes a day listening to the radio.

Internet: Peruvians spend 2 hours and 40 minutes a day online.



URUGUAY

Overall, data for media consumption in Uruguay is not abundant, but we were able to find a June 2013 study from Opción Consultores, a market research firm, that offered some data about media consumption in the country.

TV:
77% of Uruguayans watch TV every day, while 11% watch it several times a week and nearly 5% never watch it. However, the amount of hours per day that Uruguayans spend watching TV was not specified.

Radio: 61% of Uruguayans listen to the radio every day, with 13.7 listening to it several times a week.

Print media: Around 12% of Uruguayans report reading print media every day, nearly 10% read them several times a week and 22% read them once a week. A significant number (nearly 45%) of Uruguayans say they never read print media. Of the Uruguayans that do read print media, 58% prefer El País, with El Telégrafo in the #2 spot with 4.3%.

Internet: Nearly 33% of Uruguayans say they use the Internet every day and nearly 11% use it several times a week. That said, 46% never use the Internet. Facebook is by far the most popular site among Uruguayans that do use the Internet, with 44% saying it’s their preferred site. Google is #2 with nearly 18%, followed by Mercado Libre, with nearly 6%.

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.

The Latest on Media Consumption in Brazil

As part of implementing effective campaigns, advertisers and media agencies have to factor in which forms of media reach different audience segments the best. In Brazil and Latin America, one basic metric to factor in is how much time people spend with different forms of media. Unfortunately, determining this can be a challenge. Different organizations conduct different studies, so there isn’t one universal source for this data. In addition, these organizations measure different variables. Some measure time spent with each medium, others focus on the audience percentages for each region. Despite this, we focused on trying to create the best data portrait possible to help professionals in marketing, media and advertising understand Brazilian media consumption.

 


TV
Brazilians watch TV an average of 20 hours per week, just behind the U.S. average of 23 hours per week. Our research did not reveal studies that indicated how many hours Brazilians watch free TV as opposed to pay TV. That said, a recent Ericsson study indicates that 69% of Brazilians say that Internet is now becoming part of their daily TV watching habits and 68% want to have total access to TV and video content on their mobile devices. The study also noted a 59% increase among Brazilians in using laptops to watch TV outside the home.


Newspapers

Depending on the source cited, 31%, 46% or 57% of Brazilians read newspapers. Which percentage you choose to see as correct depends on the source. IBOPE claimed it was 31%, while the Brazilian government claimed 46% and Fundação Perseu Abramo claimed that it was 57%. Even at 31%, this means that 60 million Brazilians read newspapers, a significant audience that suggests strong reach for this medium and explains why circulation of newspapers in Brazil increased in 2012.
Unfortunately, neither study covered how much time Brazilians spend with newspapers either daily or weekly.


Magazines

While Fundação Perseu Abramo indicates that 76% of Brazilians read magazines and of these, 50% read Veja, a government source indicates that nearly 35% of Brazilians read magazines. While 76% seems seems quite optimistic and is certainly much higher that the penetration of magazines in Brazil recently listed by IBOPE, 35%  seems like a more realistic figure and is consistent with previous statistics about magazines in Brazil. No recent studies seem to cover how much time Brazilians spend reading magazines.


Radio

According to Target Group Index, radio reaches 49% of the Brazilian population between 12 and 75 years of age, so around 71 million Brazilians listen to the radio overall. However, a different study indicates that 69% of Brazilians say they listen to the radio every day, suggesting a more massive audience of 133 million. The latter study appears to be more consistent with previous research into the reach of radio in Brazil.


Internet

Brazilians spend an average of 27 hours per month on the Internet (less than an hour per day), with a significant portion of that time spent on social media. Brazilians spend an average of 9.7 hours per month on social media, compared to the world average of 5.5 hours.

To find out more about how we can help you reach Brazilians via any form of media, please contact us.

Ad spend

Latin America Still Leads the World in Ad Spend

In a number of stories over the years we’ve noted the positive predictions about ad spend growing in Latin America, including a prediction from Zenith Optimedia that Latin America will grow by 10% in ad spend in 2013 and a different forecast from eMarketer for 23% ad spend growth in 2013.

Now that we’re into the fourth quarter of 2013, ad spend results for 2013 are showing the growth predictions to be correct. Recently Nielsen noted that Latin America grew by 11.9% in ad spend in the first quarter of 2013, ahead of Asia-Pacific (5.8% growth), Middle East & Africa (2.9% growth) and the global average growth of 1.9%.

Here’s a look at recent results in terms of ad spend for specific markets in Latin America:

ARGENTINA
According to the Cámara Argentina de Agencias de Medios, in the first half of 2013 ad spend in Argentina went up by 30% to reach 10.6 billion Argentine pesos (US$1.8 billion), though this figure does not include online ad spend. In 2012, ad spend in Argentina went up by 24% to reach 22 billion Argentine pesos (US$3.9 billion).

Argentina: Ad Spend Breakdown for 1st Quarter 2013 (excluding Internet)

BRAZIL
According to Projeto Inter-Meios, between January and May 2013 ad spend in Brazil had a modest increase of nearly 2% compared to January-May 2012, reaching R$11.8 billion (US$4.59 billion). In 2012 ad spend in Brazil was R$ 38 billion (US$19 billion), an increase of 6% compared to 2011.

Brazil: Ad Spend Breakdown by Medium for 1st Quarter 2013

CHILE
While no figures are yet available for the first part of 2013, in 2012 ad spend in Chile was 674,399 pesos (US$1.387 million), a decrease of 0.6% compared to 2011, according to the Asociación Chilena de Agencias de Publicidad (Chilean Association of Ad Agencies). However, online ad spend in Chile increased by 24% in 2012; the other forms of media with ad spend increases include pay TV (17%) and OOH (0.6%).

Chile: Ad Spend Breakdown by Medium for 2012

COLOMBIA
In the first quarter of 2013, ad spend in Colombia grew by 11.2% to total 418 billion Colombian pesos (US$252 million). The biggest growth was in newspapers, with 32%, compared to 5% for TV. This figures are from Aomedios and Andiarios, which do not offer ad spend figures for online. IAB Colombia reported in May 2013 that online ad spend went up by 29.5% to reach 37, 333,000,385 Colombian pesos (US$19.6 million).

Colombia: Ad Spend Breakdown by Medium, 2012 (excluding Internet)

MEXICO
While no figures have yet been reported for the first half of 2013 yet, in 2012 ad spend in Mexico was 68 billion pesos (US$5.3 billion) and one projection for Merca2.0 and Zenith Optimedia has Mexico’s ad spend rising another 4.6% in 2013 to reach 72 billion pesos (US$5.6 billion).

Mexico: Ad Spend Breakdown by Medium, 2012

PERU
No figures are yet available for 2013 but in 2012, ad spend in Perú reached US$650 million, a 9% increase compared to 2011, according to the Compañía Peruana de Estudios de Mercado y Opinión Pública (Peruvian Company of Market Studies and Public Opinion). According to IAB Peru, online ad spend in Peru grew by 50% in 2012 to reach 101 million nuevos soles (US$36 million). The consulting firm Métrica recently estimated that overall ad spend in Peru will increase by 10-15% in 2013.

Peru: Ad Spend Breakdown by Medium, 2012

VENEZUELA
Although 2013 figures aren’t available, in 2012 ad spend in Venezuela grew by 16% to reach 8.3 billion bolívares (US$1.3 billion), according to the Asociación Nacional de Anunciantes.

Venezuela: Ad Spend Breakdown by Medium, 2012

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.

top growth trends latam media 2

Top Growth Trends for Latin American Media

We took a look at some recent figures from a variety of sources and noticed some noteworthy growth in a variety of areas.


Newspapers

According to a new study from the World Association of Newspapers and News Publishers (WAN-IFRA), newspaper advertising revenues in Latin America grew by 9.1% in 2012—the largest growth of anywhere in the world. In contrast, in 2012 many other regions experienced a drop in newspaper ad revenues, including North America (7.6%), Eastern Europe (5.6%), Western Europe (3.4%) and Australia/New Zealand (8.3%).

Magazines
According to PriceWaterhouseCoopers Global entertainment and media outlook 2013-2017, magazines in Brazil will have a current adjusted growth rate of 7% a year for this time period.

Pay TV
A recent report from LAMAC (Consejo Latinoamericano de Publicidad en Multicanales) indicated that 55% of Latin Americans have pay TV, up from 51% in 2012 and 44.8% in 2011. The countries with the deepest pay TV penetration are Colombia (84%), Argentina (83%), Chile (60%), Mexico (44%) and Brazil (40%). That said, Mexico recently posted a significant increase in subscribers in the first quarter of 2013 and is on track to reach 14.5 million, not far behind Brazil’s pay TV audience of 16.97 million.

Internet
In its Futuro Digital Latinoamérica report, comScore indicated that the amount of Internet users in Latin America grew by 12% in 2012, a larger growth than any other region in the world. In addition, Latin American internautas spend an average of more than 10 hours a month per user on social media sites, more than double the world average.

Mobile
First, Informa Telecoms & Media projects that by the end of 2013, Latin America will have 742 million mobile subscriptions and nearly 141 million smartphone connections. At Mobile World Congress in February 2013, César Alierta, president of telecom giant Telefónica, said that he believes smartphone penetration in Latin America will reach 43% by 2016. According to IDC, more than 81 million smartphones will be sold. This rapid adoption of mobile devices will impact Latin America in several key ways:

  • Tata Consultancy Services projects a 35% increase in mobile transactions done in Latin America between 2012 and 2015
  • The Federación Latinoamericana de Bancos reported recently that 18 million Latin Americans engage in mobile banking right now but that by 2015 more than 140 million Latin Americans will use mobile banking
  • eMarketer projects an 85% increase in mobile advertising spend in Latin America in 2013, followed by an additional 95% increase in 2014 so that by 2016 mobile advertising spend in Latin America will total US$374 million: 15.5 times more than what it was in 2011 (US$24 million)
  • Mobile Internet will explode, as Ericcson predicts that by 2018 Brazil will have 350 million mobile subscriptions, Mexico will have 150 million mobile subscriptions, Argentina will have 70 million mobile subscriptions, Colombia will have 65 million mobile subscriptions, Chile will have 50 million mobile subscriptions and Peru will have 40 million mobile subscriptions

To find out how we can help you reach Latin American consumers via media campaigns of all types, please contact us.

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print story

4 Reasons Why Print Still Has Power in Brazil and Latam

Despite the challenges that print has faced in markets like the United States, the medium still provides strong reach in Latin America. Here’s why:

#1 Newspapers in Peru have grown in circulation by 50% over the past 4 years

This growth was reported by KPMG, which recently studied newspapers in Peru.

#2 Brazilian Newspapers Are Still Growing
According to the Instituto Verificador de Circulacao, Brazilian newspapers grew by 2.3% in circulation during the first 6 months of 2012 and 73% of Brazilians prefer to get their news from print media rather than online sources.

#3 Consumer magazine ad spend dropped in every region in 2009—EXCEPT in Latin America
PriceWaterhouseCooper reported these results in their Global Entertainment Media Outlook 2012-2016 study. Besides holding steady during challenging times, magazines in Latin America are projected to grow in ad spend over the next 4 years, projects PWC.

#4 Newspapers command strong shares of ad spend in several Latam markets
In 2011, newspapers and magazines commanded 36% of ad spend in Colombia, more than Internet (5%) and radio (20%), while free TV commanded 46%. In Chile in 2011, newspapers and magazines accounted for 28% of ad spend, second only to free TV (44.9%). In Argentina in 2011, newspapers and magazines accounted for 39.8% of ad spend, more than TV (37.4%) and any other medium, including radio (3.2%), Internet (6.1%), OOH (5%) and pay TV (7%). In Brazil in 2011, print media accounted for 18% of ad spend, #2 behind free TV, which took up 63% of ad spend.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us.

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