Category Archives: Peru

online trends latam

A Quick Roundup of the Latest Latam Online News

We run into tons of data as we plan campaigns for online media and programmatic. But since sharing all of it will glaze your eyes, below we break down some key recent developments in the Latin American online world with some links if you want to read further.

LATIN AMERICA
Latin Americans spend more time online than anyone else, use PCs to go online much more than mobile, are big on connected devices and are booking travel online in record amounts.

ARGENTINA
Argentines are making tons of online purchases, huge amounts of them check social networks from their phones and use Facebook way more than Twitter.

BRAZIL
Brazilians are also buying online in massive amounts, respond well to video ads, book loads of online travel and their social network users are predominantly 18-34 years old.

CHILE
Chileans lead Latin America in Internet penetration, mostly go online with smartphones, prefer Facebook hugely over Twitter, love news sites and are adopting Instagram in a big way.

COLOMBIA
Colombians love digital video, spend more time online than other Latin Americans, mostly all look for health information online and are adopting video on demand services in a big way.

MEXICO
Mexican millennials dominate Internet use, social media use and smartphone use, while Mexicans in general are shopping online in greater numbers while watching a ton of digital videos.

PERU
A significant amount of Peruvians are multiscreen users, they consume more web pages per person than the rest of Latin Americans, are growing hugely as fans of brands on Facebook and are visiting travel sites in droves.

URUGUAY
Uruguay’s online audience spiked strongly in 2014, they lead Latin American in monthly online visits, they are predominantly under 35, spend more time on social media sites than other Latin Americans, and also overindex in their use of car sites, online gaming sites, business sites and news sites while shifting significantly towards going online via mobile devices.

VENEZUELA
Venezuelans consume more pages per visit than the rest of Spanish-speaking Latin America, the amount of Internet users in Venezuela went up by 19% in the past year and they spend significant amounts of time on retail sites, sports sites and tech sites.

Okay, now you’re caught up. Please contact us if you need help reaching Latin Americans in general or in specific markets with an online display campaign or a programmatic buying campaign.

 

Woman on a beach jetty at Maldives

What Latin American Luxury Travelers Want

With gross bookings by Latin American travelers expected to go up by 23% a year to reach US$98 billion by 2016, travel brands obviously have some significant opportunities. And within that larger Latam travel market is the luxury traveler market. Until recently, not a lot of data has been easily available for Latin American luxury travelers. But a new study by the International Luxury Travel Market and Travesías media offers insights about Latam luxury travelers through a survey of 90 owners and managers in the region who cater to this market. The study includes responses from travel agencies in Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico, Peru and Venezuela. So here’s what Latin American luxury travelers want:

To Travel to the United States, France or Italy
The USA was the top-selling destination for the agents, followed by France and Italy. The United Kingdom ranked fourth and Spain ranked fifth.

To Explore Both Familiar and New Destinations
When asked about their biggest growth destinations, the agencies named China and Thailand as the two main ones. While the USA was also a growth destination and ranked nearly as high as China and Thailand, most of the growth destinations were less famous destinations like Maldives, Croatia, Vietnam and the United Arab Emirates.

To Go On a Cruise
When asked about the popularity of cruises among clients, 66% of the agencies said that cruises were popular, very popular or most popular among Latin American luxury travelers.

To Go in Groups
When asked about the demographics of their clients, only 24% of the agencies said they had single travelers. The large majority said they cater to families (89%) or couples (84%).

To Travel a Lot
More than a third (35%) of the agencies surveyed indicated that they had 3 bookings a year per client, compared to just 2% with one booking. And 40% indicated they had 4 to 5 or more bookings a year per client.

To Stay a While, But Not Too Long
The majority (78%) of Latin American luxury travelers have an average travel booking length of between 5 to 15 days. More than half (52%) have bookings of 10 to 15 days. Only 5% book for between 1 to 5 days and only 7% book for 15 to 20 days.

Contact US Media Consulting if you need help with media buying for a campaign targeting Latin Americans with any time of media, including programmatic.

Cartoon phone man king

Latin America Leads the World in Smartphone Growth

Market research firm GfK recently released its figures for smartphone growth and it looks like Latin America is leading the world in this area.

Smartphone sales in Latin America totaled 68.7 million in 2013 and went up by 59% in 2014 to total nearly 110 million units. In terms of sales value, Latin America is again the leader when it comes to smartphones: US$31 billion in 2014 versus US$20.6 billion in 2013—a 52% increase.

Here’s a graphic to illustrate the numbers and show the numbers in different markets:

Latam leads in smartphone sales

For advertisers and agencies, these numbers clearly point to the advantages of investing more in mobile campaigns and may explain the powerful growth in mobile advertising in Latin America that was recently projected by eMarketer. One challenge is determining exactly how to invest in mobile marketing in Latam: apps vs. mobile internet, for example. We have some advice on that here.

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

Man With Smart Phone

The Data Every Latin American Digital Marketer Needs

With oceans of data floating around, all from different sources and sometimes conflicting, it’s key to be able to drill down to the essentials. So in this post we do exactly that with the Latin American online market. A quick scroll down will show you some key numbers you can use for background in preparing proposals or memos or for sharing with colleagues.

Market Size
Emarketer estimates there are 309 million Internet users in Latin America and that by the end of 2015 there will be more than 331 million. Here’s a look at eMarketer’s projections of Latin American Internet users with certain larger markets broken out (click to enlarge):

Internet users in Latam 2013 to 2018

Average CTR for Online Ads in Latin America
Even though comScore and other sources rightfully point out that CTR is not really the best measure for the effectiveness of online ads, just for reference, Sizmek reported the following:

  • Average CTR for a banner ad in Latin America: .12%
  • Average CTR for rich media ads in Latin America: .29%
  • Average CTR for rich media polite video formats: .48%
  • Average CTR for polite banners in Latin America: .15%
  • Average CTR for expandable banners in Latin America: .19%

Email Marketing
While we don’t have recent numbers for all of Latin America, in late 2012 Return Path—an email intelligence company—reported that Latin America had the lowest inbox placement rate of all regions studied: 69%. In September 2014 Return Path noted that Brazil had 60% inbox placement rate for emails, compared to rates of more than 80% in the U.S., Canada, U.K., France, Germany and Italy.

Mobile
According to eMarketer, 194 million Latin Americans access the Internet with mobile phones and of these 126 million do so via smartphones. By the end of 2015 there will be more than 152 million smartphone users in Latin America and Chile will lead the region in smartphone penetration with 55.5%.
While in 2015 Mexico will have the highest tablet penetration in Latin America at 35%, Brazil will have nearly 35 million tablet users in 2015 compared to just under 23 million in Mexico. Overall, by the end of 2015 more than 92 million Latin Americans will own tablets. Given that the Population Reference Bureau reports that the region has a population of 618 million, this means that there will be nearly 15% tablet penetration in Latin America by the end of 2015. Below are some data tables from eMarketer on smartphone penetration and tablet penetration in Latam (click to enlarge):

smartphone penetration latam

tablet penetration Latam
Smartphone Shopping
According to a 2014 study from ING Global Solutions, 54% of Latin Americans have bought a product with their smartphones (click to enlarge):

Smartphone shopping

Online Videos
A couple of sources offer guidance in this regard. The Digilats study from JWT surveyed more than 9,000 Latin American Internet users from 9 countries and found that 67% said they watched online videos (click to enlarge):

Latam study streaming and other online activities
ComScore has a different set of numbers (click to enlarge):

Online video viewers Latam

Now, it’s important to note that comScore lists a smaller amount of Internet users for countries than other sources. For example, if we extrapolate out the numbers above, it would seem that comScore is reporting a total of 75 million Internet users in Brazil, while both IBOPE and eMarketer indicate that their more than 100 million Brazilian Internet users.

In addition, data from Google and TNS indicates that Internet users in Brazil watch online video ads more frequently than those in Argentina or Mexico. In fact, 36% of Brazilian Internet users say they watch online video ads every day. Brazilians are also more likely than other Latin Americans to watch mobile video: 35% of Brazilian smartphone users watch mobile online videos at least daily, compared to 25% of Mexican smartphone users and 19% of Argentine smartphone users.

Online Reviews
The Digilats study of Latin American Internet users by JWT indicated that significant percentages of Latin Americans are reading online reviews of products (click to enlarge):

Digilats product review

Online Research Before Purchase
A recent eCMetrics study of Christmas shoppers in Latin America showed that a majority of Latin Americans tend to research products online before purchasing, including reading product reviews. This dovetails with results from other studies. For example, the Consumer Barometer study from TNS and Google showed that 47% of Argentines researched their last purchase online and offline while 53% of Brazilians AND 53% of Mexicans reported doing the same thing.  In addition, the JWT Digilats study showed the products that Latin American Internet users were most likely to search online (click to enlarge):

Products researched online latam

Social Media
It’s fairly obvious that this is a huge area with Latin American Internet users. Some of the key takeaways with this would be:

>>>Latin Americans spend more time on social media than people from any other region (click to enlarge):

social media engagement latam

 

>>>The overwhelming majority of the time that Latin Americans spend on social media is spent on Facebook (click to enlarge):

Facebook dominance Latam

>>>Mobile is increasingly becoming an important way for Latin Americans to access social media (click to enlarge):

mobile social media users in latam

Contact us to find out more how we can help you reach Latin American Internet users with digital media buying or via MediaDesk, Latin America’s premier programmatic buying platform.

The Hottest Products Among Christmas Shoppers in Latin America

While February may not seem like the right time to cover Christmas shopping, it’s clear that advertisers spend more during the holiday season and that CPMs and conversions also tend to rise.  As such, Q1 2015 can be a good time to fine-tune plans for Q4 2015 campaigns. To that end, we reviewed some data from eCMetrics and eCGlobal on Christmas Shoppers in Latin America. The firms surveyed more than 1,000 Latin Americans from Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. The findings may help agencies and advertisers strengthen their holiday ad campaigns for 2015.

Target Last-Minute Shoppers in Latam
According to the study results, only 43% of Latin Americans had bought gifts by the 5th day before Christmas, i.e. December 20th. This means that advertisers have 5 days to reach the majority (57%) of Latin American Christmas shoppers and they may want to factor this into their media buys during this time.

Have a Strong Online Campaign in Place
More than 8 in 10 (82%) Latin American Christmas shoppers searched on the web before buying Christmas presents. The eCMetrics survey indicated that most shoppers searched for product price (74%), while a significant amount (49%) looked for product comments and smaller amounts looked for store ratings (27%) and store comments (26%).

Driving Store Traffic Still Very Important
Despite their strong penchant for researching products online, only 7% of Latin American Christmas shoppers shop exclusively online. More than half (51%) shop exclusively in brick-and-mortar stores while 42% shop in stores that offer online shopping. That said, 15% of Brazilian Christmas shoppers shop online, reflecting how Brazilians are becoming more and more comfortable with e-commerce.  Overall, however, this suggests brands need a strong online presence combined with special offers to drive consumers to the stores.

Top Hot Products for Latin American Christmas Shoppers
In descending order, here is a look at the products that Latam Xmas shoppers buy the most:

  • Fashion (clothes, shoes): 80%
  • Electronics (tablets, TV, laptops): 50%
  • Entertainment (video games and consoles): 30%
  • Mobile phones: 30%
  • Books:             30%
  • Home appliances: 30%
  • Travel products: 18%
  • DVD/Blue Rays: 9%

Setting Budgets—and Going Over Them
The study also found that 6 out of 10 Latin Americans set a budget for their Christmas shopping and the largest percentage of those who set budgets are Mexican (69%). In addition, nearly 8 out of 10 (78%) Brazilians report going over budget with their Christmas shopping.

Black Friday Big in Brazil
The study also showed that Black Friday has gained lots of ground in Brazil: 54% of Brazilians report buying items during Black Friday events. Nine of 10 Brazilian Black Friday shoppers bought their products online and nearly all searched online before buying. The majority (79%) did price searches but  a smaller amount (30%) also searched for product opinions. With good discounts available, the products that Black Friday buyers in Brazil were most interested in were electronics (57%), clothing (36%) and computer products (36%).

To find out more about what customers know before they enter a store, contact Ivan Casas of eCMetrics.

Contact US Media Consulting if you need help with media buying for a campaign targeting Latin Americans—whether it’s during Christmas or any other time of the year—with any time of media, including programmatic.

Growth Arrow on Laptop Computer

The Latest on the Emerging Internet Markets in Latin America

While data is abundant for some of the larger online markets in Latin America, for certain smaller markets it’s difficult to find data to drive decisions. Fortunately, comScore and other organizations have conducted some recent studies that will be helpful in understanding Internet users in Latam’s emerging online markets. As such, below we detail key findings for each market.

Central America
CENTRAL AMERICA

  • 62% of Central American internet users say the Internet advertising offers the most information and 51% say it’s more creative and innovative than advertising on other media
  • 74% of Central American Internet users research products online before making a purchase offline
  • 68% are motivated by online advertising to visit the advertised store and 67% say that online advertising motivates them to visit a brand’s website
  • 87% of Central American Internet users go on social media sites
  • 87% of Central American Internet users view online videos
  • 57% accept seeing a preroll advertisement as “payment” for viewing content and 54% have no problem
  • 95% of Central American Internet users go on Facebook, compared to 60% who visit Twitter and much lower percentages that visit other sites, such as LinkedIn (29%), Sonico (20%), Instagram 19%), Pinterest (7%), FourSquare (4%) and Tumblr (3%)
  • 98% of Central American Internet users go online with PCs or laptops, but 62% use smartphones and 58% use feature phones, with only 29% using tablets
  • Among Central American mobile phone users, Android has 43% share, followed by Blackberry with 37% and the iPhone with 25%
  • 2 out of 3 Central American mobile users visit social media sites with their phones
  • 7 of 10 smartphone users in Central America use their phones frequently while watching TV

Source: comScore

Chile_flag
CHILE

  • 26% of Chilean online consumers are “extreme users,” meaning that they have an intensive use of technology in their purchase process; Chile is tied with the United States for second place in this area, surpassed only by China*
  • 41% of Chileans use 3 screens in their daily lives, suggesting strong potential for Social TV solutions**
  • The average amount of Facebook fans on the top pages in Chile went up by 126% between 2013 and 2014***
  • Actions on social media in Chile went up by 100% between Q2 2013 and Q2 2014, with 96% of social media actions taking place on Facebook***
  • Instagram actions went up by 677% in Chile between 2013 and 2014 but only account for 1.9% of the total amount of social media actions taken in Chile in this period***
  • As with other markets, photos make up the majority (71%) of social media posts in Chile and they account for nearly 80% of the engagement***
  • News sites have a reach of nearly 85% in Chile, higher than any other Latam country***
  • Nearly 19% of the web pages viewed in Chile are seen on a mobile phone or tablet and in this regard Chile is only surpassed by Mexico***
  • Android devices account for 80% of the mobile traffic in Chile***

Sources: *GfK, **Movistar, ***comScore

Peru Flag http://www.dreamstime.com/stock-photos-peru-flag-image5086123
PERU

  • There are more than 11 million Internet users in Peru*
  • Peruvians from socioeconomic classes AB are the heaviest users and tend to go online with mobile devices, while those from class C use a PC or laptop and usually connect from home*
  • Like other Latin American internautas, Peruvians spend lots of time on social media sites: nearly 7 hours per month per user**
  • Search, services, social media, portals and entertainment are the top site categories in Peru in terms of visits**
  • Repeating a common pattern worldwide, Facebook is the #1 social media site in Peru, with nearly double the amount of uniques as LinkedIn, the #2 social site in the country**
  • The travel category has a deeper reach in Peru (25%) than in all of Latin America (22.8%)**
  • Page views from mobile devices now make up more than 12% of total page views in Peru, up 11% compared to 2013**

Sources: *Ipsos Peru, **comScore

puerto-rico-flag-button-pin-badge-6664-p
PUERTO RICO

  • Internet penetration in Puerto Rico is at 58%
  • There are more than 1.8 million Internet users in Puerto Rico aged 12 or older, with 60% penetration proyected for 2015
  • The majority (nearly 77%) of Puerto Rican Internet users go online with a cell phone, nearly 54% use a PC and nearly 15% use a tablet
  • Overall, nearly 87% of Puerto Rican Internet users have a profile on social media
  • Nearly 80% of Puerto Ricans on social media have a Facebook profile, while 41% are on YouTube and 34% are on Instagram

Source: SME, Asociación de Ejecutivos de Ventas y Mercadeo de Puerto Rico

http://www.dreamstime.com/royalty-free-stock-photo-venezuela-flag-image5086225
VENEZUELA

  • 41% of Venezuelans have access to the Internet and 90% of Venezuelan Internet users go online every day*
  • 61% of Venezuelan Internet users access the Internet via a mobile device*
  • 91% of Venezuelan Internet users are on Facebook*
  • Venezuelan Internet users spend an average of 16 hours a week online*
  • The top daily online activities for Venezuelans include social networking (73%), email (82%), getting info on news, sports and weather (59%), going to education sites (48%) and listening to music (44%)*
  • 90% of Venezuelan Internet users are on social media, a higher percentage than American Internet users (83%) or the global percentage (80.9%)**
  • 46.5% of Facebook users in Venezuela are ages 13 to 24, while nearly 34% are ages 18 to 24 and nearly 27% are ages 25 to 34, with people 35 to 44 accounting for 14.6% and those 55 and over accounting for 4.7%***
  • Only 14% of Venezuelan Internet users are active on Twitter****

Sources: *JWT, Digilats study 2014, **comScore, April 2014, ***Socialbakers, ****PeerReach

Contact us to find out more how we can help your agency increase its efficiencies via online ad campaigns or new ad technology developed for the Latin American market.