Category Archives: Economy

¿Dónde estamos parados?

Hoy en día, nuestro sector se mueve a pasos extremadamente rápidos y la industria de medios digitales está dejando de ser rudimentaria y se está adaptando a los dispositivos de alto poder de procesamiento que el mercado presenta.

Cómo Estrategas de Marketing, qué significa esto para nosotros?

Es muy fácil, a veces, olvidarnos que los consumidores se hacen preguntas similares a la hora de ver o no un aviso nuestro o comprar un producto. “Por qué haría click?”, “Por qué entraría en ese sitio?”. Da la sensación que nos hemos estado enfocando demasiado en optimizar nuestras tecnologías hacia las últimas etapas del proceso de adquisición de clientes o en la fase de la transacción y olvidamos los objetivos primordiales.

Lo que estamos intentando, en última medida, es que nuestro marketing cobre sentido y  genere relaciones duraderas con las personas. Necesitamos responder los por qué de nuestras marcas (y sus usuarios) con nuestras acciones de marketing a través de todo el proceso de conversión.

Con el fin de responder esos “por qué”, el anunciante debe responder sus propias preguntas acerca del consumidor. “Qué hizo que el consumidor tuviera una necesidad? Qué hizo pensar a ese cliente acerca de esa necesidad en el momento en que lo hizo? Por qué decidió comportarse de la forma en que lo hizo en aquella plataforma/sitio?”

Necesitamos entender el contexto en el que alguien está interactuando con una marca y que llevó a esa persona a ese lugar y estado emocional en primer lugar.

Las marcas deben aprender a responder las preguntas de por qué tal o cual persona hizo lo que hizo y que era lo que estaba tratando de conseguir para luego incorporar ese conocimiento dentro de sus contenidos y tecnologías de medios

Esos anunciantes será capaces de enviar mensajes a sus audiencias durante ese proceso de conversión de los consumidores y podrán diferenciarse en los puntos que importan más: el interés y el deseo

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Y aquí es cuando  la Compra Programática ayuda a llegar a sus clientes en los segmentos medios de ese recorrido. Aquí es donde aporta un valor significativo para los anunciantes y el consumidor.

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.

Flying dollars banknotes isolated on white

Where Ad Investment in Latin America Should Go in 2015

The challenge that every marketer faces is how to develop a media budget that delivers the best results. Making changes to your approach is hard, not only because of the risk but also because of the need to sell other people in the company on those changes. But as the media landscape changes, it’s actually a bigger risk to make no changes, since you can easily fall out of step with your customers. In reviewing the data, here are some areas that both brands and media agencies need to look more closely at in executing their 2015 campaigns.

#1: Mobile Programmatic
Mexico clearly leads Latin America when it comes to mobile ad investment and is set to reach US$287 million by next year, while Brazil mobile ad investment will reach US$245 million and Argentine mobile ad spend will be a surprisingly small US$14.5 million.

But this modest level of investment doesn’t seem to jibe with the mobile boom happening in Latam. For instance:

And if those numbers aren’t enough to get the point across, see how smartphone penetration, tablet ownership and mobile Internet user are growing in other Latam markets, including Chile, Peru, Colombia, Ecuador and Venezuela.

Now to programmatic. We know that programmatic ad spend is set to spike dramatically in Latin America, so definitely the industry knows this works. The advantages of the tight targeting of programmatic are becoming clearer, in addition to the fact that it may deliver a more efficient spend than manual online ad buying.

Given this, it seems logical that brands need to deepen their mobile spend. And if the concern is that mobile may be a risk, why not look at some trials with mobile programmatic? Sharper targeting could lead to even better results with mobile and allow brands to fully take advantage of an audience that’s using smartphones more and more in the purchase process.

As such, it seems clear that brands need to run programmatic mobile trials and increase their conventional mobile ad spend in 2015. We can help with this: find out more here.

#2: Social
The numbers on social make things pretty clear:

Ok, so we know we have a good audience. Then why is social network ad spending in all of Latin America only estimated to be US$481 million in 2014 and only to increase by 23% in 2015?

Per user, advertisers will spend US$2.52 on social network advertising in Latin America, compared to $46 per user spent in North America and $27 per user in Western Europe.

How does this make sense when comScore reports that the average social media user in Latam spends 8.67 hours a month on social media versus 8.07 hours spent by Europeans and 6 hours a month spent by North Americans?

>>>The Approach with Social
There are several ways brands should leverage this Latam love of social in 2015:

Facebook retargeting. On one hand, we have 200 million Facebook users. On the other, in 2014 we have e-commerce growing by 40% in Argentina, by 23% in Brazil, by 20% in Mexico and by 45% in Colombia. So obviously it makes sense to retarget people who visit e-commerce sites with ads on Facebook. You can find out more on how that works here or just contact us directly since we’re experts in this area and partners with Triggit, a leading company in Facebook Exchange retargeting around the world.

Native advertising and content marketing. Do any of you know how much Latin American marketers are spending on native advertising or content marketing? Many of us don’t know yet, and the reason is because no surveys that report tactical spend by Latam marketers has been released. But it doesn’t seem to be much, if at all.

And what a missed opportunity. Mobile Internet is expanding hugely in Latin America and part of that entails people checking social networks on their cell phones: 30% of Mexicans, 37% of Chileans, 32% of Argentines and 19% of Brazilians, according to one study. But other studies confirm this trend: see here, here and here.

This means that people are checking their Facebook feeds, scrolling down: this makes it the perfect place for you to include a sponsored post that’s part of your content marketing. A recent survey of American marketers showed that 23% are devoting more than half of their 2015 budget to content production. Why? Because posts on topics and videos, for example, are good ways to engage people and sell. A post can lead back to a mini-site where your content lives—along with banners to convert people. Or you can set up a content channel on a portal—something we helped a client do with iG a few years ago and which worked very well. And you can leverage content even further with mobile: 55% of Brazilians recently said that video was their preferred format for mobile ads.

Sponsored social. This trend has taken off in the U.S. and it makes sense: use social media users with strong followings to promote brands. A recent study showed that 52% of American marketers had used this tactic in 2014, nearly as many as those who used online display advertising (58%). This could be a trickier tactic to deploy but it definitely merits some trials considering the potential it has.

Bottom Line
As an industry, we’re skipping around the surface of the potential of digital in Latam with light investments. It’s not about jumping on the bandwagon to be cool. It’s about adjusting our business practices to our audience habits. And that’s just good business.

Contact us to learn more about how we can spike your response in 2015 via mobile, programmatic, mobile programmatic, Facebook retargeting, social and a deeper dive into digital campaigns.

 

top growth markets Brazil

The Top 8 Growth Markets in Brazil for 2015

For professionals in advertising, marketing and media, economic growth areas may help us decide who to target for new business. With that in mind, we took a look at some of sectors in Brazil that have been surging not only in 2014 but over a longer amount of time, since this data suggests that they will be worth watching as 2015 starts to unfold.

1 eyewear
Take a Look at Eyewear

Over the past 5 years, the eyewear market in Brazil has grown by 89%. Sunglasses are one of the main growth drivers, with 15 million units sold. According to Bento Alcoforado, president of the Associação Brasileira da Indústria Óptica, in 2015 the Brazilian optical market will grow by 10% and then by 20% in 2016.

2 organic food
Organic Growth

According to Projeto Organics Brasil, the organic foods market in Brazil is set to go up by 35% in 2014, with overall sales of R$2 billion.

3 games
Good Games

After growing by 14% in 2013, the Brazilian toy market is set to grow by 11% in 2014, with R$ 9.5 billion in sales. The reason 2015 looks good for toys is the strong growth that’s happened for years. For example, in 2010 toy sales in Brazil grew by 8.5%, then by 9% in 2011 and then by 15.6% in 2012.
Beyond toys, video game console sales in Brazil went up by 33% between January-July 2014 and the same period in 2013, according to GfK, with an increase of 11.5% in video game sales.

4 advertising
Advertising Also Up

Besides certain products doing well, we’re seeing the promotion of those products also doing well. Research from Carat projects a 9.4% increase in ad spend in Brazil in 2014 due to the World Cup and recent elections. Overall, Latin America should see ad spend increase by nearly 12% in 2014, way ahead of North America (5%), Western Europe (2.7%) and Asia (5.5).

5 pharma
Pharmaceuticals Flourish

According to the Associação Brasileira de Distribuição de Logística de Produtos Farmacêuticos, sales of pharmaceuticals in Brazil totaled R$ 3.23 billion in Q3 2014—nearly 19% higher than in the same period in 2013 and 8% higher than in Q2 2014.

6 reading
Reading Ramps Up

While we don’t have all numbers in for 2014, we know that book sales in Brazil went up by more than 10% in 2013. In 2012, sales of books in Brazil grew by more than a billion reais, suggesting a growth trend is taking place in this area.

7 pets
More Pet Shops Popping Up

Since 1995 there has been annual average growth of 19% in pet shops in Brazil. Overall, the pets market is set to grow by 7% and overall, Brazilians will spend R$ 14 billion on their dogs and cats.

SONY ELECTRONICS, INC. XPERIA TABLET S
Tablets Take Over

IDC indicates that Brazilians bought 6.4 million tablets between January and September 2014—20% more than in the same period in 2013. In contrast, Brazilians bought 3 million desktop computers and 4.6 million notebooks. Basically, tablets have taken over the computer market in Brazil, with 47% market share, significantly higher than the share of notebooks (33%) and desktops (19%).

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.

Fernando Monedero color

Latam Digital Media Trends for 2015: An Interview with Fernando Monedero of MEC

Even if 2014 isn’t exactly in the rearview yet, there’s not much of it left. So when we look at 2015, we wanted to consider which digital media trends will be the strongest in Latin America. So we sat down with an expert—Fernando Monedero, Regional Digital Director for MEC—to get his take on what’s next in 2015.

It seems like every year is predicted to be “The Year of Mobile” in Latin America, in which mobile will occupy a top slot alongside the other forms of media. How do you see the role of mobile in 2015 in Latam?

I don’t know if it will be “The Year of Mobile,” but we do know that Latin America is growing rapidly in terms of Internet connections through broadband on smartphones and tablets, as well as in the number of these devices. This indicates the relevance that this form of media is gaining with the population and, as a result, with the consumers of brands. I think that brands are realizing this and that mobile will have a larger presence in their marketing strategies.

How strong will social TV be in 2015? Will we see more buys that integrate TV advertising with complementary advertising on social media?

We’re living in a multiscreen world in which marketing professionals are looking for innovative ways to connect with consumers.
Our TV watching experience is becoming a social event. TV and social media are changing our passive experience to make it more social and interactive: now a conversation about the shows we watch is taking place. We’re experiencing the rapid rise of social TV.

Some companies have projected that in 2015, we’ll see strong increase in programmatic ad spend in Latin America. Do you agree?

Totally. It’s a much more efficient way to buy media. With this new media landscape, marketing professionals will need smart systems to buy media, with new algorithms to increase their understanding of consumers and improve targeting based on behavior. [Programmatic buying] involves a big-picture understanding of brand messaging, facilitating customization, transparency and real-time integration to connect brands to consumers through greater credibility and the continual visibility and relevance of the brand.

Do you think that we’ll see greater investment with the programmatic purchase of mobile advertising or with online videos? If so, do you think that brands will spend more with these two types of advertising through programmatic buying?

Mobile is just another channel within programmatic buying and as an ad format, video is becoming much more relevant due to its wide range of possibilities for communication and interaction; it’s not necessarily where brands will spend more, but we’ll surely see an increase in spend.

In the United States, marketing professionals are investing more in native advertising. In 2015 will we see a parallel increase in Latin America in terms of native advertising?

Yes, I believe so; it’s minimally intrusive form of communication that lends itself to multiple platforms, which brands like. On the part of the consumer, I think that it will be more accepted by older rather than younger consumers, since the latter will be able to identify native ads as advertising with greater ease.

Have you observed any preference for any particular type of native advertising on the part of advertisers? Perhaps online video?

I think it’s interesting how mobile native advertising will be bought and sold programmatically.

According to comScore, in 2014 Facebook continues to dominate the social media scene in Latin America. But in the United States, marketing professionals are taking advantage of other social networks like Snapchat, Pinterest and Instagram, among others. Do you think that in 2015 we will see newer social networks become stronger in Latam?

Facebook is not the only option, but it is and in 2015 will continue to be the first option for any advertiser when it comes to communication through social networks. In my opinion, Pinterest will indeed take on more relevance, especially in categories related to higher social strata; the rest [of the social networks] will have growth but won’t be that significant.

Will there be a trend that we have not cited so far that you think will be strong in 2015?

I think that the intelligent use of data will be a determining factor in the communications strategies of brands, as well in their optimization processes. These days, technology allows us to understand much better who the consumer is and what they want, and the use of data management platforms (DMPs), tools and dashboards to understand information will be of great importance in 2015.

 

 

Hand pushing blue pay button

4 Fixes to Drive More Sales from Social Media

ROI is the big problem with social media marketing. We can show our bosses that we have plenty of shares and likes, but so what? We’re not using social media to be liked. We’re using social media for the same reason we use TV ads, print ads and billboard ads: to sell.

Up to now, there hasn’t been much research on how social media leads to conversion, i.e. somebody actually buying something. A new study from AOL Platforms may help with this. The firm conducted an analysis in the first quarter of 2014 that covered 500 million clicks, US$15 million in conversions and 3 billion impressions, as well as 13 million unique purchase paths, all to see where social media content—both organic and paid—fits in the purchase path of consumers.

Here are some basic results from the study that may be helpful in guiding your future social media investments.

Social Is the Middleman
To understand the results, it’s best to also understand the basic process. The study identified 4 points in the path to purchase that convert a prospect into a customer.

  • First: the beginning, when a product is introduced
  • Middle: a point in which advertising impacts customer awareness as they research products
  • Last: the last point of contact with advertising before the customer buys
  • Only: when only one marketing channel reaches a customer and he or she buys as a result

Social media rarely are the only channel a customer goes through when buying. Instead, social media advertising falls in the middle of the purchase path around 87% of the time.

Now, falling in the middle isn’t exactly uncommon. Here are the rates for other online marketing channels in falling in the middle of the purchase path:

  • Display: 89%
  • Email: 78%
  • Non brand search: 71%
  • Affiliate: 69%
  • Brand search: 52%

Essentially, this means that social media helps shape a customer’s consideration of a product and offers an opportunity to cement awareness and influence selection to get to the last stage.

Paid Social Leads to More Sales
When AOL compared organic social media marketing to paid advertising on social media, paid social advertising was more likely to generate sales. For example, overall the conversion rate of organic social content was 2.26%, compared to 2.82% for paid social media, an increase of 25%.

The difference between paid and organic content is even more dramatic with individual social networks. On Facebook, here is where organic content ended up on the purchase path:

Organic

  (CLICK IMAGE TO ENLARGE)

Most of the time (84%), it was in the middle. It was rare for organic social content to be on the last point before purchase (9% of the time) or to be the only marketing channel a customer saw before purchase (4%).

But with paid social content, things changed:

Paid

  (CLICK IMAGE TO ENLARGE)

Paid social media content was at the last point of the purchase path 13% of the time. More importantly, 24% of the time it was the only marketing channel a customer saw before purchase. This is a sixfold increase compared to organic, showing clearly that paid social content leads directly to purchases more often than organic content.

Similar results were observed for other major social networks.

YouTube and Facebook Drive the Most Sales from Social
The overall results of the AOL Network analysis showed that YouTube was the strongest at driving sales conversions, followed by Facebook:

Convertro-Social-Media-Funnel

As shown by the chart above, 14% of the time Youtube was the only online marketing channel seen by customers before purchase and 10% of the time, Facebook was the only marketing channel seen before purchase. In addition, these two networks tended to be the last online channel seen before purchase, with higher percentages than most of the other networks. In comparison, Twitter and Tumblr were the least effective channels for conversion or for being the last channel seen by customers before purchase.

These results suggest that despite the interest that new social networks pique as they attract users, the more popular, established networks tend to drive purchases.

Subscriptions, Beauty and Services Sell Best with Social
The AOL study also looked at how social media lead to sales of different product types.

For most product types, social media fell clearly into the middle of the purchase path:

  • 95% of the time with food and beverages sold via e-commerce
  • 87% of the time with apparel and accessories sold via e-commerce
  • 85% of the time with home furnishings sold via e-commerce
  • 82% of the time with technology products

However, when it comes to subscriptions, health/beauty products and services, social media was the only channel seen before purchase 48%, 29% and 21% of the time, respectively.

Besides leading to what AOL Platforms terms “impulse buys” with these product categories, social media also was the last channel in the purchase path (seen just before the consumer bought a product) a significant amount of the time with certain products:

  • 21% of the time with health/beauty products sold via e-commerce
  • 18% of the time with services
  • 15% of the time with subscriptions
  • 13% of the time with entertainment and leisure sold via e-commerce

Contact us to find out more how we can help your agency increase its efficiencies via media services like Facebook retargeting and new technology developed for the Latin American market.

 

money-sign

The Most Valuable Brands in Latin America

Recently Interbrand—a global brand consultancy firm—took a close look at some of the major retail brands in Latin America to gauge their values. Interbrand factored in 2013 results from each company, their expansion plans and other variables (including the growth of Latam’s middle class and the surge of e-commerce in the region) to create a realistic ranking. Here’s a quick look at the top 20 most valuable retail brands in Latin America and the factors that Interbrand used in developing each brand’s rank.

1 natura
#1: Natura (cosmetics)
Based in: Brazil
Value: US$3.1 billion
Factors in its ranking:

  • Clear brand proposition
  • Consistent customer experience
  • Innovative research and development

2 oxxo
#2 Oxxo: (convenience stores)

Based in: Mexico
Value: $US$2.61 billion
Factors in its ranking:

  • Rapid expansion, with 1,120 new stores in 2013 and a total of 11,721
  • Responsive to local needs through proprietary brands
  • Banking services in stores as a further convenience for customers

3 bodega aurrera
#3: Bodega Aurrera (grocery stores)

Based in: Mexico
Value: $US1.01 billion
Factors in its ranking:

  • Net sales increase of 3.1% in 2013
  • Iconic character of Mamá Lucha that drives ad campaigns
  • Wide variety of products available at affordable prices

4 falabella_logo
#4: Falabella (department stores)

Based in: Chile
Value: US$547 million
Factors in its ranking:

  • 89 stores in 4 countries with ambitious expansion plans in place
  • Vast array of brands, products and services

liverpool
#5: Liverpool (department stores)

Based in: Mexico
Value: $US485 million
Factors in its ranking:

  • Nearly 100 stores
  • Heavy investment in remodeling existing stores and opening new ones
  • Third most important credit issuer in Mexico
  • Bringing the U.S. brand Chico’s to Mexico via a partnership

6 casas bahia
#6: Casas Bahia (home furnishings)

Based in: Brazil
Value: US$420 million
Factors in its ranking:

  • Investment of $700 million in advertising, #2 advertiser in the country
  • Expansion in north and northeastern Brazil: 25 new stores in 2014
  • Consistency in communication + strong business model

7 sodimac
#7: Sodimac (home improvement)

Based in: Chile
Value: US$381 million
Factors in its ranking:

  • Comprehensive offer that smaller stores are unable to match
  • 135 stores in Chile, Argentina, Colombia and Peru
  • Successful market segmentation strategy via store formats and sub-brands
  • Inroads into new markets like Uruguay and Brazil

9 elektra
#8: Elektra (electronics)

Based in: Mexico
Value: US$366 million
Factors in its ranking:

  • Focus on the base of the pyramid in Latin America
  • Accessible credit for customers
  • Acquisition of Blockbuster Mexico to expand its locations

9 renner
#9: Renner (apparel)

Based in: Brazil
Value:$US$357 million
Factors in its ranking:

  • Second largest chain in Brazil
  • High customer satisfaction rate: 96.6%
  • Expanded portfolio of brands

10 lojas americanas
#10: Lojas Americanas (convenience stores)

Based in: Brazil
Value: US$320 million
Factors in its ranking:

  • Positive in-store experience for clients
  • 59% reduction in complaints to Brazilian Consumer Protection Organization
  • Strong event-centered promotional events

11 superama
#11: Superama (grocery stores)

Based in: Mexico
Value: US$319 million
Factors in its ranking:

  • Strong focus on good service
  • Developing more digital shopping experiences like its mobile app

12 extra logo
#12: Extra (mass merchant)

Based in: Brasil
Value: US$263 million
Factors in its ranking:

  • Accounts for 33% of the revenue of its parent firm, Grupo Pão de Açúcar
  • Extra.com has become a virtual mall much like Amazon.com
  • Good Brand positioning and expansion of its Minimarket Extra stores

13 hering
#13: Hering (apparel)

Based in: Brazil
Value: US$261 million
Factors in its ranking:

  • 130-year history, broad appeal across all ages and social classes
  • Expanded offerings to include higher-priced items
  • Consistent communications and strong corporate citizenship initiatives

14 exito
#14: Éxito (mass merchant)

Based in: Colombia
Value: US$246 million
Factors in its ranking:

  • Strong variety of products, formats and services
  • Online sales platform that offers wider range of products at better prices
  • Expanded into mobile phone, insurance, credit cards and travel services

15 suburbia
#15: Suburbia (apparel)

Based in: Mexico
Value: $173 million
Factors in its ranking:

  • Delivers fashion to growing middle and lower-income segments
  • Strong social media presence including a style guide blog
  • 13% sales growth and 108 stores, more than any other clothing retailer in Mexico

16 Tottus
#16: Tottus (mass merchant)

Based in: Chile
Value: US$160 million
Factors in its ranking:

  • Revenue increase of 23% in 2012
  • Market share of 27% in Chile and 7% in Peru
  • Part of parent company Falabella’s expansion plans

17 Havaianas-logo
#17: Havaianas (apparel)

Based in: Brazil
Value: US$159 million
Factors in its ranking:

  • Popular sandals and expanded product line
  • Celebrity endorsements, magazine ads and in-store experience keep brand relevant and fresh
  • Expansion to other markets, including Australia and Europe
  • Plans to open 90 new stores in Brazil and abroad

18 pao de acucar
#18: Pão de Açúcar (grocery stores)

Based in: Brazil
Value: US$147 million
Factors in its ranking:

  • Premium position in the marketplace
  • Expansion of delivery service
  • Commitment to innovation and sustainability

R03_ManualPontoFrio.indd
#19: Pontofrio (electronics)

Based in: Brazil
Value: $147 million
Factors in its ranking:

  • Targeting growing middle classes with fresh visual brand identity
  • Inaugurating concept stores and developing new campaigns to deliver innovation in every point of contact
  • Responding to consumer preferences

20 arezzo
#20: Arezzo (apparel)

Based in: Brazil
Value: $124 million
Factors in its ranking:

  • Glamorous campaigns that include bloggers
  • 1.3 million fans on Facebook as part of strong social media presence
  • Revenue growth that is five times the global industry’s average

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

 

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.

 

 

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The Top Advertisers in Latin America

IBOPE has published the latest edition of its MediaBook and one of the key data points is the companies that invested the most in advertising in 2013.

While IBOPE did not publish data for Mexico, the top online advertisers in Mexico in 2013 can be found here.

Below we list the top advertisers for key markets in Latin America, ranking them in descending order and including the amounts in dollars.

ARGENTINA

  1. Unilever: $708 million
  2. Genomma Lab: $637 million
  3. Presidency of Argentina: $469 million
  4. Procter & Gamble: $426 million
  5. Coca Cola: $324 million
  6. Danone: $244 million
  7. Telecom: $228 million
  8. Grupo Telefónica: $224 million
  9. Quilmes: $216 million
  10. SC Johnson: $211 million

BRAZIL

  1. Unilever Brasil: $2.1 billion
  2. Casa Bahia: $1.5 billion
  3. Genomma: $1.1 billion
  4. Ambev: $804 million
  5. Caixa (GFC): $771 million
  6. Petrobras: $655 million
  7. Hypermarcas: $566 million
  8. Volkswagen: $555 million
  9. Reckitt Benckiser: $519 million
  10. Fiat: $503 million

 CHILE

  1. Procter and Gamble Chile: $209 million
  2. Falabella: $205 million
  3. Unilever: $191 million
  4. Nestle Chile: $99.6 million
  5. Ecusa: $93 million
  6. Entel PCS: $92 million
  7. Sodimac: $90 million
  8. Movistar: $81.4 million
  9. Sociedad Productores de Leche: $81.3 million
  10. Loreal: $77.4 million

COLOMBIA

  1. Postobon: $94.4 million
  2. Procter &Gamble: $88.2 million
  3. Unilever Andina: $69 million
  4. Claro: $67 million
  5. Claro Soluciones Fijas: $63 million
  6. Tecnoquimicas: $62.715 million
  7. Almacenes Éxito: $62.711 million
  8. Telefonica MoviStar: $58 million
  9. Genomma Lab Colombia: $57 million
  10. Coca Coca: $56.7 million

COSTA RICA

  1. Colgate Palmolive: $10.5 million
  2. Unilever: $10 million
  3. Banco Nacional Costa Rica: $9.6 million
  4. ICE: $8.8 million
  5. Procter and Gamble: $5.9 million
  6. Banco de Costa Rica: $5.884 million
  7. América Móvil: $5.833 million
  8. Genomma Laboratories: $5.828 million
  9. Gollo: $4.79 million
  10. Tica Panamco: $4.74 million

ECUADOR

  1. National Government: $107 million
  2. Unilever Andina: $99.6 million
  3. Conecel: $76.6 million
  4. Genomma Lab: $59 million
  5. Lotería Nacional: $52.6 million
  6. Johnson & Johnson: $50 million
  7. Otecel: $48 million
  8. Colgate Palmolive del Ecuador: $45 million
  9. La Fabril: $39 million
  10. Quala: $37 million

GUATEMALA

  1. Interacel: $30.7 million
  2. TV Offer: $27.8 million
  3. Telepromos: $26.1 million
  4. Pepsi: $20 million
  5. Procter & Gamble: $18.88 million
  6. Genomma Lab: $18.87 million
  7. Colgate Palmolive: $17.7 million
  8. Ambev Centroamérica: $16.8 million
  9. Unilever: $15 million
  10. Sears: $14.3 million

HONDURAS

  1. Genomma Lab: $24 million
  2. Tigo: $13.4 million
  3. Claro: $9.9 million
  4. Diunsa: $9.5 million
  5. FICOHSA: $8.1 million
  6. Banco AtlántidaL $7,2 million
  7. La Colonia: $6.5 million
  8. Unilever: $6.2 million
  9. Pepsi: $5.9 million
  10. BAC Honduras: $5.7 million

PANAMA

  1. Tova SA: $21.3 million
  2. Cable & Wireless: $19.6 million
  3. Claro Panama: $19.4 million
  4. Dist Comercial: $16.5 million
  5. Super Xtra: $11 million
  6. Importadora Ricamar: $10.7 million
  7. Digicel: $10.5 million
  8. Minipresidencia: $8.9 million
  9. Jose Domingo Arias: $8.4 million
  10. Bayer: $8 million

PARAGUAY

  1. Interacel: $23.6 million
  2. Telecel: $22.5 million
  3. Unilever: $18 million
  4. Chena Ventures: $13.8 million
  5. Nucleo: $13.2 million
  6. National Government: $12.5 billion
  7. Gambling: $11 million
  8. Paraguay Refrescos: $10.1 million
  9. Servicios Digitales: $9.3 million
  10. Talisman: 8.9 million

PERU

  1. Procter & Gamble: $243 million
  2. Alicorp: $155 million
  3. Telefónica Móviles: $75.9 million
  4. América Móvil Perú: $73.8 million
  5. Saga Falabella: $71 million
  6. Coca Cola: $66.4 million
  7. Unilever Andina Perú: $63 million
  8. Nestlé Perú: $62.8 million
  9.  Quality Products: $62.3 million
  10.  UCP Backus y Johnston: $60.3 million

URUGUAY

  1. Unilever: $58 million
  2. Loreal: $42.3 million
  3. Antel: $28.9 million
  4. Fábricas Nacionales de Cerveza: $28.8 million
  5. SC Johnson: $28.7 million
  6. Conaprole: $23.3 million
  7. Coca Cola: $22.9 million
  8. Fucac: $22.4 million
  9. Motociclo: $19.6 million
  10. Chic Parisien: $18.3 million

 

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