Category Archives: Marketing

¿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.

01 e-commerce

The Hottest E-Commerce Products in Latin America

Ok, so we know that digital ad spend is set to grow by 114% in Argentina between 2015 and 2018. Digital ad spend will spike by 73% in Mexico between now and 2018 and go up by 49% in Brazil by 2018.

In fact, 75% of the ad spend growth in Latin America between 2015 and 2017 will come from digital advertising on desktop and mobile.

We also know that B2C e-commerce sales in Latin America went up by 22% in 2014 and will grow by nearly 14% in 2015.

So digital marketers and agencies should be well attuned to what Latin Americans are buying online. Of course, data that covers the whole region is tricky to compile since e-commerce development varies greatly from country to country in Latam. But we were able to discover which products are flying off e-commerce shelves in most of the larger Latin American markets.


Argentina flag
ARGENTINA

The Cámara Argentina de Comercio Electrónico (Argentine Chamber of E-Commerce) indicates that e-commerce sales in Argentina reached a total of 40.1 billion Argentine pesos (US$4.5 billion) in 2014.

What Argentines bought the most online in 2014 were travel products like tickets and hotel reservations: they spent more than US$1 billion on these and travel products made up more than 27% of total e-commerce sales.

Other top e-commerce products purchased in Argentina in 2014 include:

  • Electronic equipment and accessories (12.5% of total sales)
  • Food, drink and cleaning supplies (6.9%)
  • Appliances (5.3%)
  • Clothes (4.2%)
  • Tickets to shows and events (3.7%)
  • Home furnishings (3%)
  • Office supplies (2.3%)
  • Sporting goods (2.2%)
  • Auto and motorcycle accessories (2.1%)
  • Toys and games (1.6%)
  • Clothes and accessories for babies (1.5%)
  • Other (includes properties and vehicles) 27%

brazilflag1968
BRAZIL

The 2015 Webshoppers report from ebit indicates that Brazil posted R$35.8 billion (US$11.4 billion) in e-commerce sales in 2014. As such, e-commerce sales in Brazil went up 24% in 2014. More than 51 Brazilians made an online purchase in 2014 and generated a total of more than 103 million orders. Nearly 10% of e-commerce sales in 2014 in Brazil were made with mobile devices, mostly through smartphones. In 2014 6 of every 10 m-commerce shoppers in Brazil were classes A or B.

Top products sold via e-commerce in Brazil in 2014 include:

  1. Fashion and accessories (17% of total sales)
  2. Cosmetics, perfume and personal care (15%)
  3. Appliances (12%)
  4. Mobile phones and phone products (8%)
  5. Books and magazine subscriptions (8%)
  6. Computer products (7%)
  7. Home furnishings (7%)
  8. Electronics (6%)
  9. Sporting goods (4%)
  10. Toys and Games (3%)


chile 3
CHILE

The Cámara de Comercio de Santiago (Santiago Chamber of Commerce) estimates that e-commerce sales in Chile would exceed US$2 billion in 2014, an increase of around 20% compared to 2013, in which total e-commerce sales in Chile were nearly US$1.6 billion. The most recent data we could find about the products that Chileans buy most online comes from a GfK study that covered e-commerce purchases in Chile during the first half of 2014. According to GfK’s results, the top products purchased by Chileans via e-commerce were:

  1. Cell phones
  2. Television sets
  3. Tablets
  4. Washing machines
  5. Notebooks
  6. Refrigerators
  7. Stoves
  8. Netbooks

 

Colombia flag
COLOMBIA

A report from the firm PayU indicates that e-commerce grew by more than 41% in Colombia in 2014 to reach total sales of more than US$3.5 billion. It’s important to note that these are estimates from a private firm that reportedly reaches more than 80% of the market, as opposed to an independent study such as the one by e-bit or the CACE in Argentina. That said, PayU’s results are in line with projections from the Cámara Colombiana de Comercio Electrónico (Colombian Chamber of E-Commerce), which has yet to issue a report for 2014 e-commerce activity for the country. According to PayU’s results, the products that Colombians bought the most via e-commerce in 2014 were:

  1. Airline tickets and hotel reservations
  2. Coupons
  3. Electronic products
  4. Clothes and shoes

A 2013 study from The Cocktail Analysis identified differences in products between 3 groups they designated: sophisticated shoppers, advanced shoppers and entry point shoppers. However, when The Cocktail Analysis aggregated the results to show which products registered the most purchases relative to the total of all online shoppers in Colombia, the following products stood out:

  1. Electronics and computer products
  2. Travel products
  3. Clothes
  4. Telecommunications
  5. Leisure

As can be observed, these are similar results to those from PayU.

 

mexico flag
MEXICO

According to the Asociación Mexicana de Internet (The Mexican Internet Association or AMIPCI) e-commerce sales in Mexico totaled more than 150 billion pesos ($US9.6 billion) and increased by 24% compared to 2013. AMIPCI has not yet released its 2014 Mexico e-commerce report, so the list of hot e-commerce products for Mexico comes from the 2013 report:

  1. Plane or bus tickets
  2. Music and movies
  3. Computers
  4. Clothes
  5. Tickets to shows
  6. Hotel reservations
  7. Software

These results are fairly consistent with previous AMIPCI results on e-commerce in Mexico, suggesting that the hot e-commerce products in 2014 should not be that different.

Uruguay_Flag
URUGUAY

While data for e-commerce sales in Uruguay doesn’t seem to be readily available, a small 2014 study by Agencia de Gobierno Electrónico y Sociedad de la Information (Electronic Government Agency and Information Society or AGESIC) surveyed more than 1,000 e-commerce shoppers in Uruguay to find out what they most bought online:

  1. Clothes
  2. Electronics
  3. Hotel/restaurant reservations
  4. Cell phones and accessories
  5. Home furnishing
  6. Appliances
  7. Service payments
  8. PC accessories
  9. Tools
  10. Books

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.

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How to Increase Online Sales in Brazil

To drive more purchases from Brazilian online shoppers, start by offering free shipping and detailed product specifications. According to a recent survey of e-commerce consumers in Brazil, these are the top two influencers in their decisions to buy products online. The study was done by SPC Brasil and Meu Bolso Feliz in January 2015, getting the opinions of nearly 700 online shoppers from 27 capital cities in Brazil.

Here are some more study results that advertisers and agencies targeting Brazil’s 105 million Internet users should take into account.

#1 Factor in the Other Reasons Why Brazilians Buy
Free shipping (39%) and product specs (39%) were cited by Brazilians as the top 2 influencing factors in their decisions to shop online, but other factors also led to purchases. Below we list them and the percentage of Brazilian online shoppers who said these were influential:

  • Product recommendations on specific sites (30%)
  • Flexible payment options (27%)
  • Email promotions (25%)
  • Online advertising of products (20%)
  • Coupons (16%)
  • YouTube videos or tutorials (15%)

#2 Put a Bit More Mobile into Your Marketing Mix
Brazilian e-commerce shoppers still mostly go online with devices that display standard desktop advertising: 44% of them shop online with PCs and 32% use notebooks. However, it is important to note that 20% use cell phones to go online and another 4% use tablets. In addition, other research points to mobile-commerce increasing significantly in Brazil. As such, brands that seek to drive e-commerce revenue from this market should strengthen their mobile efforts. To do this, there are some key factors you should know about and you can explore them here.

#3 Try to Blend in E-Commerce Advantages into Your Marketing
When asked about the main advantages of buying online, Brazilian e-commerce shoppers cited the following:

  • Convenience of shopping without leaving home (74%)
  • Generally lower prices (50%)
  • Ease of comparing products from different brands (27%)
  • Ease of price comparison between products (23%)
  • Shopping at whatever hour of the day they want (23%)
  • Better product variety (15%)

#4 Broaden Payment Options
The majority (78%) of Brazilian online shoppers polled in this survey used credit cards to make their online purchases. But 54% used a boleto bancário, a type of online voucher that shoppers get from their banks and use to finish the transaction and actually make the purchase. Other forms of payment cited include PayPal (25%), debit cards (17%) and bank transfers (7%).

#5 Know What Sells Best Online
According to the survey results, Brazilian e-commerce shoppers say the products they buy most online are electronic products: 61% indicated that they buy them. Other popular products for Brazilians to buy via e-commerce include books (47%), shoes (44%), clothes (42%), appliances (36%) and plane/train/bus tickets (35%).
Over the next six months, Brazilian online shoppers plan to buy the following top 5 products: books (52%), electronic products (47%), tickets (47%), hotel reservations (41%) and tickets to events or shows (40%).

#6 Build Trust for Repeat Business
Seven out of 10 Brazilian e-commerce shoppers cite trust in certain e-commerce sites and in brands as the reason for them buying more than once from the same site. Other factors that also lead to repeat business from Brazilian online shoppers include a positive previous experience (40%), fast delivery (30%), the best prices (29%), free shipping (21%) and coupons (16%). More than 60% of shoppers said they left e-commerce sites before finalizing a purchase. The most common reason was that they weren’t sure that they needed the product (27%), though uncertainty about price options or product characteristics (18%) also stopped them from buying. Other factors that led to abandoned shopping carts include delayed shipping (13%), the price (13%) or the final price being different from the advertised price (12%).

Contact us to find out how you can reach Brazilian online buyers with a standard online ad campaign or through the precision power of programmatic buying through MediaDesk, Latin America’s leading DSP.

 

 

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.

Human hand with a bag of US Dollars, coming out from computer sc

Digital to Dominate Surging Ad Spend in Latin America

A recent report from ZenithOptimedia and eMarketer offers encouraging projections for Latin America and suggest a much larger role for digital, especially in certain markets.

Overall Ad Spend
While Zenith Optimedia predicts 4.9% global growth in ad spend in 2015, eMarketer has a rosier forecast of 6.8%. Both organizations predict increased ad spend growth around the globe in the coming years, between 5 and 6% per year in 2016 and 2017.

Latin America’s Ad Spend Share to Grow
In 2014 eMarketer indicated that Latin America accounted for 7.3% of global spend, compared to 35.6% for North America, 27.9% for Asia-Pacific, 21% for Western Europe, 4.5% for Central and Eastern Euripe and 3.8% for Middle East and Africa. However, by 2018 eMarketer forecasts that Latin America’s share of global ad spend will rise to 8.4%.  (Click on the image below to enlarge.)

Ad spend 2018 Eng

In fact, eMarketer projects that between 2014 and 2017 Latin America’s ad spend will grow by 10% a year: only countries in a group called Fast-Track Asia (China, Indonesia, Malaysia, India, Pakistan, Philippines, Taiwan, Thailand and Vietnam) will grow more, with 10.3% annual growth.

Digital Driving Growth
According to Zenith Optimedia, mobile advertising will account for 51% of total ad spend growth around the world between 2014 and 2017. Desktop digital will also be an important part of global ad spend growth: it will account for 25% of it between 2014 and 2017. In fact, by 2017 desktop advertising will account for nearly 20% of global ad spend while TV will remain #1 with 37.4%. Mobile advertising will be close behind newspapers, accounting for 11.5% of global ad spend compared to 12.2% for newspapers. (Click on the image below to enlarge.)

Ad spend 2017 by medium Eng

Digital to Play a Key Role in Latam Markets
Historically, it’s obvious that traditional media have dominated ad spend in Latin America, particularly television. But eMarketer’s projections suggest a significant shift will happen in certain markets this year. For example, eMarketer forecasts that digital will command as much as 50% of the ad spend in the United Kingdom in 2015, while accounting for anywhere from 42% to 45% in countries like China, Denmark, Australia and Norway.
While digital won’t be as dominant in Latam countries, it’s significant to note that eMarketer projects that digital will account for 24% of the total 2015 ad spend in Mexico, not far behind the percentage projected for digital in the United States (31%). In fact, Mexico’s projected digital ad spend percentage is the same as that of Germany, Finland and Japan. In Brazil in 2015 digital will account for 15% of total ad spend. In Argentina, digital will account for 9% of total ad spend in 2015. While neither Brazil nor Argentina will have digital dominance in their 2015 ad spend, those familiar with ad spend in these countries will note that these percentages represent a significant increase for digital compared to years past.

Massive Mobile and Digital Ad Spend Growth for Argentina, Brazil and Mexico
According to eMarketer’s projections, in 2015 digital ad spend will grow by 30% in Argentina. Digital ad spend in Mexico will grow by 28% in 2015. And in Brazil, digital ad spend will grow by 15% in 2015.

Here’s a quick look at 2015 ad spend in these countries as per eMarketer (click on the image below to enlarge):

Ad spend ARG BR MX 2015 eng

Mobile advertising is set to grow in all 3 countries, according to eMarketer. Here’s the breakdown:

  • In 2015 mobile advertising spend will grow by 201% in Argentina
  • In 2015 mobile advertising spend will grow by 120% in Brazil
  • In 2015 mobile advertising spend will grow by 81% in Mexico

Over the next few years, between 2015 and 2018, digital ad spend should grow strongly in these countries, as per eMarketer projections. For example, digital ad spend will grow by 49% in Brazil between 2015 and 2018 to reach nearly US$5 billion. Mexico will post 73% growth in digital ad spend between 2015 and 2018, with more than US$2 billion invested in digital advertising in 2018. However, Argentina will have the most dramatic growth: 114% growth in digital ad spend between 2015 and 2018 and a total of nearly US$1 billion invested that year.

Leveraging This Data
As the digital money flow gushes in the coming years, we’ll see a parallel growth in programmatic ad spend in Latin America: a 600% increase just in 2015 and a nearly 9,000% increase by 2018. See more on that here. These projections suggest that brands will be putting more of their digital spend into programmatic, which makes sense when you consider the improved targeting offered by programmatic and the ability to buy by audience. An additional factor in this could be the ability to buy mobile programmatic impressions, which allows brands to reach the 194 million Latin Americans who use mobile Internet.

Contact us to find out how you can use programmatic to reach Latam’s 307 million Internet users via desktop, mobile or video, or if you just need help with a digital desktop campaign.

Latam digital music

Digital Music Cranks Up in Latin America

Both online music downloads and digital music subscriptions are on the rise in Latin America.

According to the most recent digital music report from the International Federation of the Phonographic Industry or IFPI—released in November 2014—Latin America posted 27% digital music revenue growth in 2013. Overall, revenues from digital music grew by 124% in Latin America between 2010 and 2013.

According to the Federation’s report, a number of Latam countries had powerful individual growth, including Peru (149%), Colombia (85%) and Argentina (69%).

But IFPI is not the only source that points to digital music growth in Latin American countries.

Colombia
Ipsos-Napoleón Franco’s Technology Tracker study, released in 2014, indicated that 37% of Colombian internet users stream music, compared to the 49% that buy CDs.

Mexico
The Mexican Association of Phonographic Producers (Amprofon) reported a 130% increase in revenues from streaming music services in Mexico during the first half of 2014. Streaming revenues totaled 175 million Mexican pesos in the first half of 2014, while digital music sales went up by 14% to reach 428 million Mexican pesos in the same period. Overall, 59% of the revenues generated by the Mexican music industry in the first half of 2014 came from digital sources, either streaming or purchases.

Brazil
A recent study from Opinion Box indicated that 28% of Brazilians stream music, though 76% still prefer to listen to music via traditional radio. However, another study from Opinion Box—done in June 2014—surveyed 1,484 Brazilian Internet users and found that 76% listened to music on their cell phones. Of these, 84% listen to MP3 files, 65% listen to the FM radio embedded in the device and nearly 31% use streaming music apps. In addition, while 2014 numbers aren’t available yet, the Associação Brasileira de Produtores de Discos, (Brazilian Association of Record Producers or ABPD) reported that digital music sales in Brazil went up by 22% in 2013 and that digital sales accounted for 36% of total music sales.

What to Do with This Data
While it’s tricky to find large scale spikes in digital music consumption for every Latin American country, there’s enough data for the larger markets to suggest a significant change is taking place. For advertisers and agencies, this means that looking into ad solutions from sites like Deezer may deliver some strong results with campaigns, especially with the younger age groups (15 to 24, 25 to 35) that make up the majority of Latam’s Internet users.

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.

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.

future media buying

The Future of Media Buying in Latin America

While tech disruptions in the Latam media world may not move as fast as they do in other markets, there’s no question that changes are underway that will eventually impact our work in media buying and planning. To that end, below we highlight some developments that advertisers, marketers and media professionals in Latin America need to track.

#1: OTT Streaming
While over-the-top (OTT) streaming is far from huge in Latin America, in fall 2014 Netflix reported that it had 5 million subscribers in Latin America. HBO will launch an OTT service in the U.S. this year, and it’s possible that a Latin American launch of that service is not far behind. There are several challenges with OTT, such as measurement of viewership of shows and movies that are streamed, and as of yet Netflix does not sell ads. But with the rise in tablet sales in Latin America, the popularity of online videos in the region and the steady increase in smart TV sales, within the next few years media professionals may have to work OTT inventory onTV shows and movies into their planning.

#2: Programmatic TV Ad Buying
This is still in its infancy in large markets like the United States, but there is growth potential. The idea behind TV programmatic buying is not to buy the highest rated shows that reach your target audience, but to buy the target audience and have the ads run on shows watched by that audience. At this point, unlike with digital programmatic buying, advertisers cannot buy programmatic TV ads in real time. There’s also not a ton of inventory available as most networks have not embraced this approach. There is speculation that there could be an increase in 2015 in which 3% to 5% of TV ad inventory is bought programmatically—up from the 1% in 2014. That said, programmatic TV is another potential media buying disrupter that professionals need to be aware of.

#3 In-App Ads
It’s difficult to find data on app usage in Latin America, though we do know that Brazilian mobile users have an average of 7 apps on their phones and that 61% of mobile users in Latin American have downloaded WhatsApp. We also know that mobile adoption keeps steamrolling forward in Latin America, along with mobile Internet use.   On the advertising side, a recent study from MediaLets showed that in-app ads perform two times better than ads on the mobile web. Another study from InMobi showed that in-app ads performed nearly 2.8 times better than ads on the mobile web.  Given this, we could see more ad spend in Latin America move towards apps as opposed to the mobile web.

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.