Category Archives: Marketing

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Quick Insights into Brazilian Internet Users

Google Think Insights recently published an interesting infographic on Brazilian Internet users, all based on recent research.

Even though it’s in Portuguese, most of the data is easy to figure out. Some of the highlights are:

  • 48% of Brazilians are connected to the Internet
  • 74% of Brazilians aged 15 to 49 are online
  • Smartphone penetration in Brazil went from 26% in 2013 to 29% in 2014
  • Tablet penetration in Brazil is at 9%
  • 80% of Brazilians compare products online before buying them.

And more. Click on the link below to view the infographic:

Google Think Insights Brasil 2014

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.

Girls with Shopping Bags

15 Insights about Latin American Consumers for 2015

In trying to create the most effective media plans possible, understanding consumer behavior is paramount. To that end, we looked at research into Latin American consumers to understand more about their growth, shopping habits, preferences and media use.

Here are 15 key insights to keep in mind during 2015:

  1. In 2020 there will be a total of 640 million consumers in Latin America and private consumption in the region will nearly double compared to 2012
  2. A Kantar Worldpanel study of Latin American consumers showed that 32% had bought an LCD, LED or plasma TV over the past 5 years and that 33% have purchased a better quality refrigerator recently
  3. Radio is the most popular medium in Latin America—consumed more than TV
  4. 46% of Latin Americans say they make online payments
  5. Mexico is the #4 country in the world in terms of mobile advertising traffic, while Brazil is #7 and Argentina is #13
  6. The amount of Netflix subscribers in Latin America grew from 309,000 in October 2011 to more than 4.8 million by September 2014, with 1.2 million in Mexico and 2.1 million in Brazil
  7. 75% of Brazilians surveyed said they watch streaming video, slightly less than the amount that watches regular TV (77%)
  8. 69% of Latin Americans with a bank account say they make online transactions
  9. Nearly 60% of Latin Americans watch TV while surfing the Internet and 67% watch online videos
  10. 41% of Peruvians watch TV while using another device at the same time, mainly a smartphone (22%), but also a laptop or PC (15%) and a tablet (4%)
  11. Chileans spend the most money on sports clothes than other Latin Americans
  12. 81% of Brazilians, 66% of Mexicans and 73% of Argentines research appliances online before buying
  13. Peru is the Latin American country in which social media have the deepest penetration: 96%
  14. 10% of the world’s Internet users are from Latin America
  15. Latin American travelers tend to travel more than those from more established travel markets and report higher levels of enjoyment

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.

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.

 

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4 Key Growth Areas Among Mexican Internet Users in 2015

While most brands know how their specific customers behave, it’s important to work in outside research that could capture larger trends that you may not be seeing with your target. In the case of Mexican Internet users, evolving technology use leads to changes that brands should be aware of so that they’re ready to adjust plans or campaigns as needed. With that mind, here is some research from late this year on Mexican Internet users that could have impact next year:

1 size etc
#1 SIZE, USAGE & ADVERTISING

Sources: *eMarketer, **Asociación Mexicana de Internet, ***IAB México

 

2 e-comm
#2 ONLINE RESEARCH AND PURCHASES

Sources: *TNS & Google, **MercadoPago e IPSOS Marketing, ***Banamex

3 mexico mobile
#3 MOBILE

Sources:*The Competitive Intelligence Unit, **IDC, ***TNS & Google, ****Asociación Mexicana de Internet, *****ConsumerLab Ericsson

4 social
#4 SOCIAL MEDIA

Sources: *The Competitive Intelligence Unit,**YouTube Latin America, ***Asociación Mexicana de Internet

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.

 

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.

business plan concept

8 Top Marketing Tactics for 2015

There’s a certain amount of buzz around certain tactics that come along but it’s not always easy to tell whether they’re worth adopting—or even if they’re that popular to begin with. So we took a look at a number of recent surveys of marketers to see how they evaluate certain tactics and what their investment plans are for them in the future. Stripping it down to the numbers, here’s what we found.

1 digital
#1 Digital Dominance?

  • 78% of chief marketing officers believe that marketing will undergo radical changes over the next 5 years
  • 37% of CMOs feel that digital will account for more than 75% of marketing budgets and that mobile itself will account for more than 50% of marketing budgets
  • 42% of CMOs believe that analytics skills will become a core competency in marketing.

Source: CMO Insights 2014 by Accenture

2 traditional
#2 Traditional Media Are Still Effective

Accenture also asked CMOs about a different channels to gauge which percentage of them found them effective and compared these results to results from 2012. Clearly, these CMOs are seeing results from traditional media that make them basically as viable as digital media:

marketers chart eng

3 native
#3 Native Advertising
Marketers are clearly showing a strong interest in this tactic, reflected not only in their attitudes but also in their budgets:

Sources: *eMarketer, **14 Group, ***Advertiser Perceptions

3 content marketing
#4 Content Marketing
We’re seeing mixed results with this tactic, with a relatively small amount putting significant money towards it:

Part of what may be holding back marketers with content is a lack of certainty about its effectiveness:

Sources: *Contently, **Content Marketing Institute

5 social ifluencer
#5 Sponsored Social
This tactic consists of paying people with strong social media followerships to promote products. Results from a recent study indicate:

  • 52% of marketers have used sponsored social in the past year, compared to the 58% that used online display advertising
  • The marketers surveyed found sponsored social to be more effective than any of the other tactics they had used in the past year, including TV advertising, online display, radio, magazines and celebrity endorsements
  • 74% said that they are likely or very likely to use sponsored social in the future
  • Sponsored social seems to deliver a favorable ripple effect:
  • 88% of social influencers tell friends about a brand that sponsors them
  • 72% share additional posts about the sponsors outside of the contractual agreement
  • 77% say they are more likely to purchase from brands that sponsor them
  • Brands who use sponsored social typically pay influencers directly, but other popular forms of compensation include free products (89%), gift cards (74%) and free service (62%)

Source: IZEA

mobile video
#6 Mobile
While there’s definitely an interest in mobile, the challenges with tracking mobile response (due in part to no cookies on mobile devices) has kept mobile from taking up a significant amount of marketing budgets. For example:

Sources: *eMarketer, **Forrester

7 programmatic
#7 Programmatic

Based on both investment numbers and usage, programmatic may be the hottest marketing tactic for 2015:

Sources: *eMarketer, **Chango, ***AOL Platforms


#8 Video Marketing
Both good investment levels and strong intentions to increase budgets suggest that marketers will embrace this tactic even more in 2015:

Sources: *Demand Metric, **FLIMP, ***eMarketer, ****Animoto

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.

 

 

00 branded content main

4 Great Uses of Branded Content in Latin America

While we hear a lot about content marketing these days, people rarely cite clear examples of how it works. As a result, both marketers and media agencies may have trouble visualizing how to apply it to their campaigns and get some measurable results from it. A recent piece from Contently may help with this—it cites 4 interesting examples.

#1 Más por Más
Más por Más is a Mexican newspaper that created a paper towel dispenser that was connected to its newswire. Each sheet had a news story on it, plus a QR code to drive people to Más por Más Web site, and this increased unique visitors to the site by 37%.

#2 CNA Speaking Exchange
CNA is a language school in Brazil that connected students learning English to Americans in retirement homes through streaming video. At first, the videos were supposed to be a tool to evaluate each student’s progress, but later CNA edited together clips to create a compelling video that won a Lion at Cannes and a Clio.

#3 Beldent
This Argentine gum brand had 5 sets of twins sit at Buenos Aires’ MALBA art museum. One twin chewed gum, the other didn’t. Then Beldent asked museum visitors to answer questions about the twins. The visitors generally had a more favorable impression of the gum chewers. Overall, the video won 8 Lions at Cannes.

#4 Coca-Cola’s Friendly Twist
Coca-Cola Colombia and Leo Burnett Colombia placed vending machines on the campus of a Colombian college. The machines all had Coke, but the students couldn’t just twist off the caps. To open the sodas, they had to join their bottle top with that of another student and twist. This simple interaction helped break the ice between students and led to a memorable promotion piece.

ANALYSIS
The common ground for this content includes:

  • Interaction: bringing people together
  • Humanity: playing to people’s basic needs and reactions
  • Integration: adding the brand into the interaction in a natural way, no hard sell
  • Events: Each piece of content was an event in which the brand made something happen instead of trying to reach an audience with a message

So while effective content can be a blog post or web pieces on a portal that also includes web banners designed to inspire conversions, it can also be an entertaining video.

These successful examples also suggest that brands can take a multifaceted approach. They can start with an interesting below-the-line (BTL) approach—like a street promotion—then film it, turning it into a commercial, then circulate that commercial via social media. If there is a CSR (corporate social responsibility) angle to the video in which the brand helps out with a cause, the video could be emailed to customers to raise awareness for the cause. In addition, the right BTL promotion can be pitched to the media to cover as a human interest story and thus deliver additional promotion.

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.

 

99% social media

99% of Social Media Posts Lead to Little or No Engagement

SocialFlow, a social media optimization platform, analyzed 1.6 million organic posts from Twitter, Facebook and Google+ between April and July 2014. According to the results reported by VentureBeat, 99% of these posts generated little or no engagement.

Analysis: The results aren’t a gigantic shock. Earlier, we cited data that showed as many as 71% of tweets get no response. With so many people on social media posting updates that add to the stream of content posted by brands, overwhelming volume would tend to inhibit engagement. In addition, research suggests that people follow brands on social media for discounts and coupons, suggesting that other forms of content are of less interest.
Does this mean that companies should take down their Facebook pages? According to Social Flow, the answer is no. Even with just 1% engagement, the scale is so large that companies can obtain strong results.

To read more about these results, please click here.

You also can:

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.

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The Latest on Latin American Media and Marketing

Keeping up with marketplace changes can be a real challenge. To make things easier, we reviewed what’s been happening and below we have a selection you can skim quickly.

>78% of Brazilian Millennials Use Smartphones
This stat comes from a Telefónica survey of 6,700 millennials around the world. This is a big jump compared to last year’s survey, in which 63% of Brazilian millennials said they used smartphones.

To read more about this survey, please click here.
To read more about millennials in Latin America, please click here.

>Latin American Consumers Buying More Budget Brands
While the Latam middle class continues to aspire to own name brands in certain areas like smartphones or fashion, to save money it’s switching to cheaper brands when it comes to certain products, like shampoo.

To read more about this trend, please click here.
To find out which 10 products Latin Americans are buying the most in 2014, please click here.
To find out which 5 trends are dominating among Latin American consumers, please click here.

>Social Networks Reach 93% of Latin American Internet Users
This data point is from ComScore Futuro Digital Peru and was cited in an article by eMarketer. Interestingly, social media have a stronger reach in Latin America than they do in either the United States or the United Kingdom: in the former their penetration is 82.7% and in the latter it’s 80.4%.

To read more about social media penetration in Latam, please click here.
To read more about the top 10 social media trends in Latin America, please click here.
To read about the companies in Latin America that are strongest in social media, please click here.

>Ad Spend in Brazil Represents 50% of All Ad Spend in Latin America
According to eMarketer, total ad spend in Brazil in 2014 will reach US$20 billion while total ad spend in all of Latin America will reach US$39.6 billion in 2014. TV still commands the largest share, with 62% of the total ad spend.

To read more about ad spend in Brazil and Latin America, please click here.
To learn about projected ad spend trends for Latin America until 2018, please click here.

>90% of Latam Traffic Will Be from Online Videos
This is an estimate from Sergio Quiroga, president of Ericsson Latin America. Quiroga predicted that by 2018, online videos will be responsible for 90% of traffic handled by telephony operators.

To read more about this prediction, please click here.
To read more about mobile trends in Latin America, please click here.

>67% Penetration for OTT Mobile Messaging in Latin America
Citing data from Ericsson, eMarketer reported that over-the-top (OTT) mobile messaging has 67% penetration in Latin America, compared to just 40% in 2013. Mexico has the biggest OTT mobile messaging penetration at 75%, followed by Argentina (64%) and Brazil (60%)

To read more about this trend, please click here.
To read about the spike in smartphone and tablet use in Latin America, please click here.

>More than 65 million pay TV subscribers in Latin America
This is according to research from Dataxis, which lists Brazil as the #1 pay TV market in Latin America due to its 18.97 million subscribers, while Mexico is #2 with 16 million.

To find out more about Dataxis’ research, please click here.

>Argentina Leads Latin America in Online Ad Spend
An infographic published by IAB Chile indicates that Argentina leads Latam in online ad spend. This is because 14% of the total ad spend in Argentina in 2013 went to online advertising. Online’s share was lower in other countries, such as Mexico (9.3%) and Colombia (9%). The infographic from IAB Chile did not show numbers from Brazil. However, we do know that in 2013 Brazil had overall ad spend of R$ 32 billion as per Projeto Inter-Meios and that online ad investment in 2013 totaled R$ 5.7 billion as per IAB Brazil, suggesting that online accounted for nearly 18% of ad spend in Brazil in 2013.

To see the IAB Chile infographic, please click here.
To find out more about ad spend trends in Latin America, please click here.

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.