Category Archives: Media

online trends latam

A Quick Roundup of the Latest Latam Online News

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

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

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

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

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

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

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

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

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

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

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


brazil myths 2

5 Myths about Internet Use in Brazil

After reviewing new research from IBOPE and We Are Social, we found some facts that suggest that conventional wisdom about Internet users in Brazil that could be wrong in certain areas.

Myth #1: Brazilian Internet Users Are Mostly the Rich Upper Classes
IBOPE’s study showed that 52% of Brazilian Internet users are from the Class C middle class. Only 4% of Internet users in Brazil are from Class A, while 34% are from Class B. Classes D and E make up 10% of the Internet users.

Myth #2: Men Dominate Internet Use in Brazil
In fact, IBOPE’s research shows that 53% of Internet users in Brazil are women and 47% are men.

Myth #3: Most Internet Users in Brazil Are Young
While many have indicated that living online is more of a Millennial trait, IBOPE’s study shows that 34% of Brazilian Internet users are between 35 and 54 years old. This age group has a larger percentage of users than Brazilians aged 16 to 24, who make up 28% of the country’s online users. And Brazilians aged 25 to 34 make up 32% of Internet users, still less than the 35 to 54 group. However, it is important to note that Brazilians over 55 make up only 7% of the country’s online users.

Myth #4: Mobile Is Taking Over Internet Use in Brazil
While there’s no doubt that mobile Internet is gaining quite a bit of ground in Brazil, We Are Social indicates that 77% of page views in Brazil are from laptops and desktops, compared to 20% of page views coming from mobile phones and 3% from tablets.

Myth #5: Facebook is Fading Away in Brazil
Despite reports that teens have abandoned Facebook in droves, it doesn’t seem to be happening in Brazil—and in markets like the U.S., no proof has been offered that Snapchat or Yik Yak command a larger share of the social media audience than Facebook. As far as Brazil is concerned, We Are Social reports that Facebook was the most popular  social platform, trailed closely by WhatsApp. And in the number 3 spot was Facebook Messenger. Other social networks—including Twitter, Google+, Instagram and Pinterest—had much lower usage levels than the top 3, anywhere from 11% to 19% lower.

Please 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.

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.

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.

Truth Vs Myth Bowling Facts Investigating Busting Untruth

5 Major Myths about Programmatic Buying in Latin America

Programmatic has made a major splash in the advertising industries of the world and Latin America is no exception to this. But with all the coverage, hype and usage, certain notions have come up that are affecting people’s perceptions about the tactic. And lots of times, these notions come from people with scant experience in the area. Having worked with MediaDesk DSP since we started developing the product in 2012, I’ve developed a pretty solid idea of what’s fact and fiction about programmatic—all based on the hundreds of campaigns we’ve run for clients. As such, below I tackle a few of the erroneous perceptions about programmatic and explain the realities.

#1 Programmatic Inventory Is All Remnant
This is actually not true. Lots of quality inventory on high-trafficked sites is available for advertisers who wish to reach Latin American Internet users. Remnant inventory is a part of what’s out there, but it is far from the only option.  For example, MediaDesk’s recent certification by Google opens up some great YouTube inventory for brands and agencies that understand how wildly popular online videos have become among Latin American Internet users. In the end, what matters is the ability to bid for inventory that is relevant to a campaign’s objectives.

#2 Programmatic and RTB Are the Same Thing
Programmatic simply refers to buying online advertising impressions via a platform as opposed to buying them manually from a selection of Web sites. However, RTB (real time bidding) refers to the buying and selling of online ad impressions through real-time auctions that occur in the time it takes a webpage to load. The price of impressions is determined in real time based on what buyers are willing to pay, hence the name “real-time bidding.” Regardless, the goal is to maximize efficiency and better allocate the ad spend for a given campaign.

#3 Programmatic Is Cheap
DSPs like MediaDesk can help lower costs with online media buying by removing humans from part of the process. However, the true boost in ROI from programmatic comes from using a more strategic and efficient way to buy media rather than saving in fees or intermediary costs. This efficiency leads to less waste in target clients and thus can impact ROI. MediaDesk can help with this process through its vast array of data on Latin American Internet users that allows you to buy by audience.
Now, even with this increased efficiency, clients may find that they need to make higher bids to ensure a better performance with campaigns. That’s the nature of RTB—users are bidding for impressions and certain customer targets have a higher demand—and a subsequent higher price for the impressions to reach them.

#4 Programmatic Is Just for Performance
Because of its superior targeting capabilities and the fact that you can by audiences leads some brands and agencies to think of programmatic strictly as a performance tactic: leads, conversions, etc., nothing more.
However, programmatic is also a strong branding tool. You can occupy high-visibility positions where the data shows your audience goes, thus increasing awareness. In addition, programmatic buying tools allow you to see how the audience interacts with the brand and the results when you vary different messages to gauge engagement.

#5 Publishers Lose Money with Programmatic Inventory
Publishers seem to think that the real-time bidding system can drive down the prices for their inventory. However, publishers can take a look at their ad positions, determine the audience that will be reached via those positions and set a price that corresponds to their value with the supply side platforms (SSP). As such, programmatic can actually help publishers drive revenue as opposed to losing it.

Contact us to get a free demo of MediaDesk—the leading programmatic platform in Latin America—and get a direct sense of the reality of programmatic buying and how you can leverage it for your brand or clients.

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.

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.

mobile ad buy

4 Keys for Mobile Media Buying in Latin America

Study after study indicates that there’s a major mobile migration happening in Latin America, with a big projected growth in device adoption, mobile Internet use and m-commerce. But mobile media buying in the region still offers some challenges. That’s why we put together this basic guide about the key factors to factor in when buying mobile media in Latam.

1 apps
#1: Mobile Web Versus Applications
Mobile ads run in two basic areas: mobile internet and apps. Mobile internet means the mobile versions of Web sites that people go to by using their mobile phones or tablets. And mobile ads are also sold on apps like Facebook, Deezer and Preguntados. It’s a matter of context, i.e. seeing an ad on the mobile version of a Web site like you would when you go to the site with a PC or laptop or seeing an ad while using an app, maybe an interstitial video or banner that comes up before you start a new game of Candy Crush, for example. You also have to factor in different metrics. With mobile Internet the metrics are similar to those of a regular online campaign but with apps you have to look at average daily users, how much time people spend using the app, their demographic group, etc.
Although apps have gained a lot of ground in Latin America, there are some disadvantages for media buyers and planners. First, not all of these apps run ads. For instance, WhatsApp doesn’t run ads, even though it’s used by 61% of mobile users in Latin America, according to GlobalWebIndex.
Second, apps don’t seem to have ultra-heavy penetration (90% or more) among Latam mobile users. We just saw that WhatsApp, though very popular, only reaches 61% of mobile users in the region. And if we look at a specific market like Argentina, we see that the Facebook app is the country’s most popular app—yet it’s only been downloaded by 76% of mobile users. So you have to factor in that penetration issue when buying in-app ads.
Third, if you buy in-app ads from an ad exchange just to get at the most inventory you can, since you’re not buying directly, the spend may not be as cost-efficient as you—or the client—would like.

2 feature vs smart
#2: Feature Phones Versus Smartphones

When you run a mobile campaign in Latin America, you have to factor in the type of device. Feature phones are still used by quite a bit of people. According to eMarketer’s estimates, out of the 400 million mobile users in Latin America, there are 194 million mobile users in Latin America that use their mobile phones to go online…and these are obviously who can see mobile ads.  Of these 194 million, 126 million or so have smartphones, while about 68 million still use feature phones to access the Internet. Given this, you may want to consider putting around 30% of the spend towards ads served on feature phones. Without this, you may not see optimal reach or fulfillment.

3 tablets
#3: Tablets Are Far From Universal

Emarketer estimates that there is a 32% penetration rate for smartphones in Latin America. No surprise here, especially given that smartphone sales have been strong for years. And even if tablets have also sold well in Latam, their sales don’t stack up to those of smartphones. For example, in Q2 2014 tablet sales in Mexico went up by 107% to reach 1.8 million. Great, but in the same period Mexicans bought 6.7 million smartphones. In Q3 2014, Brazilians bought more than 2 million tablets and it’s projected that they will buy more than 10 million in all of 2014. Yet just in Q3 2014 more than 15 million smartphones were sold in Brazil—and it’s projected that 2014 smartphone sales in Brazil will top 55 million. As such, this factor of 4 or 5 in sales volume difference between smartphones and tablets should be considered when you buy mobile ads in Latin America. Unlike smartphones, tablets allow for the same type of display ads that can be viewed on a PC or laptop because tablet screens allow the same web page to be displayed with the same ad formats. This allows for additional segmentation without major modifications of the elements used in a digital campaign.

4 responsive
#4: Not All Sites Are Ready for Mobile

Before running a mobile ad campaign for a brand, it’s important for media agencies to find out the following about the site where the mobile ads will take users:

  • Does the site have a responsive design that allows it to be viewed well with a mobile device?
  • Does the site have short, easy to use forms for users to fill out?
  • How fast is conversion time for the site?

Without a responsive design for a site, a user will click on the mobile ad and find a site that’s difficult to navigate with their device and probably leave quickly. Or if a brand wants subscribers to a service but has a mobile online form with 10,000 fields or that’s difficult to fill out with a smartphone, the user will probably give up and leave. The same applies if a site doesn’t have a quick and easy purchase process for its product once the mobile ad drives the users there. All of these factors can kill mobile ad performance and believe it or not, lots of brands do not factor this in when deciding to run a mobile ad campaign. This makes a big difference with apps and sites, since ultimately what counts is the user experience and this in turn will have a direct relationship with a campaign’s performance.

Ok, so clearly there are a number of factors to consider when running a mobile ad campaign that can quickly become obstacles.

Fortunately, there’s a way to cut through many of these complications. MediaDesk—the leading programmatic buying platform in Latin America—has put together a substantial mobile ad inventory, and there are several advantages with using MediaDesk’s platform to buy mobile ads:

  • A real time bidding (RTB) system that allows for a smarter, more transparent spend
  • The ability to buy ads and observe the real cost of impressions during campaigns and adjust pricing as need to deliver greater fulfillment as needed
  • Reaching mobile users in Latin America with any type of mobile device or operating system
  • Reaching consumers in all levels of their user experience of a brand and being able to compare and analyze in real time the way that consumers react to different messages in different devices (smartphones, feature phones, tablets or PCs)

Contact us to get a free demo of MediaDesk and get a direct sense of the power of mobile programmatic buying.


10 must knows Brazil media

10 Media Must-Knows for Planners Targeting Brazil

The Brazilian government just published the results of its latest survey on media consumption, called Pesquisa Brasileira de Mídia (PBM). Partnering with IBOPE, the government interviewed more than 18,000 Brazilians to discover their media consumption habits. As we kick off 2015, the study offers some good data to factor into plans for campaigns.

#1 TV Still Rules in Brazil
For years, TV has ruled ad spend in Brazil and IBOPE consistently shows TV has having nearly 100% penetration in the country. The PBM confirms the dominance of TV. Brazilians watch TV 4.5 hours a day during the week and 4 hours and 14 minutes a day on weekends. More than 7 in 10 (73%) of Brazilians watch TV every day.

#2 Radio Has Intense but Less Extensive Use than TV
Brazilians listen to radio an average of 3 hours and 42 minutes a day during the week and their consumption drops to around 2.5 hours a day on weekends. The peak time for listening to the radio in Brazil is from 6 a.m. to 9 a.m. However, radio doesn’t have the same level of use as TV in Brazil: 55% of Brazilians report listening to the radio anywhere from 1 to 7 days a week and only 30% listen to the radio every day.

#3 Online Radio Does Not Seem to Have Strong Reach
Despite the attention that online radio has received from the media, 80% of Brazilian radio listeners report using traditional radios and only 1% say they listen to the radio online. A larger percentage of Brazilians (8%) report using cell phones to listen to the radio.

#4 More Than Half of Brazilians are Not Online
The Pesquisa Brasileira de Mídia (PBM) reports that 51% of Brazilians said they do not use the Internet, suggesting 49% Internet penetration in Brazil. This is actually close to estimates by other firms using different methodology. For example, eMarketer estimates that Brazil’s 2014 Internet audience was 107 million—similar to the 105 million reported by IBOPE in 2013. Given that Brazil’s population is estimated to be 202 million, this means that Internet penetration is at 52% in Brazil, close to the figures from the PBM survey.

#5 Brazilian Internet Use Is Intense
Of the Brazilians who do use the Internet, 49% use the Internet 1 to 7 days a week, with 37% using the Internet every day—a higher percentage than Brazilians who listen to the radio every day (30%). Brazilian Internet users report using the Internet 4.5 hours a day during the week and 4 hours and 20 minutes a day on weekends, which makes the Internet the #2 medium after TV in terms of time spent.

#6 The Top Time for Brazilian Internet Use is 8 to 9 PM
Internet use reaches a brief peak in Brazil at 8 p.m. (the highest percentage of users are online at that time) and immediately drops after 9 p.m., reaching the low point between 12 a.m. and 6 a.m. At that point Internet use in Brazil climbs quickly to reach a peak at 10 a.m. and then dips a little after 11 a.m. but remains stable until it starts to rise at around 6 p.m. As such, you may want to experiment with these times when running ads or posting on social media in Brazil.

#7 A Majority of Brazilians Go Online with Mobile Devices
The respondents were asked what kind of device they use to access the internet and allowed to select more than one option. The largest percentage of Brazilians (71%) said they access the Internet via computer, but a large percentage (66%) also selected cell phones, while only 7% selected tablets. These results are in line with other surveys in which more and more Brazilian Internet users report going online with their cell phones.

#8 Facebook and WhatsApp Rule Among Brazilian Internet Users
When asked about their favorite social media or messaging apps, most Brazilians (83%) chose Facebook and WhatsApp was #2 with 58% reported usage among survey respondents. Other social sites seem to have much lower usage rates among Brazilian Internet users, like YouTube (17%), Instagram (12%), Google+ (8%), Twitter (5%). Skype (4%) and LinkedIn (1%).

#9 Less Usage for Print Media
The majority of respondents (76%) to the PSM indicated that they do not read newspapers while 19% reported reading them 1 to 7 days a week. Most Brazilian newspaper readers (79%) prefer to read them in print form, while only 10% prefer reading newspapers online and 4% in both print and online formats. When it comes to magazines, 85% of Brazilians surveyed said that they did not read magazines and only 13% reported reading them from 1 to 7 days a week.

#10 Brazilians Trust Newspaper Advertising the Most
Despite their lower usage of print as indicated in the survey results, 47% of Brazilians trust newspaper advertising most or all of the time, the highest level of trust among advertising in any form of media. Radio and TV advertising came in second (42% trust rate for each), followed by magazines (36% trust rate). Advertising on websites were only trusted by 23% of Brazilians and trust rates for social media ads was also low (22%).

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.




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.