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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.

online trends latam

A Quick Roundup of the Latest Latam Online News

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

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

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

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

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

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

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

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

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

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

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

 

Woman on a beach jetty at Maldives

What Latin American Luxury Travelers Want

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

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

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

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

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

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

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

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

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.

Cartoon phone man king

Latinoamérica lidera al mundo en las ventas de smartphones

Hace poco GfK —una empresa global en la investigación de datos— publicó cifras sobre las ventas de smartphones en todo el mundo durante 2014. Latinoamérica lidera al mundo en cuanto al crecimiento de ventas de smartphones.

Las ventas de teléfonos inteligentes en Latinoamérica sumaron un total de más de 68 millones de unidades en 2013 e incrementaron en un 59% en 2014 para sumar un total de casi 110 millones de smartphones vendidos. Cuando se trata de valor de ventas, Latinoamérica también lidera al mundo: US$31 mil millones en 2014 frente a US$20,6 mil millones en 2013; se trata de un aumento del 52%.

Latam leads in smartphone sales

Para anunciantes y agencias estas cifras sin duda señalan las ventajas de invertir más en campañas móviles publicitarias y tal vez indiquen por qué eMarketer ha proyectado un fuerte aumento en la publicidad móvil en Latinoamérica. Ahora bien, determinar cómo invertir en el marketing móvil en América Latina presenta cierto reto: por ejemplo, ¿debe favorecerse la inversión en publicidad en aplicaciones en vez del internet móvil? Pues aquí ofrecemos algunos consejos al respecto.

Contacte a US Media Consulting si necesita ayuda con la planeación y compra de medios en Latinoamérica, ya sea con publicidad móvil, la compra programática o con cualquier tipo de medio.

 

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.

Brazil-e-commerce-market-presta-e-commerce

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.

 

 

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.

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.