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Brazil Internet 100 million

Brazil Reaches 100 Million Internet Users

According to recent figures released by IBOPE, there are now 102.3 million Internet users in Brazil. This is a significant increase from earlier in the year, in which IBOPE indicated that Brazil had 94 million Internet users.

This figure conflicts with that of comScore, which puts the number of Internet users in Brazil at around 89 million. The reason for this is that IBOPE counts young Internet users aged 2 to 15, while comScore tends to count users from age 15 on up.

While some may argue that IBOPE’s figure doesn’t accurately reflect the Internet market in Brazil (after all, how many 2 year-olds actually go online?), it’s interesting that the 102 million is not that far from the 89 million indicated by comScore. It’s also interesting that IBOPE is noting 9% growth in Brazil’s Internet users since the beginning of 2013. When you combine these figures with recent projections from Ericcson that there will be 350 million mobile subscriptions in Brazil by 2018, it’s clear that in just a few years, this 102 million figure won’t seem like all that much. The challenge, of course, will be how to reach this exponentially growing market of Brazilian Internet users, and for that it’s key to understand the tendencies among key segments, the preferences of the average Internet user and more efficient targeting via programmatic buying.

To find out how we can help you reach Brazilians via media campaigns of all types, please contact us.

Top advertisers in Brazil2

The Top Advertisers in Brazil in All Media

Recently IBOPE published a list of the top 30 advertisers in Brazil during 2012. The list is based on data from IBOPE’s Monitor Evolution product and tracks results with all major forms of media, including free TV, magazines, radio, newspapers, pay TV, cinema, Internet and OOH. Here’s the list of the top 15:


Major Online Advertisers

While we don’t have a list of top online advertisers in Brazil in terms of reales invested, comScore recently published a list of companies with the most display ad impressions. While this is obviously not the same as direct investment, this measure does suggest strongly which advertisers are more active in the online world in Brazil:

Given this massive level of investment and Brazil’s projected future status as the #5 advertising market in the world by 2014, it’s not surprising that O Globo recently reported that the revenue of digital agencies in Brazil more than doubled between 2010 and 2012. The source for this was the Brazilian Association of Digital Agencies (ABRADI), which indicates that digital agency revenues went from R$974 million (US$452 million) to R$2.2 billion (US$1 billion). As part of the growth, Brazil has seen an increase in the amount of digital agencies—from 2,518 in 2010 to 3,094 in 2012.

To find out how we can help you reach Brazilian consumers via media campaigns of all types, please contact us.

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Profiling the Average Internet User in Brazil

As we all know, proper targeting is everything when it comes to a campaign, especially in the online world. A new report from IAB Brasil called Indicadores Mercado Online may help you refine your targeting. It includes statistics from a variety of studies that seem to paint a picture of the average Brazilian internautas. Here’s a brief profile of the typical Internet user in Brazil, based on this research:

Most Are Young Males
Based on March 2013 results from research produced by IBOPE Media in partnership with Nielsen, nearly 53% of active Internet users in Brazil are men and 47% are women. The largest age group among Brazilian Internet users is 25 to 34 (25.6%), and #2 is 35 to 49, with 25.5%. So slightly more than half of your target audience in Brazil is 25 to 49. If we decide to include slightly younger age groups, we find that 11.6% of Brazilian internautas are between 18 and 24 and 10.5% are 12 to 17. This means that 73% —basically 3 out of 4 Brazilians who are active Internet users—are between 12 and 49 and significantly ore more likely to be male rather than female.

Most are Classes AB
According to  2012 research from IBOPE called Internet POP, Internet has 92% reach among class A Brazilians and 79% among Class B Brazilians, with significantly lesser reach among the growing class C (54%).

The Majority Are Located in the South or Southeast of Brazil
Research from comScore MediaMetrix indicates that more than half (54.9%) of Brazilian Internet users are in the southeastern part of the country and another 18% are in the south, meaning that your web banners are more likely to be seen by people in those parts of the country. In contrast, only 4.7% of Brazilian Internet users are in the north, only 13% are in the northeast and only 9% are in the center-west region.

Their Favorite Web Sites Include News and Entertainment
The research from IBOPE and Nielsen also looked at the top Web site categories for Brazilian Internet users. Search engines were the #1 category, followed by telecommunications/Internet sites (#2), entertainment sites (#3), computer/consumer electronics sites (#4) and news/information sites (#5). Other important categories include family/lifestyle (#9), travel (#10) and finance/investment (#12).
Interestingly, here at US Media Consulting we represent or work directly with major international brands in all of these areas. For example, in Brazil we represent The Wall Street Journal (news and finance), CNET (computers and tech), Clickhoteles (travel), last.fm and SongPop (entertainment). In addition, we frequently work with top technology sites like Mashable, Wired and NetShelter, top lifestyle sites like Glam Media and Enfemenino, top entertainment sites like Grooveshark and top news sites like Forbes, Bloomberg and The New York Times.

Most are Avid Watchers of Online Videos
The IAB Brasil report cites comScore Data that indicates that 8 out of 10 Brazilian Internet users watch online videos, which have the biggest reach among those between 25 and 34 (13 million) and those between 35 and 44 (9 million). This is why we launched Jumba Video Network, which brings together many top sites with online videos all over Brazil and Latin America.

Internet Drives Their Purchase Decisions
A TG.Net survey from June 2012 shows that 74% of Brazilians said they had gone on the Internet in the past 6 months to obtain information about products before buying them. In addition, 68% agree either totally or partially with the statement “A internet me ajuda mais que a televisão para decider que produto comprar” (“The Internet  helps me more than TV does in terms of deciding which product to buy.”) In addition, nearly 7 out of 10 Brazilian Internet users (69%) say that the Internet gives them product information that they can’t get anywhere else.

They Search for Social Sites the Most, then Multimedia
IAB Brasil’s report also cites March 2013 data from Hitwise that indicates that the type of Web sites that Brazilians search the most for are social media sites (30%). The #2 type of site category that Brazilian internautas search for are multimedia sites, which means music and video. Rounding out the top 5 are game sites, portal home pages and education sites.

They Are Fairly Likely to Be Online Shoppers
In 2012 more than 42 million Brazilians bought products online. Currently, comScore estimates that there are 89 million Internet users in Brazil. This means that 47% of Brazilian Internet users engage in e-commerce. For perspective on the explosive growth of e-commerce in Brazil, consider that in 2008 only 13 million Brazilians bought products via the Internet. According to e-bit the top 5 types of products that Brazilians bought online in 2012 were appliances (#1), clothes (#2), health and beauty products (#3), tech products (#4) and home décor products (#5). Overall, Brazilians spent R$ 22 billion (US$11 billion) on e-commerce purchases in 2012 and it’s projected that Brazilians will spend R $28 billion (US$14 billion) on e-commerce in 2013.

A Significant Portion Go Online Via Mobile Devices
The IAB Brasil report includes data from a survey of more than 20,000 Brazilian Internet users done between July 2011 and August 2012. Nearly 4 out of 10 Brazilian Internet users reported using a laptop, netbook or notebook to go online, compared to just 15% in 2009. In addition, 8% of Brazilians said they used smartphones to go online in 2012. That said, 2013 data from IBOPE Media—just published in Blue Bus—paints an even more potent picture of mobile Internet in Brazil. According to IBOPE, 52 million Brazilians can access the Internet via cell phones. Out of this total, 20 million Brazilians access the Internet using a smartphone. This IBOPE study also notes some interesting facts that marketers and advertisers should keep in mind: 64% of Brazilians who go online with smartphones read news, 47% to see what’s new in the music scene and 44% to watch videos.

To find out how we can help you reach Brazilians via any other type of media, please contact us.

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6 Key Statistics about Latin American Consumers

Recent studies from various sources have offered important insights about Latin American consumers. We isolated out 6 of the most relevant data points so you can factor them in when setting up future campaigns.

Big & Bigger
Projections from Frost & Sullivan indicate that by  2025 there will be 661 million consumers in Latin America with a combined GDP of US$15 trillion.

Credit Cards Charge
According to a recent piece in Latin Trade by John Price—director of the market research firm Americas Market Intelligence—by 2020, 25% of Latin American homes will have a credit card; for comparison’s sake, in 1990 only 3% of homes in the region had credit cards.

Feeling Good
According to a global report from Nielsen that looks at consumer confidence around the world, 7 Latin American countries have shoppers who are feeling pretty good about the future. Nielsen’s scale sets 100 as the top score for consumer optimism and confidence, and it looks like Brazilians (with a score of 111) have the sunniest shopping outlook. Other countries with highly optimistic shoppers include Peru (with a score of 98), Colombia (95), Chile (95), Mexico (86), Venezuela (84) and Argentina (75).

They Like Shopping with Tech Help
In a recent Motorola Solutions study, 70% of Latin American consumers indicated that they have a better shopping experience in stores in which retailers offer mobile computers and information kiosks.

The Pause that Refreshes
According to Euromonitor, several Latin American markets are among the top consumers of carbonated beverages. Argentina leads the world in soda consumption, with 131 liters per inhabitant in 2012, followed by Chile (121 liters per person) and Mexico (119 per person).  The other Latam country that made the world’s top 10 list of soda consumers was Uruguay, with 87 liters per persona.

Mobile Money Moving
By 2015 some 140 million Latin Americans will use mobile terminals to access their bank accounts, according to a report from Deloitte that was shared by the Federación Latinoamericana de la Banca (Latin American Banking Federation or Felaban). This is a 65% increase compared the actual amount of people in Latin American who carry out banking activities with their mobile phones. Beyond banking transactions, projections indicate that many more Latin Americans will use their cell phones to buy products: according to Tata Consultancy Services, mobile commerce in Latin America will increase by 35% every year through 2015.

To find out how we can help you reach Latin American consumers via any other type of media, please contact us.

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hipermercados

7 Key Statistics about Brazilian Consumers

Recent studies from various sources have offered important insights about Brazilian consumers. We selected 7 of the most relevant data points so you can factor them in when setting up future campaigns.

More and More
According to market research firm IPC Marketing, Brazilian consumption will total more than R$ 3 trillion (US$1.5 trillion), an increase of nearly 10% compared to 2012, when total consumption of Brazilians was R$2.7 trillion. Class B has the most purchasing power and will spend R$1.3 trillion (US$650 billion) in 2013. Class B accounts for 48% of national consumption in Brazil, slightly less than in 2012, in which it was responsible for 50% of consumption. Brazil’s Class C1 will spend R$518 billion (US$259 billion) in 2013, very close to class A, which will spend R$ 539 billion (US$269 billion).
Home maintenance is what Brazilians will spend most of their money on in 2013: it accounts for more than 25% of total consumption. Other top spending categories in Brazil in 2013 include health/medicine/personal hygiene (almost 9%), transportation (7.5%), building materials (5%), clothing/footwear (4.7%), recreation/travel (3.5%), education (2.5%), electronics (2.2%) and furniture/household goods (1.8%).

Charging It
According to Associação Brasileira das Empresas de Cartões de Crédito e Serviços (Brazilian Association of Credit Card Companies and Services), in 2012 the use of credit cards accounted for 26% of Brazilian household consumption, up from 16% in 2007. Overall, in 2012 R$ 479 billion (US$239 billion) were spent in credit card transactions in Brazil, 16% higher than in 2011. In addition, transactions with credit or debit cards represented 58% of sector revenues in Brazil in 2012.

Electronics Are Essential
A recent study from Accenture looked at the average amount spent by consumers on electronics. According to the results, Brazil is #2 in the world in electronics spending, with an average of US$1,080. Only consumers in China spent more on electronics: an average of US$1,251 per person. The study also showed that Brazilian consumers plan to spend an average of US$1,323 on electronics in 2013. The electronic products that Brazilians say they plan to buy in 2013 include tablets (scoring 148% in purchase potential), Blu-Ray players (136%), high-def TVs (113%) and smartphones (111%).

Most Brazilians Buy on Impulse
A new survey from Serviço de Proteção ao Crédito Brasil indicates that 85% of Brazilian consumers say that they buy on impulse. More than 4 in 10 Brazilians from classes AB report buying on impulse while low self esteem was the main reason for impulse buying among Brazilian from classes C and D.

They’re Going Places
In the first quarter of 2013, Brazilians spent more than US$6 billion on foreign travel, up from the US$5.3 billion they spent on travel in the first quarter of 2012. Overall in 2012, Brazilians spent more than US$22 billion on foreign travel, a bit more than the US$21 billion they spent in 2011.

Social Shopping Becomes Significant
A survey of Internet users in 12 countries done by Rakuten—a Japanese site that’s one of the world’s largest e-commerce companies—shows that 63% of Brazilians recommend products on social media sites. Only consumers from Indonesia (67%) had a higher propensity for using social media to recommend products. The study also looked at the average amount spent per person through e-commerce transactions. On average, in 2012 Brazilians spent US$657 per person. The United Kingdom’s shoppers spent the most per person via e-commerce in 2012, with an average of US$1,700. That said, Brazil’s e-commerce average was close to Japan’s (US$694 per person), higher than Spain’s average (US$649 per person) and not that far behind from the United States’average (US$909 per person).

The Power of Positive Thinking

Given all these numbers, it’s no surprise that Brazilian consumers seem to be very optimistic. According to a global report from Nielsen that looks at consumer confidence around the world, Brazil is one of seven Latin American countries whose shoppers feel pretty good about the future. Nielsen’s scale sets 100 as the top score for consumer optimism and confidence, and it looks like Brazilians (with a score of 111) have the sunniest shopping outlook. Other countries with highly optimistic shoppers include Peru (with a score of 98), Colombia (95), Chile (95), Mexico (86), Venezuela (84) and Argentina (75).

To find out how we can help you reach Latin American consumers via any other type of media, please contact us.

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6 Reasons Why Internet Advertising is the Best Way to Reach Brazilians

A recent survey from IAB Brasil and comScore—called Brasil Conectado 2—looked at the attitudes and preferences of Brazilians when it comes to the Internet.  There are six key points that professionals in media, marketing and advertise should factor in when planning their next campaign in Brazil:

#1 >>>Brazilian Shoppers Begin Shopping by Going Online
74% of the Brazilians surveyed say they search for products online that they intend to purchase offline

#2>>> Internet Ads Drive Traffic
Nearly 70% of Brazilians say that online ads motivate them to visit the site of the advertised brand

#3>>>Internet Ads Close the Deal in Brazil
66% of Brazilians say that Internet ads motivate them to visit the store that’s being advertised and 63% of Brazilians say that Internet ads make them want to buy the products advertised

#4>>>Brazilians Are Now Confident Online Shoppers
69% of Brazilians say that Internet is easiest medium for shopping and 63% say they have no problem with using a credit card to make purchases online

#5>>>Online Video Is a Smart Option for Advertising Online in Brazil
Nearly 6 out of 10 Brazilians (58%) say they prefer to see advertising incorporated into online video rather than paying to view the content

#6>>>M-Commerce is Becoming More Popular among Brazilians
More than one-third of Brazilians surveyed said that they had bought products using their tablets and 23% of Brazilians reported that they bought products with their smartphones

To find out how we can help you Brazilians via Internet or any other type of media, please contact us.

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The Most Valuable Brands in Latam

A recent report from marketing communications firm WPP—entitled BrandZ Top 50 Most Valuable Latin American Brands 2012—offers a ranking of the region’s brands.

Overall, these top 50 brands have a total value of US$136 billion. Not surprisingly, Brazil accounts for the largest amount of this total (US$45.9 billion), with Mexico in second place (accounting for US$36.8 billion), while Chile accounts for US$27 billion, Colombia accounts for US$22 billion and Argentina accounts for US$3.76 billion.

To create the ranking, WPP worked with Millward Brown Optimor and generated the valuations based on a brand’s economic impact, i.e. its ability to generate long-term earnings for shareholders and sustained demand among consumers. Several key variables were used as part of the process, including corporate earnings, future earnings prospects and customer viewpoints about brands based on extensive quantitative research.

Here’s the list of the top 50 brands in Latin America as per the report:

 

The top 50 brands in Latin America in this ranking cut across a range of categories, but retail (with 14 brands) is the dominant category, with finance in second place.

The report also listed top brands for specific markets. Here’s a quick look, country by country:

Top 5 Brands in Argentina

  1. YPF (fuel provider)
  2. Personal (mobile telecommunications)
  3. Telecom (telecommunications)
  4. Quilmes (beer)
  5. Banco Galicia (bank)

Top 5 Brands in Brazil

  1. Petrobras (fuel)
  2. Bradesco (bank)
  3. Itaú (bank)
  4. Skol (beer)
  5. Banco do Brasil (bank)

Top 5 Brands in Chile

  1. Falabella (department store)
  2. LAN (airline)
  3. Sodimac (home improvement chain)
  4. Banco de Chile (bank)
  5. COPEC (fuel)

Top 5 Brands in Colombia

  1. Comcel (mobile services)
  2. Ecopetrol  (fuel)
  3. Bancolombia (bank)
  4. Banco de Bogotá (bank)
  5. Banco Popular (bank)

Top 5 brands in México

  1. Telcel (wireless service)
  2. Corona (beer)
  3. Telmex (telephone service)
  4. Televisa (media)
  5. Bodega Aurrera  (retail)

 

To find out how we can help you reach Latin American consumers via any type of media, please contact us.

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Making money with your computer

Online Ad Spend Grows Strongly in Latam

Despite the strength of traditional media in Latin America, Internet advertising’s share of ad spend continues to grow impressively in the region. While we are still waiting for final 2012 figures to be released for markets like Chile and Mexico, we were able to obtain totals for other key markets in Latin America.

Argentina
According to the Camara Argentina de Agencias de Medios (Argentina Chamber of Media Agencies or CAAM), online ad spend in Argentina grew by 28% in 2012 to reach 1.4 billion pesos (US$271 million). That said, it’s important to note that the physical volume of the Argentine ad market went down by 4.6% in 2012, so inflation could be responsible for at least some of this growth.

Brazil
According to IAB Brasil, online ad spend in Brazil grew by 32% in 2012 to reach R$  4.5 billion (US$2.25 billion). This figure brings together search, social media, display and classifieds. IAB Brasil projects that online ad spend in Brazil will grow by another 31.8% in 2013 to reach more than R$ 6 billion (US$3 billion).

Colombia
IAB Colombia recently reported that online ad spend in Colombia grew by 15% in 2012 to reach 145 billion pesos (US$78.5 million). When revenues from classified ads and directories are included, the total reach 162 billion pesos. IAB Colombia also indicates that online now takes up 7% of overall ad spend in Colombia, up from 5.6% in 2011.

Perú
Online ad spend in Peru in 2012 grew by 50% to reach 101 million nuevos soles (US$36 million), up from US$24 million in 2011. While display is quite dominant in other Latam markets, taking up 60% or more of Internet ad spend, in Peru display accounted for only 45% of the online ad spend, with classified/directories taking up 32% and search was responsible for 6%.

Overall, in 2013 Latin America should experience 10% growth in ad spend across all media to reach a total of US$38 billion, according to projections from eMarketer. In addition, eMarketer forecasts that ad spend in Latin America should reach US$51 billion by 2016, with mobile advertising growing by 87% between now and then.

To find out how we can help you reach Latin American consumers via online or any other type of media, please contact us.

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Economy

Ad Spend Stays Strong in Brazil in 2012

According to Projeto Inter-Meios, ad spend in Brazil went up by nearly 6% in 2012 to reach around R$ 38 billion (US$19 billion). When you factor in the amount spent on generating creative, overall investment in Brazil goes to R$ 45 billion (US$22.6 billion). According to ad industry publication Meio e Mensagem, this places Brazil among the world’s top 5 advertising markets.

While this was not as much growth as in 2011 (8.5%), it still is significant and speaks to the health of Brazil’s economy and ad industry. Forecasts for 2013 suggest that ad spend could grow by nearly 10% in Brazil this year.

Below we break down the ad spend in Brazil for 2012, showing each’s medium’s share. One thing to note is that Projeto Inter-Meios only counts display advertising for Internet, not search. As such, the share of ad spend from Internet in Brazil is probably significantly higher than presented below. In fact, IAB Brasil estimated that online ad spend in Brazil would reach 13.7% of total ad spend in 2012. When IAB Brasil releases its next update later this month, we’ll know for sure if this indeed is the case.

Brazil’s Ad Spend by Medium, 2012

To find out how we can help you reach affluent people or any other type of market segment in Latin America via any type of media, please contact us.

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Facebook Network

How Top Companies are Using Social Media in Latam

It’s clear that social media are hugely popular in Latin America and reach more than 90% of the region’s 232 million Internet users. Given this, how are companies in Latin America using social media to further their marketing efforts? A new study from Burson-Marstellar analyzed these efforts by looking at the social media strategies of the top 25 companies in Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.

We’ve grouped together some of the key takeaways of the study for marketing, media and advertising professionals.

65% ARE USING AT LEAST ONE SOCIAL MEDIA PLATFORM
This is an improvement from 2010, when only 49% of the Latin American companies were using social media. However, Latam firms are clearly behind the rest of the world in this regard: globally, 87% of companies are using at least one social media platform.

BRAZILIAN AND VENEZUELAN COMPANIES LEAD THE REGION IN SOCIAL MEDIA USE
In 2012, 88% of the Brazilian companies and 84% of the Venezuelan companies analyzed by the Burson-Marstellar study were using social media platforms. Other countries in which a large percentage of top firms report using social media include Colombia (76%), Mexico (76%), Chile (76%) and Argentina (64%). The lowest percentage was found in companies in Puerto Rico, where only 28% of top firms use social media. However, only 5% of companies in Puerto Rico were using social media in 2010, so the rate quintupled in just two years, obviously indicating growth in this area. 

FACEBOOK AND TWITTER ARE THE PLATFORMS OF CHOICE
In 2012, 50% of the firms studied were using Facebook and 53% were using Twitter. In third place was YouTube (31%), with Google+ in fourth place (20%). This data is interesting when you consider that comScore results indicate that Google+ is not among the top social media sites in Latin America’s largest markets. For example, in November 2012, the top social media sites in Brazil in descending order were Facebook, Orkut, LinkedIn, Twitter, Ask.fm, Tumblr, Scribd, Badoo, Deviantart and Vostu. With the exceptions of Orkut and Vostu, these are the top social sites in Argentina, Mexico and Colombia.
Of course, the issue could be about fit. LinkedIn is for professional contacts, Badoo doesn’t accept advertising and is focused on meeting people, Deviantart is about posting artwork, Scribd is a document sharing site and Ask.fm is a Q&A site.
That said, Latin American firms may want to consider Pinterest, a site that many American firms are including in their social media mix. Pinterest is gaining ground in all of these markets and has cracked the list of the top 20 social media sites in Latin America, though not the top 10—yet.

COMPANIES IN BRAZIL AND MEXICO HAVE THE MOST TWITTER FOLLOWERS
Compared to 2010, companies in Brazil and Mexico have skyrocketed in followers. For example, Brazilian firms had an average of 4,206 social media followers per account in 2010 and in 2012 this figure reached 66,958; in Mexico, the average went from 2,240 social media followers to 43,107. That said, companies in other countries have also seen huge increases in the amount of followers per account:

  • Argentina: from 777 in 2010 to 19,023 in 2012
  • Chile: from 1,624 in 2010 to 13,000 in 2012
  • Colombia: from 525 in 2010 to 8,496 in 2012
  • Peru: from 85 in 2010 to 4,814 in 2012

In all of Latin America, the average amount of social media followers of these top 25 firms went from 2,626 to 33,077.

THE PERCENTAGE OF COMPANIES WITH FACEBOOK PAGES SPIKES IN ARGENTINA, BRAZIL, PERU AND PUERTO RICO

In these countries, the percentage either doubled or nearly doubled: up by 48% in Argentina, by 52% in Brazil, by 60% in Chile and by 52% in Peru. However, the firms in Colombia showed the most impressive growth. The amount of firms in Colombia with Facebook pages went up by 76% between 2010 and 2012.

BRAZILIANS TALK THE MOST ABOUT COMPANY FACEBOOK PAGES
An average of nearly 45,000 Brazilians are talking about company Facebook pages, much more than in any other country.  No other country in Latin America even comes close to this massive level of engagement. The country that occupies second place in the amount of people discussing company Facebook pages is Peru, with just 7,781 doing so.

30% OF LATIN AMERICA’S TOP FIRMS ARE SHARING CONTENT ON YOUTUBE
Mexico has the highest percentage of firms that share content on YouTube at 52%, followed by firms in Chile and Brazil (each with 48%) and Argentina (32%). These figures are somewhat surprising given that Latin Americans are watching online videos more than ever.

THE MAJORITY OF LARGE COMPANIES IN LATIN AMERICA ARE NOT USING GOOGLE+
Currently 20% have a Google Plus page, compared to the global average of 48%.

To explore how we can help you reach Latin Americans via social media or any other type of media, please contact us.

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