Tag Archives: branding

Brazil luxury final

3 Reasons Why Brazil Has Become a Major Luxury Market

In 2011, Brazil’s luxury market grew by 4.7% in terms of designer clothing and footwear while sales of luxury accessories went up by 3.5% to reach US$294 million, according to research firm Euromonitor.

Overall, Brazil’s luxury market doubled its growth rates between 2008 and 2012. As such, the country’s luxury goods market is worth more than US$7 billion. Mexico is in second place—Euromonitor reports that its luxury market is worth US$1.5 billion.

The following factors are driving Brazil’s growth as a luxury market:

#1 Economic growth
Despite relatively weak economic growth of 1.5% in 2012, Brazil’s economy should grow by 4% per year from 2013 through 2016. In addition, a recent study from IPC Marketing Editora projects that Brazilian consumption will surpass 2.7 trillion reales in 2012, with household spending growing by 3.6%, more than double the growth of the country’s GDP this year.

#2 Many HNWIs
According to research firm Global Information, Brazil has the largest amount of high net worth individuals (HNWIs) in Latin America. In fact, the country ranks 11th in the world in terms of the amount of high net worth individuals. In addition, a recent report by McKinsey&Company estimates that 3 million Brazilians can afford luxury goods and that the country has 24 billionaires and 155,000 millionaires—and a third of the millionaires are under 35.

#3 Projected future growth
MCF Consultoria & Conhecimento, a retail and luxury consultancy firm based in Sao Paulo, estimates that Brazil’s luxury market will grow by 25% in 2012. In addition, Euromonitor forecasts that BRIC countries (Brazil, Russia, India, China) will account for 16% of global luxury sales by 2016, up from 11% in 2012.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us.

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internet1

Why Online Ads Perform Well in Latin America

A recent worldwide survey conducted by Nielsen suggests that Internet advertising may be a particularly effective way to reach Latin American consumers. The Global Trust in Advertising Survey, published in April 2012, showed that Latin Americans respond more positively to online ads than people in other regions. Based on a survey of 28,000 Internet respondents in 56 countries, the Nielsen study asked Latin Americans about whether different types of online ads—on social media, those found in search engine results, banners and video ads—offered them relevant content. Compared to the global average, a significantly higher percentage of Latin Americans said that Internet advertising of all types offered them relevant content.
For example:

• 44% of Latin Americans say that the content in online video ads is relevant, compared to the global average response of 36%
• 53% of Latin Americans say the content in ads found next to search engine results is relevant, compared to the global average response of 42%
• 45% of Latin Americans say the content in ads on social networks is relevant, compared to the global average response of 36%
• 41% of Latin Americans say that the content in online banner ads is relevant, compared to the global average response of 33%

Nielsen’s study isn’t an isolated example. Studies from IAB Brazil and IAB Mexico, among other organizations, show the same kind of positive response to Internet advertising among Latin Americans.

To find out how you can connect with the growing Internet audience in Latin America, please contact us.

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Latam shoppers 1

What Latin American Shoppers Want

We recently covered what Latin Americans buy the most. However, it’s also helpful to understand the factors that influence the purchase decisions of Latin American shoppers and what they look for from both products and companies. Analyzing the following trends may help marketing, advertising and media professionals create even stronger campaigns.

Preference #1: Socially Responsible Companies
The facts: In a recent Nielsen survey, 77% of Latin Americans said that they prefer to buy products from socially responsible companies—and 49% would pay more for those products. The socially responsible qualities that the respondents seem to value the most in companies are environmentally sustainable practices, supporting small businesses, eradicating poverty and creating well-paying jobs. Nielsen’s survey also showed that 76% of the respondents look at the opinions and information that other people post online to find out about socially responsible companies.
The opportunity for advertisers: Creating online video diaries about a firm’s socially responsible programs in Latin America and promoting them through a crossmedia campaign that integrates social media, TV, print and online video sites. 

Preference #2: Being True to Themselves
The facts: The Global Monitor Study, released in 2010, focused on consumer attitudes in 20 countries, including several from Latin America. When asked what will help them succeed in today’s world, 95% of Latin Americans chose “being true to who you are” over “being the person others think you are.” The same survey also showed strong agreement with the statement “I am constant striving to improve myself and my abilities in as many ways as possible.”
The opportunity for advertisers: Focusing ad campaigns on the idea of being true to yourself and working in elements of self-improvement, perhaps by using social media. For example, a campaign that references being genuine and relates that to the brand could also work in a component—promoted via social media—that includes a contest with a prize of free courses in IT or another discipline that could help Latin Americans advance in their careers. This could speak to both preferences expressed by Latin American consumers while taking advantage of the deep reach of social media in the region. While it didn’t take strict advantage of this preference, a recent Coca-Cola campaign offers ideas for emphasizing individual aspirations among consumers in a compelling way:

http://youtu.be/b1rM8hSQgPQ

Preference #3: Cultural Traditions
The facts: The same Global Monitor study also indicated that a strong majority of Latin Americans are concerned about aspects of their cultures and tradition being lost as the world converges into a single global culture.
The opportunity for advertisers: With specific Latin American markets, advertisers can work in the concept of traditions into their messaging and extend this into social media via contests or sponsored events.
In 2011 Televisa, one of Mexico’s main television networks, launched a campaign called Tradiciones Televisa in honor of the country’s Bicentennial. The campaign focused on traditional festivities and attractions throughout the country, subtly associating the network with Mexico’s time-honored traditions.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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Colombia Internet

5 Ways to Reach Colombian Internet Users

In 2011 Colombia’s Internet audience grew by 15%, very close to Latin America’s overall growth of 16% in terms of Internet users. While comScore reports that Colombia has 14.3 million Internet users, Internet WorldStats lists 25 million. The discrepancy may be due to the varied ways that Latin Americans access the Internet—in certain calculations, users who go online from Internet cafes aren’t counted.

Regardless, even using comScore’s 14.3 million figure, Colombia is #3 in Latin America in terms of the amount of Internet users. It has more than Argentina (13.4 million), Chile (7.4 million) and Venezuela (4.8 million), trailing only Brazil and Mexico. Combining this large audience with a 2010 comScore study that showed that 94% of Colombians say the Internet is important in providing information for purchase decisions, it’s not surprise that online ad spend went up 33% in Colombia in 2011.
After analyzing Futuro Digital, ComScore’s latest study on Colombian Internet users, we spotted 5 effective ways for media, marketing and advertising professionals to reach this audience.

#1 Social media. They have a deep penetration in Colombia, as they do in all of Latin America. In Colombia, social media have a penetration rate of 96% among Internet users. And Colombia is among the top 10 countries on the planet in terms time spent on social networks: its users average 7.6 hours per month on them.
While Facebook is #1 in reach (90%) and time spent (492 minutes a month, other growing social media sites in Colombia include Badoo, Twitter and Slideshare. In fact, Colombia is among the top 10 countries in terms of Twitter reach, ahead of the United States, Spain and Mexico.

#2 Entertainment sites. Around 96% of Colombian Internet users visited an entertainment site in January 2012. Within entertainment, multimedia is the most popular subcategory, with 83% reach among Colombia’s online audience. In March 2012, comScore results show that the top multimedia sites for Colombia are YouTube, iTunes Software, Daily Motion, Real.com and Cuevana.tv.

#3 Newspapers. In Colombia, newspapers attract a significant audience, nearly 50% of Internet users, which is more than the average for Latin America (43%) and the world (40.8%). In March 2012, El Tiempo was the #7 Web site in Colombia, drawing 5.2 million unique users, while El Espectador drew 1.9 million. Typically, users spend more time on newspaper sites, so it’s easier for advertising to stand out and draw attention—as opposed to some of the larger portals that people use primarily for webmail and instant messaging.

#4 Search. Last year comScore indicated that Colombian Internet users do more searches per user (233) than internautas from any other country. While Futuro Digital didn’t specify if Colombians are still #1, their average of 226 per user suggests strongly that search is a good way to reach this audience.

#5 Mobile. In 2011 Colombia’s Information Technology and Communications Ministry reported that mobile phone penetration in Colombia had reached 100%. That same year El Tiempo.com reported that out of every two mobile phones that are replaced in Colombia, one of them is a smartphone. More recently, Futuro Digital cites data from late 2011 that indicates that tablets are the source of 41% of non-computer web traffic in Colombia. Overall, Colombia ranks #3 in Latin America in terms of percentage of web traffic from non-computer devices. When put together, these facts suggest that mobile ads show strong potential to reach a key segment of Colombia’s Internet audience.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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Brazil’s Online Ad Spend to Grow by 40% in 2012

Advertisers have clearly realized the power of Brazil’s huge online audience: IAB Brasil’s Indicadores de Mercado report projects a growth of more than 39% in Internet advertising billing in 2012. IAB Brazil notes that overall billing for online advertising in Brazil in 2011 totaled 3.33 billion reales (US$1.6 billion) and predicts that it will grow to 4.6 billion reales (US$2.3 billion) in 2012.

IAB Brazil’s calculations take into account both display and search advertising. Other authorities tend to focus solely on display advertising, so sometimes you’ll see a different set of numbers for Brazil’s online ad spend.
It makes sense for IAB Brazil to include search in its calculations, especially since the organization reports that search makes up more than half of online advertising billing: in 2011, out of the 3.33 billion reales spent on Internet advertising in
Brazil, 1.88 billion went to search, or 54%.

In addition, the Indicadores de Mercado report projects that in 2012, Internet advertising will make up 13.7% of Brazil’s overall ad spend, up from the final figure of 11% listed for 2011. While online ad spend in Brazil is not quite at the level it is for other markets—such as the U.S., where online makes up 19% of the overall ad spend—this figure still marks some impressive gains. With comScore recently reporting that Brazil is #7 in the world in Internet users with 85 million, it makes sense that advertisers take advantage of the country’s rapidly growing online population.

And so far this year, this is exactly what they’re doing. Over 190 billion display ads were delivered to Brazil’s Internet population during the first quarter of 2012. A recent comScore press release reported these figures, which are from the company’s Ad Metrix service. In March 2012, Brazil’s top online display advertisers were Dafiti.com.br and Netshoes.com.br, with each delivering more than 2 billion impressions.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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The Top 3 Sites for Latin America’s Internet Users

Broadcasted in March 2012, ComScore’s recent webinar—Futuro Digital Latinoamerica—offered a number of fresh insights into Latin America’s Internet audience. One relevant point for online marketers and advertisers is where Latin American Internet traffic flows the most.

ComScore’s results indicate that three types of sites draw the most Latin American Internet users.

#1 Google Sites
According to comScore, Google sites (which should include YouTube) drew the most Latin American Internet users in December 2011. Despite the heavy draw of Google, Latam’s internautas actually spent spent the most time on Facebook: 46,165 minutes. This is in line with the rapid rise of Facebook in Latin America and the region’s heavy engagement with social media.

#2 News Sites
News sites have 86.3% reach in Latam, nearly 10% more than the global average of 76.1%. Between December 2010 and December 2011, the news category grew by 32% in users. Among the Latin American countries where news sites have the biggest reach:

  • Brazil (97.6%)
  • Peru (95.9%)
  • Argentina (94.8%)
  • Chile (94.3%
  • Mexico (84.8%)

Argentina is #1 in online news consumption in Latin America, with an average of 99 minutes per visitor, well above the world average of 64 minutes. While Grupo Clarín and Grupo La Nacion are #1 and #2 in the news category in Argentina, Grupo Infobae seems to have the highest engagement—each visitor spent 75 minutes on the site in December 2011.

#3 Entertainment Sites
In Latin America, entertainment Web sites have a long reach of 96.7%, which is significantly higher than the global reach of entertainment sites: 88.6%. The countries where entertainment sites have the most reach include Argentina (97.6%), Brazil (97.5%) and Peru (96.9%). However, other countries aren’t very far behind: entertainment sites have 96.3% reach in both Chile and Mexico, and 94.5% in Colombia. Entertainment sites may be a particularly good way to reach Internet users in Peru, Colombia and Chile: they each spend an average of 4+ hours a month on these sites.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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US Media Consulting Grows Staff by 20%

It’s been a busy 2012 for us on many fronts, but hiring has perhaps been the busiest. New developments in our business and rapid expansion have led to us growing our staff by more than 20% in the first quarter of 2012.

We needed these new team members to handle a variety of duties for us. Some will focus on our general business development as one of the leading independent media services providers for companies looking to reach Brazil, Latin America and U.S. Hispanics. Others will help us develop new products and services for the digital media marketplace. Still others will help grow us in well-developed sectors of our business, such as online and offline ad sales. Here’s a look at some of these new team members.

Salvador Calogero. Based in our Buenos Aires office, Salvador will work with Pablo Veliz, our VP of technology, to develop new products and platforms for Latin America’s digital marketplace.

Lesley Canal. Lesley’s strong sales track record in both offline (Miami Herald) and online media (Centro and Living Social) make her a strong addition to our digital sales team.

Raúl Galofre. Raúl will leverage more than a decade’s worth of digital media and business development experience to create new ventures and partnerships for us.

Verónica Lizama. Verónica, formerly Director of Advertising for América Economía, is the new Ad Sales Director for our Offline Media Division and will oversee sales operations in print, broadcast and out-of-home media.

David Petitone. David’s background in sales for the Miami Herald and other media firms will serve him well as Media Relations Specialist. He’ll focus on nurturing existing media relationships and forging new ones.

Juan Carlos Ruiz. His strong background in digital sales and strategy will serve him well in his new position as Digital Ad Sales Manager for the Andean Region, which includes Colombia, Peru, Ecuador and Venezuela.

We’re proud to welcome all of these new team members and are confident that their contributions will help us grow even more.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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shopping online

Almost 60% of Latin American Internet Users Are Buying Online

E-commerce is clearly growing stronger in Latin America. A recent survey of Internet users in Latin America shows that 59% report buying products online in the past year.

Research firm Tendencias Digitales did the survey, which included 18,000 Latin American Internet users in 13 countries. It’s important to note that the survey did not include Brazil, which research indicates is the top Latin American country for e-commerce. However, the survey did research the habits of Internet users in large markets such as Argentina, Mexico, Chile and Colombia.

The chart below breaks down the percentage of Internet users in each country that reported buying a product online in the past year. Argentina is clearly the leader at 71%, tied by Chile.

While this is just one survey, the results show some interesting parallels with other research into e-commerce in Latin America. For instance, Argentina’s e-commerce market spiked by 50% in 2011, while the head of Colombia’s Chamber of E-Commerce projects 100% growth for 2012. In Mexico, research from the Asociación Mexicana de Internet (AMIPCI) indicated that 8 out of 10 Mexican Internet users had made an online purchase. AMIPCI also projects a 28% increase in e-commerce in Mexico in 2012.

Beyond these 3 countries, other Latam markets are showing strong e-commerce growth. This may be why eMarketer estimates $15.2 million in e-commerce sales for all of Latin America (except Brazil) in 2012 and then a powerful jump to $28 billion in sales by 2015.

What are these Latam shoppers buying online? Well, the Tendencias Digitales survey suggests that these are the hot products:

  • Tickets for entertainment or travel
  • Computer accessories
  • Clothing/footwear/accessories
  • Books

Other research we’ve covered has shown a slightly different list for Latin America and specific countries, such as Argentina and Mexico.

To learn more about how we can help you reach Latin American shoppers all over the region or in specific countries, contact us at info@usmediaconsulting.com.

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Pay TV Reaches 50% of Latin Americans

Impressive surges in individual markets have led to a pay TV penetration rate of 50.9% in Latin America. According to the Latin American Council on Multichannel Advertising (LAMAC), Argentina and Colombia have pay TV penetration rates above 81%. In Brazil, pay TV penetration has grown 118% since 2008—so now 36.1% of Brazilians have access to pay TV. In Chile, the pay TV penetration rate is 63.9%, while in Mexico it’s at 40.5%.

Brazil’s recent growth in pay TV subscriptions has been particularly impressive. Anatel—the Agência Nacional de Telecomunicações or National Telecommunications Agency—reported recently that 12.2 million households in Brazil had pay TV. With an average of 3.3 people per household, this means there’s a pay TV audience of 40.2 million in Brazil. And despite its relatively low penetration rate, Mexico is also a significant pay TV market: in spring 2011 LAMAC reported that the country had 10.5 million households with pay TV.

What makes the 50% penetration rate all the more impressive was that an earlier projection by Dataxis indicated that Latin America would reach this by 2015. Instead, LAMAC now forecasts 63% pay TV penetration in Latin America by 2015.

To find out how we can help you reach Latin America via pay TV or any other form of media, please contact us at info@usmediaconsulting.com.

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