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How to Reach Brazilians with Media

Not long ago we covered what Brazilians buy, breaking down over 20 recent studies. The next piece of the puzzle is how they use media and what they prefer. The following insights may help marketers, advertising agencies and media professionals create strategies to reach this powerfully growing market.



BLOGS & SOCIAL MEDIA

  • 71% of Brazilians visit blogs*
  • Top topics for Brazilian blogs include entertainment (24%), technology (20%) and education (10%)**
  • The top 3 brands mentioned on Brazilian blogs are Google, Samsung and Apple—these 3 account for 35% of the brand mentions**
  • The remaining 65% of brand mentions on Brazilian blogs include Adidas, Disney, Intel, Microsoft, Sony, Nokia, Amazon, Adobe, Motorola and Blackberry**
  • 79% of Brazilian Internet users are on social networks and their average age is 32**
  • Brazilians spend more time on social media outlets—19% of their overall time online—than people in any other country: in comparison, Americans dedicate 15% of their total time online to social media***
  • Facebook has surpassed Orkut in Brazil: as of August 2011, Facebook had 30.9 million unique users in Brazil compared to 29 million users for Orkut****
  • 61% of Brazilians use social media to find product recommendations and user reviews*****
  • Four out of 10 Brazilian users of social media are fans of products; out of those, 81% are looking at new products from the brands they are fans of*****

*Source: Ipsos
** Source: Boobox
***Source: Experian Hitwise
**** Source: Ibope Nielsen Online
***** Source: Oh!Panel

INTERNET

  • 77.8 million: the total number of Brazilians with Internet access as of the second quarter of 2011*
  • 58 million: the number of Brazilians in households that have computers with Internet access, a 20% increase from 2010*
  • 31.1 million Brazilians visit e-commerce sites every month*
  • Coupon sites in Brazil grew 379% in visitors between May 2010 and May 2011*
  • 60% of class AB Brazilians access the Internet via mobile phones*
  • 36% of class C Brazilians access the Internet via mobile phones*
  • 75% of the page views in Brazil are generated by just 7 Web sites: AOL, Earth, iG, Globo.com, Google (including search, YouTube and Orkut), Microsoft Live and Yahoo**
  • 68% of Brazilian Internet users say that online ads influence their purchasing decisions, more than TV (66%)***
  • 79% of Brazilian Internet users search for products after being impacted by offline media****
  • Top offline media that drive Brazilians to research products online include TV (51%), print (35%) and Out of Home (27%)****
  • The online content about products that Brazilians look for the most are discounts (40%) and product/service information (33%)****
  • Groupon and Peixe Urbano are the top group-buying sites in Brazil*
  • In 2011, Brazilians spent $2 billion on playing online games, with 16% spent on MMO (massively multiplayer online) gaming sites, 15% spent on other types of gaming sites, 11% on social media sites like Orkut and Facebook and 9% on mobile phone games*****

*Source: IBOPE Nielsen Online
**Source: JWT
***Source: Deloitte Media Democracy
****Source: Iprospect and Google Brazil
*****Source: Newzoo



PRINT

  • 73% of Brazilians prefer to get their news from print media rather than online*
  • 21 million Brazilians—11% of the total population—read the newspaper every day*
  • Brazilian magazines grew 5% in circulation between July 2010 and July 2011**
  • Average daily newspaper circulation in Brazil hit a new record in the first 6 months of 2011: 4.4 million copies**
  • Subscriptions to print magazines in Brazil have doubled since 2010***
  • Subscriptions to newspapers in Brazil have increased by 7% since 2010***
  • Online newspaper subscriptions in Brazil increased to 14% between 2009 and 2010***
  • In 2010 Brazil’s magazine titles grew by 2.6% to 4,000, while both circulation and ad revenues for the 100 largest titles grew by 4.5%***
  • Overall, Brazilian magazines will take in $1.269 billion in revenues in 2011, a new record****

*Source: Datafolha
**Source: Instituto Verificador de Circulação
***Source: Deloitte
****Source: Group M


TV

  • 175 million Brazilians (92% of the population) watch TV regularly*
  • 75 million Brazilians (49% of the population) watch TV 3 or more hours a day*
  • Of the 75 million Brazilians who watch 3 hours or more of TV every day, 44.8% are women*
  • 90% of Brazilians say TV is their preferred source for news**
  • Pay TV subscriptions in Brazil grew by 11% in the first five months of 2011, with 1.1 million new subscribers added in that time frame***
  • Pay TV had a penetration rate of 33% among Brazil’s Class C as of mid-2011****
  • Among young Brazilians aged 12-19, TV is the primary source for news (68%), compared to just 20% for Internet and radio (4%)*****
  • 72% of Brazilians get their sports news from TV******

*Instituto Brasileiro de Geografia e Estatística
**Source: Datafolha
***Source: Anatel
****Source: Ipsos
*****Source: TNS Research International
******Source: IBOPE Media

To find out how you can reach Brazil’s high-powered consumer market, contact us at info@usmediaconsulting.com.

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chanel brazil mall

What Brazilians Buy

We’ve tracked the results of dozens of recent studies to measure the hottest products among Brazilian consumers and the latest info about their buying habits. Here’s a quick and easy breakdown for marketers, advertisers and agencies.

BEAUTY
• The Brazilian beauty market quintupled its sales between 1996 and 2010, reaching $27 billion reales, with 30% growth projected for 2011*
• The Brazilian beauty market is #3 in the world, just behind the United States and Japan*
• Class C Brazilian women spend 19 billion reales a year on beauty products—more than all other socioeconomic classes**
• 79% of Brazilian women use beauty products regularly***
• 88% of Brazilian female Internet users go online to research beauty products***
• Class C women between 18 and 24 spend 71% of their income on beauty and fashion products***
*Source: Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosméticos
**Source: Data Popular
***Source: Sophia Mind

BOOKS
• Brazilian shoppers bought more books in 2010 than in 2009, spurring an 8% growth in sales and a 13% increase in copies sold*
• Books ranked #4 among products bought by Brazilians online**
*Source: Produção e Vendas do Setor Editorial Brasileiro
**Source: “Webshoppers,” by e-bit and Câmara Brasileira do Comércio Eletrônico

CARS
• Sales set a record in 2010, reaching 3.5 million, up 12% from 2009*
• In 2011, sales are projected to hit 3.69 million, up 5% from 2010*
• Fiat is the market leader with sales of 600,000+ vehicles projected for 2011, followed by Volkswagen AG, General Motors and Ford*
• Hyundai sold 80,000 units in Brazil in 2010, up 19% from 2009, and projects sales of 93,000 cars in 2011**
• Subcompacts are the most popular segment sold in Brazil***
• In the first-ever J.D. Power survey done with Brazilian car buyers, the Volkswagen Gol G5 ranked #1 among subcompacts, the Volkswagen Crossfox was #1 among compacts and the Honda Civic was #1 in the midsize category
*Source: Anfavea
Source: **Hyundai
Source: ***J.D. Power and Associates

CELL PHONES AND MOBILE MARKETING
• In 2010, 55% of Brazilian consumers bought a cell phone and Brazil was #1 in cell phone sales compared to 8 major countries, including the United States, Japan, Germany, France, Russia, India and China*
• 60% of Brazilians polled said they would buy electronics in 2011*
• Cell phones are the #2 platform that Brazilians use to play online games: 24 million of the 35 million cell phone users in Brazil use the phones to play games**
• Smartphone sales in Brazil went up 165% in the first half of 2011***
• Smartphone sales in Brazil will total 10 million units in 2011 but hit 47 million units by 2015****
• Nokia is the most popular cellphone brand in Brazil, with 47% market share, followed by Samsung at 21%*****
• The iPhone has a 6% market share in Brazil****
*Source: Accenture
**Source: Newzoo and Real Games
***Source: Niesen no Brasil
****Source: IDC Brazil
*****Source: icrossing.uk

COMPUTERS
• 58% of households in metropolitan Brazil have computers
• 19% of Brazilian households have more than one computer
• 56% of class C households in Brazil have a PC
• 22% of class D households have a desktop computer
• 196,000 Brazilians owned tablets in the first half of 2011
• Over 66% of tablet owners in Brazil say that the Internet is the greatest influence for purchase
Source: “Tech Metrics Brazil,” produced by Ipsos Brazil

CREDIT CARDS
• 72% of Brazilians have credit or debit cards in 2011, up 4% from 2010
• Nearly half of Class C members own a credit or debit card: 47%, up 11% compared to 2009
• By 2012, 76% of Brazilians will have credit or debit cards
Source: Associação Brasileira das Empresas de Cartões de Crédito e Serviços

E-COMMERCE
• Brazilian shoppers spent 8.4 billion reales (US$4.7 billion) in online buys in the first half of 2011
• The #1 e-commerce category among Brazilians is appliances, followed by computer products and health/beauty products, with books ranking #4
• 18.7 billion reales (US$10.2 billion): the projected amount Brazilians will spend on e-commerce in 2011, up 26% from 2010
• Men account for 54% of e-commerce purchases in Brazil and women account for 45%
• 61% of new entrants in Brazilian e-commerce between January and June 2011 are low-income, earning 3,000 reales per year
• 46.5% of class C members are buying online
• As an e-commerce category, clothes have gone from 26th place in 2006 to 6th place in 2011
Source: “Webshoppers,” by e-bit and Câmara Brasileira do Comércio Eletrônico

LUXURY PRODUCTS
• The Brazilian luxury market rose to 15.1 billion reales (US$9 billion) in 2010, up by 23% from 2009
• H Stern is Brazil’s top local luxury brand (24% market share), followed by Daslu (20%), Fasano (5%), Osklen (4%) and Victor Hugo (3%)
• The top international luxury brand in Brazil is Louis Vuitton (30% market share), followed by Hermès (12%), Chanel (8%), Giorgio Armani (6%) and Gucci (5%)
• 55% of Brazilians buy luxury brands overseas, mainly in New York (36%), Paris (21%), Miami (15%) and Buenos Aires (6%)
Source: DBM Consulting and GFK

REAL ESTATE
• Brazilians bought 9% of the homes and apartments sold to international buyers in Miami between 2009 and 2010*
• 20% of Miami homes and apartments sold in 2011 will be bought by Brazilians*
• 85% of all Brazilian buyers pay cash*
• Within their country, 9.1 million Brazilians plan on buying a house in 2011**
• Besides Miami, Brazilian buyers are also focused on Fort Lauderdale, Orlando and other Florida cities***
*Source: Miami Association of Realtors
**Source: Data Popular
***Source: National Association of Realtors

TRAVEL
• In 2010, 50 million Brazilians traveled—taking a total of 186 million trips*
• 32% of Brazilians say they will travel in 2011**
• Brazilian travelers spent US$8 billion from January to June 2011, a new record***
• On average, every Brazilian tourist who visits the United States spends US$5,918****
• Spending by Brazilian tourists in the U.S. has gone up by 250% since 2003****
• 1.2 million Brazilians visited the United States in 2010, a 34% increase from 2009****
• Top destinations favored by Brazilian travelers include Paris (214% growth in bookings between 2010 and 2011), Milan (210% growth), Miami (198%) and Mendoza (182%)*****
*Source: Ministério do Turismo do Brasil
**Source: BGN Cetelem & Ipsos Public Affairs
***Source: Banco Central do Brasil
****Source: U.S. Department of Commerce
*****Source: Hotéis.com

To find out how you can reach Brazil’s high-powered consumer market, contact us at info@usmediaconsulting.com.

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qr code, flashcode, smartphone

Why Mobile Ad Sales Are Set to Spike in Latam

Mobile is clearly making money. Worldwide, revenues from mobile ads will top US$3.3 billion—more than double the $1.6 billion earned in 2010.
And Latin America is driving the mobile ad surge: in Argentina alone, mobile ad revenues grew by 657% in 2010. Other countries are also showing mobile money spikes, including Brazil and Mexico.
Here’s why the mobile ad market is heating up in Latin America.

#1 Cellphone penetration. Across Latin America, it reached 100% in 2011, compared to 102% in the United States. Several Latin American countries boast more than 100% penetration, such as Argentina (142%) Uruguay (130%) and Brazil (118%). Latin Americans are also buying more and more multimedia phones—which are excellent for displaying mobile ad content.

#2 Smartphone penetration. Smartphone sales in Latin America for 2011 total 31 million so far, spiking by 165% in Brazil between 2010 and 2011. In Mexico, they make up 35% of the market, while smartphone penetration is at 20% in both Argentina and Colombia. Sales will grow by 30% a year over the next 5 years—or more. Smartphone prices in Latin America have dropped to the $100 range recently, making them more affordable than ever. For advertisers, surging smartphone sales mean that they have an even better device to reach customers in Latin America with ads, plus improved targeting.

#3 Consumer behavior. A recent study showed that 26% of online shoppers in Mexico used a mobile device to make purchases, while 79% of Brazilian cellphone owners use their phones in some part of the purchase process.

In Colombia, the amount of mobile Internet users spiked up 119% between 2010 and 2011 and 3G cellphone use went up 4% in the same period.

And when the Mobile Entertainment Forum surveyed 8,500 Latin American cell phone users in 2011, it found that 20% of them are prepared to spend 200 euros on mobile purchases, double the next closest region (India, with 10%).

Jumba Mobile Network
In response to this impressive surge, we have launched the Jumba Mobile Network to help advertisers reaching this growing Latin American mobile ad market. With Jumba, advertisers can target by:

• Demographic group
• Geographic area (country, state or DMA)
• Carrier
• Handset, brand or operating system
• Applications and sites
• Age of handset
• Time of day or day of the week
• Frequency, Wi-Fi or location-based

Ad formats include QR codes, traditional display in a range of sizes, rich media or text.

For more information about how we can help you take advantage of Latin America’s surging mobile ad market, contact us at info@usmediaconsulting.com.
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The Hottest Markets in Latam E-Commerce

While the overall picture of Latin American e-commerce is encouraging, certain markets clearly show more surge than others. Here’s a breakdown of the big-money markets in Latin American online shopping:

>>>Brazil: $11.5 billion in e-commerce sales in 2011, up 45% from 2010. Forrester’s research projects e-commerce sales will top $22 billion by 2016, a 178% increase from 2010.

>>>Mexico: E-commerce grew by 25% in 2009, by 31% in 2010 and is projected to reach $3.4 billion in 2016, a 209% increase from 2010.

>>>Argentina: E-commerce grew by nearly 50% in 2010 and is projected to grow by another 43% in 2011.

>>>Colombia: E-commerce grew by only 13% in 2009 but is expected to grow by 100% between 2011 and 2012 to become a $2 billion market.

>>>Chile: Its e-commerce volume was $550 million in 2010 but per person, e-commerce sales in Chile total $152 per person, more than in the United States ($44 per person).

Who’s Buying What
The data is still fairly limited on what Latin Americans are buying overall, and it’s even harder to find out the favorite products of online shoppers in different countries. However, we were able to discover surveys that cover 3 of the biggest e-commerce markets in Latin America.

Brazil
According to a survey done in 2010 by the research firm e-bit, for Brazilian online shoppers the most popular products are:
#1 Home appliances
#2 Books/magazine & newspaper subscriptions
#3 Health/beauty/medicine products
#4 Computer products
#5 Consumer electronics

Mexico
A 2010 e-commerce study done by the Asociación Mexicana de Internet and Visa revealed that the retail products that Mexican online shoppers buy the most are:
#1 Computers
#2 Cell phones
#3 Consumer electronics
#4 Clothes and accessories
#5 Video games and game consoles

However, an article by Daniel Latev from the consumer research firm Euromonitor International states that in Mexico, tourism-related products account for 3 times as many online sales as retail products.  No specific study data was cited, but the implication appears to be that Mexicans shop more online for plane tickets and hotels than for retail products.

Argentina
A 2010 survey by TGI Net of IBOPE Media indicated that the most popular retail products for online shoppers in Argentina are:
#1 personal technology, i.e. digital cameras, MP3 players and portable video game consoles
#2 Cell phones
#3 Books
#4 Tickets to events (concerts, etc.)
#5 Home technology, which means TVs, DVD players and video game consoles
#6 Computer hardware
#7 Clothes and jewelry
#8 Airline tickets
#9 Food
#10 Toys & games

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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online ad spend

Online Ad Spend Skyrockets All Over Latam

While other countries can’t boast Brazil’s doubling of online ad spend in 2011, they’re actually not that far behind.
It’s projected that Mexico will join Brazil in having its online ad spend reach 10% of the country’s overall ad spend in 2011. This marks an increase of 3% compared to 2010, when online’s share of total ad spend was at 7%. This surge comes on top of Mexico’s 35% growth in online ad spend between 2009 and 2010, when it reached 3.3 million pesos ($273 million).
While Mexico’s 35% increase in online ad spend is impressive, other Latam markets are also heating up in this area:

  • Argentina: 50% increase in online ad spend in 2010, 27% projected increase in 2011
  • Chile: 29% increase in online ad spend in 2010, 35% projected increase in 2011
  • Colombia: 56% increase in online ad spend in 2010, 40% projected increase in 2011
  • Peru: 44% increase in online ad spend in 2010, 40% projected increase in 2011
  • Uruguay: 40% increase in online ad spend in 2010, (no 2011 projections available yet)

Total online ad spend in Latin America is also on the way up. Zenith Optimedia projects that it will grow by 14.4% in 2011, 2012 and 2013.

Where the Money Is Going
In many countries, display banners still rule. They make up 70% of the digital ad spend in Chile, 83% of the digital ad spend in Colombia, 61% of the digital ad spend in Mexico and 50% of the digital ad spend in Argentina. Search advertising is relatively low in many Latin American countries when you consider how it dominates the online activities of many users. For example, a recent comScore study shows that as an activity search grew 34% in Brazil between March 2010 and March 2011. In the same period, it grew by 23% in Mexico, by 28% in Colombia and by 21% in Argentina.
Among the growth categories are social media (106% in Mexico in 2010) and online video. In fact, an IAB Uruguay study suggests that advertisers will spend more than 25% of their budgets on online video ads.

Factors Behind the Surge
Obviously, improved infrastructure has made a huge difference. The region’s hot economies are also playing a role. With better purchasing power, more people can connect by either buying computers or connecting via their smartphones. And in Brazil, LAN houses have opened up Internet access for class C consumers.
But beyond physical and economic factors, what’s important to note is the Internet’s role in purchasing decisions. comScore’s 2010 study on Latin American e-commerce reported that 97% of Argentine Internet users go online to research products before buying. The same pattern was found among users  in Brazil (87%), Mexico (91%), Chile (90%), Colombia (94%) and Peru (91%). This suggests strongly that advertising online to drive retail traffic is a strategy that will yield rewarding ROI.

To learn more about how we can help you reach the Latin American online market with a variety of premium media outlets, please contact us at info@usmediaconsulting.com.

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class C women Brasil

New study: Women are Key to Reaching Brazil’s Class C

Attracting women seems to be crucial in reaching Brazil’s emerging class C. According to a new study called “As poderosas da nova classe média brasileira” conducted by research firm Data Popular and Abril Media, class C women are the key decision makers when it comes to purchases. Here’s a rundown of the key results.

Who’s in Charge?
• 82% of class C men say their wives manage the household budget
• 77% of class C men say their wives make most of the spending decisions, including what kind of underwear they use
• Out of every 100 reales in household income for class C, 41 of them (roughly 400 million reales) are from the woman’s work—hence her strong influence on what to buy

In fact, class C women bring in nearly half (47%) of the total income earned by all women in the country, compared to 22% from class A and 20% from class B.

What Women Want
Brazilian Class C women showed some interesting preferences in the study that both advertisers and media agencies should note. We organized them by relevant product category for quicker reference.

  • Beauty: 70% believe that beauty care increases the chances of success in life—and they spent 19 million reales on beauty products in 2010, an increase of 228% from 2002
  • Cars: 64.8% care most about engine power when it comes to cars and 44% finance their cars
  • Cell phones: 50% plan on buying a new cell phone in the next year
  • Computers: 66% have taken or are taking a computer course and 46% want to buy a notebook computer in the next year
  • Language classes: 38% want to take an English class
  • Perfumes: 56% of imported perfumes are bought by this segment
  • Pharmaceutical products: 56% of them purchase their household’s pharmaceutical products and 37.6% prefer generic brands to name brands
  • Real estate: 31% want to buy a new home in the next 2 years
  • Social media: 68.9% are on social media networks
  • Travel: 72% will travel in the next 12 months and 62% traveled in 2010, compared to 54% of class C men, and 48% of them prefer using travel agencies
  • Weight loss products: 39% want to lose weight

Brand Opportunities
When it comes to brands, class C women in Brazil already have favorite brands in areas like food, personal care, clothes, makeup, perfume and mobile carriers. However, they are still selecting their favorite brands in the following areas:

  • Banks
  • Cable TV
  • Cars
  • Clothing
  • Furniture/Decor
  • Shoes
  • Electronics

Go here to review more study results.

To learn more about how we can help you reach Brazil via online or other media, contact us at info@usmediaconsulting.com.

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