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6 New Social Media Trends in Brazil

The latest news about social media in Brazil indicates some interesting trends that marketers, media professionals and advertisers need to take into account.

#1 Social media penetration is at almost at 100% in Brazil
Different sources have reported different rates of social media penetration in Brazil, ranging from 79% to 87% and higher. However, the most recent data comes from one of the most respected sources for online research, comScore. According to comScore’s December 2011 report, It’s a Social World, 97% of Brazil’s Internet population is using social media.

#2 Most Brazilians use social media to research products before buying
A 2011 study from Oh! Panel found that 61.4% of Brazilians look for information about products on social media pages before buying. In addition, the study found that 81% of Brazilians use social media to look for new products and more than 75% look for special discounts.

#3 Most Brazilians are influenced by social media posts about what to buy
The same study from Oh! Panel revealed another interesting trend: 79% of Brazilians say that when it comes to products, they have more confidence in posts on social media from friends and family than they have in similar posts from product specialists.

#4 Many Brazilians feel social media are good sources about brand experiences
An October 2011 study of consumers in Brazil, China, India and the United States focused on attitudes towards social media. Nearly one-third of Brazilians (31%) agreed with the statement “Social network sites are a good source of word-of-mouth information on brand experiences.” This was significantly higher than responses from people in the other countries studied.

#5 Brazilians are heavily engaged with Facebook
In December 2011, the average Brazilian visitor to Facebook spent 4.8 hours on the site—a huge increase from just 37 minutes in December 2010. So it’s not surprising that in December 2011, Brazil became the #4 country in the world in terms of Facebook users: 36.1 million. The site has grown by 250% in Brazil over the past 4 years, passing Orkut as the most popular social media site. As part of this growth, Facebook was Brazil’s #1 display advertisement publisher in December 2011, with 17.4% market share. Facebook’s market share was greater than that of media giants Globo, UOL, Terra and Google.

#6 Vostu and Tumblr are growing hugely in Brazil
According to comScore, between December 2010 and December 2011 Vostu gained 338% more visitors, while Tumblr grew by 206%. Neither gain is surprising. Vostu is a social gaming site and Brazilians spent US$2 billion on online games in 2011. For its part, Tumblr is a blog platform/social networking site and Ipsos recently reported that 71% of Brazilian Internet users visit blogs.

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

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5 Ways to Reach Brazil’s Class C

For quite some time, marketers and advertisers have been paying particular attention to classe C, Brazil’s emerging middle class. This makes sense: the most recent numbers indicate that more than 105 million people in Brazil—55% of the population—are class C. In June 2011 the Fundação Getúlio Vargas, which produces lots of research about the country’s economy and society, reported that between May 2010 and May 2011, 3.6 million Brazilians had moved from classes D and E to Class C, making it the fastest-growing socioeconomic class. According to research firm Data Popular, by 2014 58% of Brazilians will be class C.

As class C has surged, it’s been studied, especially when it comes to media use. Below are 5 ways for marketers, advertisers and media professionals to reach class C.

Go Digital
For years, the perception was that class C was not online, that they couldn’t afford Internet service or weren’t tech-savvy enough. Wrong. According to Renato Meirelles, director of research firm Data Popular, 46% of class C Brazilians have Internet access.
In addition, research firm e-bit reported in 2011 that 52% of Brazilian online consumers were from class C. Looking forward, by 2015 class C will be responsible for a level of consumption that will be equivalent to classes A and B combined. Given this and the fact that this middle class currently has $1 trillion reales of purchasing power, it seems likely that many more people from class C will be online very soon.

Use the Power of Print
In stark contrast to the United States and Europe, print media are very strong in Brazil. Newspapers gained 3.5% in circulation in 2011 and were the #2 medium in ad spend. Magazines broke records in revenues in 2011 while gaining 5% in circulation. According to Pedro Silva, head of the Instituto Verificador de Circulação (IVC)—which tracks Brazil’s print media circulation and revenues—class C is directly responsible for the circulation gain for newspapers.

Put Pay TV into the Plan
Class C’s consumption has extended to pay TV. According to the head of the Associação Brasileira de TV por Assinatura (Brazilian Pay TV Association), 30% of pay TV’s subscriber base are from class C. Around 13 million households in Brazil have pay TV, which translates to around 39 million people because average household size in the country is 3.3. This means that advertisers can reach a potential class C audience of 11.7 million via pay TV.

Develop a C-Class Social Strategy
In fall 2011 Data Popular reported that nearly 60% of class C is on social media. Beyond being strong on Orkut, class C is also moving quickly into Facebook. In fact, a 2011 study from Grupo.Mobi and W/McCann reported that 56% of class C members accessed Orkut from their cell phones and 50% accessed Facebook. These percentages were higher than those of class B members accessing these social media sites from their cell phones.
This trend is not surprising when you consider the 97% penetration rate that social media have in Brazil. In fact, a December 2011 study from Experian Hitwise showed that social media sites in Brazil receive even more traffic than adult sites.

Target Class C with Mobile Marketing
A 2011 study from Kantar Wordpanel Brasil showed that class C members have 57 million cell phone lines, significantly more than classes AB, which have 39.5 million. In addition, 40% of class C members had 2 cellphone lines, compared to only 31% of class AB Brazilians with this amount. And while some have had the perception that class C mostly buys basic phones with little multimedia or Internet capabilities, a 2011 survey from Grupo.Mobi and W/McCann showed that 19% of class C members have a smartphone. For its part, the Kantar study showed even greater smartphone ownership among class C: it claimed that class C members owned 36.1 million smartphones in 2011, compared to 39 million smartphones owned by classes A and B.
Beyond smartphone ownership, “the class C users consume the most mobile content, games and videos,” says Marcio Chaer, Managing Director of Latin America for the Mobile Marketing Association.

To find out how we can help you reach Brazil via a strategic campaign across all media, please 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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E-Commerce Explodes in Brazil

According to eMarketer, Brazil’s B2C e-commerce sales will total $18.7 billion in 2012—a jump of 21.9% compared to 2011. And the growth goes on from there. By 2015, eMarketer projects that B2C e-commerce sales in Brazil will reach $26.9 billion, with 31.6 million Brazilians making at least one online purchase that year.

According to eMarketer, a number of factors are driving the growth:

Multiple payment options. While 63% of Brazilian online shoppers used credit cards to make their purchases in 2010, the remaining 37% used boletos bancários. These are slips that a buyer prints out from the merchant’s Web site and takes to their bank to physically make the payment for the item. The buyer can also use the boleto bancário to make a payment via online banking. Either way, it’s a secure purchase method for buyers who don’t have credit cards.

Online security. Many potential e-customers in Brazil and Latin America have been hesitant to buy online because of security concerns. However, a 2011 survey from the Câmara Brasileira de Comércio Eletrônico indicates that 70% of Brazilian Internet users feel that online security has improved in recent years.

Further Factors
However, other changes happening in Brazil could very well impact e-commerce in 2012 and beyond.

>>>More users. First, projections suggest that 70% to 80% of Brazilian households could have Internet access by 2015—which means Brazil could go from having 78 million Internet users in 2011 to over 140 million by 2015.

>>>More mobile. The deep Internet penetration projected for 2015 refers to traditional PC connections. However, mobile phone penetration is at over 100% in Brazil and in fact, mobile devices are the #2 way for Brazilians to access the Internet. In addition, a 2011 survey from the Mobile Entertainment Forum revealed that 79% of Brazilians use their cell phones in some phase of the purchase process. Putting these two facts together suggests that mobile commerce (m-commerce) could soon start to take off in Brazil, further growing the country’s e-commerce market.

>>>More credit. According to  the Associação Brasileira das Empresas de Cartões de Crédito e Serviços, credit card ownership among Brazilians went up in 2011. The organization surveyed 4,000 Brazilian consumers and found that 72% had either credit or debit cards, up from 68% in 2010. The survey also showed that nearly half of the class C Brazilians who responded had credit cards, up from 38% in 2010. Obviously, credit cards make e-commerce a lot easier, and if this trend continues, even more Brazilian buyers could enter the country’s online marketplace.

To find out how we can help you reach the Brazilian market with an innovative crossmedia or online campaign, please contact us at info@usmediaconsulting.com.

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Brazil’s Hottest Advertising Media

For years, the story from Brazil has been about explosive growth, and 2011 was no different, especially when it came to media. We took a look at a couple of top sources to get a sense of that growth.
Here’s where the media money went, who provided it, how much different media are growing and which media brands in Brazil are the most popular.


Major Money in Media

IBOPE reports that in 2011, total ad spend in Brazil went up 16% to top 88.3 billion reales (US$51 billion). This was less than Brazil’s 19% growth in ad spend in 2010 but still significant.


Online Heats Up Hugely

Both IBOPE and IAB Brasil report that 5.3 billion reales (US$3 billion) was the total ad spend for online in 2011. That’s a huge 69% increase compared to 2010, during which advertisers spent 3.1 billion reales for online advertising. According to IAB Brasil, in 2011 online made up 10% of Brazil’s overall ad spend. Internet ads are also split down the middle in terms of type: 50% of Brazil’s 2011 online ad spend went to search and the other 50% was for display. All of this money moving has clearly attracted big Internet brands to Brazil. LinkedIn opened an office there in September 2011, joining Netflix, Google, Facebook and Yahoo, which are competing with native Brazilian online brands like UOL, iG and Globo.com.


TV Still Looks Good

Not surprisingly, free TV remains the top medium in Brazil in terms of ad spend. IBOPE’s numbers say it commands 53% of the total spend, while pay TV got around 7.2 percent. Big numbers, but slightly less than in previous years. For example, GroupM reported that TV received 64.6% of total ad spend in Brazil in 2010. The lower numbers for 2011 are due to online’s rise and print’s strength in Brazil.


Print Still Has Plenty of Power

IBOPE reported that newspapers brought in 17 billion reales (US$9.8 billion) in 2011 and were #2 in ad spend in Brazil. As a category, Brazilian magazines were slightly behind pay TV in ad spend, with 7.2 billion reales (US$4 billion).
In addition, the Instituto Verificador de Circulação or IVC—which tracks print circulation and revenue in the country—reports that Brazilian newspapers gained 3.5% in circulation in 2011.
Brazilian magazine also broke records in 2011. The IVC reported that the average circulation for magazines in Brazil reached 13,735,919 copies between June 2010 and June 2011, a record amount and a 5% increase compared to the previous period studied, June 2009 to June 2010. The top-selling newspaper in Brasil in 2011 was Super Notícia, a tabloid-style paper which sold 300,000 copies a day. In second place was Folha, with 297,000 copies sold daily.


Best-Liked Brands
Recently, Troiano Consultoria de Marca collaborated with Meio&Mensagem to survey Brazilians about the media brands they most admire. Here’s a quick breakdown:

  • Free TV network: TV Globo
  • Pay TV channel: GNT, which is from the Globosat cable network
  • Magazine: Veja
  • Radio network: CBN
  • Internet portal: Google


Top Advertisers

According to IBOPE, the 5 biggest advertisers in Brazil in 2011 were:

  • Casas Bahia—3.3 billion reales
  • Unilever Brasil—2.6 billion reales
  • Ambev—1.3 billion reales
  • Reckitt Beckiser—1.1 billion reales
  • Hyundai Caoa—1.0 billion reales

Among the other big spenders in Brazil in 2011 were Fiat, Petrobras, Volkswagen, General Motors and Ford.

To find out how we can help you reach the Brazilian market with an innovative media campaign, please contact us at info@usmediaconsulting.com.

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Brazil Has the #6 Economy in the World

The day after Christmas 2011, Brazil received an unexpected present: the Centre for Economics and Business Research (CEBR) proclaimed it the world’s sixth largest economy.
With this ranking, Brazil moved ahead of the United Kingdom but still trails France, the United States and other economic superpowers. Part of the drive forward is due to the economy’s 7.5% growth in 2010 and 3.5% growth in 2011.
For marketing, advertising and media professionals, Brazil’s economic growth has meant more consumers and an ever-expanding media market. Here’s a quick-reference look at the impact of more money on media in Brazil:

Pay TV. In late 2011 Brazil had more than 12.2 million households subscribing to pay TV. But this medium is no longer a luxury restricted to the upper AB classes: pay TV now has 31% penetration in Brazil’s surging Class C. And class C isn’t signing up just for TV: an Ipsos survey in 2011 showed that 33% of new combo packages (TV, Internet and phone) were sold to members of class C.

Internet. Two different projections say that 70-80% of Brazilians households will have Internet access by 2015. As of 2011 there were 67 million households in Brazil, which means at least 46.9 million households will have Internet access. The average household in Brazil has 3 people, meaning that Brazil could go from 78 million Internet users in 2011 to 140 million in just 4 years.

Print. Newspaper circulation in Brazil went up 4% between the first 6 months of 2010 and the same period in 2011 to hit 4.4 million, a new record. Brazil’s magazines set another record in 2011 by taking in nearly $1.3 billion in revenues.

Not all of the final tallies for Brazilian media numbers for 2011 are in yet, but it’s clear that that trend is headed upwards for the near future.

To find out how we can help you reach Brazil with a targeted media campaign, please contact us at info@usmediaconsulting.com.
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Brazil online story

The 7 Hottest Trends in Brazil’s Online Market

The latest studies are showing several key online trends in Brazil that should impact the advertising, media and marketing worlds. Here’s a look at the main ones to watch during 2012 and beyond.

#1 Online Ad Spend in Brazil Broke Records in 2011
According to IAB Brasil, online ad spend in September 2011 was 40% higher than online ad spend in September 2010. It reached a record amount of $141 million reales (US$79 million). It grew more than any other medium in that time period—pay TV was a distant second with 22% growth. Overall, in 2011 online ad spend went up by 25% compared to 2011, taking in 3.1 billion reales (US$1.7 billion). Online broke another record in Brazil in 2011 by taking up 10% of overall ad spend, a huge jump from 2010 in which online only made up 4.3% of total ad spend.

#2 Internet Penetration in Brazil Will Hit 70-80% by 2015
As of the end of 2011, Brazil had around 78.5 million Internet users—37% penetration. However, two different sources are projecting huge increases in the next couple of years. In October 2011, Paulo Bernardo, Brazil’s Communications Minister, predicted that 70% of Brazilian homes will have Internet service by 2015. However, the Comitê Gestor da Internet, an organization with members from the government, the online industry and academia, projects that 80% of Brazilian homes will have Internet access by 2014.

#3 Brazil’s Internet Audience is Becoming Socioeconomically Broader
According to a recent study done by Fecomercio-RJ and Ipsos, many more Brazilians from classes C and D have Internet access and their numbers are steadily growing. In 2007, only 31% of class C members in Brazil had Internet access—but this number jumped to 43% in 2011. And while only 8% of Class D members had Internet access in 2007, by 2011 17% of them had it.

#4 Brazil Still Leads Latam in E-Commerce
Besides accounting for 70% of all Latin American e-commerce sales, the country’s per capita online spend is the highest: $42, followed by both Chile and Argentina, each with $36. The trend continued in 2011. Research firm e-bit projected $18 billion reales (US$10 billion) in 2011 e-commerce sales in Brazil, up 26% from 2010. However, the final numbers could be higher, since Brazilian e-commerce sales on Black Friday 2011 shot up by 88% compared to 2010. And for 2012, the firm forecasts 25% growth in the e-commerce market of Brazil.

#5 By 2015, Brazil Will Be the World’s #4 Online Market
This is according to T-Index 2015, a rating developed to help companies decide in which languages to translate their sites for maximum online sales potential. The T-Index rating is driven by factors like amount of Internet users and GDP.
In 2015, China will be the #1 online market in the world, followed by the United States and Japan. T-Index predicts that Brazil will in the #4 slot after passing Germany. Interestingly enough, in 2011 Brazil passed Germany in terms of its amount of Internet users.

#6 Mobile is the #2 Way for Brazilians to Go Online
According to F/Nazca, 29 million Brazilians access the Internet from mobile devices: 74% use cell phones and the rest use other kinds, such as tablets. So many now do this that mobile devices are the #2 way for Brazilians go online—they’re tied with the LAN Houses (Internet cafes) that many use. In fact, until April 2010 LAN Houses were actually the #1 way for Brazilians to go online. These days, however, most Brazilian Internet users (43.5 million) access the Internet from a home connection.

#7 Many More Brazilians Are Going Online with Tablets
While the F/Nazca study showed that the large majority of Brazilians access the mobile web via cell phones, another recent study by comScore shows different results. Released in December 2011, comScore’s Device Essentials study showed that 39.9% of the non-computer web traffic in Brazil came from tablets. The only other country in Latin America with a similar percentage was Colombia, with tablets making up 38.9% of its non-computer web traffic.

To find out how we can help you reach Brazil with a precisely targeted media campaign, please contact us at info@usmediaconsulting.com.

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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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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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