Tag Archives: Brazil media agency

A Merry Christmas for Brazil’s Businesspeople

Recent research from a variety of sources indicates that this Christmas will bring the gift of many sales for businesspeople in Brazil. The following factors show why this is.

Black Friday Boomed
According to comScore, Brazil’s Black Friday sales were up 368% compared to an average online shopping day in the rest of November 2012. Growth was huge in a variety of areas: 185% more buyers, 64% more spending per buyer, 202% more transactions and an order value that was 55% higher. Besides Mercado Livre, Brazil’s leading e-commerce company, other online shopping companies did well on Black Friday, including Americanas, Pontofrio, Casabahia, Submarino, MagazineLuiza and Netshoes.

More Sales
According to Federação do Comércio de Bens, Serviços e Turismo do Estado de São Paulo (São Paulo State Goods, Services and Tourism Business Federation or Fecomercio), there should be a 5% increase in sales in Brazil this Christmas.
Walmart Brasil foresees a 20% increase in sales this Christmas, while the Associação Brasileira de Shopping Centers (Brazilian Shopping Centers Association) projects a 15% increase in sales this year.

More Spending
A study from the Serviço de Proteção ao Crédito (Credit Protection Service or SPC) and the Confederação Nacional dos Lojistas (National Merchants Association or CNDL) indicate that 7 out of 10 Brazilians intend to buy Christmas gifts for their loved ones this year, with 68% paying cash and only 9% using credit cards and 4% using debit cards.
According to consulting firm Deloitte, 28% of Brazilians say they will spend more this Christmas than last Christmas and 39% say they’ll spend the same. In terms of amount, 76% of Brazilians expect to spend up to R$ 500 (US$250) on Christmas gifts, while 24% expect to spend more than this amount.

The Hottest Gifts in Brazil for Christmas 2012
According the SPC and CDNL study, 68% of Brazilians intend to give clothes as gifts, while 28% plan on giving toys and 26% plan to give footwear and accessories. The gift-giving pattern among Brazilians is a bit different from their usual buying habits, since the most popular items to buy during the rest of the year have included tablets, smartphones, flatscreen TVs and books. However, IDC does project that in 2012, smartphone sales will go up 82% in Brazil, and that 30% of these sales will take place during the last three months of this year. IDC also projects that in Brazil—compared to the second half of 2011—smartphone sales in the second half of 2012 will increase by 85%.
With 80% purchase intent, clothes were also the most popular gift item among Brazilians surveyed in the Deloitte study, followed by shoes (49%), though it is interesting to note that this study showed that 26% of Brazilians intend on giving tech gifts (gadgets, tablets, phones or computers) this Christmas.

More Christmas Shopping Online and via Mobile
Besides the huge amount of sales on Black Friday in Brazil via e-commerce, the Câmara Brasileira de Comércio Eletrônico projects that Christmas 2012 e-commerce sales in Brazil will reach R$ 3 billion (US$1.4 billion), 20% more than in Christmas 2011. One of the interesting results from the study by Deloitte was that 37% of the Brazilians surveyed say they will buy Christmas gifts this year via tablets or mobile phones.

To find out more about how to reach Brazilians with an effective media campaign during Christmas or at any time of the year, please contact us.

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3 Reasons Why E-Mail Marketing May Be the Best Way to Reach Brazilians

We hear a lot about social media these days, with multiple experts claiming to know how to use them to deliver amazing ROI. But recent studies suggest that an older tactic—email marketing—may be the best choice for reaching Brazilian consumers. Here’s why.


#1 Brazilians Are Very Open to Receiving Marketing Emails

A recent study from ExactTarget surveyed more than 1,400 Brazilians to measure their response to email, Twitter and Facebook. The survey revealed that 91% of Brazilians who are online have registered to receive email marketing messages from at least one source. In addition, 68% of Brazilians said they made a purchase as a result of an email marketing message and 53% say they are more likely to buy from a company after receiving an email marketing message. However, only 42% have made a purchase after receiving a social media marketing message through Facebook.
What may further validate these results is that Netshoes recently reported that it has increased the volume of opens of its email marketing messages by 70% in the past year.

#2 Email Marketing Has a High Rate of Conversion among Brazilians
A study from Experian Marketing services showed that email marketing has the highest rate of conversion for e-commerce companies in Brazil, 2.53%. Search marketing yields 2% conversion while social media marketing has half the rate of email marketing, with a little over 1%. Another study from the firm Monetate found even more impressive results: 4% conversion rate from email marketing, compared to .59% from social media and 2.49% from search marketing.

#3 Mobile Opens of E-Mail Marketing Has Increased Significantly
A recent study from Spli showed that the number of Brazilians that open email marketing messages using mobile devices went up by 44% between September 2011 and June 2012. The study looked at responses from consumers not only in Brazil, but also in France, Italy, Spain and China. The open rate for Brazilians receiving email marketing messages on their mobile devices was 7%, and only consumers from Spain had a higher open rate (17%). Despite the dominance of Android in the Brazilian mobile market, mobile users with the iOS system—either iPhone or iPad, proved to account for most of the opens, with 47% and 30%, respectively. Brazilian mobile users with the Android operating system accounted for only 21% of the opens.

To explore how we can help you reach Brazil’s consumers, please contact us.

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Latam media landscape 2

Latin America’s Media Landscape 2015-2017

Predicting the future is always tricky, but different industry associations have made forecasts for different forms of media in Latin America for the next few years, all based on current trends. Using this data, here’s what experts say that Latin America’s media market will look like in the near future.

#1 THERE WILL BE 359 MILLION INTERNET USERS IN LATIN AMERICA BY 2015
Currently the population of Latin America is at around 575 million but according to the Comisión Económica para América Latina y el Caribe (CEPAL), by 2015 Latin America will have 598 million people. (This count includes Puerto Rico, projected to have 4.1 million people by 2015, but excludes non-Spanish-speaking countries like Haiti and French Guyana.)
According to a May 2012 projection from Registro de Direcciones de Internet para América Latina y Caribe (LACNIC), by 2015 Internet penetration will reach 60% in Latin America. Since 60% of 598 million is 359 million, it appears that Latin America will add 127 million Internet users over the next 3 years to its current total of 232 million Internet users.

Not surprisingly, the growth will be driven by the powerhouse Internet markets. Brazil’s Comitê Gestor da Internet estimates that 80% of Brazil’s homes will have Internet access by 2015. Given Brazil’s population of 193 million and an average of 3.3 people per household, this means that by 2015 Brazil could have 154 million Internet users—up considerably from the 85 million it has today per comScore. LACNIC also predicts that Mexico will have 65 million Internet users by 2015, up hugely from its current total of 40.6 million. Other markets predicted to gain lots of new users include Chile (16.4 million Internet users by 2015) and Ecuador (7.5 million Internet users by 2015).

#2 PAY TV PENETRATION IN LATIN AMERICA WILL REACH 68% BY 2017
According to Dataxis, by 2017 pay TV penetration in the 7 biggest Latin American markets will reach 68% and offer advertisers and audience of 97 million people. The biggest growth markets for pay TV will be Brazil, Mexico, Colombia and Argentina. In addition, the head of Brazil’s national telecommunications agency (Anatel) recently said that 90% of Brazilian homes could have pay TV by 2018. For its part, Mexico could have more than 50% of pay TV penetration by 2015.

#3 LATIN AMERICAN NEWSPAPERS WILL GROW BY 5.5% PER YEAR THROUGH 2016
The downturn experienced by newspapers around the world does not seem to be affecting Latin America. According to a recent projection from PricewaterhouseCoopers, revenues for Latin American newspapers will grow annually by 5.5% through 2016 to reach US$10.4 billion.

#4 LATAM WILL HAVE 750 MOBILE CONNECTIONS BY 2015 PLUS MAJOR MOBILE DEVICE PENETRATION
According to the GSMA, Latin America will have 750 million mobile connections by 2015. Overall mobile penetration in the region is above 100%. Brazil’s mobile penetration is at well over 100%, as is Argentina’s, but in October 2012 Brazil reached a total of 258 million active mobile lines, up from 232 million just a few months back. Mexico is slated to reach 94% mobile penetration by the end of 2012 and over 100% by the first quarter of 2013.
Beyond simple penetration, mobile is changing Latin American markets through the adoption of mobile devices. It’s really not a question of whether a brand needs a mobile ad strategy for Latin America—it’s what this mobile ad strategy will be. Just look at the numbers:

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

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brazil mobile

Mobile Commerce in Brazil to Reach R $2 billion in 2013

As a company, we’re used to seeing eye-popping mobile numbers from Brazil—we write about them all the time.

Yet this figure was still somewhat of a shock to us. And that’s because of the growth.

This R$ 2 billion estimate comes from  the Brazilian Chamber of E-Commerce (Câmara Brasileira de Comércio Eletrônico or Cámara-e.net).

This organization also provided the amount of m-commerce sales for Brazil for the first half of 2012: R$ 132 million.

Logically speculating, in the second half of 2012 we’ll see a similar amount of m-commerce sales in Brazil and the total will be R $132 + R $132= R $264 million.

A nice amount, but not earth-shattering. Yet what Camara-e.net is saying is that in 2013 m-commerce in Brazil will grow by R$ 1.73 billion in 2013—a gain of 657%.

That level of growth is what surprised us. We knew that Brazilians are going mobile in a huge way and are set to buy 15 million smartphones this year plus 2.6 million tablets.

But beyond enhanced mobile access, it looks like Brazilians are deeply changing their shopping patterns—and quickly.

What Brazil’s M-Commerce Shoppers are Buying
According to a recent study from Hi-Mídia and M-Sense, here are what Brazilians report buying the most with their smartphones or tablets:

  • 61%                 Electronics
  • 44%                 Tickets for movies, shows, theater
  • 39%                 Appliances
  • 38%                 Content like e-books
  • 36%                 CDs, DVDs, Blu-ray
  • 33%                 Books/magazines
  • 31%                 Sporting goods
  • 30%                 Travel: plane tickets, hotel reservations, etc.
  • 27%                 Magazine subscriptions
  • 26%                 Games

Other Key Data Points
The Hi-Mídia/M-sense study also revealed some other insights about Brazil’s m-shoppers that could be worth considering when developing a mobile strategy that targets Brazilians:

>MOBILE DEVICES START THE SHOPPING PROCESS
93% of Brazilian mobile shoppers use their smartphone or tablet to look for product information

>MOBILE DEVICES HELP WITH PRICE COMPARISON
63% of Brazilian mobile device users believe that mobile devices offer a way to find a better price when shopping in stores

>USERS SHARE PRICING INFORMATION THEY FIND ON THEIR MOBILE DEVICES

  • 62% send messages about product prices to their friends
  • 56% shoot photos of the products they want to buy

>BRAZILIAN SMARTPHONE/TABLET OWNERS TEND TO HAVE MORE QR APPS
39% have a QR app compared to 20% of American shoppers who scan QR codes and the 25% of shoppers around the world with QR apps.

>SECURITY IS A RELATIVELY MINOR BARRIER FOR MOBILE SHOPPERS IN BRAZIL—SCREEN SIZE IS MORE SIGNIFICANT

  • Only 21% say that security concerns keep them from shopping with their mobile devices
  • 36% say they don’t buy with mobile devices because the small screen makes it difficult

COMFORT, CONVENIENCE AND FUN ARE THE ADVANTAGES OF MOBILE COMMERCE FOR BRAZILIAN SHOPPERS
When asked to compare buying with mobile devices to computers to see which type of product was better, computers won out in several key categories, including security, ease of readability, pricing and ease in finding information. However, mobile devices win out in terms of comfort and convenience.

While this study offers some interesting data points about Brazilian mobile users and their shopping patterns, Google’s Our Mobile Planet study also shed light on this as well. You can find more about that here.

To learn more about 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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In 2014 Brazil Will Become the #5 Advertising Market in the World

A new forecast from Zenith Optimedia says that Brazil’s ad spend will reach US$22 billion in 2014, making it the world’s #5 advertising market in the world. According to ZenithOptimedia, Brazil was the #6 ad market in the world in 2011, with US$16.8 billion in ad spend.

This prediction for robust growth seems to make sense, especially given the Brazilian ad market’s recent growth. According to recent report from Projecto Inter-Meios, ad spend in Brazil grew by 10% from January to July 2012, compared to the same period in 2011. Total billing was 16.67 billion reales (US$8.1 billion), compared to 15 billion reales (7.3 billion) in the same period in 2011.

Which Media Are Growing the Most in Brazil?
Internet was the medium in Brazil that grew the most in ad spend from January to July 2012—15.46% growth compared to the same period in 2011. Pay TV is another growing medium, posting 15% growth, while free TV grew by nearly 13%. Radio grew by 8.8%, out of home advertising (OOH) grew by 6.7% and newspapers grew by 2.93%. Magazine ad spend dropped by 3% from January to July 2012, but overall has a strong share of 6%.

In fact, print media remain #2 in ad spend in Brazil, with 17.5% share, while free TV remains #1, commanding nearly 65% of ad spend. Cinema advertising, despite having a low overall share of ad spend (.33%), showed a significant increase of 14.2% in ad spend in the period measured by Projeto Inter-Meios.

It’s important to note that Projeto Inter-Meios only measures Internet display advertising, not search. IAB Brasil measures both. As such, the 5% share of ad spend reported for Internet by Projeto Inter-Meios may actually be as high as 13.7% when search ad spend is included.

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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Brazil best sellers

Brazil’s Best Sellers

Despite conservative macroeconomic projections, it seems like Brazilians are shopping more than ever. A study from the firm IPC Marketing Editora projects that consumption in Brazil will surpass US$2.7 trillion in 2012, with household spending exceeding GDP. Classes B and C account for half of what is consumed in Brazil, though Class B seems to show the strongest purchasing power.

We’ve observed some strong spikes in sales of a number of products in Brazil. Here’s a look at what grew the most in sales in 2011 and what’s selling strongly so far in 2012.

Autos
Car sales in Brazil grew by 2.9% in 2011, according to the Associação Nacional dos Fabricantes de Veículos Automotores (National Association of Automakers). The Volkswagen Gol was the biggest selling model in Brazil in 2011, followed by the Fiat Uno. Chevrolet’s Celta and Corsa Sedan ranked #3 and #4, respectively, in sales. Overall, Fiat sold the most cars in Brazil in 2011: 273,000. In 2012, the Federação Nacional da Distribuição de Veículos de Veículos Automotores (National Federation of Motor Vehicle Distribution), predicts car sales will go up 4.5% in Brazil.   

Computers
Research firm IDC reported recently that computer sales in Brazil went up by 12% in 2011 to reach 15.4 million units sold. According to the Getulio Vargas Foundation (FGV), a Brazilian higher education and research institution, sales of computers in Brazil will reach 17.9 million in 2012, an increase of 16%. FGV’s study indicates that currently there are 99 million computers in Brazil, roughly one computer for every two Brazilians. According to Fernando Meirelles, who led the research team from FGV, by 2017 there will be one computer for every Brazilian.
Notebooks and tablets are among the hottest types of computers among Brazilian consumers. Sales of notebooks grew by 60% in 2011 to reach 5 million, according to Gfk Consumer Choices, with 800,000 units sold in December 2011 alone.
Tablets posted comparatively modest sales of 450,000 units in 2011, but research firm Navegg predicts that Brazilians will buy 1 million tablets in 2012.

Cosmetics
Brazil’s cosmetics industry logged US$14 billion in ex-factory sales in 2011, 7.9% higher than in 2010, according to Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria e Cosméticos. According to projections from Euromonitor International, in 2013 Brazil will overtake Japan to become the #2 cosmetics market in the world, just behind the United States.

E-commerce
The most recent report from market research firm e-bit indicated that in 2011, the e-commerce market in Brazil reached US$10.1 billion in sales, up 26% compared to 2010, when e-commerce sales totaled US$8 billion. In 2012, e-commerce sales in Brazil should reach US$12.6 billion, 25% higher than 2011, projects e-bit. Over 9 million new customers bought a product online for the first time in 2011, and overall around 32 million Brazilians have engaged in e-commerce. Top products for Brazilians who shop online include appliances, computers, electronics, health/beauty items and clothes/accessories.

Mobile Broadband Connections
According to Anatel, the country’s national telecommunications agency, there are now 54.3 million mobile broadband connections in Brazil, which means an overall 28% mobile broadband penetration rate. Forecasts from Teleco—an organization that tracks telecommunications in the country—suggest that Brazil will have 73 million mobile broadband connections by the end of 2012 and 124 million connections by 2014 when it hosts the World Cup. As mobile broadband connections have grown, so have the number of mobile phones with 3G services: currently 20% of the cell phones in Brazil have 3G.

Pharmaceuticals
According to IBOPE, sales of pharmaceuticals in Brazil will grow by 13% in 2012 and be four times more than the Gross Domestic Product. Classes B and C will account for 80% of the sales, spending 23 billion and 27 billion reales, respectively. A number of companies are benefiting from this surge, including Bayer HealthCare and Pfizer, which experienced increases of 13% and 14%, respectively, in their 2011 Brazil sales.

Smartphones
According to a projection by IDC, smartphone sales in Brazil will increase by 73% in 2012. In total numbers, this means that Brazilian shoppers will buy 15 million smartphones this year, whereas in 2011 they bought 8.9 million. This is a huge increase compared to 2010, when 4.8 million smartphones were sold in Brazil. IDC considers phones with operating systems, like iPhones or Blackberrys, to be smartphones. According to the firm, over 50% of the smartphones in Brazil use the Android operating system.

Videogame Consoles
According to market research firm GfK Consumer Choices, sales of video game consoles in Brazil shot up by 53% in 2011 to reach 935,000 units, up from 642,000 units in 2010.

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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Game of Thrones, sucesso mundial da HBO

Pay TV Keeps Surging in Brazil

In February 2012, 266,000 Brazilians signed up for pay TV service, bringing up the country’s total amount of subscribers to 13.3 million households—a 334% increase compared to 1999, when there were only 3 million households in Brazil with pay TV. These figures were recently reported by Anatel (Agência Nacional de Telecomunicações), Brazil’s National Telecommunications Agency. Given the estimate of 3.3 people per household in Brazil, this suggests that right now, pay TV has an audience of nearly 44 million in Brazil.

Besides a bigger audience, pay TV is bringing in more money. According to Projeto Inter-Meios, pay TV ad spend in Brazil went up 17.8% in 2011. In fact, pay TV grew more in ad spend in 2011 than any other medium except for Internet.

Class C, the country’s growing middle class, could be one of the key factors behind this growth. In August 2011, the Brazilian Pay TV Association (Associação Brasileira de Televisão por Assinatura) reported that Class C now makes up 30% of the subscriber base. By 2025, research firm Data Popular projects that pay TV penetration among Class C Brazilians will be the same as with classes A and B, the top two socioeconomic classes.

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 Ad Market Grew by 8.5% in 2011

Figures just released by Projeto Inter-Meios show a total billing by the Brazilian ad industry of 39 billion reales ($US22.5 billion), with 28 billion reales (US$16 billion) corresponding to pure ad space sales.

In 2010, the industry billed 21 billion reales, growing 20% compared to 2009. Free TV is still the leader in ad spend in Brazil, capturing 63% of the total. Below is a quick breakdown:

Note that Projeto Inter-Meios shows Internet as having only 5.1% of total ad spend in Brazil, while IAB Brasil’s figures show online capturing 10% of ad spend. That may because of the way Internet ad spend is tallied. IAB Brasil brings together both search and display, since these components each make up 50% of the online ad spend in Brazil. Projeto Inter-Meios does not seem to make that distinction, hence the difference between the two organizations’ figures.

Despite this difference, Projeto Inter-Meios observed that Internet ad spend grew by nearly 20% in 2011, more than any other medium. Out-of-home in Brazil also posted impressive growth in 2011—it grew by 12%. Brazilian print media also grew well in ad spend in 2011: newspapers gained 3.8% and magazine ad spend went up by 3.5%. These strong print numbers match other recent statistics that show the medium is doing quite well in Brazil, unlike in other markets. According to Projeto Inter-Meios, the only Brazilian media to show drops in 2011 were cinema and guides.

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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