Tag Archives: Brazil media campaign

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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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 magazines

Magazines Surge in Popularity in Brazil

The most recent edition of Estudos Marplan EGM Next Gen show that print media continue to do well in Brazil. Between 2011 and the first quarter of 2012, magazines’ media penetration rose from 39% to 45%. This was the biggest gain of all forms of media. In second place was pay TV, which went from 35% to 40% penetration. Other forms of media in Brazil that gained in penetration in 2012 were newspapers (from 46% to 47%) and Internet (49% to 51%). Free TV’s penetration remained constant at 97%, while radio’s penetration dropped slightly from 77% to 74%.

In terms of socioeconomic groups, magazines increased their penetration significantly with classes AB, going from 52% in 2011 to 63% this year. In addition, magazines also gained penetration with class C: 38% in 2012 compared to 31% in 2011.

Beyond penetration, Estudos Marplan also highlighted how Brazilians use the different types of media. They use TV and newspapers primarily to get news, learn about general culture and spend their free time. Brazilians report that they use Internet and magazines to stay current with the news and for shopping information. Pay TV and radio are seen as companion media by Brazilians, and also as vehicles to cultural and sports information.

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

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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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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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