Tag Archives: Brazil mobile access

Brazil’s Mobile Ad Spend is Set to Spike

In Brazil, as smartphone penetration deepens, tablet sales keep growing and social TV becomes more popular, advertisers are investing more in mobile. In 2012 they spent US$24.6 million on mobile ads in Brazil, around 1.2% of Brazil’s digital ad spending. However, by 2016 eMarketer projects that mobile’s share of online ad spend in Brazil will reach 4.9% by 2016 and total US$198 million.

But increasing mobile ad spend isn’t justified solely by device adoption—mobile is transforming the way that Brazilian Internet users go online and how they consume content.

Here some examples of how.

Research
In May 2012, Google’s Our Mobile Planet study showed that 80% of Brazilian smartphone owners say that they research products with their phones before buying them. In an article in O Globo, Google’s Director of Mobile Platform Content, Peter Fernandez, was quoted as saying that more than 10% of the online searches in Brazil are done via mobile phones. Beyond researching products, Brazilians also use their phones to find their way around: an Ericcson ConsumerLab study showed that using maps to navigate was the #2 activity that Brazilian smartphone owners engage in with their phones.

Watching TV and Movies
The Ericcson study listed watching TV shows and movies online as top activities for Brazilian smartphone users.

Social Media
A recent study by Nielsen showed that 4 out of 10 Brazilian internautas use mobile phones or tablets to access social networks. In addition, the same study showed that 56% of Brazilians report watching TV while using social media.

Shopping
In addition, Brazilian mobile Internet users are using their mobile phones to shop online in record-breaking numbers. In fact, the latest projection from the Câmara Brasileira de Comércio Eletrônico (camara-e.net) is that mobile shopping in Brazil will increase by 657% in 2013 to reach a total of more than R$ 2 billion (US$1 billion). According to camara e-net, in 2012 online sales in Brazil via tablets and smartphones rose to 10%, double the percentage in 2011. More than half of the mobile sales took place with iPads (51%), while 20% of the sales happened with iPhones. In addition, Roni Cunha Bueno, marketing director of online retailer Netshoes, recently indicated that mobile accounted for 4% of the company’s sales in 2012 and will account for 10% of sales in 2013.

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

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mobile internet woman

5 Insights into Mobile Web Users in Brazil and Mexico

We’ve seen clear indications of mobile web use spiking in all of Latin America through very clear market indicators. These include robust rates of smartphone/tablet adoption and gigantic upticks in mobile broadband subscriptions in Argentina, Brazil, Mexico, Colombia and several other markets.

However, for anyone considering increasing their mobile advertising campaigns in Latin America—or even trying out a mobile media campaign for the first time—understanding mobile usage patterns is key.

A recent large study from Accenture seems to offer some interesting data points about mobile Internet users around the world. The firm surveyed more than 17,000 people in 13 countries, including France, Germany, Austria, South Africa, Spain, Finland, Italy Russia, the United Kingdom and also Brazil and Mexico.

Here’s a look at some of the key takeaways that could help influence the direct of your next (or first-ever) mobile campaign if your target is Brazil or Mexico.

#1 Android Rules
For 90% of the mobile Internet users in Mexico and Brazil that were surveyed, the operating system is the most important thing to consider when purchasing a smartphone. Out of all respondents from all countries, 41% prefer Android, 22% prefer iOS and only 8% prefer Blackberry.

These Accenture results are consistent with Brazil results from Nielsen Brasil published in August 2012, in which 78% of the smartphones sold in Brazil in June 2012 used the Android operating system. However, it’s important to note that comScore’s Device Essentials study from March 2012 reported that 58% of the mobile Internet traffic in Brazil came from devices using the iOS system.

But wait—there’s more. In September 2012 Kantar Worldpanel reported that for June to September 2012, Android had a 47% market share in Brazil in terms of the operating systems of smartphones sold in that period, making it the leader over iOS, which only had 6%; Symbian was in second place with 26.7%. For Mexico, Kantar Worldpanel reports 37% share for Android, 29.7% for Research in Motion (the leader last year), 4.7% for iOS and 20.2% for Symbian.

As such, if you are targeting by operating system in these markets, it seems that Android will deliver the largest amount of mobile phone users in both Brazil and Mexico.

#2 Mexicans and Brazilians Go Social with Their Mobile Phones
More than 80% of Mexican mobile phone owners surveyed say they use their phones to send messages on social media, as well as to blog, tweet and send instant messages. Among the Brazilian mobile phone owners, 73% reported doing these activities with their phones.

#3 They’re Hooked on Internet-Ready Phones
Given this high rate of online activities with their phones, it’s not a surprise that 78% of the Brazilians and 61% of the Mexicans said that the cell phones they buy in the future will offer Internet access.

#4 They Want Mobile Deals, Not Mobile Annoyances
When it comes to attitudes toward mobile ads, the Accenture study didn’t offer specific figures for the Brazil or Mexico markets but rather for all of the countries included. However, this data is telling. Nearly 40% of the respondents said that they find mobile banner ads and mobile text ads to be annoying. However, 66% said they are open to receiving coupons, special offers and promotions on their mobile phones. As such, structuring mobile messaging around savings may yield a better response in these markets.

#5 They Have Not Reached the Tipping Point for Mobile Payments
While 39% of the respondents in the 13 countries said they’d like to use mobile payments, 45% said they’re not interested. And overall, only 16% said they make mobile purchases. Of those who do use their phones to shop, 55% use them to buy event tickets, 46% buy train or plane tickets, 39% buy clothes and 37% buy consumer goods.
Despite this low response in this survey, new research predicts an explosion in mobile commerce in Brazil in 2013. Read more here.
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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