Tag Archives: Brazil mobile ads

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.

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.

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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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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The Impact of Latam’s Mobile Revolution

Apparently, everyone in Latin America seems to have a cell phone these days. The region’s population is at 597 million but it has 630 million mobile phone connections. That’s a cellphone penetration rate of 105%, higher than the U.S. rate of 103%. The data is from the GSMA—a group of mobile operators that promote the GSM mobile system—in a report that the organization just released.

Its 630 million mobile connections make Latin America the world’s third largest mobile market, just behind Asia Pacific and Africa. However, that 630 million is set to jump even more: by 2015 Latin America will have 750 million mobile connections—a penetration rate of 130%.
But the significance here is not just that Latin Americans are buying lots of mobile phones. For professionals in media, marketing and advertising, it’s also important to consider the type of phones Latin Americans are buying and how they’re using them.

Smartphone Sales Spiking
First off, it’s important to note that 24% of the 13.7 million cellphones sold in Argentina in 2011 were smartphones, and these are obviously better for accessing the Internet. In addition, smartphone sales spiked by 165% in Brazil in the first 6 months of 2011 and IDC projected a 78% increase in smartphone sales in Mexico in 2011. In fact, analysis firm The Competitive Intelligence Unit projects that smartphone penetration should reach 23% in Mexico in 2012 and reach 50% by 2014. As such, the 9% penetration that smartphones had in all of Latin America in 2010 should reach 33% by 2014 and GMSA suggests it may reach nearly 60% by 2016.

Mobile Connections
As Latin Americans buy more smartphones and tablets, they use them to go online—skipping landline connections. GSMA reports that in Latin America, mobile broadband subscriptions have gone up by 127% per year over the past 5 years. And over the next five years, these subscriptions could go up by 50% every year. In fact, by 2015, Latin America should have nearly 333 million mobile broadband connections.
In addition, a survey of Internet users in 14 Latin American countries done by research firm Tendencias Digitales revealed that 70% of Latin American Internet users went online with their mobile phones. Further adding to the statistics was Brazil’s Communications Minister, Paulo Bernardo. He recently reported that 99.8% of the Internet service subscriptions in Brazil in 2011 were for mobile access, while only 22% were for service through a landline. This is in line with other studies showing that mobile has overtaken LAN houses to become the #2 way that Brazilians access the Internet.

The numbers suggest 3 developments that will impact the media market in Latin America:

#1) Mobile seems to be opening the door of Internet access in Latin America—so in the near future we will probably see studies from comScore, IAB, AMIPCI and other organizations showing major increases from the current 36.7% Internet penetration in the region.

#2) This Internet increase means a whole new wave of consumers connecting for the first time, making online media even more important for reaching all of Latin America or specific markets. The surge in online ad spend in Latam that we’ve seen in 2010 and 2011 could become even more powerful.

#3) Mobile advertising in Latin America may soon be challenging display and search in the battle for ad dollars.

To find out how we can help you reach the Latin American online market via a display, search mobile or video 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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