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.

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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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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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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