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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.

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.   

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.

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.

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.

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.

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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Internet is the #1 Medium in Brazil

The title of this post may seem like a bold statement or an exaggeration. After all, TV has a penetration rate of over 90% in Brazil and commands most of the country’s ad spend. Magazines and newspapers are also flourishing in Brazil, setting new records for circulation, subscriptions and revenue. While Brazil now has 85 million Internet users, penetration is only at 44% since the population is estimated to be 192 million.
So how can the Internet be #1 in Brazil? A new survey of more than 2,000 Brazilians—done by comScore and presented at ProXXima Sao Paulo by IAB Brasil president Fabio Coelho—offers some reasons why we can draw this conclusion.

First of all, 42% of respondents say they spend 2 or more hours a day online—only 25% of them watch TV for this amount of time. When asked what they would do if they had an extra 15 free minutes during the day, 33% of them said they would surf the Internet. This was the #1 option, followed by going on social networks, at 13%. In contrast, only 11% of Brazilians said they would watch TV with those extra 15 minutes a day. As such, 3 times more Brazilians preferred to use this extra time for going online than for watching TV.
In addition, this kind of response wasn’t just limited to younger people. Among respondents who were 55 or older, 34% preferred to surf the Internet with those extra 15 minutes and just 15% said they would use that time to watch TV.

Coelho also said that the research shows that the Internet is the medium people use the most in a typical day, whether at work or in school. The data clearly supports this. In the morning, 14% of respondents said they read the newspaper, whereas 69% went online at that time of the day. In the evening, 78% of the respondents said they went online while only 46% watched TV.

Another of the study’s interesting findings had to do with receptiveness to Internet ads. In general, respondents said that they considered online ads to be creative and rich in content. TV seemed to outshine Internet in one aspect: 44% of respondents said that TV ads were memorable, more than the 36% who said that Internet ads were memorable. However, almost half of the respondents (49%) said that Internet ads are more creative and innovative than those on TV.

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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social media brazil story

6 New Social Media Trends in Brazil

The latest news about social media in Brazil indicates some interesting trends that marketers, media professionals and advertisers need to take into account.

#1 Social media penetration is at almost at 100% in Brazil
Different sources have reported different rates of social media penetration in Brazil, ranging from 79% to 87% and higher. However, the most recent data comes from one of the most respected sources for online research, comScore. According to comScore’s December 2011 report, It’s a Social World, 97% of Brazil’s Internet population is using social media.

#2 Most Brazilians use social media to research products before buying
A 2011 study from Oh! Panel found that 61.4% of Brazilians look for information about products on social media pages before buying. In addition, the study found that 81% of Brazilians use social media to look for new products and more than 75% look for special discounts.

#3 Most Brazilians are influenced by social media posts about what to buy
The same study from Oh! Panel revealed another interesting trend: 79% of Brazilians say that when it comes to products, they have more confidence in posts on social media from friends and family than they have in similar posts from product specialists.

#4 Many Brazilians feel social media are good sources about brand experiences
An October 2011 study of consumers in Brazil, China, India and the United States focused on attitudes towards social media. Nearly one-third of Brazilians (31%) agreed with the statement “Social network sites are a good source of word-of-mouth information on brand experiences.” This was significantly higher than responses from people in the other countries studied.

#5 Brazilians are heavily engaged with Facebook
In December 2011, the average Brazilian visitor to Facebook spent 4.8 hours on the site—a huge increase from just 37 minutes in December 2010. So it’s not surprising that in December 2011, Brazil became the #4 country in the world in terms of Facebook users: 36.1 million. The site has grown by 250% in Brazil over the past 4 years, passing Orkut as the most popular social media site. As part of this growth, Facebook was Brazil’s #1 display advertisement publisher in December 2011, with 17.4% market share. Facebook’s market share was greater than that of media giants Globo, UOL, Terra and Google.

#6 Vostu and Tumblr are growing hugely in Brazil
According to comScore, between December 2010 and December 2011 Vostu gained 338% more visitors, while Tumblr grew by 206%. Neither gain is surprising. Vostu is a social gaming site and Brazilians spent US$2 billion on online games in 2011. For its part, Tumblr is a blog platform/social networking site and Ipsos recently reported that 71% of Brazilian Internet users visit blogs.

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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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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Brazil Has the #6 Economy in the World

The day after Christmas 2011, Brazil received an unexpected present: the Centre for Economics and Business Research (CEBR) proclaimed it the world’s sixth largest economy.
With this ranking, Brazil moved ahead of the United Kingdom but still trails France, the United States and other economic superpowers. Part of the drive forward is due to the economy’s 7.5% growth in 2010 and 3.5% growth in 2011.
For marketing, advertising and media professionals, Brazil’s economic growth has meant more consumers and an ever-expanding media market. Here’s a quick-reference look at the impact of more money on media in Brazil:

Pay TV. In late 2011 Brazil had more than 12.2 million households subscribing to pay TV. But this medium is no longer a luxury restricted to the upper AB classes: pay TV now has 31% penetration in Brazil’s surging Class C. And class C isn’t signing up just for TV: an Ipsos survey in 2011 showed that 33% of new combo packages (TV, Internet and phone) were sold to members of class C.

Internet. Two different projections say that 70-80% of Brazilians households will have Internet access by 2015. As of 2011 there were 67 million households in Brazil, which means at least 46.9 million households will have Internet access. The average household in Brazil has 3 people, meaning that Brazil could go from 78 million Internet users in 2011 to 140 million in just 4 years.

Print. Newspaper circulation in Brazil went up 4% between the first 6 months of 2010 and the same period in 2011 to hit 4.4 million, a new record. Brazil’s magazines set another record in 2011 by taking in nearly $1.3 billion in revenues.

Not all of the final tallies for Brazilian media numbers for 2011 are in yet, but it’s clear that that trend is headed upwards for the near future.

To find out how we can help you reach Brazil with a targeted media campaign, please contact us at info@usmediaconsulting.com.
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Using Content to Think Outside the Banner

Is content king? Some believe this 100%, others see it as a big myth. We’re not sure if content is king, but we do know one thing: it can deliver results that rule.

The Challenge
A major brand in the healthcare industry wanted an outside-of-the-banner approach for their next campaign. This meant going beyond the usual ad formats to engage users and prospective customers. While lots of ad formats can gain attention, engagement is about keeping a customer’s attention—and getting them to interact with the brand. According to studies done by Adobe, Microsoft Advertising, Nielsen and other firms, higher engagement with ads or greater “dwell” time leads to better response and ROI.

The Solution
The campaign was to run on iG, the top content-producing Brazilian portal that draws 29 million unique users per month. iG is a respected provider of information across a variety of channels, including health. We saw a great opportunity to create a subchannel within iG that would specialize in the area of expertise for the client. The client created the content. They made it independent, fresh and interesting, NOT an advertorial to sell products. The client also varied the type of content. Rather than just copy and photos, they developed high-impact content that included informational videos and slideshows to maximize the power of the web medium.

But having great content in place was only the first step. We also had to draw people to it. So we created specific banners that ran in a variety of sections within iG and that appealed to multiple market segments: men, women, families, etc. The banners were customized to each section, promoting specific products and inviting users to click to find out more. Once a user clicked on a banner, he or she would end up at the client’s subchannel. There, he or she would discover lots of fresh content related to the product while also seeing ads for a variety of other products. 

The Results
The client set specific engagement metrics: click-through rates (CTRs), overall traffic to the channel, page views and time spent. The campaign produced powerful results in all of these areas, as well as more engaged users.

The Takeaway
Consider content as a tactic. It allows you to go outside of the banner and engage customers to build relationships that can deliver results that extend beyond a single display campaign.

To find out how we can help you use content to create a winning campaign, contact us at info@usmediaconsulting.com. To get the big picture on Brazil’s media market, click here.

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The comedy show Custe o Que Custar satirizes pop culture and politicians.

6 Basics about Brazil’s Media Market

Brazil is big these days. No surprise there: a spiking GDP, 190 million potential customers and a well-developed media market are getting lots of attention. You also can advertise there and make money without a local presence. These basics on the country’s media market will give you a sense of the potential rewards and challenges.

#1     Brazil’s media market is big. And small. While there are lots of media choices, only 7 firms control 80% of what’s read, heard or seen in Brazil. Organizações Globo rules TV, film and radio and is competitive in print and web media. It commands around 75% of Brazilian TV ad spending. Beyond free TV, Globo’s has interests in Net Serviços, the country’s largest cable company, and SKY, the largest satellite dish company. In print, Abril produces 73% of the highest-selling magazines in the country.

Domingão do Faustão is one of Brazil's top shows.

#2     TV still rules the media mix. This medium has the most penetration in Brazil (over 90%) and commands 60% of the overall ad spend. Other forms of media lag way behind, with newspapers a distant second at 12.7%. This is markedly different from the U.S., the U.K. and even Argentina, in which TV dominates but other forms of media don’t lag as far behind. Brazil is closer to Mexico in this sense, where 76% of ad investment goes to TV.

#3     Magazines are an emerging force. Circulation has been rising since 2005, spiking 7% in 2010. Biweeklies saw the biggest growth at 21%, followed by 8.1% for the weeklies and nearly 5% for the monthlies. The U.S.’s Condé Nast recently launched a joint venture with Globo, Brazil’s biggest media conglomerate, to create a new company. Edições Globo-Condé Nast will launch popular Condé Nast titles in Brazil, including Vogue.

#4     Online is gaining ground. Brazil has 73 million Internet users, the 8th largest Internet audience in the world according to comScore. Often, 43 million is the figure reported, but that doesn’t factor in the many users at LAN houses in the country. ComScore’s calculations take that into account.
     Since the country’s overall population is 190 million, this means there’s a 38% penetration rate. Not as deep as that of the United States or European countries, but this is changing quickly. The amount of Brazilian Internet users grew by 20% in 2010 and research firm Forrester’s estimates that it will grow 18% a year between 2011 and 2016. E-commerce grew by 40% in Brazil in 2010 and Forrester’s projects it will grow 178% by 2016 to reach US$22 billion. Seven out of 10 online Brazilians visited a retail site in December 2010, with Mercado Livre, Lojas Americanas and BuscaPe boasting the most uniques. Group-buying sites like Clubeurbano attracted 50% more unique users between August and October 2010. And banking giants Itau and Banco do Brasil each had a 50% growth in uniques during 2010. For its part, Brazilian portal iG draws in more than 29 million uniques a month.

#5     OOH is a power performer. Laws restricting billboards in Sao Paulo and Rio did nothing to stop the message getting out. Agencies just got more creative, using projections onto buildings, plasma screens in restaurants and digital panels in airports and malls to reach the audience. And it worked. That’s why out of home (OOH) ad investment shot up by 16% in 2010 to reach US$464 million. Digital OOH ad investment is growing particularly quickly in Brazil. It went up by 58% in 2010 and is projected to grow by another 60% in 2011 to reach $147 million.

#6     For print, consider buys with niche titles. The top two socioeconomic classes in Brazil are A and B, followed by class C, a lower middle class, then the poorer classes, D and E. Around 6 million people are expected to move from class C to class B in 2011 as the economy expands and government programs target poverty. One tendency of the emerging classes in Brazil is to consume more media, particularly magazines. In fact, Brazilians spend more than double the amount of money on magazines than they do newspapers. And when they look to spend, they show an interest in specialized information on decoration, fashion and food. This has given rise to more niche magazines, like Gloss, a teen magazine with a circulation of 140,000.  Other hot niche pubs include luxury magazine Wish Report and yachting magazine Nautica.

To learn more about how we can help you leverage the power of Brazilian media, contact us at info@usmediaconsulting.com.

To learn more about how we can help you leverage the power of print in Latin America, contact us at info@usmediaconsulting.com.

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