Tag Archives: Brazilian media

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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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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Brazil best sellers

What Brazilian Consumers Want

Recently the Brazilian research firm Cetelem BGN released its annual Observador report, based on interviews with consumers in 70 cities throughout the country. We went through the 100-page report to give advertisers, marketers and media professionals a breakdown of the key findings.

Classe C Still Surging
Brazil’s economic transformation in recent years has been dramatic. In 2005, 51% of the population was made up of people from classes D and E, while 34% were from the classe C middle class and 15% were from the upper AB classes. Yet in 2011, the middle class became the majority in Brazil, 54% of the population. These days, 103 million middle class or classe C Brazilians are now the dominant consumer segment.

Purchase Intent
When asked what they definitely intend to buy in the coming months, the top categories among Brazilians were furniture (31%), appliances (30%), travel (25%), TV/video products (19%), cell phones (17%) and computers (16%). Classes AB—42 million people—showed the strongest intent to spend money on travel, furniture and appliances.

Internet Access
Cetelem BGN’s results show that Internet penetration in Brazil is 44%, a figure in line with that of comScore, which estimates that 85 million Brazilians out of a total population of around 193 million have Internet access. At 43%, classe C’s Internet penetration rate is almost the same at the rate for the entire country.

E-commerce
More and more Brazilians are using the Internet to research products before buying and they do this most often when buying electronics, travel products and cultural products. Overall, 23% of Brazilians report that they buy products online, which means that 44 million people in Brazil engage in e-commerce. The two main promotional features that Brazil’s online shoppers value the most are promotional discount periods (66%) and free shipping (48%).
Most Brazilian Internet shoppers (81%) use credit cards while 46% use boletos bancários (online payment voucher) and 11% use crediário, a type of credit system based on installment payments.

Credit Cards
According to O Observador 2012, 33% of Brazilians own a credit card and 35% have debit cards, while 18% have store credit cards. Even among the AB classes of Brazil, the Observador survey shows credit card penetration to be 57%. Among Brazilian credit card owners nearly half (47%) own one and 31% own two, with only 3% owning 5 or more. For most items in Brazil, such as food, clothes, household bills, cell phones, gas, medicines and entertainment, cash is by far the preferred payment method.

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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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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Brazil’s Ad Market Grew by 8.5% in 2011

Figures just released by Projeto Inter-Meios show a total billing by the Brazilian ad industry of 39 billion reales ($US22.5 billion), with 28 billion reales (US$16 billion) corresponding to pure ad space sales.

In 2010, the industry billed 21 billion reales, growing 20% compared to 2009. Free TV is still the leader in ad spend in Brazil, capturing 63% of the total. Below is a quick breakdown:

Note that Projeto Inter-Meios shows Internet as having only 5.1% of total ad spend in Brazil, while IAB Brasil’s figures show online capturing 10% of ad spend. That may because of the way Internet ad spend is tallied. IAB Brasil brings together both search and display, since these components each make up 50% of the online ad spend in Brazil. Projeto Inter-Meios does not seem to make that distinction, hence the difference between the two organizations’ figures.

Despite this difference, Projeto Inter-Meios observed that Internet ad spend grew by nearly 20% in 2011, more than any other medium. Out-of-home in Brazil also posted impressive growth in 2011—it grew by 12%. Brazilian print media also grew well in ad spend in 2011: newspapers gained 3.8% and magazine ad spend went up by 3.5%. These strong print numbers match other recent statistics that show the medium is doing quite well in Brazil, unlike in other markets. According to Projeto Inter-Meios, the only Brazilian media to show drops in 2011 were cinema and guides.

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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CAPTUR~1

In Brazil, Advertise Now, Sell Later

Taking advantage of the Brazilian boom has been a challenge for companies. Not only are import tariffs high, it’s not exactly easy to set up shop there: regulations and local taxes can also be barriers. Even Apple, which probably has a few dollars saved up, passed on opening a store in Brazil.

But you should advertise anyway. You’ll still reap nice ROI. Here’s why.

First, Brazilians are very brand-conscious: they love Nike sneakers, Diesel jeans and Toyota Corollas, for example. If they can’t buy them outright, they’ll pay for them bit by bit. The nation’s top retailer is Casas Bahia, and it earn a good portion of its profits from the interest on installment plan payments.

And if Brazilians can’t afford to pay for these brands at home, they’ll buy them when they travel.

Brazilians are traveling more than ever, especially the emerging class C middle class. In fact, 10.7 million Brazilians will travel for the first time this year—and 8.7 million of them are from classes C and D. When they get to their destination, they’ll shop for the brands they know. Miami is just one city benefiting from this trend: Brazilians spent more than US$1 billion there in 2010. And in 2011, just from January to May, Brazilian tourists spent US$8 billion, a new record.

So build your brand in Brazil. Even without setting up shop there, you could end up with many new loyal customers.

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

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