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Latam media landscape 2

Latin America’s Media Landscape 2015-2017

Predicting the future is always tricky, but different industry associations have made forecasts for different forms of media in Latin America for the next few years, all based on current trends. Using this data, here’s what experts say that Latin America’s media market will look like in the near future.

#1 THERE WILL BE 359 MILLION INTERNET USERS IN LATIN AMERICA BY 2015
Currently the population of Latin America is at around 575 million but according to the Comisión Económica para América Latina y el Caribe (CEPAL), by 2015 Latin America will have 598 million people. (This count includes Puerto Rico, projected to have 4.1 million people by 2015, but excludes non-Spanish-speaking countries like Haiti and French Guyana.)
According to a May 2012 projection from Registro de Direcciones de Internet para América Latina y Caribe (LACNIC), by 2015 Internet penetration will reach 60% in Latin America. Since 60% of 598 million is 359 million, it appears that Latin America will add 127 million Internet users over the next 3 years to its current total of 232 million Internet users.

Not surprisingly, the growth will be driven by the powerhouse Internet markets. Brazil’s Comitê Gestor da Internet estimates that 80% of Brazil’s homes will have Internet access by 2015. Given Brazil’s population of 193 million and an average of 3.3 people per household, this means that by 2015 Brazil could have 154 million Internet users—up considerably from the 85 million it has today per comScore. LACNIC also predicts that Mexico will have 65 million Internet users by 2015, up hugely from its current total of 40.6 million. Other markets predicted to gain lots of new users include Chile (16.4 million Internet users by 2015) and Ecuador (7.5 million Internet users by 2015).

#2 PAY TV PENETRATION IN LATIN AMERICA WILL REACH 68% BY 2017
According to Dataxis, by 2017 pay TV penetration in the 7 biggest Latin American markets will reach 68% and offer advertisers and audience of 97 million people. The biggest growth markets for pay TV will be Brazil, Mexico, Colombia and Argentina. In addition, the head of Brazil’s national telecommunications agency (Anatel) recently said that 90% of Brazilian homes could have pay TV by 2018. For its part, Mexico could have more than 50% of pay TV penetration by 2015.

#3 LATIN AMERICAN NEWSPAPERS WILL GROW BY 5.5% PER YEAR THROUGH 2016
The downturn experienced by newspapers around the world does not seem to be affecting Latin America. According to a recent projection from PricewaterhouseCoopers, revenues for Latin American newspapers will grow annually by 5.5% through 2016 to reach US$10.4 billion.

#4 LATAM WILL HAVE 750 MOBILE CONNECTIONS BY 2015 PLUS MAJOR MOBILE DEVICE PENETRATION
According to the GSMA, Latin America will have 750 million mobile connections by 2015. Overall mobile penetration in the region is above 100%. Brazil’s mobile penetration is at well over 100%, as is Argentina’s, but in October 2012 Brazil reached a total of 258 million active mobile lines, up from 232 million just a few months back. Mexico is slated to reach 94% mobile penetration by the end of 2012 and over 100% by the first quarter of 2013.
Beyond simple penetration, mobile is changing Latin American markets through the adoption of mobile devices. It’s really not a question of whether a brand needs a mobile ad strategy for Latin America—it’s what this mobile ad strategy will be. Just look at the numbers:

To find out how we can help you reach Latin America via a strategic campaign across all media, please contact us.

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3 Great Ways to Reach Brazilian Internet Users

Recently, we’ve written quite a bit about Brazil’s spiking online ad spend. We know that online grew 19% in ad spend in 2011 and that it makes up 10% of the country’s overall ad spend. But the challenge for media, advertising and marketing professionals is where to direct those online ad funds.

Several recent studies we’ve reviewed, including comScore’s 2012 Brazil Digital Future in Focus, offer some ideas for concentrating online ad buys.

#1 ONLINE VIDEO A quick look at the numbers shows how hot this category is. First, Brazil’s online video audience is the biggest in Latin America—42.9 billion. It grew by 19% in 2011. Brazilians watched a total of 4.7 billion online videos in 2011, 74% more than in 2010. Besides overall volume, individual volume of online videos watched is also high in Brazil: each viewer watched an average of 109 in 2011.

According to comScore, Google Sites—owner of YouTube—is the #1 site for Brazilian online video viewers. That’s not surprising, considering that YouTube recently reported that Brazil is its #6 market in the world, that it reaches 79% of the country’s Internet users and that its views from Brazilians grew 67% last year.

Several other sources also point to the heavy popularity of online video in Brazil. A 2011 survey of 6,500 consumers in 7 countries done by Accenture showed that 89% of Brazilians reported that they watch online videos. This was more than people in the United States (80%) or the United Kingdom (75%). And in another 2011 survey, this one from Forrester, 86% of Brazilians said that they watch online videos.

Beyond the strong viewership, it’s important to note that currently, ads take up less than 2% of the time spent watching online videos—compared to 25% of the time spent watching TV. As such, advertisers can stand out more while getting better segmentation and highly accurate audience measurement. These advantages and the strong market for online videos in Brazil and Latam led us to launch Jumba Video Network last year. It brings together top video sites for targeting all of Latin America, specific markets like Brazil and allows for a wide range of segmentation options.

#2 SOCIAL MEDIA AND BLOGS These seem like rather obvious ways to reach Brazilian Internet users, especially when you consider that 97% of them are on social networks. In addition, comScore recently reported that blogs have 96% reach among Brazilian Internet users—the country is #1 in the world in this regard and the audience for blogs grew 44% last year.

However, some studies suggest that there hasn’t been a huge rush of companies investing in social media campaigns in Brazil. For instance, a 2011 survey of 156 Brazilian companies by Orbium revealed that 42% of them had never done a social media campaign but were interested in doing so. In addition, nearly 10% of the Brazilian companies surveyed said they had no interest in conducting social media campaigns. Another study done by Forbes in partnership with Weber Shandwick showed a similar reserve from Brazilian executives when it comes to social media: 41% said that the risks of investing in social media are greater than the gains.

Despite this, Facebook clearly seems to offer powerful potential in Brazil, growing by 192% in 2011. Visitors averaged 4.8 hours on Facebook in December 2011, 667% more time than in December 2010. Blogging site Tumblr also grew enormously in Brazil in 2011, going up in visitors by 206%. Other hot social sites in the country include LinkedIn (79% growth), Slideshare (65%) and Twitter (40%). Finally, Brazil is the fourth largest market for Google Plus in the world, just behind France.

#3 NEWS/INFORMATION SITES In a November 2011 presentation at MediaOn 2011, Alex Banks, comScore’s Executive Director, was quoted as saying that Brazil is the #2 consumer of online news in the world. More recently, in February 2012 Brazil dropped to #4 in consumption of online news. That said, the fact that it ranks among the top 5 markets in the world in this category—not far behind the United States, Sweden and South Korea—clearly indicates that news sites are a very effective means of reaching Brazilian Internet users. This category posted impressive gains in 2011, growing by 39% in visitors. According to comScore, the average Brazilian visitor to a news site spends 33 minutes a month consuming news, viewing an average of 37 pages of content. The top-ranked news sources for Brazilian Internet users are Globo Noticias, UOL Noticias-Folha, Terra News, Yahoo! News and Estadao.

However, it’s important to note that the previous figures are for general news. When it comes to other types of news, other sites do well. For example, Brazilian portal iG consistently ranks in the top 5 for financial, technology and health news.

Despite this distinction, what’s clear is that news/information is another important category to consider when setting up an online campaign that’s targeting Brazilians.

To find out how we can help you reach Brazil via online video, news, social media or other digital options, please contact us at info@usmediaconsulting.com.

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US Media Consulting Merges with Jumba

This month we officially completed our merger with Jumba Media Group, one of the top online ad networks in Latin America. “While we have worked closely with Jumba since its launch in 2007, we’re proud to make it officially part of the US Media Consulting family,” says Bruno Almeida, Chief Commercial Officer for US Media Consulting.

New Name, New Products
The “Jumba” name won’t go away, but it will no longer refer to the company. From now on, US Media Consulting is the company name but the Jumba brand name will continue to exist in the form of specific products. As such, Jumba’s offices in Buenos Aires, Argentina, will become an additional Latin American satellite office for US Media Consulting, joining the ones in Bogotá, Guatemala City, Caracas, Mexico City and the upcoming office in Brazil
One of the key products with the Jumba name is the online ad network, which features 1,700+ sites concentrated in 15 key subject areas. Adding this network—which will be called Jumba Display Network—to US Media Consulting’s roster of represented media and 2,200 media partners will give our clients even more Web options for their campaigns. Besides top premium sites, Jumba Display Network offers vertical site clusters and long-tail sites—both of which make for maximum reach and significant cost-effectiveness.
 
Beyond Web into Mobile, Social and More
Of course, merging with Jumba offers more than just proprietary web solutions. With the Jumba Mobile Network, US Media Consulting can help clients tap into Latin America’s surging mobile ad market via more than 150 mobile sites.
But the new solutions don’t stop there. “Our team has developed a wide range of solutions for clients, including online video advertising, email marketing and social media marketing,” says Ignacio Roizman, former head of Jumba Media Group and now Chief Operations Officer at US Media Consulting. “We’ve already launched campaigns for clients in those areas but we’re also developing a number of other web-based solutions that should roll out in 2012,” explains Roizman.

A Fresh Site…and Maybe More Mergers
Clients, media partners and industry colleagues will get a very direct sense of the offerings of the new, improved US Media Consulting this spring. “We’re re-doing our company Web site from top to bottom,” says Almeida. “The new site should be ready in a couple of months and will showcase the expanded offerings that the merger has made possible. In addition, we’re also considering other firms that we may acquire. We’re seeing a lot of interesting synergies in the marketplace and great potential,” says Almeida.

To find out how more about our web, mobile, social media, email marketing and online video campaigns, as well as our capabilities in print, TV and out of home advertising, please contact us at info@usmediaconsulting.com.

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Ad Spending Will Grow Strongly in Latin America in 2012

Magnaglobal recently released its global ad forecast for 2012 and revealed some interesting figures for 2011. Here’s a look at the relevant numbers for all of Latin America and some specific countries, including 2012 projections for different media types.

2011

  • Latin America’s ad revenues grew by 13.2% in 2011, the biggest growth among developing economies around the world
  • Argentina’s ad revenues grew by 37.9% in 2011, the largest growth of all 63 countries analyzed by Magnaglobal
  • Brazil continued to show strong growth this year, with a 10.2% increase in ad revenue
  • Globally, TV ad revenues grew 4.8% and the medium was #1 in ad revenue across all media, with a 41% share
  • Internet was the biggest global grower in ad revenues in 2011, up by 16.9%
  • Paid search is back on top as the largest revenue driver for online advertising, growing by 19% to total $14.9 billion, with display ads growing by 15% and online video spiking by 58% to pull in $4.7 billion in revenues
  • Radio grew by 2.2% globally, while magazine revenues were down by 0.9% and newspaper revenues dropped by 2.4%
  • OOH revenues grew by 6.4% globally

2012

  • Magnaglobal projects that global ad revenues will grow by 5% in 2012
  • Latin America will post 13% ad revenue growth in 2012, leading all emerging economies in the world
  • Argentina will see the biggest ad revenue growth in all of Latin America in 2012, with 26.4%, outstripping all BRIC countries
  • Brazil will post 12% growth in ad revenues in 2012 and will rank #7 in the world in ad spend, ahead of Canada, Australia and Italy and just behind France
  • Globally, in 2012 Internet will surpass newspapers as the second biggest media category (behind TV), accounting for almost 20% of overall ad spend
  • Radio will grow globally by 1.6% in ad revenues
  • Newspapers (-1.0%) and magazines (-1.3%) will continue to drop
  • OOH will grow by another 6.3% in 2012

To find out how we can help you reach Latin America with a precisely targeted campaign, please contact us at info@usmediaconsulting.com.

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Following the Money with Latam’s E-Commerce

We know that e-commerce is growing nicely in Latin America, up 24% between 2009 and 2010 to hit $12 billion and that it may go up by 58% in 2011.

We also know that Brazil is home to the biggest online buyers, followed by Mexico and Argentina, and that Colombia and Chile are up-and-coming e-commerce markets.

But what Latin Americans are actually buying online is what shows the true impact of e-commerce in the region.

A November 2010 comScore study showed that the retail categories with the biggest reach are consumer electronics, computer hardware and software.

A study released in June 2011 by Google and D’Alessio IROL of Latin American online shoppers showed 5 top categories:

  • Cell phones
  • Clothes (including shoes and accessories)
  • CDs/DVDs
  • Internet connection services
  • Computers

Researching Online, Buying Offline
While both survey results offer good news for advertisers in those categories, they’re not the only ones who can benefit from Latin America’s e-commerce boom. In the comScore study, the most popular retail category for Latin American online shoppers—ahead of the ones already mentioned—is comparison shopping.

The Google study showed similar results: 52% Latin American online shoppers report that after researching a product online, they buy it offline.

Other surveys suggest why this happens: many Latin Americans are still cautious about shopping online. They’re worried about consumer data safety, scams and in certain countries the import tariffs also seem to be a factor. Delivery is another concern.

However, these circumstances potentially offer the best of both worlds for advertisers. Reaching customers with a message online can either lead to an online purchase or drive traffic to stores if they’re just researching before buying. In fact, this could explain why online ad spend has gone up so much around Latin America, spiking upward by as much as 56%.

To learn more about how we can help you reach Latin American shoppers all over the region or in specific countries, contact us at info@usmediaconsulting.com.

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The Boom Within the Boom

It’s not news that Latin America is hot. Tons of stories cover how the region boasts a spiking GDP and how Brazil is the number 7 economy in the world. There’s also the overall ad spend in Latam, up 21 percent in 2010. But the news media seem to have skipped over themselves in covering this story. Meaning this: right now, Latin American media are surging more powerfully than they ever have before. Here are 4 quick takeaways about the state of Latam media right now—and in the future.

 

Print Has Power
While newspapers and magazines in the U.S. and Europe took some severe hits in circulation and ad revenues in recent years, Latam newspapers and magazines grew impressively. And they’re going to keep growing.
Here’s a look:

 

Online Surges Strongly
The Latam media boom’s biggest blast may be happening with this sector. For years, online advertising was the region’s ugly duckling, but one big swan is now emerging. The numbers say: 


TV Still Looks Good
The region’s leading medium is still on top—and breaking records. Crunching numbers reveals: 

 

OOH Gets Out More Often
Out-of-home (OOH) advertising is another power performer in the Latam media market, boasting its own share of impressive numbers. 

  • Big and getting bigger: In 2011 the overall OOH ad spend in Latam is $1.2 billion, projected to double to $2.3 billion by 2016
  • Eye on Brazil: Despite restrictions on outdoor advertising in cities like Sao Paulo, the country still has a $464 million OOH market
  • Digital doings: Digital OOH is growing rapidly in several Latam markets but is hottest in Brazil, spiking 58% in 2010 and set to grow by 60% in 2011

  
To learn more about how we can leverage this media boom for your company, contact us at info@usmediaconsulting.com.

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