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Latam’s Emerging Internet Markets

In covering the rise of Internet in Latin  America, there seems to be a wealth of information about the larger markets such as Brazil, Mexico, Argentina and Colombia. In contrast, it’s harder to find data about smaller but surging Internet markets, such as Peru, Ecuador, Chile and Uruguay.

To help marketers, advertisers and media agencies plan their campaigns in these markets, we decided to put together some quick Internet data portraits for them.

 


CHILE

>Penetration: In June 2012 there were 10 million Internet users in Chile out of a total population of 17 million, which is 58% Internet penetration*. Chile is edged out by Colombia (59.5%) and Argentina (66%) in Internet penetration, but ranks higher than Mexico, Brazil and many other Latin American countries.
In terms of reach within socioeconomic classes, Internet penetration in Chile is 81% with classes ABC1, at 70% with class C2 and at 57% with class C3.**

>Future Growth: There will be 16.4 million Internet users in Chile by 2015, 64% growth. This will undoubtedly be helped by 97% PC penetration in Chilean homes by 2015.***

>Time Online: Chilean internautas spend an average of 24 hours a month online per user, in line with the global average of 24.5 hours per user per month.****

>Reaching This Audience: The types of sites with deepest reach among Chilean Internet users are social media sites (96% reach), community sites (95%), multimedia sites (93%), news sites (93%), blogs (87%) and game sites (87%).****

>Social Media: Chileans spend nearly 9 hours a month on social media and the country ranks #6 in the world in terms of its social media use. Facebook rules in Chile as it does in the rest of Latam, with 91% reach and 6.7 million visitors from Chile in May 2012.****

>Social Media to Watch: Despite Facebook’s reach, advertisers should also look to other fast-growing sites in Chile, like Tumblr (209% growth between 2011 and 2012), Scribd (258%), Slideshare (58%) Deviantart (36%) and LinkedIn (32%).****

>Online Video: Chileans watch many more online videos than the rest of Latin America, offering advertisers a fresh, effective format for reaching this market. Internet users in Chile watch 172 videos per viewer per month, significantly higher than the monthly online video consumption of Mexico (154 videos per viewer per month), Brazil (125) and Argentina (117). The vast majority of online videos watched by Chileans (82%) are on Google Sites, with VEVO and Viacom responsible for 5% and 1%, respectively, of the online videos watched by the audience. Current market indicators suggest the growth should continue strongly: between August 2011 and August 2012, the overall numbers of online videos that Chileans watched went up by 48%.****

>E-Commerce: Projections from Visa suggest that e-commerce in Chile will grow 14% from US$1.4 billion in 2011 to US$1.7 billion in 2012.

>Mobile Penetration: Currently it’s at 129%.******

>Smartphone Penetration: Currently at 30% but one estimate says that by 2015, 54% of the cell phones sold in Chile will be smartphones.******* However, Chilean Telecommunications Ministry subsecretary Jorge Atton recently estimated that in 2013 as many as 75% of the mobile phones sold in Chile will be smartphones.

>Mobile Internet: In 2011 mobile broadband connections in Chile grew by 105% to reach 2.96 million and surpass fixed broadband connections, which totaled around 2 million.********

Sources: *Internet WorldStats, **Estudio General de Medios, ***Pyramid Group, ****comScore, *****Cámara de Comercio de Santiago, ******Subsecretaría de Telecomunicaciones de Chile, *******Entel, ********Ministerio de Transporte y Telecomunicaciones

 


ECUADOR
>Penetration:
Currently there are 4 million Internet users in Ecuador, which means an Internet penetration rate of 27%.*

>Future Growth: By 2015 there will be 7.5 million Internet users in Ecuador, nearly 90% growth.**

>Social Media: Ecuadorian Internet users spend 6 hours a week on social media.*** Facebook is by far the most popular site, with 4.9 million users in Ecuador.**** Among the five brands with the most amount of Facebook engagement in Ecuador are KFC Ecuador, Pingüino Ecuador, Nine West Ecuador, McDonald’s Ecuador and Fioravanti.****

>Mobile Penetration: Overall, 78% of Ecuadorian homes have a mobile phone.*****

>Smartphone Penetration: Currently at 8%, which suggest there are 1.2 million smartphone owners in Ecuador. Demographically, 53% of smartphone owners in Ecuador are men and 47% are women. Smartphone owners skew fairly young, with 11.7% between 16 and 24, 11.5% between 25 and 34, 10.1% between 25 and 34, 7.2% between 35 and 44 and 5.7% between 45 and 54.*****

Sources: *Internet WorldStats, **Latin American & Caribbean Network Information Centre (LACNIC), ***Wave 6 study by UM, ****Socialbakers, *****Instituto Nacional de Estadísticas y Censos

 


PERU

>Penetration: In June 2012 there were 10.7 million Internet users in Peru out of a total population of 29.5 million, which is 36.2% Internet penetration*.

>Time Online: Peruvian internautas spend an average of 26.5 hours a month online per user, higher than the global average of 24.5 hours per user per month and higher than the averages for Internet users in Mexico (22.8 hours/month), Argentina (25.4 hours), Chile (24.9 hours) and Colombia (23.3 hours).**

>Reaching this Audience: The types of sites with deepest reach among Peru’s Internet users are community sites (97% reach), social media sites (96%), multimedia sites (96%), news sites (95%), directories (91%), blogs (82%) and game sites (81%).**

>Social Media: Peruvians spend 8.6 hours a month per user on social media, which is higher than Latam’s average per user (7.6 hours) and the global average per user (6.1 hours). Facebook is the #1 social media site, reaching 87.9% of Peru’s online population.**

>Entertainment: 97% of Internet users in Peru visited an entertainment site in January 2012 and their usage of these sites (4.2 hours per user) is higher than that of overall Internet users in Latam (3.3). Not surprisingly, YouTube has 73% reach in Peru.**

>Mobile Penetration: Currently it’s at 110%.***

>Smartphone and Tablet Sales: While it’s difficult to pin down smartphone penetration, it’s known that 28% of the phones imported into Peru in 2012 were smartphones, double the amount imported in 2011.**** An article on the Web site Nexonet cited projections from Samsung that indicate that 50% of the cell phones sold in Peru in 2015 will be smartphones. For their part, tablet sales in Peru have spiked by 334% in the first half of 2012, with 57,800 units sold. In addition, while Samsung’s Galaxy had a 60% share of the tablet market in Peru in 2011, Apple is gaining: of the 57,800 tablets sold so far in 2012, 13,589 were from Apple.****

>E-commerce: While online shopping in Peru has yet to reach the levels that it has in Mexico, Brazil or Argentina, one recent estimate suggests that e-commerce will grow by 30% a year through 2015.*****

>Mobile Internet: In Peru, mobile Internet traffic grew by 1,700% between 2010 and 2012.******

Sources: *Internet WorldStats, **comScore, ***International Telecommunications Union, ****Dominio Consultores, *****Sociedad de Comercio Exterior del Perú, ******Telefónica Móviles

 


URUGUAY
>Penetration:
In June 2012 there were 1.8 million Internet users in Uruguay out of a total population of 3.3 million, which is 55.9% Internet penetration*. A 2012 study done by Grupo Radar of 1,800 Uruguayans—1,098 of whom were Internet users—showed that 77% of people in Montevideo and 74% of people in the rest of the country had PCs in the home. PCs were present in the homes of 97% of the highest socioeconomic classes and in 78% of the homes of the middle classes.**

>Connection: In Uruguay, 86% of Internet users connect from home, while 35% connect from the homes of family or friends, 24% from work, 23% from school and 17% from public places, while 42% connect from cybers, presumably Internet cafes. Interestingly, some 20% reported going online with mobile phones or tablets.**

>Time Online: According to Grupo Radar’s results, the average Uruguayan spends 10 hours a week online, which would average out to 40 hours a month, considerably higher than monthly figures reported for other countries in Latin America.**

>Reaching this Audience: The top activities reported by Uruguayan Internet users include search (79%), social media (77%), email (73%), chatting (72%), downloading music (65%), YouTube (63%) and reading news (62%). Relatively low numbers report playing games (35%), downloading or watching movies (34%) and buying or selling online (22%).**

>Social Media: Nearly all Uruguayans surveyed by Grupo Radar (99%) are on Facebook, while other social media sites have much lower numbers. For example, only 11% use Twitter, only 2% use Sonico or Badoo and only 2% use LinkedIn.**

>Facebook Use: The majority of Uruguayan Internet users surveyed by Grupo Radar (89%) use Facebook to chat. Other top Facebook uses include sharing links, commenting on friends’statuses, uploading photos, writing comments or joining groups. Only 42% report becoming fans of pages (57% do not) and 31% report clicking on social media ads.**

>Researching Brands: About half (52%) of Uruguayan Internet users go online to find information about brands, while 48% do not. Brand websites are were the large majority (70%) go, though social media are in second place with 29% of users going there to find out information about brands. A small amount (13%) writes comments about brands on social media.**

>Social Media Ads: Grupo Radar’s study indicates that 49% of Uruguayan Internet users like that brands promote themselves via social media, 4% do not like it and 47% don’t care one way or another.**

>E-commerce: Overall global numbers for e-commerce are difficult to pin down but only 22% of respondents in Grupo Radar’s survey reported buying online. With those online shoppers, top online products included PC accessories, appliances, cell phones, clothes and sports equipment.

>Mobile Penetration: Currently it’s at 71%, according to the Instituto Nacional de Estadísticas.

>Smartphone Penetration: Current data is scarce but Pyramid Research projects sales of 1.2 million smartphones in Uruguay by 2017.

>Digital Media: In Grupo Radar’s study, 39% of Internet users in Uruguay reported reading news on line, with 64% reading news on El País’ site. Other news sites drew significantly lower responses: Observa (17%), Montevideo.com (14%), La República (14%) and El Espectador (7%).**

>Mobile Internet: In 2011 the amount of mobile broadband connections in Uruguay grew by 60%***

Sources: *Internet WorldStats, **Grupo Radar, ***Unidad Reguladora de los servicios de Comunicación

To find out how we can help you reach these emerging Internet markets or any of the other markets in Latin America via a strategic campaign across all media, please contact us.

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The Top 3 Sites for Latin America’s Internet Users

Broadcasted in March 2012, ComScore’s recent webinar—Futuro Digital Latinoamerica—offered a number of fresh insights into Latin America’s Internet audience. One relevant point for online marketers and advertisers is where Latin American Internet traffic flows the most.

ComScore’s results indicate that three types of sites draw the most Latin American Internet users.

#1 Google Sites
According to comScore, Google sites (which should include YouTube) drew the most Latin American Internet users in December 2011. Despite the heavy draw of Google, Latam’s internautas actually spent spent the most time on Facebook: 46,165 minutes. This is in line with the rapid rise of Facebook in Latin America and the region’s heavy engagement with social media.

#2 News Sites
News sites have 86.3% reach in Latam, nearly 10% more than the global average of 76.1%. Between December 2010 and December 2011, the news category grew by 32% in users. Among the Latin American countries where news sites have the biggest reach:

  • Brazil (97.6%)
  • Peru (95.9%)
  • Argentina (94.8%)
  • Chile (94.3%
  • Mexico (84.8%)

Argentina is #1 in online news consumption in Latin America, with an average of 99 minutes per visitor, well above the world average of 64 minutes. While Grupo Clarín and Grupo La Nacion are #1 and #2 in the news category in Argentina, Grupo Infobae seems to have the highest engagement—each visitor spent 75 minutes on the site in December 2011.

#3 Entertainment Sites
In Latin America, entertainment Web sites have a long reach of 96.7%, which is significantly higher than the global reach of entertainment sites: 88.6%. The countries where entertainment sites have the most reach include Argentina (97.6%), Brazil (97.5%) and Peru (96.9%). However, other countries aren’t very far behind: entertainment sites have 96.3% reach in both Chile and Mexico, and 94.5% in Colombia. Entertainment sites may be a particularly good way to reach Internet users in Peru, Colombia and Chile: they each spend an average of 4+ hours a month on these sites.

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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Chile tech

Chile is #1 in Latin America in Connectivity Technology

Developed by Nokia Siemens Network, the Connectivity Scorecard annually ranks the top 50 countries in the world in terms of how they use information and communications technology (ICT) infrastructure. It also measures how much governments, businesses and consumers make use of connectivity technology. The Scorecard divides countries into 2 categories—resource-driven economies and innovation-driven economies—and ranks them accordingly.

In 2011, Chile ranked #1 in Latin America and #2 among resource-driven economies like Russia, Brazil and Mexico. Its overall score as 6.21, not far from the scores of innovation-driven economies like the United States (7.82), the United Kingdom (7.06) and Canada (6.88).

What Drove the Rank
Nokia Siemens Network cited several factors in the country’s high ICT ranking:

• Internet and broadband penetration in Chile are among the highest in the region
• Chilean businesses have a high availability of international bandwidth and strong penetration of PCs
• A high secondary school enrollment rate, which boosts its scores in terms of business usage and skills

Also cited as part of Chile’s high score was its pioneering role in terms of new technologies. Chile was the first country in Latin America to launch services like mobile WiMAX, IPTV, wireless TVoIP, triple-play services and mobile voice-to-text. Chile was the second country—after Puerto Rico—to have 3G mobile services.

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

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social-media

Brands Should Be Careful with Social Media in Latam

We’ve seen that social media can be a brand booster in Latin America. However, a new survey of 72,000 consumers shows they have mixed feelings about the social media presence of brands.
TNS carried out the study, called Digital Life, which surveyed customers in 60 countries—including Argentina, Brazil, Chile, Colombia, Mexico and Peru—about their online habits, including social media. Here’s a rundown of the key results.

The Good
• 43% of Latin American social media users see social sites as a place to buy products, with 48% of Brazilians sharing this view
• 44% of Argentines say social media sites are a good place to learn about products
• Several Latam countries are more open to brands on social media sites than they are resistant, including Brazil (32%), Colombia (31%), Peru (32%), Mexico (20%) and Chile (18%)
• 46% of Latin Americans talk about brands online, including 25% of Argentines
• 55% of Latin Americans say they’re driven to get involved with a brand online by promotions or special offers

The Bad
• 45% of Latin Americans don’t want brands to market to them via social media—they see the brands as invading their social space
• 53% of Brazilians don’t want brands to market to them via social media
• 44% of Argentines don’t want brands to market to them via social media
• 37% of Mexicans don’t want brands to market to them via social media
• More Argentines go online to complain about brands (13%) than praise them (11%)

The Confusing
The numbers paint a jumbled picture. On one hand, almost half of Argentines think that social media sites are a good place to learn about products. Yet the same amount doesn’t want brands to market to them on social media. About half of Brazilians see social sites as a place to buy products, but the other half doesn’t want to be bothered by brands on social media sites. A good number of Latin Americans seem open to special offers from products, yet others don’t.
To further muddle things, in the press release that TNS put out to discuss Digital Life’s results, the company said that “misguided digital strategies are generating mountains of digital waste, from friendless Facebook accounts to blogs no one reads…The result is huge volumes of noise, which is polluting the digital world and making it harder for brands to be heard—presenting a major challenge for businesses trying to enter into dialogue with consumers online.”
Okay—but this doesn’t really explain things. Clearly, many of the respondents in these countries are fine with brands reaching out to them social media. And none of the preliminary numbers suggest that consumers perceive social media efforts from brands to be digital garbage.

Moving Forward
What is clear is that Latin Americans—and other consumers—are ambivalent about brands reaching them via social media. In addition, companies risk being perceived as invading their customers’ social media space. But does this mean that brands are “polluting” the digital world with their social media efforts? Not necessarily.

What is does mean is that brands need to look very hard at their social media efforts in Latin America. This is a divided audience—half are glad to see you there and half are not. So the question is: how do you win over the other half? Obviously, the answer will be different for every company. To find those answers, brands may want to explore case studies of successful social media use to see what kind of best practices they can glean and apply. They should also do research in these markets to determine how social media users see their efforts and refine them accordingly. Overall, the survey results point to a need for brands to constantly monitor and improve their social media efforts to make sure that they’re having a friendly dialogue—not an annoying, alienating monologue—with their customers.

To learn more about how we can help you reach Latin America with a customized campaign, contact us at info@usmediaconsulting.com.

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online ad spend

Online Ad Spend Skyrockets All Over Latam

While other countries can’t boast Brazil’s doubling of online ad spend in 2011, they’re actually not that far behind.
It’s projected that Mexico will join Brazil in having its online ad spend reach 10% of the country’s overall ad spend in 2011. This marks an increase of 3% compared to 2010, when online’s share of total ad spend was at 7%. This surge comes on top of Mexico’s 35% growth in online ad spend between 2009 and 2010, when it reached 3.3 million pesos ($273 million).
While Mexico’s 35% increase in online ad spend is impressive, other Latam markets are also heating up in this area:

  • Argentina: 50% increase in online ad spend in 2010, 27% projected increase in 2011
  • Chile: 29% increase in online ad spend in 2010, 35% projected increase in 2011
  • Colombia: 56% increase in online ad spend in 2010, 40% projected increase in 2011
  • Peru: 44% increase in online ad spend in 2010, 40% projected increase in 2011
  • Uruguay: 40% increase in online ad spend in 2010, (no 2011 projections available yet)

Total online ad spend in Latin America is also on the way up. Zenith Optimedia projects that it will grow by 14.4% in 2011, 2012 and 2013.

Where the Money Is Going
In many countries, display banners still rule. They make up 70% of the digital ad spend in Chile, 83% of the digital ad spend in Colombia, 61% of the digital ad spend in Mexico and 50% of the digital ad spend in Argentina. Search advertising is relatively low in many Latin American countries when you consider how it dominates the online activities of many users. For example, a recent comScore study shows that as an activity search grew 34% in Brazil between March 2010 and March 2011. In the same period, it grew by 23% in Mexico, by 28% in Colombia and by 21% in Argentina.
Among the growth categories are social media (106% in Mexico in 2010) and online video. In fact, an IAB Uruguay study suggests that advertisers will spend more than 25% of their budgets on online video ads.

Factors Behind the Surge
Obviously, improved infrastructure has made a huge difference. The region’s hot economies are also playing a role. With better purchasing power, more people can connect by either buying computers or connecting via their smartphones. And in Brazil, LAN houses have opened up Internet access for class C consumers.
But beyond physical and economic factors, what’s important to note is the Internet’s role in purchasing decisions. comScore’s 2010 study on Latin American e-commerce reported that 97% of Argentine Internet users go online to research products before buying. The same pattern was found among users  in Brazil (87%), Mexico (91%), Chile (90%), Colombia (94%) and Peru (91%). This suggests strongly that advertising online to drive retail traffic is a strategy that will yield rewarding ROI.

To learn more about how we can help you reach the Latin American online market with a variety of premium media outlets, please contact us at info@usmediaconsulting.com.

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Louis Vuitton

Reaching Latam—the Hottest Retail Market in the World

Nine Latin American countries are among the top 30 emerging countries for retail development, according to a report by consulting firm A.T. Kearney. As an emerging retail region, Latin America far outstrips any other, even Asia and the Middle East.

Brazil is the number one emerging retail market, followed by Uruguay (#2) and Chile (#3), with Peru coming in at #8. Mexico is #22, Colombia is #24, Argentina is #25, Panama is #27 and Dominican Republic is #28.

What’s behind the high rankings? Booming Latam economies and dedicated shoppers. For advertisers and marketers, this report further confirms that now is the best time to reach out to this market.

Considering the boom in Latin American media, there are multiple options for taking advantage of the region’s hot retail market.

Online. A recent study by Microsoft Advertising indicates that 71% of Latin Americans go online to research before buying. Besides information, they want savings. That’s why Groupon has exploded in popularity in Argentina, for example.
>How we can help: An online campaign on high-traffic Web sites customized to the demographic you’re after. We can set this up for the whole region or for specific countries. Either way, our longtime relationships will get you great CPMs.

Print. Newspapers and magazines are expanding their reach in Latin America. In 2010, circulation spiked 5% overall for Latam newspapers. Brazilian newspapers have enjoyed a 4% increase in circulation so far in 2011, while Brazilian magazine circulation went up 7% in 2010.
In addition, Latin American newspaper sites draw big traffic. For example, according to comScore, Colombian newspapers El Tiempo and El Espectador rank #7 and #20 among the country’s most popular sites. In Argentina, Clarín is #5 in amount of unique visitors per month and La Nación is #10.
>How we can help: Our close relationships with all the major newspapers in Latam stretch back nearly a decade. We can easily set up a combination print/online campaign to allow you to reach the readers of these popular newspapers with both media. Or we can conduct a print-only campaign—again, our relationships can get you superb pricing, a variety of  formats and premium positions

TV. Latin America’s  traditional leader in ad spend remains firmly in place. However, going beyond free TV to pay TV allows you to reach the more affluent customers that are powering this retail surge. And pay TV is exploding in the region. Currently there are 42 million subscribers, but by 2015 half the homes in Latin America will have pay TV.  
>How we can help: Our relationships with major networks like Televisa, Globosat  and Bloomberg TV will deliver competitive pricing to match their impressive reach.

To learn more about how we can help you reach Latin America’s booming retail market, contact us at info@usmediaconsulting.com.

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dreamstime_xs_14850611

Using OOH to Spike Scent Sales in Latam Airports

Strategy and execution made all the difference for a recent OOH campaign by US Media Consulting for a luxury client focused on fragrances. End result? Unit sales shot up by 1.5 to 3 times in different markets.

The Goal
A luxury brand wanted to increase fragrance sales in airport duty-free stores in key markets.

A Strategic Solution
After thorough research of layouts for 17 international airports—including 8 in Latin America—US Media Consulting crafted a specific OOH media solution for the client. This involved strategically placed branding ads in the form of panels, backlights, wall wraps and dioramas. US Media Consulting used its local production partners to print and install the panels in arrival and departure areas as well as near duty-free stores and even on their walls. Target markets included:

  • Argentina (Buenos Aires airport)
  • Brazil (Rio and Sao Paulo airports)
  • Chile (Santiago airport)
  • Mexico (Mexico City and Cancun airports)
  • Panama (Panama City airport)
  • Uruguay (Punta Del Este airport)

The campaign also covered cities with major traffic to Latam, including Miami, New York, Dallas, Los Angeles, Chicago, San Francisco, Toronto and Vancouver.

Rapid, Powerful Results
In just one month, the duty-free stores in these airports reported sales increases ranging from 200%  to well over 300%, with several of them selling out of the promoted fragrance brands. “The campaign speaks to the success of OOH advertising. But what’s truly important is the strategy behind it. In this case, we were able to advise the client where to position the ads for maximum impact, and that generated the traffic that spiked sales,” says Fabiano Bernardo, OOH Sales Manager for US Media Consulting.

Ultimate Impact
Possibly inspired by this successful OOH campaign, other luxury/premium clients are now working with US Media on strategic OOH solutions both in and outside of major airports.

To learn more about how we can help you with OOH campaigns, contact us at info@usmediaconsulting.com.

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