Tag Archives: ericsson latin america


The Latest on Latin American Media and Marketing

Keeping up with marketplace changes can be a real challenge. To make things easier, we reviewed what’s been happening and below we have a selection you can skim quickly.

>78% of Brazilian Millennials Use Smartphones
This stat comes from a Telefónica survey of 6,700 millennials around the world. This is a big jump compared to last year’s survey, in which 63% of Brazilian millennials said they used smartphones.

To read more about this survey, please click here.
To read more about millennials in Latin America, please click here.

>Latin American Consumers Buying More Budget Brands
While the Latam middle class continues to aspire to own name brands in certain areas like smartphones or fashion, to save money it’s switching to cheaper brands when it comes to certain products, like shampoo.

To read more about this trend, please click here.
To find out which 10 products Latin Americans are buying the most in 2014, please click here.
To find out which 5 trends are dominating among Latin American consumers, please click here.

>Social Networks Reach 93% of Latin American Internet Users
This data point is from ComScore Futuro Digital Peru and was cited in an article by eMarketer. Interestingly, social media have a stronger reach in Latin America than they do in either the United States or the United Kingdom: in the former their penetration is 82.7% and in the latter it’s 80.4%.

To read more about social media penetration in Latam, please click here.
To read more about the top 10 social media trends in Latin America, please click here.
To read about the companies in Latin America that are strongest in social media, please click here.

>Ad Spend in Brazil Represents 50% of All Ad Spend in Latin America
According to eMarketer, total ad spend in Brazil in 2014 will reach US$20 billion while total ad spend in all of Latin America will reach US$39.6 billion in 2014. TV still commands the largest share, with 62% of the total ad spend.

To read more about ad spend in Brazil and Latin America, please click here.
To learn about projected ad spend trends for Latin America until 2018, please click here.

>90% of Latam Traffic Will Be from Online Videos
This is an estimate from Sergio Quiroga, president of Ericsson Latin America. Quiroga predicted that by 2018, online videos will be responsible for 90% of traffic handled by telephony operators.

To read more about this prediction, please click here.
To read more about mobile trends in Latin America, please click here.

>67% Penetration for OTT Mobile Messaging in Latin America
Citing data from Ericsson, eMarketer reported that over-the-top (OTT) mobile messaging has 67% penetration in Latin America, compared to just 40% in 2013. Mexico has the biggest OTT mobile messaging penetration at 75%, followed by Argentina (64%) and Brazil (60%)

To read more about this trend, please click here.
To read about the spike in smartphone and tablet use in Latin America, please click here.

>More than 65 million pay TV subscribers in Latin America
This is according to research from Dataxis, which lists Brazil as the #1 pay TV market in Latin America due to its 18.97 million subscribers, while Mexico is #2 with 16 million.

To find out more about Dataxis’ research, please click here.

>Argentina Leads Latin America in Online Ad Spend
An infographic published by IAB Chile indicates that Argentina leads Latam in online ad spend. This is because 14% of the total ad spend in Argentina in 2013 went to online advertising. Online’s share was lower in other countries, such as Mexico (9.3%) and Colombia (9%). The infographic from IAB Chile did not show numbers from Brazil. However, we do know that in 2013 Brazil had overall ad spend of R$ 32 billion as per Projeto Inter-Meios and that online ad investment in 2013 totaled R$ 5.7 billion as per IAB Brazil, suggesting that online accounted for nearly 18% of ad spend in Brazil in 2013.

To see the IAB Chile infographic, please click here.
To find out more about ad spend trends in Latin America, please click here.

Please contact us to find out more how we can increase efficiencies for Latin American agencies through media services like planning or buying or via advertising technology solutions like programmatic buying.




74% of Latin Americans Want to Try M-Commerce

A while back we reported on the 657% growth in mobile commerce that is expected to take place in Brazil this year. However, a new study from Ericsson Consumer Lab suggests that other major markets in Latin America also have potential to grow significantly in terms of m-commerce.

Current Use of M-Commerce in Latin America
Ericsson opened their study with a look at the current picture of mobile commerce in Latin America, showing the percentage of the population in different countries that do transactions with their mobile devices:

Argentina        21%

Brazil               30%

Chile                31%

Colombia         28%

Mexico            31%

Opportunities for Growth
Ericsson acknowledges that there are several key challenges to m-commerce taking off in Latin America, including distrust of financial institutions, a lack of confidence in mobile providers, a reliance on a cash economy, low penetration of credit cards and a significant portion of the population (61%) that is unbanked.

At the same time, however, Ericsson observes certain key conditions exist that offer significant potential for mobile commerce to become commonplace in Latin America. These are:

According to a 2012 Ericsson survey, 74% of Latin Americans are interested in using at least one m-commerce service on their mobile phone. The m-commerce service they are most interested in is mobile banking (66%), with 44% being interested in mobile shopping.

>>>Mobile Penetration
Ericsson notes that mobile penetration is deep in many of Latam’s major markets, including Argentina (145%), Brazil (134%), Chile (152%), Colombia (106%) and Mexico (87%).

>>>Smartphone Penetration
Ericsson also breaks down smartphone penetration in major Latin American markets, with Chile the leader with 25%, followed by Argentina (24%), Colombia (20%), Mexico (20%) and Brazil (15%). While these percentages are not particularly high, we’ve noted the spike in smartphone sales in Latin America and in fact, Pyramid Research estimates 60% smartphone penetration in the region by 2017.

>>>Safety Concerns
For Latin Americans with both lower and higher incomes, m-commerce can help them avoid carrying large amount of cash or credit cards on them, thus making them less susceptible to robbery.

Paying in cash can often involve waits in long lines, whereas mobile commerce helps them avoid this.

Latin American consumers often keep detailed records of their transactions to control their spending and ensure that key bills are paid. Mobile phones can offer them help in tracking transactions by saving verifications and receipts digitally, ensuring bill payments are made on time every month and helping with budgeting.

In some areas of Latin America, bank offices are rather scarce, so m-commerce allows for payments at any time, from wherever, another distinct advantage.


Going Forward
To fully maximize these favorable conditions for m-commerce in Latin America, Ericsson says that consumer needs need to be addressed at all levels via regulation and ensuring important perquisites. Among the concerns are building trust in mobile operators and banks; making sure that m-commerce features are transparent and easy to use; services that ensure control, safety and convenience; and regulations that protect consumers.

To find out how we can help you reach Latin Americans via media campaigns of all types, please contact us.