Tag Archives: featured

Cartoon phone man king

Latin America Leads the World in Smartphone Growth

Market research firm GfK recently released its figures for smartphone growth and it looks like Latin America is leading the world in this area.

Smartphone sales in Latin America totaled 68.7 million in 2013 and went up by 59% in 2014 to total nearly 110 million units. In terms of sales value, Latin America is again the leader when it comes to smartphones: US$31 billion in 2014 versus US$20.6 billion in 2013—a 52% increase.

Here’s a graphic to illustrate the numbers and show the numbers in different markets:

Latam leads in smartphone sales

For advertisers and agencies, these numbers clearly point to the advantages of investing more in mobile campaigns and may explain the powerful growth in mobile advertising in Latin America that was recently projected by eMarketer. One challenge is determining exactly how to invest in mobile marketing in Latam: apps vs. mobile internet, for example. We have some advice on that here.

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

return on investment

Driving More ROI from Online Campaigns in Brazil

While targets change with every campaign, having as much of a detailed handle as possible on Brazilian Internet users can help digital planners start optimizing even before they launch. With that in mind, we reviewed fresh data on Brazilian internautas to pick out details about behavior and habits that may help improve results with online ad campaigns.

>>>Consider Price-Sensitive Components for Campaigns
Here’s why:

  • Checking product prices is the #1 reason Brazilians say they use the Internet*
  • 80% of Brazilian consumers say they research product prices before buying them**

>>>Buy More Video Ad Inventory
Here’s why:

>>>Propose Adding an Online Component to TV Campaigns
Here’s why:

  • 40 million Brazilians are multiscreen users, up from 30 million in 2013**
  • Another survey from IAB Brasil indicates that 75% of Brazilians use at least one of their devices (computer, smartphone or tablet) while watching TV

>>>Develop More Landing Pages that Combine Product Information with the Offer
Here’s why:

  • Nearly 6 in 10 Brazilians—58%—look for information online before buying a product: 84% of Classe A does this, 70% of Classe B and 52% of Classe C*

>>>Put Most of Your Mobile Ad Spend toward Mobile Internet Ads (rather than in-app ads)
Here’s why:

  • Nearly 7 of 10 Brazilians (67%) access the Internet with a mobile device—a total of 62 million who are surfing mobile versions of Web sites and be reached with banners*
  • While 42% of Brazilian Internet users go online with computers when at home, more of them (52%) use cell phones*
  • Among the most popular apps among Brazilians (as ranked by App Annie), several don’t allow advertising, including WhatsApp and Instagram

Sources: *FNazca, **Google

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.


Quick Insights into Brazilian Internet Users

Google Think Insights recently published an interesting infographic on Brazilian Internet users, all based on recent research.

Even though it’s in Portuguese, most of the data is easy to figure out. Some of the highlights are:

  • 48% of Brazilians are connected to the Internet
  • 74% of Brazilians aged 15 to 49 are online
  • Smartphone penetration in Brazil went from 26% in 2013 to 29% in 2014
  • Tablet penetration in Brazil is at 9%
  • 80% of Brazilians compare products online before buying them.

And more. Click on the link below to view the infographic:

Google Think Insights Brasil 2014

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.

Girls with Shopping Bags

15 Insights about Latin American Consumers for 2015

In trying to create the most effective media plans possible, understanding consumer behavior is paramount. To that end, we looked at research into Latin American consumers to understand more about their growth, shopping habits, preferences and media use.

Here are 15 key insights to keep in mind during 2015:

  1. In 2020 there will be a total of 640 million consumers in Latin America and private consumption in the region will nearly double compared to 2012
  2. A Kantar Worldpanel study of Latin American consumers showed that 32% had bought an LCD, LED or plasma TV over the past 5 years and that 33% have purchased a better quality refrigerator recently
  3. Radio is the most popular medium in Latin America—consumed more than TV
  4. 46% of Latin Americans say they make online payments
  5. Mexico is the #4 country in the world in terms of mobile advertising traffic, while Brazil is #7 and Argentina is #13
  6. The amount of Netflix subscribers in Latin America grew from 309,000 in October 2011 to more than 4.8 million by September 2014, with 1.2 million in Mexico and 2.1 million in Brazil
  7. 75% of Brazilians surveyed said they watch streaming video, slightly less than the amount that watches regular TV (77%)
  8. 69% of Latin Americans with a bank account say they make online transactions
  9. Nearly 60% of Latin Americans watch TV while surfing the Internet and 67% watch online videos
  10. 41% of Peruvians watch TV while using another device at the same time, mainly a smartphone (22%), but also a laptop or PC (15%) and a tablet (4%)
  11. Chileans spend the most money on sports clothes than other Latin Americans
  12. 81% of Brazilians, 66% of Mexicans and 73% of Argentines research appliances online before buying
  13. Peru is the Latin American country in which social media have the deepest penetration: 96%
  14. 10% of the world’s Internet users are from Latin America
  15. Latin American travelers tend to travel more than those from more established travel markets and report higher levels of enjoyment

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.

Flying dollars banknotes isolated on white

Where Ad Investment in Latin America Should Go in 2015

The challenge that every marketer faces is how to develop a media budget that delivers the best results. Making changes to your approach is hard, not only because of the risk but also because of the need to sell other people in the company on those changes. But as the media landscape changes, it’s actually a bigger risk to make no changes, since you can easily fall out of step with your customers. In reviewing the data, here are some areas that both brands and media agencies need to look more closely at in executing their 2015 campaigns.

#1: Mobile Programmatic
Mexico clearly leads Latin America when it comes to mobile ad investment and is set to reach US$287 million by next year, while Brazil mobile ad investment will reach US$245 million and Argentine mobile ad spend will be a surprisingly small US$14.5 million.

But this modest level of investment doesn’t seem to jibe with the mobile boom happening in Latam. For instance:

And if those numbers aren’t enough to get the point across, see how smartphone penetration, tablet ownership and mobile Internet user are growing in other Latam markets, including Chile, Peru, Colombia, Ecuador and Venezuela.

Now to programmatic. We know that programmatic ad spend is set to spike dramatically in Latin America, so definitely the industry knows this works. The advantages of the tight targeting of programmatic are becoming clearer, in addition to the fact that it may deliver a more efficient spend than manual online ad buying.

Given this, it seems logical that brands need to deepen their mobile spend. And if the concern is that mobile may be a risk, why not look at some trials with mobile programmatic? Sharper targeting could lead to even better results with mobile and allow brands to fully take advantage of an audience that’s using smartphones more and more in the purchase process.

As such, it seems clear that brands need to run programmatic mobile trials and increase their conventional mobile ad spend in 2015. We can help with this: find out more here.

#2: Social
The numbers on social make things pretty clear:

Ok, so we know we have a good audience. Then why is social network ad spending in all of Latin America only estimated to be US$481 million in 2014 and only to increase by 23% in 2015?

Per user, advertisers will spend US$2.52 on social network advertising in Latin America, compared to $46 per user spent in North America and $27 per user in Western Europe.

How does this make sense when comScore reports that the average social media user in Latam spends 8.67 hours a month on social media versus 8.07 hours spent by Europeans and 6 hours a month spent by North Americans?

>>>The Approach with Social
There are several ways brands should leverage this Latam love of social in 2015:

Facebook retargeting. On one hand, we have 200 million Facebook users. On the other, in 2014 we have e-commerce growing by 40% in Argentina, by 23% in Brazil, by 20% in Mexico and by 45% in Colombia. So obviously it makes sense to retarget people who visit e-commerce sites with ads on Facebook. You can find out more on how that works here or just contact us directly since we’re experts in this area and partners with Triggit, a leading company in Facebook Exchange retargeting around the world.

Native advertising and content marketing. Do any of you know how much Latin American marketers are spending on native advertising or content marketing? Many of us don’t know yet, and the reason is because no surveys that report tactical spend by Latam marketers has been released. But it doesn’t seem to be much, if at all.

And what a missed opportunity. Mobile Internet is expanding hugely in Latin America and part of that entails people checking social networks on their cell phones: 30% of Mexicans, 37% of Chileans, 32% of Argentines and 19% of Brazilians, according to one study. But other studies confirm this trend: see here, here and here.

This means that people are checking their Facebook feeds, scrolling down: this makes it the perfect place for you to include a sponsored post that’s part of your content marketing. A recent survey of American marketers showed that 23% are devoting more than half of their 2015 budget to content production. Why? Because posts on topics and videos, for example, are good ways to engage people and sell. A post can lead back to a mini-site where your content lives—along with banners to convert people. Or you can set up a content channel on a portal—something we helped a client do with iG a few years ago and which worked very well. And you can leverage content even further with mobile: 55% of Brazilians recently said that video was their preferred format for mobile ads.

Sponsored social. This trend has taken off in the U.S. and it makes sense: use social media users with strong followings to promote brands. A recent study showed that 52% of American marketers had used this tactic in 2014, nearly as many as those who used online display advertising (58%). This could be a trickier tactic to deploy but it definitely merits some trials considering the potential it has.

Bottom Line
As an industry, we’re skipping around the surface of the potential of digital in Latam with light investments. It’s not about jumping on the bandwagon to be cool. It’s about adjusting our business practices to our audience habits. And that’s just good business.

Contact us to learn more about how we can spike your response in 2015 via mobile, programmatic, mobile programmatic, Facebook retargeting, social and a deeper dive into digital campaigns.


Brazil m-commerce

M-commerce Takes Off in Brazil

A recent study from Pagtel—a Brazilian mobile payments company—and Mobi.life, from the group E.life, asked 480 Brazilian mobile users about their mobile shopping habits. The results suggest that mobile commerce is growing rapidly in Brazil:

  • 67% of Brazilian mobile users said they made mobile purchases in 2014, compared to 57% in 2013
  • 60% of Brazilian mobile shoppers used store websites, 37% used intermediate services like PayPal or Buscapé, 32% used app stores like Google Play and 24% used shopping applications
  • 54% say they access banking services via smartphones and 22% use tablets for online banking

Hot Products in Brazil’s M-Commerce
Respondents indicated that they favor buying certain products via mobile commerce, including:

  • Tickets (61%)
  • Virtual content (55%)
  • CDs, books and DVDs (47%)
  • Food delivery (44%)

Factors that Impede M-Commerce in Brazil
Despite the large percentage of mobile shoppers among the respondents, a significant amount (69%) say they prefer to make online purchases with their computers. Of these, 43% prefer computers because they believe mobile is not safe and 32% prefer computers because websites are not mobile-responsive.

Security Factors that Favor M-Commerce in Brazil
Brazilian mobile users highlighted several factors that make them feel safer when shopping with their smartphones or tablets, such as:

  • Confidence in a website brand, application or application store (80%)
  • The accepted forms of payment (56%)
  • Safety terms published in the website or app (47%)
  • Comments of other users (39%)
  • Typing a personal password (37%)
  • Biometric recognition (20%)
  • Visual recognition by images (15%)
  • Voice recognition (12%)

Brazilian Views on Mobile Advertising
The respondents to the Pagtel survey indicated that they appreciate voicemail mobile ads the least (88% dislike them).

Other unpopular formats include banners in games (74% disapprove) and banners in apps (70% disapprove). Some other aspects of mobile campaigns that Brazilian users dislike include merchandising that the user did not authorize, uninteresting content and a high frequency of messages.

That said, respondents indicated mobile banners on websites do produce engagement, and 56% of respondents said they clicked on mobile banners.

Overall, Pagtel and Mobi.life’s study coincides with recent data we’ve seen from Ebit, which reported that m-commerce in Brazil produced sales of more than R$ 1.13 billion in the first half of 2014—a 102% increase. In fact, E-bit projects that mobile commerce will represent 10% of all e-commerce transactions done in Brazil in 2014.

As a company, we were aware of this rise in Brazilian m-commerce several years ago, and this is why we’ve recently premiered programmatic mobile ad buying on MediaDesk, the leading programmatic buying platform in Latin America. To find out more about how you can reach Brazilians with a highly targeted and efficient programmatic campaign, please contact us.



Measuring Brand Influence via Facebook in Latin America

When it comes to Facebook in Latin America, clearly it has reach. Estimates indicate that there are more than 208 million Facebook users in Latin America and that there will be nearly 232 million by the end of 2015. In addition, as per comScore around 95% of the time that Latin Americans spend on social media is spent on Facebook.

But until recently, we haven’t seen data on how Facebook influences Latin Americans to buy. A recent study from Ipsos Media CT surveyed 200-300 users each in Argentina, Brazil, Colombia, Chile and Mexico to see how influenced they are by brands on Facebook. Here’s a look at some of the key findings:

62% of Brazilians interact with brands on Facebook. In this context, interact means read content from brands, look at brand pages on Facebook, interact with public figures, comment or share comments.

Nearly 7 out of 10 (68%) of Chileans say there are influenced by brands on Facebook, compared to 67% of Brazilians, 62% of Colombians , 56% of Argentines and 56% of Mexicans.

The chart below shows what users do after being exposed to brand content. Click on it to enlarge it.

Eng chart FB

Clearly Brazilians are the most likely to visit a brand page, read a brand’s Facebook content or like a brand, though Chileans also show high levels of reaction.

Overall, the figures suggest that Facebook content from brands can clearly resonate with users despite studies indicating the organic brand posts are mostly ignored.

Taking Advantage of This
Clearly Facebook offers some powerful opportunities for brands in Latam. Beyond increase ad spend on Facebook, there is another, more precise way to leverage brand influence from Facebook among Latin Americans: retargeting via Facebook Exchange.

This tactic involves tracking products that individual shoppers look at on e-commerce sites, then showing these same shoppers ads for these products when they enter Facebook.  You can find out more here about how Facebook retargeting works by going here.

The reason that retargeting via Facebook Exchange has such great potential is that Latin Americans are not just heavy Facebook users, they are buying more and more online. Let’s review the numbers: in 2014, e-commerce will go up by 40% in Argentina, by 20% in Mexico, by 45% in Colombia and by 23% in Brazil. Even m-commerce (mobile commerce) is taking off in both Brazil and Latam.

As such, a targeted ad can go a long way in taking this influence on Facebook and turning it into revenue for brands.

Please contact us to find out how we can help your brand leverage Facebook and spiking e-commerce in Latin America to take advantage of your brand’s influence among consumers in the region.


Bright black eye make-up

The 6 Hottest Products for 2015 in Latin America

Predicting growth is a tricky business, especially when it comes to which companies or industries will invest more in advertising.

However, studying sales growth patterns may offer some hints. That’s why we examined some recent figures for the product categories that have posted strong growth in Latin America in 2014 and in recent years. Reviewing these may give media agencies some ideas for pursuing new business and help marketers understand what Latin American consumers are spending their money on.

woman applying eyeshadow with brush
According to Euromonitor, sales of cosmetics in Latin America will grow by 7.2% a year between now and 2018. By 2018 the value of the beauty products market in Latin America will reach US$111.8 billion. The specific areas that will see the highest demand from Latin American consumers over the next 5 years are sun care, hair removal, male grooming, baby care and dental products.

2 digital music
Digital Music

According to the International Federation of the Phonographic Industry, digital music revenue in Latin America grew by 27.6% in 2013. And between 2010 and 2013 digital music revenue grew by 124% in Latin America. Currently Samsung and Google Play have started a partnership to reach this market: anyone who buys certain new Samsung devices gets a free six-month subscription to Google Play.

03 seguros

According to Moody’s, average annual growth for the insurance sector in Latin America has been at nearly 15% over the past 10 years.

04 snacks

According to Nielsen, total snack sales in Latin America reached US$30 billion in March 2014. As such, sales of snacks grew by 9% in Latin America between March 2013 and March 2014. The leading segment was cookies and cakes, responsible for US$9 billion of sales in Latam, followed by confections (US$8 billion) and savory snacks (US$7 billion). The favorite types of snacks in Latin America are yogurt, chocolate, cheese and ice cream.

5 games
Video Games

According to a report from GlobalCollect and Newzoo, Latin America will have 14% growth in video game revenues by the end of 2014, higher than the projected growth for any region in the world except for Asia-Pacific, which will grow by 15% in this area. In generating US$1.38 billion in video games revenues, Brazil is the leading market, followed by Mexico at US$1.0 billion. Overall, the report estimates that there are 185 million gamers in Latin America and that gaming revenues in all of Latin America will reach US$3.3 billion in 2014.

woman with vitamins
Vitamins and Supplements

According to Euromonitor, between 2008 and 2013 sales of vitamins and dietary supplements grew annually by 5% in Latin America and only Oceania (consisting of Australia, Melanesia and New Zealand) grew at a higher rate in this sector. Euromonitor projects that vitamin and supplements sales will grow annually by 3% in Latin America between 2013 and 2018 to reach a total value of US$5.5 billion by 2018.

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.


00 Latam media consumption

2014 Latin American Media Consumption

A large study from the Organization of Ibero-American States (OEI) surveyed Latin Americans from 16 countries about their consumption of media, using a sample of 1,200 people per country.

Here’s a breakdown of relevant results:

01 TV

  • Latin Americans watch an average of 3.5 hours a day of TV during the week and 3.7 hours a day on weekends
  • During the week, the average TV consumption in Central America is 3.9 hours a day while South Americans watch TV 3.4 hours a day
  • The countries with the highest about of TV watching during the week are Honduras (4.5 hours a day), Costa Rica (4.3 hours a day) and Venezuela (4 hours a day)
  • TV consumption doesn’t vary much between men and women in Latin America; there also aren’t significant differences in terms of TV consumption between Latin Americans from different socioeconomic classes
  • The age group that watches the most TV in Latin America are people aged 16 to 30

02 radio

  • Latin Americans listen to the radio 3.9 hours a day during the week and 3.8 hours a day on weekends
  • The Latin American countries with the highest radio listenership are Uruguay (4.7 hours a day), Paraguay (4.7 hours a day) and Guatemala (4.5 hours a day)
  • There isn’t a significant difference in radio consumption between men and women in Latin America nor is there one between different socioeconomic classes
  • People between 16 and 30 listen to radio the most in Latin America, around 3.9 hours a day, but it’s important to note that other age groups have similar consumption levels: 3.9 hours a day for people between 31 and 50 and 3.7 hours a day for people over 51

03b newspapers

With this medium, you’ll notice that the metrics changed, so OEI study doesn’t really explain how many hours a day Latin Americans spend reading newspapers. We do have some data, however, that offers at least somewhat of a picture with regard to newspaper consumption in Latam:

  • Latin Americans read newspapers 3.7 days a week
  • Brazilians have the highest levels of newspaper readership in Latin America: they read newspapers 4.2 days a week
  • Venezuelans and Costa Ricans are the Latin American groups that read newspapers the most: both read newspapers 4.2 days a week, while Paraguay and Bolivia have the lowest amount of newspaper readership in Latin America: 2.7 days a week and 2.5 days a week, respectively
  • Men in Latin America spend a bit more time reading the newspaper than women: 3.8 days a week versus the 3.5 days a week that women read the newspaper
  • While Latin Americans over 51 are the age group that reads newspapers the most (4 days a week), their consumption is only slightly higher than that of younger Latin Americans (between 16 and 30), who read newspapers 3.5 days a week
  • Latin Americans from Class A read newspapers 3.9 days a week while the middle class reads newspapers 3.5 hours a week and the lowest socioeconomic class reads them 3.2 days a week

04 internet

The study’s metrics shift once again with this medium, so it doesn’t report how many hours a day Latin Americans spend using the Internet. (That said, a number of other studies have indicated how many hours a day Mexicans, Argentines and Brazilians spend using the Internet.)

So rather than hours per day, the OEI study offers a different data set for Internet use by Latin Americans:

  • 39% of Latin Americans use the Internet either occasionally or every day, while 55% never use the Internet
  • Among the countries with the highest daily use of the Internet are Argentina (39%), Chile (34%), Uruguay (30%), Brazil (29%) and Colombia (27%)
  • Latin American men have a slightly higher daily use of the Internet than women (21% vs. 20%) and also lead when it comes to the occasional use of the medium (19% vs. 17%)
  • 33% of the Latin Americans that use the Internet every day are between 16 and 30, while 20% are between 31 and 50 and 8% are over 51
  • 26% of the Latin Americans who use the Internet occasionally are between 16 and 30, 17% are between 31 and 50 and 8% are older than 51
  • In general, home is where Latin Americans connect to the Internet: it has the highest percentage in all of the countries surveyed (30%) while other places to go online have much lower percentages, such as work (10%), cybercafés (10%) and Wi-Fi (4%)
  • Socioeconomic status is a clear factor in Internet use in Latin America: 34% of the people who use the Internet every day are from the highest socioeconomic class while only 5% of people from the lowest economic class are daily users; the same disparity applies to people who use the Internet occasionally
  • Among the Latin Americans who never use the Internet, 82% are from the lowest socioeconomic class, 61% are from the middle class and 38% are from the highest socioeconomic class
  • According to the OEI survey results, among Latin American Internet users, Facebook is the #1 social network (38% use it), while YouTube is #2 (21%) and Twitter is a distant fourth (11%)

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.