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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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Brazil’s Hottest Advertising Media

For years, the story from Brazil has been about explosive growth, and 2011 was no different, especially when it came to media. We took a look at a couple of top sources to get a sense of that growth.
Here’s where the media money went, who provided it, how much different media are growing and which media brands in Brazil are the most popular.


Major Money in Media

IBOPE reports that in 2011, total ad spend in Brazil went up 16% to top 88.3 billion reales (US$51 billion). This was less than Brazil’s 19% growth in ad spend in 2010 but still significant.


Online Heats Up Hugely

Both IBOPE and IAB Brasil report that 5.3 billion reales (US$3 billion) was the total ad spend for online in 2011. That’s a huge 69% increase compared to 2010, during which advertisers spent 3.1 billion reales for online advertising. According to IAB Brasil, in 2011 online made up 10% of Brazil’s overall ad spend. Internet ads are also split down the middle in terms of type: 50% of Brazil’s 2011 online ad spend went to search and the other 50% was for display. All of this money moving has clearly attracted big Internet brands to Brazil. LinkedIn opened an office there in September 2011, joining Netflix, Google, Facebook and Yahoo, which are competing with native Brazilian online brands like UOL, iG and Globo.com.


TV Still Looks Good

Not surprisingly, free TV remains the top medium in Brazil in terms of ad spend. IBOPE’s numbers say it commands 53% of the total spend, while pay TV got around 7.2 percent. Big numbers, but slightly less than in previous years. For example, GroupM reported that TV received 64.6% of total ad spend in Brazil in 2010. The lower numbers for 2011 are due to online’s rise and print’s strength in Brazil.


Print Still Has Plenty of Power

IBOPE reported that newspapers brought in 17 billion reales (US$9.8 billion) in 2011 and were #2 in ad spend in Brazil. As a category, Brazilian magazines were slightly behind pay TV in ad spend, with 7.2 billion reales (US$4 billion).
In addition, the Instituto Verificador de Circulação or IVC—which tracks print circulation and revenue in the country—reports that Brazilian newspapers gained 3.5% in circulation in 2011.
Brazilian magazine also broke records in 2011. The IVC reported that the average circulation for magazines in Brazil reached 13,735,919 copies between June 2010 and June 2011, a record amount and a 5% increase compared to the previous period studied, June 2009 to June 2010. The top-selling newspaper in Brasil in 2011 was Super Notícia, a tabloid-style paper which sold 300,000 copies a day. In second place was Folha, with 297,000 copies sold daily.


Best-Liked Brands
Recently, Troiano Consultoria de Marca collaborated with Meio&Mensagem to survey Brazilians about the media brands they most admire. Here’s a quick breakdown:

  • Free TV network: TV Globo
  • Pay TV channel: GNT, which is from the Globosat cable network
  • Magazine: Veja
  • Radio network: CBN
  • Internet portal: Google


Top Advertisers

According to IBOPE, the 5 biggest advertisers in Brazil in 2011 were:

  • Casas Bahia—3.3 billion reales
  • Unilever Brasil—2.6 billion reales
  • Ambev—1.3 billion reales
  • Reckitt Beckiser—1.1 billion reales
  • Hyundai Caoa—1.0 billion reales

Among the other big spenders in Brazil in 2011 were Fiat, Petrobras, Volkswagen, General Motors and Ford.

To find out how we can help you reach the Brazilian market with an innovative media campaign, 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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Speaking Latam

Can English-Only Sites Offer Big Reach to Latam?

Nearly all the top 40 Web sites in Latin America are either in Spanish or Portuguese. But 5 are only in English—and they still draw millions of unique visitors from the region. Here’s why.

Top 40 Countdown
Not surprisingly, per comScore the 40 most popular Web sites in Latin America include big brands like Microsoft, Facebook, Terra, iG and Vevo.

While almost all of them are in Spanish or Portuguese, 5 are not—their content is English-only:

Site comScore Latam
rank
# of uniques per month
MTV Networks Music #21 13.5 million
Conduit #28 12.8 million
Amazon sites #33 12.8 million
CBS Interactive #34 10.94 million
English-language Wikipedia #9* 9 million


A Handy Tool
Do these numbers mean that these 5 web properties are pulling a desirable, high-income audience that’s highly fluent in English? Not exactly. With all of these sites, Google Toolbar provides a rough translation into Spanish or Portuguese. It’s not perfect or similar in quality to content originally written in these languages for the audience, but it works. As such, users can go to all of them and get what they want. With MTV, they’re likely to be watching videos, TV shows and movie trailers that don’t need a pitch-perfect translation to enjoy them. The same applies with a shopping site like Amazon or a tech site like Conduit: as long as you can follow the basic directions, navigation is relatively easy. With Wikipedia, the start page lets you choose Spanish or Portuguese as an option. Or you can use the toolbar to translate English Wikipedia content into either language.

English Exceptionalism
However, toolbar translations don’t drive traffic. These 5 English-language exceptions attract a combined 64 million Latam users because of:

  • Worldwide brand equity
  • Unique services

And CBS Interactive is the exception to the exceptions. Unlike most of these other sites, it draws readers with content. CBS’ site portfolio offers tech news, reviews and downloads with CNET and ZDNET (4.6 million combined monthly uniques), playing tips and reviews for gamers with Gamespot (1.7 million), music downloads via last.fm (3.6 million) and news/entertainment info through CBS News and TV.com (1 million).

This broad mix delivers a deeper reach with different audiences that tend to skew A/B in terms of socioeconomic class. And because of the unique, high-quality content on CBS Interactive’s sites, they’re stickier, so users stay longer—all the better to reach them with ads.

*#9 ranking is for all Wikipedia sites, including Spanish Wikipedia and Portuguese Wikipedia

To find out more about reaching Latin America with online advertising, contact us at info@usmediaconsulting.com.

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