Tag Archives: Latam

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Latin America: The World’s Fastest-Growing Ad Market

Recently we noted the positive growth that both eMarketer and MagnaGlobal projected for ad spend in Latin America. Zenith Optimedia has joined these two sources with its own strong projections for the region.

Zenith Optimedia predicts that in 2013, Latin America will grow by 10.1% in ad spend, which is more than any other region in the world and nearly three times the rate of growth of the United States (3.6%) and double the rate of growth of the entire world (4.6%).

In terms of specific figures, Zenith Optimedia forecasts that 2013 ad spend in Latin America will reach nearly US$42 billion and then grow another 8.7% in 2014 to total US$45.6 billion.

Of course, these are projections. To get a sense of how accurate these projections may be, we researched actual ad spend figures for Latin American markets for 2012. Here’s a look at what we found.

Argentina
According to the Cámara Argentina de Agencias de Medios, ad spend value seems to have increased in Argentina during the first half of 2012. Overall, the ad spend value is up by nearly 20% compared to 2011, with the biggest increases in Internet ad spend (56%), radio (47%), newspapers (35%), pay TV (29%) and newspapers in the capital (22%)

Brazil
According to Projeto Inter-Meios, in Brazil ad spend in the first half of 2012 increased by 11% compared to the first half of 2011 to reach 14 billion reais (US$6.8 billion). Free TV continues to dominate the Brazilian ad market, commanding nearly 65% of the ad spend and growing by 13% compared to the first 6 months of 2011. However, the two forms of media that grew the most in the first half of 2012 in Brazil were Internet and pay TV, each of which registered growth of 18% in this period. It’s also interesting to note that Brazilian newspapers grew by 4% in ad spend during the first half of 2012.

Colombia
Overall ad spend grew by 5% in Colombia during the first half of 2012, according to figures from Asomedios, Andiarios and IAB Colombia. The total reported by these organizations —which reflects ad spend in regional and local TV, magazines, newspapers, national TV, radio and Internet— is one trillion Colombian pesos, which is about US$555 million. During the first half of 2012 Internet grew the most of all Colombian media in ad spend: 12%. However, national TV still commanded the largest share of ad spend, with 45.8%, followed by newspapers (21%), radio (20%) and magazines (4.5%).

More Markets
While we could not find 2012 ad spend numbers for other Latin American markets, the figures from last year suggest that Zenith Optimedia’s positive projections make sense. For example, in 2011 ad spend grew by 11.9% in Mexico, by 10% in Chile, by 16% in Peru, by 6.5% in Ecuador, by 7.% in Uruguay and by 7.8% in Venezuela.
As such, it’s likely that we’ll be reporting strong 2012 ad spend figures for all of these markets during the first quarter of 2013.

To explore how we can help you reach Latin America’s growing consumer market through a campaign in any type of 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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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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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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Why Mobile Ad Sales Are Set to Spike in Latam

Mobile is clearly making money. Worldwide, revenues from mobile ads will top US$3.3 billion—more than double the $1.6 billion earned in 2010.
And Latin America is driving the mobile ad surge: in Argentina alone, mobile ad revenues grew by 657% in 2010. Other countries are also showing mobile money spikes, including Brazil and Mexico.
Here’s why the mobile ad market is heating up in Latin America.

#1 Cellphone penetration. Across Latin America, it reached 100% in 2011, compared to 102% in the United States. Several Latin American countries boast more than 100% penetration, such as Argentina (142%) Uruguay (130%) and Brazil (118%). Latin Americans are also buying more and more multimedia phones—which are excellent for displaying mobile ad content.

#2 Smartphone penetration. Smartphone sales in Latin America for 2011 total 31 million so far, spiking by 165% in Brazil between 2010 and 2011. In Mexico, they make up 35% of the market, while smartphone penetration is at 20% in both Argentina and Colombia. Sales will grow by 30% a year over the next 5 years—or more. Smartphone prices in Latin America have dropped to the $100 range recently, making them more affordable than ever. For advertisers, surging smartphone sales mean that they have an even better device to reach customers in Latin America with ads, plus improved targeting.

#3 Consumer behavior. A recent study showed that 26% of online shoppers in Mexico used a mobile device to make purchases, while 79% of Brazilian cellphone owners use their phones in some part of the purchase process.

In Colombia, the amount of mobile Internet users spiked up 119% between 2010 and 2011 and 3G cellphone use went up 4% in the same period.

And when the Mobile Entertainment Forum surveyed 8,500 Latin American cell phone users in 2011, it found that 20% of them are prepared to spend 200 euros on mobile purchases, double the next closest region (India, with 10%).

Jumba Mobile Network
In response to this impressive surge, we have launched the Jumba Mobile Network to help advertisers reaching this growing Latin American mobile ad market. With Jumba, advertisers can target by:

• Demographic group
• Geographic area (country, state or DMA)
• Carrier
• Handset, brand or operating system
• Applications and sites
• Age of handset
• Time of day or day of the week
• Frequency, Wi-Fi or location-based

Ad formats include QR codes, traditional display in a range of sizes, rich media or text.

For more information about how we can help you take advantage of Latin America’s surging mobile ad market, contact us at info@usmediaconsulting.com.
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Social Media Successes in Latam

Despite lots of searching, so far, I haven’t found a ton. Why? First off, more than half of Latin American companies say they don’t have a social media presence, so adoption is far from total. Second, many firms may not want to share their secrets of social media success and lose a competitive edge. However, the successful case studies I did find offer some interesting insights into what works.


Pepsi Strips Down
At the most recent World Cup in 2010, Pepsi was not an official sponsor with all the benefits (and costs) that this would entail. But its ad agency noted that Diego Maradona, coach of Argentina’s team, promised he’d do a naked victory lap around Buenos Aires’ obelisk if his team won. So Pepsi created a campaign in which it promised to also go nude if Argentina won: it would strip its labels off of its bottles for a week. The company ran print ads that showed a Pepsi-shaped bottle with only a blue label that featured the promise to go “nude.” Pepsi complemented the print campaign with a Facebook contest. Fans could upload photos of themselves wearing only a tag that had the message from the print campaign: “Si DT se desnuda, nosotros también” (If the director técnico—coach—strips, so will we). Fans uploaded around 14,000 nearly nude photos. And while avoiding heavy-duty sponsorship fees, Pepsi ended up being one of the four soft drink brands that consumers associated with the World Cup—the other three were paying sponsors.


Bancolombia Reaches Out
Rather than create a social media effort tied to a specific campaign like Pepsi, Bancolombia’s efforts are ongoing. Basically, they use Facebook and Twitter to allow their customers to tell them about problems—and they offer solutions, right away. It’s not much different than what Best Buy did with Twitter a while ago. Bancolombia also tells its fans and followers about special promotions, posts its commercials on YouTube and spreads the word out about current campaigns running in other forms of media. The combination of one-way communication (promotions supported by ads in other media) plus two-way communication (answering customer questions and solving problems) has earned Bancolombia 49,000 Facebook fans, 14,000 Twitter followers and 114,000 views of their YouTube videos.


Doritos Feeds Social Media
In Argentina, Doritos didn’t start out with a specific social media campaign. Instead, it researched its target audience of young people and created a media campaign to bring them closer together via slow dancing. Blogs, social media chatter and other sources suggested that this is what young Argentines wanted. As it turns out, clubs in the country favored pulsating techno music, not exactly a romantic choice. So the campaign centered on bringing back slow dancing to the clubs with ads in different media and a website where people could sign a petition that Doritos would show club owners.
This campaign spurred a spontaneous social media campaign by the audience. An event sprung up with a specific goal: get together to slow dance in Buenos Aires’ Planetarium club. Social media, acting like high-tech word of mouth, spread the word. Eventually 4,000 people got together to dance. In the process, the cause sparked 33 Facebook groups with 20,000 members and 200,000 views on YouTube, as well as TV coverage for the actual event. The social media coverage lifted the brand’s profile while helping spike sales.

Lessons Learned

  • Social media does not take the place of “traditional” media—it complements those campaigns by reaching people another way and letting them interact with the brand
  • Social media spreads the word—and what grabs attention is a benefit for end users like discounts, contests or special sales
  • Think about your customers’ general needs when creating a campaign—even if it doesn’t directly or obviously relate to your brand
  • Create a positive, creative event people can participate in—airline Colombiana Aires ran a Facebook contest in which people uploaded videos and photo montages to win tickets to a Peter Manjarrés concert held in the air on a Bogotá to Cartagena flight 

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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Franchising Explodes in Latam

While Latam emerges as the hottest retail market in the world, local and international firms are heavily expanding their brands all over the region. These include Taco Bell, Calvin Klein, Subway, Swarovski, JW Marriott, Chili’s, KFC and more. Among the hot Latin American franchise markets:

Colombia
• 400 franchised outlets by the end of 2010 but should have 500 more by the end of 2012—a 125% increase
• Century 21 plans to launch 8-10 franchises in 2011
• Recent entries include Taco Bell (part of Yum! Brands, which includes Pizza Hut and KFC), which opened its first store in Bogotá in November
• Spanish retail giant Inditex has been in the market since 2007 with its Zara store, following that up with Bershka and Stradavarius stores, which draw younger, trendy shoppers
• JW Marriott opened in Bogotá in 2010, while InterContinental, Meliá and Sheraton all plan to launch hotels in the Cartagena area

Brazil
• Favors local over international franchises: 92% are Brazilian
• The franchise sector grew by 70% between 2005 and 2009, with double-digit growth projected for 2011
• Women driving growth with new purchasing power: beauty treatment stores like Onedera have expanded by 30% in the past 3 years
• Language schools are also taking off due to Brazil hosting the 2014 World Cup and the 2016 Olympics: top firms include Grupo Multi, owner of Wizard, Skill, Alps and Quatrum language school franchises

Peru
• A shopping mall construction boom is fueling the franchise growth
• Food franchises are 80% of the market, with key players including McDonald’s, Burger King, Subway and Dunkin’ Donuts
• One of the fastest-growing franchises is local—Pardo’s Chicken, projected to more than double over the next 4 years from 22 to 50-plus stores

Mexico
• A more mature franchise market, but it still posted 10% growth in 2010
• CKE Restaurants (franchisor of Hardee’s Carl’s Jr. and La Salsa chains) has 128 stores, opening 15-20 per year over the past 5 years
• Mail Boxes Etc. has grown to 52 stores since entering the market in 2004

Argentina
• 500 franchises with 20,000 outlets nationwide, growing 14% annually
• Fastest-growing sectors are restaurants (34%) and clothing (21%)
• Growth likely in Argentina’s interior in cities like Córdoba, Mendoza and Rosario
• New franchises opening include Hollywood Burger, Cala Pizza, Reina Batata and Markus Day Spa for Men
• Subway is opening 3 stores per month in Argentina and is expected to add an additional 20 by the end of 2011, half of them in Mar del Plata, Rosario and Córdoba
• Desarrollos Gastrónomicos, S.A. is targeting Argentina with more KFC, Pizza Hut and Wendy’s outlets in the near term

Maybe ZenithOptimedia’s projected 26% in Latam ad spend in 2011—on top of a 21% growth in 2010—will prove to be conservative.

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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5 Lessons about Online Argentines

In June 2011 comScore released a study called El Estado del Internet en Argentina  (The State of the Internet in Argentina). The intelligence from the study is great—if you know how to interpret it. Here are some of the key findings from the study and what they mean to marketers and advertisers.


#1 Argentines Spend the Most Time Online

With 12.9 million Internet users, Argentina is third in Latin America, behind Brazil (41.5 million) and Mexico (19 million), and just ahead of Colombia (12.7 million). But Argentines spend more time online than all other Latin Americans: 27.4 hours a month compared to 25 in Brazil and Mexico and 4 hours more than the world average, which is 23 hours a month.
>>>What it means: More time online means more opportunities and a higher frequency to reach this audience with your ads. And this is an audience worth reaching: not only did e-commerce grow by 48% in Argentina in 2010, the country is among the top 30 emerging retail markets of the world


#2 Argentines Look a Lot

Like most of the rest of the world, Argentines love search. Nearly 97% of online Argentines use the Internet to search and 89% of these users prefer Google. Each Argentine search user averages 175 searches per month, which places the country among the world’s “heavy searchers.” A number of Latin American countries make this list, including Colombia (#1 with 233 monthly searches), Peru (203), Mexico (178), Venezuela (168) and Brazil (150). 
>>>What this means: Google search ads are likely to generate a huge amount of impressions while getting your brand in front of almost the entire online audience in Argentina. We have a number of Google-certified professionals to help plan, manage and optimize search ad campaigns.


#3 Argentina’s Heaviest Online Users Are Younger

Men and women aged 15-24 are online over 30 hours a week in Argentina, in marked contrast to the United States, for example, where the heaviest users are 45-54 years old. Nearly 28% of Argentine male users are 15-34, while 26% of female users are 15-34—the younger users are by far the biggest portion of the overall online audience.
>>>What it means: For advertisers looking for this younger audience, tech, entertainment and gaming are all good fits. In fact, CNET, which we represent exclusively in Latin America, is the #3 technology news site in Argentina, with 500,000 uniques a month, while last.fm. ranks #8 among music sites. For its part, Gamespot ranks among the top 12 gaming sites in the country, with 182,000 uniques per month. Of course, our extensive relationships with over 1,000 publishers in the region means that we can craft a custom campaign with many other sites that draw this younger audience.


#4 Argentines Love Local News Sites

As a category, news reaches 71% of Argentina’s overall online audience. This is significantly higher than the news category’s reach in Brazil (56%), Mexico (55%) and Colombia (59%). Grupo Clarín and Grupo La Nación are the leaders in the news category, with a 44% and 31% reach, respectively. MSN News is a distant third with 13%.
>>>What it means: This reflects the Argentine market’s preference for local news providers. In fact, this preference has made it a challenge for advertisers in the U.S. or outside Argentina to reach the market. However, US Media Consulting has longstanding relationships with Argentina’s leading newspapers—as well as those of all of Latin America. As such, we can help American and other non-Argentine advertisers position themselves to take advantage of this market preference and reach Argentina.


#5 Argentines Love Sports Sites

Given the country’s well-known soccer fever, this is not a surprise. In March 2011, 38% of online Argentines visited a sports site. Only Brazil equaled this figure—Mexico and Colombia trailed significantly in this category, with 25% and 28%, respectively. The sites with the biggest reach were Ole.com.ar and Gran DT, and users spent an average of nearly 70 minutes on Ole.
>>>What this means: If your product or products skew young and male, sports sites like Ole will generate a strong CTR. Our media relationships can help you reach this demographic with a variety of options.

To learn more about how we can help you increase your reach in Argentina’s market, 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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CAPTUR~1

In Brazil, Advertise Now, Sell Later

Taking advantage of the Brazilian boom has been a challenge for companies. Not only are import tariffs high, it’s not exactly easy to set up shop there: regulations and local taxes can also be barriers. Even Apple, which probably has a few dollars saved up, passed on opening a store in Brazil.

But you should advertise anyway. You’ll still reap nice ROI. Here’s why.

First, Brazilians are very brand-conscious: they love Nike sneakers, Diesel jeans and Toyota Corollas, for example. If they can’t buy them outright, they’ll pay for them bit by bit. The nation’s top retailer is Casas Bahia, and it earn a good portion of its profits from the interest on installment plan payments.

And if Brazilians can’t afford to pay for these brands at home, they’ll buy them when they travel.

Brazilians are traveling more than ever, especially the emerging class C middle class. In fact, 10.7 million Brazilians will travel for the first time this year—and 8.7 million of them are from classes C and D. When they get to their destination, they’ll shop for the brands they know. Miami is just one city benefiting from this trend: Brazilians spent more than US$1 billion there in 2010. And in 2011, just from January to May, Brazilian tourists spent US$8 billion, a new record.

So build your brand in Brazil. Even without setting up shop there, you could end up with many new loyal customers.

To learn more about how we can help you leverage the power of Brazilian media, contact us at info@usmediaconsulting.com.

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