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Online videos latam

4 Reasons to Look at Online Videos in Latam When Planning for 2013

A new study from comScore called Tuning In: The Rise of Online Video en Latin America underscores the surge in popularity of online videos in Latin America—and their impact on advertising. Below we break out the study’s most important points to highlight the 4 reasons you should take advantage of this ad platform in 2013.

#1 A Growing Audience
In December 2011, Brazilian Internet users watched 4.7 billion online videos, 74% more than in December 2010. Mexican Internet users increased their online video consumption by 80% between December 2010 and December 2011 to reach 3 billion videos viewed. Argentine internautas are also avid online video watchers: they reached a total of 1.5 billion videos watched in December 2011, a 75% increase compared to December 2010. However, Chileans grew the most in this category: they upped their online video consumption by 91% between December 2010 and December 2011 to reach 1 billion videos watched.
Essentially, there’s been an enormous upswing in online video watching in the biggest 4 Internet markets in Latin America.

#2 Broad Reach
According to comScore, online videos have 85% reach with Internet users in the U.S. and 84% reach among Internet users worldwide.
In contrast, online videos reach 96% of Argentine Internet users, 92% of Chilean Internet users, 81% of Brazilian Internet users and 82% of Mexican Internet users.
Doing the math reveals:

  • Argentina has 28 million Internet users* and 96% of that total is 26.8 million
  • Brazil has 85 million Internet users** and 81% of that total is 68.8 million
  • Mexico has 40.6 million Internet users*** and 82% of that total is 33.2 million
  • Chile has 10 million Internet users* and 92% of that total is 9.2 million

Sources: *Internet World Stats, **comScore, ***AMIPCI

Adding up these totals means that you can reach 138 million people with online video in just these 4 markets—without counting the millions of Internet users in the rest of Latin America.

#3 Room to Grow
In these 4 countries, each viewer spends an average of 11 to 13 hours a month watching online videos, while in the United States, a more mature market, viewers spend 22 hours per month watching online videos. This means that there is good potential for online videos to take up more and more online time of Latin American Internet users. The same applies when you look at the amount of videos watched per user: between 120 and 168 per month in these 4 countries, compared to 245 online videos per month in the U.S.

#4 Market Evolution
First, numbers from IBOPE show that free TV has a penetration of over 90% in Argentina, Brazil, Chile and Mexico. Numbers from LAMAC show that pay TV is growing its reach in these countries: 74% penetration in Argentina, 61% in Chile and 40% in both Brazil and Mexico.

Beyond the reach of TV, a comScore study shows that 71% of online video viewers do this because they missed an episode of a TV show and 57% watch online videos for convenience. Only 38% watch online videos to avoid commercials. In addition, online video watchers indicate in surveys that they are open to seeing at least 6.5 minutes more per hour of ads.

Finally, according to comScore, advertisers fail to reach at least 30% of the audience via just television. On the other hand, according to comScore’s projections, the effective reach of the target audience can go up by 16% when advertising on TV is combined with online video ads. This could be why more American advertisers are investing more in online videos: they spent $1.8 billion in 2011 on online video ads, a 40% increase compared to 2010.

Without a doubt, we’ve been able to help various firms take advantage of the reach of online video in Latin America through our Jumba Video Network.

To explore how we can help you reach Latin America via online video or another medium, please contact us.

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brazil travelers online

Millions of Brazilians Use the Internet to Plan Travel

More than ever before, Brazilians are using the Internet to plan and book their travel. Recent research from comScore’s Media Metrix Service shows that 16.5 million Brazilians visited travel sites in July 2012. This is an 18% increase compared to 2011. Here’s a look at the top 10 travel sites that Brazilian Internet users are visiting, organized by amount of unique visitors during July 2012:

  1. Hotelurbano.com.br                       3.1 million
  2. Decolar.com                                     2.3 million
  3. TAM.com.br                                     2.2 million
  4. Voegol.com.br                                 1.9 million
  5. Submarinoviagens.com.nr            1.6 million
  6. Mundi.com.br                                  1.1 million
  7. Viajanet.com.br                              1.1 million
  8. Booking.com                                   1 million
  9. CVC.com.br                                     823,000
  10. Tripadvisor.com.br                        780,000

Who These Brazilian Travelers Are
Visitors to Brazilian travel sites are 50.6% male and 49.4% female. However, 1 in 3 visitors to Brazilian travel sites are between 25 and 34, making this the largest age group. Overall, the visitors tend to be younger: 73% are between 15 and 44.

In terms of geotargeting a campaign, Sao Paulo would be a good choice: 32% of visitors to Brazilian travel sites are from that city. Around 13% of the visitors are from Rio, 7.3% are from Minas de Gerais and Paraná, 6% are from Rio Grande do Sul and 4.5% are from Catarina.

Where They Are Going
While comScore didn’t report on popular destinations for Brazilian travelers, other sources have. The United States Commerce department projects that 1.5 million Brazilians will visit the United States during 2012 and that amount will increase to 2.5 million by 2016. In 2011, Brazil sent more tourists to Argentina than any other country. In terms of specific cities that Brazilian travelers visit, a study from Hotel Price Index showed that Orlando is #1, New York is #2 and Buenos Aires is #4. Also in the top 10 were Miami, Las Vegas and Paris.

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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internet1

Why Online Ads Perform Well in Latin America

A recent worldwide survey conducted by Nielsen suggests that Internet advertising may be a particularly effective way to reach Latin American consumers. The Global Trust in Advertising Survey, published in April 2012, showed that Latin Americans respond more positively to online ads than people in other regions. Based on a survey of 28,000 Internet respondents in 56 countries, the Nielsen study asked Latin Americans about whether different types of online ads—on social media, those found in search engine results, banners and video ads—offered them relevant content. Compared to the global average, a significantly higher percentage of Latin Americans said that Internet advertising of all types offered them relevant content.
For example:

• 44% of Latin Americans say that the content in online video ads is relevant, compared to the global average response of 36%
• 53% of Latin Americans say the content in ads found next to search engine results is relevant, compared to the global average response of 42%
• 45% of Latin Americans say the content in ads on social networks is relevant, compared to the global average response of 36%
• 41% of Latin Americans say that the content in online banner ads is relevant, compared to the global average response of 33%

Nielsen’s study isn’t an isolated example. Studies from IAB Brazil and IAB Mexico, among other organizations, show the same kind of positive response to Internet advertising among Latin Americans.

To find out how you can connect with the growing Internet audience in Latin America, please contact us.

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Latin America’s Ad Spend Is Set to Skyrocket

According to projections from e-Marketer, between 2012 and 2016, Latin America will be one of the world’s fastest-growing regions when it comes to ad spend.

Total ad spend for Latin America is projected to reach US$34 billion in 2012 and grow to US$51 billion by 2016, 50% growth. In terms of rate of growth, Latin America and Asia-Pacific will grow the fastest in ad spend between 2012 and 2016.

E-marketer also notes that online ad spend will spike in all of the world’s markets, particularly in China, which is set to become the world’s #2 market in online ad spend by 2014. Latin America is set to register $3.62 billion in online ad spend in 2012. By 2016, Latin America’s online ad spend will be $7.68 billion, a 112% increase in just 4 years.

These numbers seem to be in line with those from other sources. For example, eMarketer projects 11.8% growth in ad spend for Latin America during 2012, while recently MagnaGlobal projected 13% growth for this year. In addition, a variety of sources have noted increases in ad spend and online ad spend in Latin America.

To get a sense of the growth trend, here’s a look at ad spend and online spend figures for major markets in Latin America in 2011.

• Argentina: 31.6% growth in overall ad spend in 2011, 117% growth in online ad spend for 2011
• Brazil: 8.5% growth in overall ad spend in 2011, 20% growth in online ad spend in 2011, 39% projected growth in online ad spend for 2012
• Chile: 10.4% increase in overall ad spend in 2011, 30% growth in online ad spend in 2011
• Colombia: 8.8% increase in overall ad spend in 2011, 33% increase in online ad spend
• Mexico: 36% increase in online ad spend in 2011
• Panama: 7.7% increase in overall ad spend in 2011
• Peru: 16% increase in overall ad spend in 2011, 37% increase in online ad spend in 2011
• Uruguay: 7% increase in overall ad spend in 2011, 50% increase in online ad spend in 2011
• Venezuela: 7.8% increase in overall ad spend in 2011

To find out how we can help you reach Latin America via a strategic campaign in any form of media, please contact us.

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The 7 Hottest Products Among Latin American Shoppers

The new surge in purchasing power for Latin American consumers is being felt in all types of industries. To offer media, advertising and marketing professionals a quick reference guide, we put together a list of some of the hottest product categories among Latin American shoppers.


CARS
In 2011 car sales in Latin America went up by 7% to total 6.4 million units, which set a new record in the region: 12 vehicles for every 1,000 people. The most motorized company seems to be Argentina, with 20 vehicles for every 1,000 people, followed by Chile with 19.4 and Brazil with 17.7. In fact, 2011 was the best year ever for car sales in Argentina. Also, several carmakers had record-breaking sales in Latin America in 2011, including Audi, BMW, Nissan and Peugeot.


COMPUTERS

Latin Americans will buy nearly 40 million computers in 2012, according to market research firm IDC. This will be a 5% increase compared to 2011, during which Latin Americans bought 37.7 million computers. Growth will be marginal (0.3%) for desktop computers but laptop sales should go up by 8.7%. In addition, IDC forecasts that 2.1 million tablets will be sold in Latin America in 2012. Although it’s not a large percentage of the total, it could be an important trend with implications for mobile advertising.


COSMETICS
According to Research firm Euromonitor International, the total value of beauty/cosmetic and personal care products sold in Latin America in 2010 was $65 billion. These strong sales made Latin America the #4 market in the world for cosmetics/beauty products. Between 2005 and 2010 the Latin American beauty market doubled in size and now experts think the region will surpass North America to soon become the #3 beauty products market in the world.


LUXURY PRODUCTS
According to Boston Consulting Group, Latin America’s luxury market is growing by 15% every year. In Mexico, 5.2% of the population can buy luxury goods, according to consulting firm KPMG. Brazil’s luxury goods sales are expected to hit $12 billion this year, a 33% increase compared to 2011. Argentina is also a solid luxury market, moving 230 million euros in its luxury market in 2011. Given this, it’s no surprise that Sephora foresees opening 12 to 13 stores in the region and that Salvatore Ferragamo has announced expansion plans in the region.


MOBILE PHONES AND SMARTPHONES
During the second half of 2011, Latam smartphone sales went up by 25% to reach nearly 50 million units. Although the complete total of mobile phone units sold in Latin America in 2011 hasn’t yet been confirmed, it’s known that 31 million smartphones were sold in the region in 2011. In Argentina, 24% of the mobile phones sold in 2011 were smartphones. In Mexico, smartphone sales spiked up by 78% in 2011. In Brazil, 2011 smartphone sales jumped to over 100% higher than in 2010. And the smartphone surge continues: 40% of the mobile phones sold in Argentina during the first quarter of 2012 were smartphones. In addition, IDG predicts spectacular increases in smartphone sales in other countries this year, including a 43% upsurge in Chile and a 70% leap in Brazil.


REAL ESTATE
According to new figures reported by the Association of Miami Realtors, Venezuelans were the largest group of foreign buyers in 2011. That said, Brazilians and Argentines were not far behind. Thanks to these Latin American buyers, Miami real estate has gotten a strong—and quite welcome—push: home sales went up 46% in 2011.


TRAVEL
Trips to foreign destinations by Latin American tourists went up by 15% in 2011, according to Consulting firm IPK. According to IPK, the strongest markets for trips to foreign destinations from Latam are Brazil, Argentina, Mexico and Chile.
The United States is one of the most popular destinations for Latin American tourists. According to the U.S. Department of Commerce, 18% more Latin American tourists will visit the U.S. in 2012 than in 2011: 1.78 million. By 2016, the department estimates that 2.5 million Brazilians will visit the United States. In addition, Brazilians rank #3 in spending among foreign tourists that visit the U.S. They’re just behind Japanese and British tourists, spending $6.8 billion in 2011 during trips.

Florida is probably the most popular U.S. destinations for Latin Americans. In fact, 4 of the top 10 foreign countries who sent the most visitors to Florida in 2011 were Latin American: Brazil, Argentina, Mexico and Colombia. In addition, a survey by hoteles.com showed that Florida is the preferred foreign destination of both Argentine and Colombian tourists.

That said, Latin Americans don’t just travel to the U.S. Many enjoy traveling within their own region. For example, a recent survey showed that Argentine tourists rank 3 Mexican destinations—Mexico City, Riviera Maya and Cancun—among their top destination choices. And Brazilians are the foreigners that visit Argentina the most. More than 35% of the tourists that Argentina welcomed in 2011 were from Brazil, while Europe was in second place with 19.8%. For their part, when surveyed, Chileans say their favorite destinations are Argentina, Brazil and Peru.

According to Mandala Research, Mexicans seem to favor U.S. destinations, and one study showed they also outshop other tourists. On average, Mexicans spend 40% of their travel budgets at shopping malls, compared to Japanese tourists, who spend 25% of their travel budgets at malls, and British tourists, who spend 25%. The preferred U.S. destinations for Mexican tourists are Los Angeles, New York and Houston, although Miami and Orlando are also in the top 10.

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.

 

Brazil’s Online Ad Spend to Grow by 40% in 2012

Advertisers have clearly realized the power of Brazil’s huge online audience: IAB Brasil’s Indicadores de Mercado report projects a growth of more than 39% in Internet advertising billing in 2012. IAB Brazil notes that overall billing for online advertising in Brazil in 2011 totaled 3.33 billion reales (US$1.6 billion) and predicts that it will grow to 4.6 billion reales (US$2.3 billion) in 2012.

IAB Brazil’s calculations take into account both display and search advertising. Other authorities tend to focus solely on display advertising, so sometimes you’ll see a different set of numbers for Brazil’s online ad spend.
It makes sense for IAB Brazil to include search in its calculations, especially since the organization reports that search makes up more than half of online advertising billing: in 2011, out of the 3.33 billion reales spent on Internet advertising in
Brazil, 1.88 billion went to search, or 54%.

In addition, the Indicadores de Mercado report projects that in 2012, Internet advertising will make up 13.7% of Brazil’s overall ad spend, up from the final figure of 11% listed for 2011. While online ad spend in Brazil is not quite at the level it is for other markets—such as the U.S., where online makes up 19% of the overall ad spend—this figure still marks some impressive gains. With comScore recently reporting that Brazil is #7 in the world in Internet users with 85 million, it makes sense that advertisers take advantage of the country’s rapidly growing online population.

And so far this year, this is exactly what they’re doing. Over 190 billion display ads were delivered to Brazil’s Internet population during the first quarter of 2012. A recent comScore press release reported these figures, which are from the company’s Ad Metrix service. In March 2012, Brazil’s top online display advertisers were Dafiti.com.br and Netshoes.com.br, with each delivering more than 2 billion impressions.

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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