Tag Archives: Latin American boom

Pay TV Reaches 50% of Latin Americans

Impressive surges in individual markets have led to a pay TV penetration rate of 50.9% in Latin America. According to the Latin American Council on Multichannel Advertising (LAMAC), Argentina and Colombia have pay TV penetration rates above 81%. In Brazil, pay TV penetration has grown 118% since 2008—so now 36.1% of Brazilians have access to pay TV. In Chile, the pay TV penetration rate is 63.9%, while in Mexico it’s at 40.5%.

Brazil’s recent growth in pay TV subscriptions has been particularly impressive. Anatel—the Agência Nacional de Telecomunicações or National Telecommunications Agency—reported recently that 12.2 million households in Brazil had pay TV. With an average of 3.3 people per household, this means there’s a pay TV audience of 40.2 million in Brazil. And despite its relatively low penetration rate, Mexico is also a significant pay TV market: in spring 2011 LAMAC reported that the country had 10.5 million households with pay TV.

What makes the 50% penetration rate all the more impressive was that an earlier projection by Dataxis indicated that Latin America would reach this by 2015. Instead, LAMAC now forecasts 63% pay TV penetration in Latin America by 2015.

To find out how we can help you reach Latin America via pay TV or any other form of media, please contact us at info@usmediaconsulting.com.

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Rebranding with Balance

While rebooting a brand can garner new customers and revenue streams, it’s also risky. One key risk is losing the core audience that powered the brand in the first place. However, with a balanced approach, you can rebrand while retaining your base. Here’s how we helped a client do exactly that.

Becoming Brand-New
The client’s telecommunications product was a strong seller throughout Latin America, but its appeal tended to heavily skew male. So the client rebranded to show how the product was also a fine fit for women and families. This involved new creative that emphasized the fit, including a fresh logo and a strong slogan. The challenge was ensuring the appeal to the men who were already faithful customers.

Aligning Audience Appeal
To help the client retain its base while introducing its fresh positioning, we helped them create a campaign with Bloomberg TV, which we exclusively represent in Latin America. With an audience of 10 million in Latin America, Bloomberg TV allowed the client to reach key decision makers and influencers, most of which were male.
However, the existing creative focused on the new audiences the client wished to reach—not the core male customer base. After considering several options, we realized that the appeal of Bloomberg TV hinges significantly on the stock market data that launched the Bloomberg brand in the first place. As such, we worked with the client to create a spot that integrated part of the new creative while tying it to a stock market databoard reflecting top stocks—in real time—for each Latin American market the spot would run in.
Ultimately, the spot showcased the connection between the client’s brand and Bloomberg while also integrating the new markets the brand was trying to reach. The end result was balance: the client rebranded successfully while reaching the elite male audience of C-suite decision makers that watch Bloomberg TV.

To find out how we can help you leverage the power of Bloomberg TV’s exclusive audience in Latin America, 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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The comedy show Custe o Que Custar satirizes pop culture and politicians.

6 Basics about Brazil’s Media Market

Brazil is big these days. No surprise there: a spiking GDP, 190 million potential customers and a well-developed media market are getting lots of attention. You also can advertise there and make money without a local presence. These basics on the country’s media market will give you a sense of the potential rewards and challenges.

#1     Brazil’s media market is big. And small. While there are lots of media choices, only 7 firms control 80% of what’s read, heard or seen in Brazil. Organizações Globo rules TV, film and radio and is competitive in print and web media. It commands around 75% of Brazilian TV ad spending. Beyond free TV, Globo’s has interests in Net Serviços, the country’s largest cable company, and SKY, the largest satellite dish company. In print, Abril produces 73% of the highest-selling magazines in the country.

Domingão do Faustão is one of Brazil's top shows.

#2     TV still rules the media mix. This medium has the most penetration in Brazil (over 90%) and commands 60% of the overall ad spend. Other forms of media lag way behind, with newspapers a distant second at 12.7%. This is markedly different from the U.S., the U.K. and even Argentina, in which TV dominates but other forms of media don’t lag as far behind. Brazil is closer to Mexico in this sense, where 76% of ad investment goes to TV.

#3     Magazines are an emerging force. Circulation has been rising since 2005, spiking 7% in 2010. Biweeklies saw the biggest growth at 21%, followed by 8.1% for the weeklies and nearly 5% for the monthlies. The U.S.’s Condé Nast recently launched a joint venture with Globo, Brazil’s biggest media conglomerate, to create a new company. Edições Globo-Condé Nast will launch popular Condé Nast titles in Brazil, including Vogue.


#4     Online is gaining ground. Brazil has 73 million Internet users, the 8th largest Internet audience in the world according to comScore. Often, 43 million is the figure reported, but that doesn’t factor in the many users at LAN houses in the country. ComScore’s calculations take that into account.
     Since the country’s overall population is 190 million, this means there’s a 38% penetration rate. Not as deep as that of the United States or European countries, but this is changing quickly. The amount of Brazilian Internet users grew by 20% in 2010 and research firm Forrester’s estimates that it will grow 18% a year between 2011 and 2016. E-commerce grew by 40% in Brazil in 2010 and Forrester’s projects it will grow 178% by 2016 to reach US$22 billion. Seven out of 10 online Brazilians visited a retail site in December 2010, with Mercado Livre, Lojas Americanas and BuscaPe boasting the most uniques. Group-buying sites like Clubeurbano attracted 50% more unique users between August and October 2010. And banking giants Itau and Banco do Brasil each had a 50% growth in uniques during 2010. For its part, Brazilian portal iG draws in more than 29 million uniques a month.


#5     OOH is a power performer. Laws restricting billboards in Sao Paulo and Rio did nothing to stop the message getting out. Agencies just got more creative, using projections onto buildings, plasma screens in restaurants and digital panels in airports and malls to reach the audience. And it worked. That’s why out of home (OOH) ad investment shot up by 16% in 2010 to reach US$464 million. Digital OOH ad investment is growing particularly quickly in Brazil. It went up by 58% in 2010 and is projected to grow by another 60% in 2011 to reach $147 million.


#6     For print, consider buys with niche titles. The top two socioeconomic classes in Brazil are A and B, followed by class C, a lower middle class, then the poorer classes, D and E. Around 6 million people are expected to move from class C to class B in 2011 as the economy expands and government programs target poverty. One tendency of the emerging classes in Brazil is to consume more media, particularly magazines. In fact, Brazilians spend more than double the amount of money on magazines than they do newspapers. And when they look to spend, they show an interest in specialized information on decoration, fashion and food. This has given rise to more niche magazines, like Gloss, a teen magazine with a circulation of 140,000.  Other hot niche pubs include luxury magazine Wish Report and yachting magazine Nautica.

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

To learn more about how we can help you leverage the power of print in Latin America, contact us at info@usmediaconsulting.com.

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