Tag Archives: Latin American shoppers

6 Key Statistics about Latin American Consumers

Recent studies from various sources have offered important insights about Latin American consumers. We isolated out 6 of the most relevant data points so you can factor them in when setting up future campaigns.

Big & Bigger
Projections from Frost & Sullivan indicate that by  2025 there will be 661 million consumers in Latin America with a combined GDP of US$15 trillion.

Credit Cards Charge
According to a recent piece in Latin Trade by John Price—director of the market research firm Americas Market Intelligence—by 2020, 25% of Latin American homes will have a credit card; for comparison’s sake, in 1990 only 3% of homes in the region had credit cards.

Feeling Good
According to a global report from Nielsen that looks at consumer confidence around the world, 7 Latin American countries have shoppers who are feeling pretty good about the future. Nielsen’s scale sets 100 as the top score for consumer optimism and confidence, and it looks like Brazilians (with a score of 111) have the sunniest shopping outlook. Other countries with highly optimistic shoppers include Peru (with a score of 98), Colombia (95), Chile (95), Mexico (86), Venezuela (84) and Argentina (75).

They Like Shopping with Tech Help
In a recent Motorola Solutions study, 70% of Latin American consumers indicated that they have a better shopping experience in stores in which retailers offer mobile computers and information kiosks.

The Pause that Refreshes
According to Euromonitor, several Latin American markets are among the top consumers of carbonated beverages. Argentina leads the world in soda consumption, with 131 liters per inhabitant in 2012, followed by Chile (121 liters per person) and Mexico (119 per person).  The other Latam country that made the world’s top 10 list of soda consumers was Uruguay, with 87 liters per persona.

Mobile Money Moving
By 2015 some 140 million Latin Americans will use mobile terminals to access their bank accounts, according to a report from Deloitte that was shared by the Federación Latinoamericana de la Banca (Latin American Banking Federation or Felaban). This is a 65% increase compared the actual amount of people in Latin American who carry out banking activities with their mobile phones. Beyond banking transactions, projections indicate that many more Latin Americans will use their cell phones to buy products: according to Tata Consultancy Services, mobile commerce in Latin America will increase by 35% every year through 2015.

To find out how we can help you reach Latin American consumers via any other type of media, please contact us.

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Latam shoppers 1

What Latin American Shoppers Want

We recently covered what Latin Americans buy the most. However, it’s also helpful to understand the factors that influence the purchase decisions of Latin American shoppers and what they look for from both products and companies. Analyzing the following trends may help marketing, advertising and media professionals create even stronger campaigns.

Preference #1: Socially Responsible Companies
The facts: In a recent Nielsen survey, 77% of Latin Americans said that they prefer to buy products from socially responsible companies—and 49% would pay more for those products. The socially responsible qualities that the respondents seem to value the most in companies are environmentally sustainable practices, supporting small businesses, eradicating poverty and creating well-paying jobs. Nielsen’s survey also showed that 76% of the respondents look at the opinions and information that other people post online to find out about socially responsible companies.
The opportunity for advertisers: Creating online video diaries about a firm’s socially responsible programs in Latin America and promoting them through a crossmedia campaign that integrates social media, TV, print and online video sites. 

Preference #2: Being True to Themselves
The facts: The Global Monitor Study, released in 2010, focused on consumer attitudes in 20 countries, including several from Latin America. When asked what will help them succeed in today’s world, 95% of Latin Americans chose “being true to who you are” over “being the person others think you are.” The same survey also showed strong agreement with the statement “I am constant striving to improve myself and my abilities in as many ways as possible.”
The opportunity for advertisers: Focusing ad campaigns on the idea of being true to yourself and working in elements of self-improvement, perhaps by using social media. For example, a campaign that references being genuine and relates that to the brand could also work in a component—promoted via social media—that includes a contest with a prize of free courses in IT or another discipline that could help Latin Americans advance in their careers. This could speak to both preferences expressed by Latin American consumers while taking advantage of the deep reach of social media in the region. While it didn’t take strict advantage of this preference, a recent Coca-Cola campaign offers ideas for emphasizing individual aspirations among consumers in a compelling way:

http://youtu.be/b1rM8hSQgPQ

Preference #3: Cultural Traditions
The facts: The same Global Monitor study also indicated that a strong majority of Latin Americans are concerned about aspects of their cultures and tradition being lost as the world converges into a single global culture.
The opportunity for advertisers: With specific Latin American markets, advertisers can work in the concept of traditions into their messaging and extend this into social media via contests or sponsored events.
In 2011 Televisa, one of Mexico’s main television networks, launched a campaign called Tradiciones Televisa in honor of the country’s Bicentennial. The campaign focused on traditional festivities and attractions throughout the country, subtly associating the network with Mexico’s time-honored traditions.

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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qr code, flashcode, smartphone

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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