Tag Archives: Latin Link marketing Latin America

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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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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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E-commerce in Mexico Will Grow by 25% in 2012

New figures released by eMarketer show some robust projections for the B2C e-commerce market in Mexico. Compiled in October 2011, the figures show Mexico’s B2C e-commerce sales growing by 32% in 2011 and projected growth of 25.8% in 2012. This figure is similar to the projection made by the Asociación Mexicana de Internet (AMIPCI), which forecast growth of 28 percent in e-commerce for Mexico in 2012.

According to eMarketer, travel purchases are what mostly drives Mexican B2C e-commerce, while AMIPCI research from 2010 identified a different range of favored products for Mexico’s online shoppers, such as computers, cell phones and consumer electronics.

One challenge with Mexican e-commerce has been the country’s relatively low credit card penetration rate. However, some new payment options are helping consumers buy online even if they don’t have credit cards. One new way is a system called BanWire. Users buy a product online, print a payment voucher and pay for the product in person at a convenience store like Oxxo. This is similar if not identical to Brazil’s boletos bancários, which have been helpful in boosting that country’s e-commerce sales. In addition, eMarketer indicated that PayPal Mexico will develop a version of its service to handle payments through mobile phones. This could also help Mexico’s online shoppers make purchases without credit cards.

Given these developments, eMarketer has forecasted 20.7% compound annual growth for Mexico’s B2C e-commerce market between 2010 and 2015.

To find out how we can help you reach Mexico’s online consumers via a powerful digital campaign, please contact us at info@usmediaconsulting.com.

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Clarins Continues Its Latam Growth

While Clarins has been in the Latin American market since the late 1970s, the region’s recent growth is unprecedented.  “I’ve seen growth of 20 percent a year and I think it will continue,” says Joël Palix, president of Clarins Fragrance Group. Historically, Latin America has represented 2-3% of the company’s turnover but now is close to 10 percent. In fact, Palix says that “the way it’s going, it will supersede the United States market sooner or later.”

What Clarins brands are experiencing seem to reflect the recent growth of Latam as a beauty market in general. For example, market research firm Euromonitor International noted that the retail value of beauty and personal care products sold in Latin America in 2010 was nearly $65 billion, making it the world’s 4th largest market, just behind North America.

As the region has become a bigger and bigger market for Clarins, it’s also influenced the company’s promotional efforts. For example, a couple of years ago Clarins selected Enrique Iglesias to represent its Azzaro Pour Homme brand because of his fame and personality—but what also played a role, says Palix, was that “we needed someone who would make an impact on Latin America.”

Upcoming Campaigns
This year the company expects to build on its past success in the region while introducing new products. One example is Aura, a perfume that Clarins created in partnership with Swarovski. Over the past 10 years Swarovski has opened stores all over Latin America. However, it was one of the few luxury brands without a fragrance, so Clarins saw an interesting opportunity in partnering to create and launch Aura. In addition, the companies were a good fit as family-owned luxury brands that share core values. To that end, Clarins is promoting Aura with a campaign this spring.

Later this year, the company plans another campaign in Latin America for its highly successful Angel perfume, leading up to a worldwide campaign in the fall that will celebrate the brand’s 20-year anniversary.

Another planned campaign this year will promote Azzaro Pour Homme, kicking off in Brazil on Father’s Day, August 12, and there will be a panregional rollout for the brand in the fall. Palix points out that Azzaro has been a perennial favorite in Latin America since its launch in 1978, with a cross-generational appeal that almost seems to be handed down from father to son.

Incorporating Internet
While Palix notes that traditional media like TV and print are powerful vehicles to promote Clarins fragrances, the firm is deeply involved in leveraging the power of online media. “We are convinced that the Internet and social media are critical,” he says. This is why the Angel campaign for this spring will have a strong online component. Palix and his team seem to be very well aware of the rapidly growing online market in Latam, particularly in Brazil. As such, Clarins is localizing the content of its Latin American Facebook pages to better engage the audience.

The company is also focused on having lines of communication open with bloggers and making sure that it’s part of the online conversation about its brands. “I think that it’s the future: collaborate with your customers, listen to them, involve them and bring them incredible content,” says Palix. For Clarins, that content includes not only what their customers say about their products but exclusive videos shot with stars like Eva Mendes, the worldwide face of Angel. “Fragrances are about design,” explains Palix, “but they also have a story, and you need to captivate the imagination of consumers with unique stories.” However, what sets Clarins apart from many other brands is its commitment to looking for new ways to tell its stories, including digital media. Considering the rapid rise of the Internet in Latin America, this could well ensure that Clarins’ growth in the region continues for years to come.

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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US Media Consulting Grows Staff by 20%

It’s been a busy 2012 for us on many fronts, but hiring has perhaps been the busiest. New developments in our business and rapid expansion have led to us growing our staff by more than 20% in the first quarter of 2012.

We needed these new team members to handle a variety of duties for us. Some will focus on our general business development as one of the leading independent media services providers for companies looking to reach Brazil, Latin America and U.S. Hispanics. Others will help us develop new products and services for the digital media marketplace. Still others will help grow us in well-developed sectors of our business, such as online and offline ad sales. Here’s a look at some of these new team members.

Salvador Calogero. Based in our Buenos Aires office, Salvador will work with Pablo Veliz, our VP of technology, to develop new products and platforms for Latin America’s digital marketplace.

Lesley Canal. Lesley’s strong sales track record in both offline (Miami Herald) and online media (Centro and Living Social) make her a strong addition to our digital sales team.

Raúl Galofre. Raúl will leverage more than a decade’s worth of digital media and business development experience to create new ventures and partnerships for us.

Verónica Lizama. Verónica, formerly Director of Advertising for América Economía, is the new Ad Sales Director for our Offline Media Division and will oversee sales operations in print, broadcast and out-of-home media.

David Petitone. David’s background in sales for the Miami Herald and other media firms will serve him well as Media Relations Specialist. He’ll focus on nurturing existing media relationships and forging new ones.

Juan Carlos Ruiz. His strong background in digital sales and strategy will serve him well in his new position as Digital Ad Sales Manager for the Andean Region, which includes Colombia, Peru, Ecuador and Venezuela.

We’re proud to welcome all of these new team members and are confident that their contributions will help us grow even more.

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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OOH

The Impact of OOH in Colombia

A new study from GroupM and MindMetriks Colombia looks at how consumers respond to out-of-home (OOH) advertising. Researchers surveyed people in Bogotá who were exposed to different OOH ads in a variety of settings, including bus stops and on public transportation vehicles.
Among the study’s key findings:

• Brands had less than a second to impact an audience: .85 second, to be exact
• Most people (84%) saw at least one OOH ad in an average 20-minute trip
• On average, each person observed 1-3 OOH ads during their commute
• People recalled 60% of the brands whose ads they spotted during their commute and they were 76% accurate in their recall about these brands
• Certain product categories had more impact by gender: cars and liquor presented better indicators among men while financial and beauty products performed better with women

To find out how more about we can leverage the power of OOH for you in Colombia or throughout Latin America, please contact us at info@usmediaconsulting.com.

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Mexican Internet Users and Their Views about Online Ads

Mexican Internet users are spending more time online, are connecting more through their mobile phones and most stop to look at web ads. These are among the compelling findings of a recent study conducted by research firm Millward Brown, Televisa Interactive and IAB Mexico. This is the fourth study they’ve done of Mexican internautas, and it’s based on surveys done in July and August of 1,129 Internet users. For marketing, media and advertising professionals, a number of findings should be of major interest.

>>>Most Look at Online Advertising
75% of Mexican Internet users reported stopping to look at online ads, with 8% saying they always look at online ads and 67% indicating that they sometimes look at them.

>>>What Makes Them Look at Online Ads
53% of Mexican Internet users say that information-providing ads capture their attention. The actual offer in the ads only make 19% stop to look at them, and only 12% stop because the ads offer something new.

>>>Why They Skip Online Ads
67% of Mexican Internet users who skip online ads do this because the ads waste time or are bothersome while navigating. More than half (53%) of those who skip ads do so because they don’t grab the users’ attention or because the products don’t interest them. Technical problems (31%) and a lack of trust in the ads (31%) also make Mexican Internet users ignore online ads. Nearly a quarter (24%) of the Mexican Internet users who ignore online ads do so because they don’t like online advertising, preferring advertising in print, TV and other media.

>>>Product Information Is Important
80% of Mexican Internet users go online to research products or services and 50% buy online, up from 38% who reported doing so in 2010. In fact, while in 2010 Mexican Internet users said the main reason they went online was to chat, in 2011 they say their main reason for going online is to find information.

>>>They’re Going Online with Diverse Devices
62% of Mexican Internet users go online with laptops, up from 57% in 2010. Nearly a quarter (23%) go online with smartphones, while more than a third (34%) use mobile phones. Combining the figures suggests that 57% of Mexicans are going online via mobile phones. Another 20% go online with videogame consoles and just 6% use tablet computers to do this.

>>>Like the Rest of Latam, They Love Social Media
Nearly 9 out of 10 (87%) Mexican Internet users are part of a social network and social media are one of the top 3 sources of information for them. Facebook and Twitter are among the most popular sites among Mexican Internet users. However, Hi 5, MySpace, Sónico and Metroflog all dropped in popularity in Mexico between 2010 and 2011.

>>>They Interact with Brands Online More Than Before
A significant number of Mexican Internet users (40%) are members of company fan pages, 27% have written online about brands and 83% saw ads on social media sites. Among the top reasons they become fans is to find out new information about brands (79%), learn about special promotions (59%) and obtain relevant information (50%). Brands who attract the most Mexican fans on social media sites include Nike, Coca-Cola, Adidas, Converse and Sony.

READING THE RESULTS
A number of key learnings emerge from the study results.

Give them good content. Mexican Internet users clearly go online for information, including product information. But they don’t like intrusive ads that interfere with the navigation. This suggests that content marketing could be a successful way to reach this audience. For example, a car company could prepare content about car maintenance and repair or other useful information and use banner ads about the content to drive users to a landing page with more content and banners for specific products. This aligns with what the users are looking for yet, prepared correctly, also promotes the brand. Click here to see a case study showing how to successfully use content marketing online.

Go mobile. It’s not surprising that Mexicans are going online with mobile devices more than before. The trend is taking place all over Latin America. For advertisers and marketers, this means defining your mobile marketing strategy and developing campaigns to test and discover what works best for your brand.

Review your social strategy. Mexicans see the ads on social networks, they become fans of brands and they use social media to learn more about brands. But taking advantage of this is not as simple as setting up a Facebook page. The Digital Life survey of Latin Americans shows the pitfalls of social media for brands. Reviewing case studies of social media successes in Latin America also offers ideas. Does your social media marketing offer value to the user? Are you the only one talking or do your customers have a say? How can customers interact with your brand via social media but also offline? These are all key questions to consider for reaching any market, not just Mexico.

To learn more about how we can help you reach Mexico with a customized campaign, contact us at info@usmediaconsulting.com.

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3 Reasons Why Latam Newspapers Are Hot

It’s a major contrast. While U.S. and European newspapers are losing circulation, readership and revenue, Latin American papers are booming, just like all Latam media outlets. During the last 5 years their circ has gone up by 5%. They also boast a 65% revenue increase between 2006 and 2011. And revenues look to keep going up—projected increases are 14% a year through 2016. There are 3 key reasons behind this boom.

 

New Audience
The region’s economic upturn has lifted millions out of poverty. Now they can afford newspapers…and many can also afford the products advertised in them. “Indeed, in Costa Rica both the demographic growth—like the poverty level reduction, income increases and access to wide credit sectors—have created new markets in which, from a business perspective, limited buying power is made up for through a huge amount of buyers,” explains Jorge Robert, Corporate Media Director for Grupo Nación, which publishes La Nación, Costa Rica’s largest daily.

New Products
That said, more new readers isn’t enough. According to Robert, “these changes haven’t affected traditional products positively but have sparked new products that are journalistic and commercial successes never before seen in the country.” This means that La Nación and other newspapers have launched new broad-based publications designed to connect with this new group of readers. Examples include tabloid-style  or niche pubs like Grupo Nación’s La Teja, El Salvador’s El Gráfico, Puerto Rico’s En Punto and Guatemala’s El Nuevo Diario. They cover lifestyle topics with a simpler, easy-to-read style.  One of the biggest success stories among new launches has been the tabloid Super Noticia. Launched in 2002 in Belo Horizonte, Brazil’s third largest city, it serves up a mix of crime and entertainment news spiced up by models in bikinis. Its circ stands at 295,701, number one in the country, according to the Instituto Verificador de Circulação, Brazil’s version of the Audit Bureau of Circulation.


New Platforms
Relatively low Internet penetration in Latam is another reason for the surge. Logically, fewer Internet users mean more potential newspaper readers. But Latam newspapers haven’t just coasted on a having a captive audience with no other information choices. They’ve created dynamic Web sites that have established their brands among Internet users. In other words, the reader that knows Colombia’s El Tiempo from the print version will keep reading it when they migrate to the Web. In fact, according to comScore, Colombian newspapers are among the country’s most popular sites: El Tiempo ranks #7 in unique visitors and El Espectador is at #20. In Argentina, Clarín’s website ranks #5 in unique users and La Nación is at #10. Chile’s El Mercurio is the #5 Web site, followed closely by La Tercera at #7. In Perú, El Comercio’s Web site is at #5, while Mexico’s El Universal newspaper ranks #24 among the country’s most popular Web sites.
     Beyond just rebranding on the web, Latam newspapers are also smart about using online media.  For instance, La Nación has more than 100,000 Facebook followers. “We hook them into reading our newspaper either in print or online. We don’t take the content to Facebook, we take them from Facebook to La Nación,” explains Robert. El Tiempo does something similar. It posts its headlines on Twitter and drives traffic to its site. In fact, the Colombian daily frequently hired a Twitter header to manage its messaging with the hyper-popular social medium.

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

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