Tag Archives: Latin Link US Media Consulting

Latam media landscape 2

Latin America’s Media Landscape 2015-2017

Predicting the future is always tricky, but different industry associations have made forecasts for different forms of media in Latin America for the next few years, all based on current trends. Using this data, here’s what experts say that Latin America’s media market will look like in the near future.

#1 THERE WILL BE 359 MILLION INTERNET USERS IN LATIN AMERICA BY 2015
Currently the population of Latin America is at around 575 million but according to the Comisión Económica para América Latina y el Caribe (CEPAL), by 2015 Latin America will have 598 million people. (This count includes Puerto Rico, projected to have 4.1 million people by 2015, but excludes non-Spanish-speaking countries like Haiti and French Guyana.)
According to a May 2012 projection from Registro de Direcciones de Internet para América Latina y Caribe (LACNIC), by 2015 Internet penetration will reach 60% in Latin America. Since 60% of 598 million is 359 million, it appears that Latin America will add 127 million Internet users over the next 3 years to its current total of 232 million Internet users.

Not surprisingly, the growth will be driven by the powerhouse Internet markets. Brazil’s Comitê Gestor da Internet estimates that 80% of Brazil’s homes will have Internet access by 2015. Given Brazil’s population of 193 million and an average of 3.3 people per household, this means that by 2015 Brazil could have 154 million Internet users—up considerably from the 85 million it has today per comScore. LACNIC also predicts that Mexico will have 65 million Internet users by 2015, up hugely from its current total of 40.6 million. Other markets predicted to gain lots of new users include Chile (16.4 million Internet users by 2015) and Ecuador (7.5 million Internet users by 2015).

#2 PAY TV PENETRATION IN LATIN AMERICA WILL REACH 68% BY 2017
According to Dataxis, by 2017 pay TV penetration in the 7 biggest Latin American markets will reach 68% and offer advertisers and audience of 97 million people. The biggest growth markets for pay TV will be Brazil, Mexico, Colombia and Argentina. In addition, the head of Brazil’s national telecommunications agency (Anatel) recently said that 90% of Brazilian homes could have pay TV by 2018. For its part, Mexico could have more than 50% of pay TV penetration by 2015.

#3 LATIN AMERICAN NEWSPAPERS WILL GROW BY 5.5% PER YEAR THROUGH 2016
The downturn experienced by newspapers around the world does not seem to be affecting Latin America. According to a recent projection from PricewaterhouseCoopers, revenues for Latin American newspapers will grow annually by 5.5% through 2016 to reach US$10.4 billion.

#4 LATAM WILL HAVE 750 MOBILE CONNECTIONS BY 2015 PLUS MAJOR MOBILE DEVICE PENETRATION
According to the GSMA, Latin America will have 750 million mobile connections by 2015. Overall mobile penetration in the region is above 100%. Brazil’s mobile penetration is at well over 100%, as is Argentina’s, but in October 2012 Brazil reached a total of 258 million active mobile lines, up from 232 million just a few months back. Mexico is slated to reach 94% mobile penetration by the end of 2012 and over 100% by the first quarter of 2013.
Beyond simple penetration, mobile is changing Latin American markets through the adoption of mobile devices. It’s really not a question of whether a brand needs a mobile ad strategy for Latin America—it’s what this mobile ad strategy will be. Just look at the numbers:

To find out how we can help you reach Latin America via a strategic campaign across all media, please contact us.

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Magazines Surge in Popularity in Brazil

The most recent edition of Estudos Marplan EGM Next Gen show that print media continue to do well in Brazil. Between 2011 and the first quarter of 2012, magazines’ media penetration rose from 39% to 45%. This was the biggest gain of all forms of media. In second place was pay TV, which went from 35% to 40% penetration. Other forms of media in Brazil that gained in penetration in 2012 were newspapers (from 46% to 47%) and Internet (49% to 51%). Free TV’s penetration remained constant at 97%, while radio’s penetration dropped slightly from 77% to 74%.

In terms of socioeconomic groups, magazines increased their penetration significantly with classes AB, going from 52% in 2011 to 63% this year. In addition, magazines also gained penetration with class C: 38% in 2012 compared to 31% in 2011.

Beyond penetration, Estudos Marplan also highlighted how Brazilians use the different types of media. They use TV and newspapers primarily to get news, learn about general culture and spend their free time. Brazilians report that they use Internet and magazines to stay current with the news and for shopping information. Pay TV and radio are seen as companion media by Brazilians, and also as vehicles to cultural and sports information.

To find out how we can help you reach Brazilians via any form of media, please contact us.

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Targeting Mexico’s Internet Users

Recently comScore released its newest study of Mexico’s Internet users, entitled Futuro Digital—México 2012. We analyzed it to break out key takeaways to help digital marketers, advertisers and media professionals target this huge audience of Internet users even more effectively.

Skewing Younger
Nearly 38% of Mexico’s Internet users are between 15 and 24, with another 24.6% being 25-34. Nearly 20% of Mexican Internet users are 35-44. In addition, of all the time spent online by Mexico’s Internet users, nearly half (44.6%) is spent by users aged 15-24. As such, products that skew young—such as tech devices, games, energy drinks, movies and more—are a good fit for an online campaign in Mexico.

Hot Categories
Certain kinds of sites are more likely to draw Mexican Internet users than others. Here’s a look at the top types in terms of reach.

• News sites: 97% reach in Mexico, 80% globally
• Multimedia sites: 96% reach in Mexico, 78% reach globally
• Community sites: 92% reach in Mexico, 72% globally
• Blogs: 82% reach in Mexico, 58% globally
• Games: 72% reach in Mexico, 58% globally

Social Media
Mexico ranks among the top 5 countries in the world in terms of time spent on social media. Each social site visitor in Mexico spends an average of 8.3 hours per month on social media. The only Latin Americans more engaged with social media than Mexicans are Argentines, who average 10.4 hours per month per user on social sites.
Facebook draws the most Mexican Internet users. It has 90% penetration in Mexico and grew by 25% in visitors between June 2011 and June 2012. While other social sites don’t draw nearly the same amount of visitors as Facebook, a number are growing well in Mexico. Between June 2011 and June 2012, LinkedIn grew by 399% in Mexico, Tumblr grew by 277%, Scribd by 74%, Deviant Art by 50% and Twitter by 46%. Both Badoo and Sonico posted significant drops in the same period: 44% and 45%, respectively, as did MySpace, which drop by 13% in visitors.

Entertainment
This site category has 97.5% reach in Mexico and Mexican Internet users spend 3.8 hours per month on entertainment sites, higher than any other Latin Americans except for Peruvians. Multimedia is the subcategory within Entertainment that has the most reach, although music sites (70.4%), TV sites (46.7%) and movie sites (37.1%) all have significant reach with Mexico’s Internet audience.
YouTube reaches 76% of Mexican Internet users and each visitor spends an average of 217 minutes per month on the site. This is not surprising given the established popularity of online videos among Mexico’s Internet users. According to comScore, online videos have 86.1% reach among Mexican Internet users and each viewer in Mexico watches an average of 157.6 online videos per month. Only Internet users in Chile watch more online videos a month: 162. This clear popularity of online videos in Latin America is what led to us creating the Jumba Video Network, which allows advertisers to connect with this huge audience.

Mobile
While smartphone penetration in Mexico is at 20%, slightly less than half the rate it is in the United States (47%), the mobile Internet is growing. In Mexico, 4.6% of all web traffic comes from mobile devices. This is more than double the rate of mobile device traffic in Brazil and Argentina, which are at 2.0% and 2.1%, respectively. In the United States, mobile devices account for about 20% of Internet traffic. Around 59% of the mobile web traffic in Mexico comes from iOS, while nearly 23% comes devices that use Android. In addition, 29% of Mexico’s mobile traffic comes tablets. Brazil is the only country in Latam with a higher percentage of mobile traffic from tablets—43.9%. As such, options such as the Jumba Mobile Network should figure more prominently in web campaigns targeting Mexico’s Internet users.

To find out how you can reach Mexico’s Internet users with a targeted, effective campaign, please contact us.

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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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Latam mobile

Why Mobile Advertising is a Good Move in Latam

In recent posts we’ve documented the increase in mobile phone penetration, the rise of smartphones and tablets and other aspects of Latin America’s mobile market.

But those are external factors.

New research focuses on how smartphone users in Latin America react to mobile ads—and it’s very encouraging. According to Our Mobile Planet, a study of smartphone owners in dozens of countries conducted in partnership with Ipsos Media CT and TNS Intratest,  9 out of 10 smartphone owners in Latin American’s major markets notice mobile ads and over 60% make mobile purchases once a month.

While Our Mobile Planet doesn’t have numbers for all of Latin America, it does show some compelling data for the region’s major markets: Brazil, Argentina and Mexico. Here’s a country-by-country look at the results.


ARGENTINA

Penetration
Smartphone penetration is at 24% in Argentina. Given that Argentina’s total population is 41 million, this is a market of 10 million consumers.

Frequency of Use
71% of Argentine smartphone users access the Internet every day with their devices.

Activities
• 82% of smartphone owners in Argentina research products or service on their phones and 25% have bought products using their phones
• 83% of smartphone owners in Argentina multitask with other media: 57% listen to music, 37% watch TV, 27% read newspapers or magazines
• 68% of Argentine smartphone owners watch online videos and 21% use videos once a day
• 85% of Argentine smartphone users look for local information on their phones and 89% take action as a result
• 66% of smartphone owners in Argentina make mobile purchases once a month

Response to Mobile Ads
• 86% of Argentine smartphone users notice mobile ads: 56% do so while on a web site, 39% notice them while using a search engine and 22% while watching a video
• 76% of smartphone users in Argentina have performed a mobile search after seeing an ad
• 51% only look at the first page of results from their mobile searches

Actions After Seeing Ads
Once they sought information about businesses, 68% of Argentine smartphone owners visited the businesses, 34% made a purchase and 31% told others about them.


BRAZIL

Penetration
Smartphone penetration is at 14% in Brazil—with population estimated at 190-195 million, this is a market of 27 million consumers.

Frequency of Use
73% of Brazilian smartphone owners access the Internet every day on their devices and 73% don’t leave home without them.

Activities
• 80% of smartphone owners in Brazil research products or service on their phones and 31% have bought products using their phones
• 88% of smartphone owners in Brazil multitask with other media: 63% listen to music, 6% watch TV, 26% read newspapers or magazines
• 75% of Brazilian smartphone owners watch online videos and 21% use videos once a day
• 88% of Brazilian smartphone users look for local information on their phones and 92% take action as a result
• 66% of smartphone owners in Brazil make mobile purchases once a month and 38% expect to make more mobile purchases in the future

Response to Mobile Ads

• 94% of smartphone users in Brazil notice mobile ads, 42% while on a web site, 43% while using a search engine and 25% while watching a video
• 75% of smartphone users in Brazil have performed a mobile search after seeing an ad
• 47% of Brazilian smartphone owners only look at the first page of results from their mobile searches

Actions After Seeing Ads
Once they sought information about businesses, 66% of Brazilian smartphone owners visited the businesses, 55% made a purchase and 41% told others about them.


MEXICO

Penetration
Smartphone penetration is at 20% in Mexico—with population estimated at 113 million, this is a market of 22.6 million consumers.

Frequency of Use
66% of Mexican smartphone owners access the Internet every day on their devices and 72% don’t leave home without them.

Activities
• 84% of smartphone owners in Mexico research products or service on their phones and 26% have bought products using their phones
• 87% of smartphone owners in Mexico multitask with other media: 59% listen to music, 38% watch TV, 17% read newspapers or magazines
• 81% of Mexican smartphone owners watch online videos and 31% use videos once a day
• 91% of Mexican smartphone users look for local information on their phones and 88% take action as a result
• 62% of smartphone owners in Mexico make mobile purchases once a month and 33% expect to make more mobile purchases in the future

Response to Ads
• 93% of smartphone users in Mexico notice mobile ads, 58% while on a web site, 42% while using a search engine and 31% while watching a video
• 83% of smartphone users in Mexico have performed a mobile search after seeing an ad
• 46% of Mexican smartphone owners only look at the first page of results from their mobile searches

Actions after Seeing Ads
Once they sought information about businesses, 65% of Mexican smartphone owners visited the businesses, 28% made a purchase and 27% told others about them

Our Jumba Mobile Network and Jumba Video Network are two powerfully effective options for reaching the mobile markets in Argentina, Brazil and Mexico—as well as the rest of Latin America and U.S. Hispanics. To find out more, please contact us at info@usmediaconsulting.com.

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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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