Tag Archives: Latin media blog

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The State of E-Commerce in Latin America in 2013

We’ve written quite a bit about e-commerce in Latin America but a lot of our earlier posts were focused on buying patterns or offered projections. But now that we’re in 2013, it’s important to review what happened in 2012. To that end, we have created some data portraits to help professionals in marketing, media and advertising get a quick but essential sense of what happened in e-commerce in Latin America in 2012 and what’s ahead in 2013.

ARGENTINA

  • 2012 e-commerce total sales: 16.7 billion pesos (US$3.3 billion at current exchange rates)*
  • 2011 e-commerce total sales: 11.5 billion pesos (US$2.3 billion, so overall e-commerce increased by nearly 32% in Argentina in 2012*
  • In a survey of 540 online shoppers in Argentina, 57% indicated that they buy products online using credit cards*
  • Argentina has the highest digital buyer penetration rate in Latin America—43.9% of Argentina’s Internet users made purchases online in 2012, compared to 34% in Brazil, 19.6% in Mexico and 31.7% in Latin America in general**

Sources: *Cámara Argentina de Comercio Electrónico, **eMarketer

BRAZIL

  • 2012 e-commerce total sales: R$ 22.5 billion (US$11 billion at current exchange rates)*
  • 2011 e-commerce sales: R$ 18.7 billion (US$9.2 billion), so overall e-commerce increased by 20% in Brazil in 2012*
  • Black Friday has definitely arrived in Brazil: on November 23rd, 2012, Brazilians spent more than R$ 217 million (US$110 million) in online purchases*
  • E-commerce increased by 18% during Christmas 2012 in Brazil and overall Brazilians spent more than R$ 3 billion (US$1.5 billion) in online purchases during the holidays*
  • The most popular products purchased on MercadoLivre, one of Brazil’s top e-commerce sites, include cell phones (#1), car accessories (#2), computer products (#3), electronics (#4) and clothes/shoes (#5)**
  • Online sales through tablets and smartphones in Brazil went up significantly in 2012, from 5% to 10%—the most popular mobile device for online shopping among Brazilians was the iPad, which accounted for 51% of these mobile purchases***
  • Mobile commerce in Brazil should increase by 657% in Brazil in 2013 to teach R$ 2 billion (US$1 billion)***
  • For 2013, e-commerce sales in Brazil should grow by 28% to reach R$ 28 billion (US$14 billion)*

Sources: *e-bit, **MercadoLivre, ***Câmara Brasileira de Comércio Eletrônico

MEXICO

  • 2012 e-commerce total sales: 79.6 billion pesos (US$6.2 billion)*
  • 2011 e-commerce sales: 54.5 billion pesos (US$4.2 billion), so in 2012 e-commerce in Mexico grew by 46%*
  • The most popular products for Mexican online shoppers include, in descending order, plane/bus tickets (64%), hotel reservations (37%), music & movies (37%), tickets to shows (34%), books & magazines (27%), computers (26%), electronics (23%), clothes (23%), software (23%) and mobile phones (18%)*
  • In 2012 nearly half of Mexican online buyers (47%) made e-commerce purchases with a mobile device*
  • Each Mexican online shopper spent an average of US$854 in 2012 and this will increase to more than US$1,000 by 2016**
  • Starting in 2013, Mexico’s online shoppers will lead Latin America in amount spent per shopper—more than 20% higher than Brazil’s average by 2016**
  • B2C commerce in Mexico looks to grow significantly in coming years—projected sales in 2013 will be nearly US$8 billion and will reach US$12.9 billion by 2016**
  • By 2016, Mexico will have 12.1% of the online shoppers in Latin America—more than any country except for Brazil, which will have 34.7%**

Sources: *Asociación Mexicana de Internet (AMIPCI), **eMarketer

OTHER MARKETS
It’s challenging to find the same level of detail for other e-commerce markets in Latin America besides the big three that we just highlighted. That’s because e-commerce, while growing, has still not taken off at the same level in other countries in the region. However, marketers, advertisers and media professionals should still take into account the emerging e-commerce markets in Latin America. Here’s a quick review of some numbers for these markets:

  • In Chile, e-commerce sales in 2012 are projected to reach US$1.7 billion, a 14% increase from the 2011 total of US$1.489 billion*
  • A significant portion of Chile’s e-commerce transactions (38%) involve paying taxes, though 29% are travel-related and 17% are for retail products*
  • 65% of Chile’s Internet users engage in e-commerce, significantly higher than in other Latin American markets**
  • In 2012, e-commerce sales in Colombia reached nearly US$2 billion—nearly triple the amount registered in 2010, which was US$600 million***
  • According to the general director of Linio, an e-commerce portal, e-commerce in Peru will go up by 50-60% in 2013
  • E-commerce was projected to reach US$502 million in Costa Rica in 2012, a 29% increase compared to 2011*

Sources: *Visa, **Cámara de Comercio de Santiago, Cámara de Comercio Electrónico de Colombia

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

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why brazilians buy

Why Brazilians Buy

Marketers and advertisers are constantly looking to understand the motivations of their customers—the details that make the difference between adding a product to your shopping cart or leaving it on the shelf. While proprietary research offers insights for specific targets and products, some recent studies also offer some general guidance that all marketing, media and advertising professionals may benefit from. After a review, we identified a number of factors that spur Brazilians to buy, including:

Brand Reputation
Nearly half (49%) of Brazilians who responded to a survey from Draft FCB indicated that a brand’s reputation has the greatest weight when it comes to a purchase decision. In contrast, only 35% of U.S. consumers and 22% of German consumers gave the most weight to a brand’s reputation. In addition, a study from IBOPE Media showed that 66% of Brazilians (classes A, B and C) favor brands that have proven track records in the market, while 67% of class D Brazilians feel this way. Finally, in the same survey, 56% of Brazilians from classes AB think that a brand’s popularity means its products are of higher quality, while 59% of class C Brazilians and 67% of classes D/E Brazilians feel this way.

Discounts
In response to a survey from IBOPE Media’s Target Group Index, 83% of Brazilians said that it’s necessary for them to find discounts and deals before buying any product.

Durability
Another IBOPE survey showed that 70% of Brazilian consumers take durability into consideration when buying a product, along with price. Interestingly, this survey also showed that a product’s sustainability or a brand’s reputation for being concerned about the environment do not yet seem to strongly influence the purchase decisions of Brazilian consumers.

Previous Experience
Another Target Group Index survey showed that for 75% of Brazilians, their previous experience with a product determines their decision to purchase it.

Opinions of Family
In the same Target Group survey cited in the previous point, 68% of Brazilians say that the opinions of family members influences their purchase decisions. In contrast, only 31% of Brazilians said that friends’ opinions influence their purchase decisions.

Social Media
Recent data from IBOPE Media’s Many-to-Many study indicates that 77% of Brazilians follow brands on social media. However, it’s important to note that 84% of Brazilians under 34 follow brands on social media, underscoring the importance of social media when trying to reach a younger audience in Brazil.
On average, Brazilian women tend to follow brands on social media more than Brazilian men (82% of women follow brands versus 72% of men), and each Brazilian who follows brands on social media follows an average of 6 brands.
However, the most important statistic to consider from this study is that 84% of Brazilians take opinions of others on social media into consideration during a purchase decision. These Brazilian consumers say opinions found on social media are most relevant when they are considering the purchase of electronic products (64%), telephone services (50%) and tourism (38%).

Other key points to consider when it comes to Brazilians and social media:

  • Irrelevant or repetitive content posted by brands on social media are the main reasons Brazilians stop following them
  • For 60% of Brazilians, too many messages posted on social media by brands lead to unfollows
  • Promotions, learning new things about the brands and being a customer are the top reasons for Brazilians following brands on social media

Online Advertising
In another IBOPE survey done in 2012, 22% of Brazilians said that web ads served as motivation for them to buy products or services on the Internet during the past and 17% said that ads on sites they visited were instrumental in their purchase decisions. In addition, 49% said that online sponsorships are an effective way to advertise a product and 37% said that banners are useful for finding interesting subjects on the Internet. Finally, nearly half of Brazilians (47%) say they prefer ads that are related to the content on the websites they visit and 28% are influenced by advertising on social networks.
To explore how we can help you reach Brazil’s growing ad market, please contact us.

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3 Reasons Why E-Mail Marketing May Be the Best Way to Reach Brazilians

We hear a lot about social media these days, with multiple experts claiming to know how to use them to deliver amazing ROI. But recent studies suggest that an older tactic—email marketing—may be the best choice for reaching Brazilian consumers. Here’s why.


#1 Brazilians Are Very Open to Receiving Marketing Emails

A recent study from ExactTarget surveyed more than 1,400 Brazilians to measure their response to email, Twitter and Facebook. The survey revealed that 91% of Brazilians who are online have registered to receive email marketing messages from at least one source. In addition, 68% of Brazilians said they made a purchase as a result of an email marketing message and 53% say they are more likely to buy from a company after receiving an email marketing message. However, only 42% have made a purchase after receiving a social media marketing message through Facebook.
What may further validate these results is that Netshoes recently reported that it has increased the volume of opens of its email marketing messages by 70% in the past year.

#2 Email Marketing Has a High Rate of Conversion among Brazilians
A study from Experian Marketing services showed that email marketing has the highest rate of conversion for e-commerce companies in Brazil, 2.53%. Search marketing yields 2% conversion while social media marketing has half the rate of email marketing, with a little over 1%. Another study from the firm Monetate found even more impressive results: 4% conversion rate from email marketing, compared to .59% from social media and 2.49% from search marketing.

#3 Mobile Opens of E-Mail Marketing Has Increased Significantly
A recent study from Spli showed that the number of Brazilians that open email marketing messages using mobile devices went up by 44% between September 2011 and June 2012. The study looked at responses from consumers not only in Brazil, but also in France, Italy, Spain and China. The open rate for Brazilians receiving email marketing messages on their mobile devices was 7%, and only consumers from Spain had a higher open rate (17%). Despite the dominance of Android in the Brazilian mobile market, mobile users with the iOS system—either iPhone or iPad, proved to account for most of the opens, with 47% and 30%, respectively. Brazilian mobile users with the Android operating system accounted for only 21% of the opens.

To explore how we can help you reach Brazil’s consumers, please contact us.

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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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brazil magazines

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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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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Brazil’s Ad Market Grew by 8.5% in 2011

Figures just released by Projeto Inter-Meios show a total billing by the Brazilian ad industry of 39 billion reales ($US22.5 billion), with 28 billion reales (US$16 billion) corresponding to pure ad space sales.

In 2010, the industry billed 21 billion reales, growing 20% compared to 2009. Free TV is still the leader in ad spend in Brazil, capturing 63% of the total. Below is a quick breakdown:

Note that Projeto Inter-Meios shows Internet as having only 5.1% of total ad spend in Brazil, while IAB Brasil’s figures show online capturing 10% of ad spend. That may because of the way Internet ad spend is tallied. IAB Brasil brings together both search and display, since these components each make up 50% of the online ad spend in Brazil. Projeto Inter-Meios does not seem to make that distinction, hence the difference between the two organizations’ figures.

Despite this difference, Projeto Inter-Meios observed that Internet ad spend grew by nearly 20% in 2011, more than any other medium. Out-of-home in Brazil also posted impressive growth in 2011—it grew by 12%. Brazilian print media also grew well in ad spend in 2011: newspapers gained 3.8% and magazine ad spend went up by 3.5%. These strong print numbers match other recent statistics that show the medium is doing quite well in Brazil, unlike in other markets. According to Projeto Inter-Meios, the only Brazilian media to show drops in 2011 were cinema and guides.

To find out how we can help you reach Brazil via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

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