Tag Archives: marcos maranhao media consulting

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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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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brazil_reais_12019667

Brazil Has the #6 Economy in the World

The day after Christmas 2011, Brazil received an unexpected present: the Centre for Economics and Business Research (CEBR) proclaimed it the world’s sixth largest economy.
With this ranking, Brazil moved ahead of the United Kingdom but still trails France, the United States and other economic superpowers. Part of the drive forward is due to the economy’s 7.5% growth in 2010 and 3.5% growth in 2011.
For marketing, advertising and media professionals, Brazil’s economic growth has meant more consumers and an ever-expanding media market. Here’s a quick-reference look at the impact of more money on media in Brazil:

Pay TV. In late 2011 Brazil had more than 12.2 million households subscribing to pay TV. But this medium is no longer a luxury restricted to the upper AB classes: pay TV now has 31% penetration in Brazil’s surging Class C. And class C isn’t signing up just for TV: an Ipsos survey in 2011 showed that 33% of new combo packages (TV, Internet and phone) were sold to members of class C.

Internet. Two different projections say that 70-80% of Brazilians households will have Internet access by 2015. As of 2011 there were 67 million households in Brazil, which means at least 46.9 million households will have Internet access. The average household in Brazil has 3 people, meaning that Brazil could go from 78 million Internet users in 2011 to 140 million in just 4 years.

Print. Newspaper circulation in Brazil went up 4% between the first 6 months of 2010 and the same period in 2011 to hit 4.4 million, a new record. Brazil’s magazines set another record in 2011 by taking in nearly $1.3 billion in revenues.

Not all of the final tallies for Brazilian media numbers for 2011 are in yet, but it’s clear that that trend is headed upwards for the near future.

To find out how we can help you reach Brazil with a targeted media campaign, 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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social-media

Brands Should Be Careful with Social Media in Latam

We’ve seen that social media can be a brand booster in Latin America. However, a new survey of 72,000 consumers shows they have mixed feelings about the social media presence of brands.
TNS carried out the study, called Digital Life, which surveyed customers in 60 countries—including Argentina, Brazil, Chile, Colombia, Mexico and Peru—about their online habits, including social media. Here’s a rundown of the key results.

The Good
• 43% of Latin American social media users see social sites as a place to buy products, with 48% of Brazilians sharing this view
• 44% of Argentines say social media sites are a good place to learn about products
• Several Latam countries are more open to brands on social media sites than they are resistant, including Brazil (32%), Colombia (31%), Peru (32%), Mexico (20%) and Chile (18%)
• 46% of Latin Americans talk about brands online, including 25% of Argentines
• 55% of Latin Americans say they’re driven to get involved with a brand online by promotions or special offers

The Bad
• 45% of Latin Americans don’t want brands to market to them via social media—they see the brands as invading their social space
• 53% of Brazilians don’t want brands to market to them via social media
• 44% of Argentines don’t want brands to market to them via social media
• 37% of Mexicans don’t want brands to market to them via social media
• More Argentines go online to complain about brands (13%) than praise them (11%)

The Confusing
The numbers paint a jumbled picture. On one hand, almost half of Argentines think that social media sites are a good place to learn about products. Yet the same amount doesn’t want brands to market to them on social media. About half of Brazilians see social sites as a place to buy products, but the other half doesn’t want to be bothered by brands on social media sites. A good number of Latin Americans seem open to special offers from products, yet others don’t.
To further muddle things, in the press release that TNS put out to discuss Digital Life’s results, the company said that “misguided digital strategies are generating mountains of digital waste, from friendless Facebook accounts to blogs no one reads…The result is huge volumes of noise, which is polluting the digital world and making it harder for brands to be heard—presenting a major challenge for businesses trying to enter into dialogue with consumers online.”
Okay—but this doesn’t really explain things. Clearly, many of the respondents in these countries are fine with brands reaching out to them social media. And none of the preliminary numbers suggest that consumers perceive social media efforts from brands to be digital garbage.

Moving Forward
What is clear is that Latin Americans—and other consumers—are ambivalent about brands reaching them via social media. In addition, companies risk being perceived as invading their customers’ social media space. But does this mean that brands are “polluting” the digital world with their social media efforts? Not necessarily.

What is does mean is that brands need to look very hard at their social media efforts in Latin America. This is a divided audience—half are glad to see you there and half are not. So the question is: how do you win over the other half? Obviously, the answer will be different for every company. To find those answers, brands may want to explore case studies of successful social media use to see what kind of best practices they can glean and apply. They should also do research in these markets to determine how social media users see their efforts and refine them accordingly. Overall, the survey results point to a need for brands to constantly monitor and improve their social media efforts to make sure that they’re having a friendly dialogue—not an annoying, alienating monologue—with their customers.

To learn more about how we can help you reach Latin America with a customized campaign, 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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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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online ad spend

Online Ad Spend Skyrockets All Over Latam

While other countries can’t boast Brazil’s doubling of online ad spend in 2011, they’re actually not that far behind.
It’s projected that Mexico will join Brazil in having its online ad spend reach 10% of the country’s overall ad spend in 2011. This marks an increase of 3% compared to 2010, when online’s share of total ad spend was at 7%. This surge comes on top of Mexico’s 35% growth in online ad spend between 2009 and 2010, when it reached 3.3 million pesos ($273 million).
While Mexico’s 35% increase in online ad spend is impressive, other Latam markets are also heating up in this area:

  • Argentina: 50% increase in online ad spend in 2010, 27% projected increase in 2011
  • Chile: 29% increase in online ad spend in 2010, 35% projected increase in 2011
  • Colombia: 56% increase in online ad spend in 2010, 40% projected increase in 2011
  • Peru: 44% increase in online ad spend in 2010, 40% projected increase in 2011
  • Uruguay: 40% increase in online ad spend in 2010, (no 2011 projections available yet)

Total online ad spend in Latin America is also on the way up. Zenith Optimedia projects that it will grow by 14.4% in 2011, 2012 and 2013.

Where the Money Is Going
In many countries, display banners still rule. They make up 70% of the digital ad spend in Chile, 83% of the digital ad spend in Colombia, 61% of the digital ad spend in Mexico and 50% of the digital ad spend in Argentina. Search advertising is relatively low in many Latin American countries when you consider how it dominates the online activities of many users. For example, a recent comScore study shows that as an activity search grew 34% in Brazil between March 2010 and March 2011. In the same period, it grew by 23% in Mexico, by 28% in Colombia and by 21% in Argentina.
Among the growth categories are social media (106% in Mexico in 2010) and online video. In fact, an IAB Uruguay study suggests that advertisers will spend more than 25% of their budgets on online video ads.

Factors Behind the Surge
Obviously, improved infrastructure has made a huge difference. The region’s hot economies are also playing a role. With better purchasing power, more people can connect by either buying computers or connecting via their smartphones. And in Brazil, LAN houses have opened up Internet access for class C consumers.
But beyond physical and economic factors, what’s important to note is the Internet’s role in purchasing decisions. comScore’s 2010 study on Latin American e-commerce reported that 97% of Argentine Internet users go online to research products before buying. The same pattern was found among users  in Brazil (87%), Mexico (91%), Chile (90%), Colombia (94%) and Peru (91%). This suggests strongly that advertising online to drive retail traffic is a strategy that will yield rewarding ROI.

To learn more about how we can help you reach the Latin American online market with a variety of premium media outlets, please contact us at info@usmediaconsulting.com.

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class C women Brasil

New study: Women are Key to Reaching Brazil’s Class C

Attracting women seems to be crucial in reaching Brazil’s emerging class C. According to a new study called “As poderosas da nova classe média brasileira” conducted by research firm Data Popular and Abril Media, class C women are the key decision makers when it comes to purchases. Here’s a rundown of the key results.

Who’s in Charge?
• 82% of class C men say their wives manage the household budget
• 77% of class C men say their wives make most of the spending decisions, including what kind of underwear they use
• Out of every 100 reales in household income for class C, 41 of them (roughly 400 million reales) are from the woman’s work—hence her strong influence on what to buy

In fact, class C women bring in nearly half (47%) of the total income earned by all women in the country, compared to 22% from class A and 20% from class B.

What Women Want
Brazilian Class C women showed some interesting preferences in the study that both advertisers and media agencies should note. We organized them by relevant product category for quicker reference.

  • Beauty: 70% believe that beauty care increases the chances of success in life—and they spent 19 million reales on beauty products in 2010, an increase of 228% from 2002
  • Cars: 64.8% care most about engine power when it comes to cars and 44% finance their cars
  • Cell phones: 50% plan on buying a new cell phone in the next year
  • Computers: 66% have taken or are taking a computer course and 46% want to buy a notebook computer in the next year
  • Language classes: 38% want to take an English class
  • Perfumes: 56% of imported perfumes are bought by this segment
  • Pharmaceutical products: 56% of them purchase their household’s pharmaceutical products and 37.6% prefer generic brands to name brands
  • Real estate: 31% want to buy a new home in the next 2 years
  • Social media: 68.9% are on social media networks
  • Travel: 72% will travel in the next 12 months and 62% traveled in 2010, compared to 54% of class C men, and 48% of them prefer using travel agencies
  • Weight loss products: 39% want to lose weight

Brand Opportunities
When it comes to brands, class C women in Brazil already have favorite brands in areas like food, personal care, clothes, makeup, perfume and mobile carriers. However, they are still selecting their favorite brands in the following areas:

  • Banks
  • Cable TV
  • Cars
  • Clothing
  • Furniture/Decor
  • Shoes
  • Electronics

Go here to review more study results.

To learn more about how we can help you reach Brazil via online or other media, contact us at info@usmediaconsulting.com.

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facebooklogo

Social Media Successes in Latam

Despite lots of searching, so far, I haven’t found a ton. Why? First off, more than half of Latin American companies say they don’t have a social media presence, so adoption is far from total. Second, many firms may not want to share their secrets of social media success and lose a competitive edge. However, the successful case studies I did find offer some interesting insights into what works.


Pepsi Strips Down
At the most recent World Cup in 2010, Pepsi was not an official sponsor with all the benefits (and costs) that this would entail. But its ad agency noted that Diego Maradona, coach of Argentina’s team, promised he’d do a naked victory lap around Buenos Aires’ obelisk if his team won. So Pepsi created a campaign in which it promised to also go nude if Argentina won: it would strip its labels off of its bottles for a week. The company ran print ads that showed a Pepsi-shaped bottle with only a blue label that featured the promise to go “nude.” Pepsi complemented the print campaign with a Facebook contest. Fans could upload photos of themselves wearing only a tag that had the message from the print campaign: “Si DT se desnuda, nosotros también” (If the director técnico—coach—strips, so will we). Fans uploaded around 14,000 nearly nude photos. And while avoiding heavy-duty sponsorship fees, Pepsi ended up being one of the four soft drink brands that consumers associated with the World Cup—the other three were paying sponsors.


Bancolombia Reaches Out
Rather than create a social media effort tied to a specific campaign like Pepsi, Bancolombia’s efforts are ongoing. Basically, they use Facebook and Twitter to allow their customers to tell them about problems—and they offer solutions, right away. It’s not much different than what Best Buy did with Twitter a while ago. Bancolombia also tells its fans and followers about special promotions, posts its commercials on YouTube and spreads the word out about current campaigns running in other forms of media. The combination of one-way communication (promotions supported by ads in other media) plus two-way communication (answering customer questions and solving problems) has earned Bancolombia 49,000 Facebook fans, 14,000 Twitter followers and 114,000 views of their YouTube videos.


Doritos Feeds Social Media
In Argentina, Doritos didn’t start out with a specific social media campaign. Instead, it researched its target audience of young people and created a media campaign to bring them closer together via slow dancing. Blogs, social media chatter and other sources suggested that this is what young Argentines wanted. As it turns out, clubs in the country favored pulsating techno music, not exactly a romantic choice. So the campaign centered on bringing back slow dancing to the clubs with ads in different media and a website where people could sign a petition that Doritos would show club owners.
This campaign spurred a spontaneous social media campaign by the audience. An event sprung up with a specific goal: get together to slow dance in Buenos Aires’ Planetarium club. Social media, acting like high-tech word of mouth, spread the word. Eventually 4,000 people got together to dance. In the process, the cause sparked 33 Facebook groups with 20,000 members and 200,000 views on YouTube, as well as TV coverage for the actual event. The social media coverage lifted the brand’s profile while helping spike sales.

Lessons Learned

  • Social media does not take the place of “traditional” media—it complements those campaigns by reaching people another way and letting them interact with the brand
  • Social media spreads the word—and what grabs attention is a benefit for end users like discounts, contests or special sales
  • Think about your customers’ general needs when creating a campaign—even if it doesn’t directly or obviously relate to your brand
  • Create a positive, creative event people can participate in—airline Colombiana Aires ran a Facebook contest in which people uploaded videos and photo montages to win tickets to a Peter Manjarrés concert held in the air on a Bogotá to Cartagena flight 

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

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