Tag Archives: Marcos Maranhao

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Ad Spending Will Grow Strongly in Latin America in 2012

Magnaglobal recently released its global ad forecast for 2012 and revealed some interesting figures for 2011. Here’s a look at the relevant numbers for all of Latin America and some specific countries, including 2012 projections for different media types.

2011

  • Latin America’s ad revenues grew by 13.2% in 2011, the biggest growth among developing economies around the world
  • Argentina’s ad revenues grew by 37.9% in 2011, the largest growth of all 63 countries analyzed by Magnaglobal
  • Brazil continued to show strong growth this year, with a 10.2% increase in ad revenue
  • Globally, TV ad revenues grew 4.8% and the medium was #1 in ad revenue across all media, with a 41% share
  • Internet was the biggest global grower in ad revenues in 2011, up by 16.9%
  • Paid search is back on top as the largest revenue driver for online advertising, growing by 19% to total $14.9 billion, with display ads growing by 15% and online video spiking by 58% to pull in $4.7 billion in revenues
  • Radio grew by 2.2% globally, while magazine revenues were down by 0.9% and newspaper revenues dropped by 2.4%
  • OOH revenues grew by 6.4% globally

2012

  • Magnaglobal projects that global ad revenues will grow by 5% in 2012
  • Latin America will post 13% ad revenue growth in 2012, leading all emerging economies in the world
  • Argentina will see the biggest ad revenue growth in all of Latin America in 2012, with 26.4%, outstripping all BRIC countries
  • Brazil will post 12% growth in ad revenues in 2012 and will rank #7 in the world in ad spend, ahead of Canada, Australia and Italy and just behind France
  • Globally, in 2012 Internet will surpass newspapers as the second biggest media category (behind TV), accounting for almost 20% of overall ad spend
  • Radio will grow globally by 1.6% in ad revenues
  • Newspapers (-1.0%) and magazines (-1.3%) will continue to drop
  • OOH will grow by another 6.3% in 2012

To find out how we can help you reach Latin America with a precisely targeted campaign, please contact us at info@usmediaconsulting.com.

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Creative Saves with Brazilian OOH

Usually, our consulting work with firms centers on what type of media to use and how to use it. We almost never get involved with the creative. It’s usually not necessary. But recently we had to step in to help a client avoid some major creative missteps with an out-of-home (OOH) advertising campaign.

Save #1: The Setting
Originally, the client approached us to help pick a format and determine placement for some panels. The setting was to be beaches in the Rio de Janeiro area. However, the client wasn’t targeting all the right beaches in Rio, so we immediately made suggestions based on our expertise. Since I’m a native of Brazil—as are two of our media division heads and our VP of Ad Sales—we knew exactly where the panels should go for maximum impact.

Save #2: The Set-Up
In terms of the OOH ads themselves, the client wanted to combine panels in one area of the beach with an inflatable billboard in the water. A clever idea, but we quickly pointed out that Brazil’s laws would make it tough—if not impossible—to get permits for an inflatable billboard in a timely manner.  Instead, we suggested a plane with an aerial banner. Perfectly legal and great exposure as people looked up while sunning themselves or splashing around. For panel placement, we recommended backlight panels that would be placed on the back of newsstands. As it turns out, a number of newsstands in Brazil are located very close to major beaches. With this placement, most beachgoers would see the panels just as they were arriving. As such, our strategy would allow the ads to reach the audience upon arrival and then while enjoying the beach—with no legal obstacles.

Save #3: The Copy
When the creative for the banner arrived, we spotted a huge problem. The campaign concept was about unity between Brazil and another country. While the approach was playful, it also involved nudity and its message could be interpreted as offensive to Brazilian women. We knew instantly that this could lead to a backlash with the public—not to mention that the government could conceivably ban the ads because of their content. After discussions with the client, they agreed to go with an all-type aerial banner. With the client’s input, our team created the messaging. We managed to tie it into the overall campaign concept yet still work culturally for Brazilians. Our new copy stressed unity but in a broad sense that left no room for misinterpretation.

End Result
Our OOH campaign generated positive buzz in the media, drove response for the advertiser and the overall campaign even earned industry recognition, winning Gold awards in a number of ad competitions.

To learn more about how we can help you with your next OOH campaign, contact us at info@usmediaconsulting.com. You can get the big picture on Brazil’s media market here and can learn more about why you should advertise in Brazil even without a local presence here.

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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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Reaching Around Segmentation in Latam

Typically, segmentation is key to a campaign’s success. Know your customer, tailor your campaign to that knowledge and enjoy your success. But segmentation isn’t the only path to success.

Redefining the Segment
Recently, one of our tech clients was looking for buying strategies for Latam sites. They wanted their ads to deliver unit sales, not branding. So these ads needed to get in front of eyeballs and convert a user into a buyer. While a tech site would have been an obvious route to try to yield segmentation, the client wanted to sell computers. We realized quickly that anyone who’s online is potentially a customer—all Internet users were the segment to go after.

Quality Content = Conversion
With that in mind, we looked to high-traffic sites. Typically, portals for certain countries like Brazil, Mexico and Argentina are a good target. And they worked. However, this one size didn’t fit all. We discovered that for certain Latam countries, newspaper sites also worked well. Examples include Colombia’s El Espectador and El Tiempo and Argentina’s Clarín and La Nación. Why? Local content. Running traffic numbers through comScore, we noticed that the highest traffic from portals for certain countries ran through e-mail or IM programs. People see the ads when checking e-mail or sending IMs to friends and family, but they often responded better when the ads ran in content-rich sites like newspapers. They spent more time browsing these sites. So they were more receptive to the messaging from the ads than when they were focused on checking and responding to emails and IMs.
     This is not to say that portals don’t offer great reach—they do, especially if they have local content for the market. But the content made the difference in conversion with this campaign, and we noticed that in certain markets, like Peru and Central America, local newspapers function as de facto portals because of their brand equity.

Tighten the Pitch
Of course, strategic placement to deliver big reach was only part of why this campaign worked so well. The client created time-sensitive ads with great offers and strong calls to action—and they refreshed them regularly. Combining this with high-reach sites is what drove the success.

The Takeaway

  • Reach can be more important than segmentation if the product has broad appeal
  • Latam portals have great reach, but in certain markets local newspapers work just as well or better because they have millions of loyal readers who migrated from the print
  • Look at what users DO on high-traffic sites. E-mails and downloads keep them too busy to focus on ads. But quality content gets them to browse around and makes them more open to add messaging.

 To learn more about how we can create a powerful online ad campaign for you, contact us at info@usmediaconsulting.com.

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