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Woman working from home

How Latin American Women Use the Internet

We already know from earlier studies done by Deloitte and TGI Latina that women play major role in purchase decisions.  We also know that women make up around 50% of the Internet users in Latin America—as well as 50% of the e-commerce buyers. And both general Latam studies and studies of specific markets show that categories like fashion and beauty are among the top categories of products that Latin Americans buy online.

Given these circumstances, a new study of nearly 3,000 Latin American women by Oh! Panel offers significant data that may help marketers, advertisers and media firms refine and optimize their digital ad campaigns that target this audience. The Oh! Panel study was done in partnership with Mercado Libre and includes responses from female Internet users in Argentina, Brazil, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela. Here’s a look at some of the key findings.

Top Online Activities: Email, Searching for Info and Social Media
According to the study results, 92% of Latin American women use the Internet for email, 85% use it to search for information and 73% use it for social media. Getting news (66%), buying products (64%) and using instant messaging to communicate with family and friends (58.5%) are among the other popular activities.

37% of Latin American Women Listen to Music Online
Ensuring that popular music sites like Grooveshark and last.fm are part of an online ad campaign makes sense, given that a significant percentage of Latin American women use the Internet to listen to music.
Mexican women listen to music online more than women from any other country surveyed (42%), but the activity is also popular among Brazilian women (38%), Argentine women (37%), Peruvian women (40%) and more.

Top Social Sites Among Latin American Women
According to the survey, 98.8% of Latin American women surveyed are on Facebook, while 50.9% use Google+, 33% use Twitter, 15% use LinkedIn and 14.7% use Orkut. The rest of the social media sites in the survey—Sonico, Instagram, Myspace—produced single-digit percentages  of use.
In looking at the popular social sites by country, Facebook was generally huge popular in all countries studied, while Google Plus and Twitter were both most popular among Venezuelan and Colombian women. LinkedIn was most popular among Brazilian women and Venezuelan women, while Orkut was most popular among Brazilian women.
While we have seen strong growth for Pinterest in Latin America in comScore’s recent research, in this survey only 2.7% of the respondents said they go on the site.

Most Latin American Women Think Online Ads Are Helpful
The large majority (73%) of respondents agreed with the statement “Online ads don’t bother me and help me stay current with the new products and launches.” In addition, 76.2% of Latin American Internet users say they are interested in online promotions because they can buy what they want more cheaply and faster.

Online Ads Significantly Influence Purchase Decisions of Latam Women Online
More than half (52.8%) say that online ads influence their purchase decisions, while 23% were neutral and 24% indicated that they did not.

Online Comments About Products Are Important
More than 3 out of 4 Latin American female Internet users (75.9%) say that they pay attention to online comments about products and services because they are an excellent way to find out if a product or service is good or bad.

8 out of 10 Latin American Women Say They Shop Online
Overall, 82% of the respondents say they have purchased or sold a product online in the past year. Brazilian women seem to be the most avid online shoppers, with 89% reporting buying or selling a product via Internet in the past year. The large majority of Uruguayan (85.5%), Venezuelan (79.3%), Mexican (79%), Colombian (73%), Peruvian (72%) and Argentine (69%) women also report buying/selling products online in the past year.

Top Products Latin American Women Buy Online
More than 73% of Latin American women report buying technology products (digital camera, tablets, GPS, notebook computers) online. Other popular e-commerce products among Latin American women include clothes/shoes (44%), decorative items (32%), books (26.7%), trips (26.4%), products for children (25%) and music (19%).

Most Latin American Women Think Online Shopping is Safe
In the past, surveys identified security as a barrier to the development of e-commerce in Latin America. However, this survey suggests this may be changing. When the women in this Oh! Panel survey were asked what two words most come to mind when they have to make an online purchase, 59.2% selected “fast” and 59% selected “safe.” Only 21.5% selected “unsafe.” In addition, the majority (53.9%) feel that it will become safer and safer to buy high-value products online while 18% disagree with this statement and 27.7% are neutral.

Most Latin Women Plan on Buying Products for the Home via Internet
Overall, 62.6% agreed with this statement, while just 23.5% were neutral and 14% disagreed.

E-Banking, E-Learning and Other Activities Are About to Take Off in Latam
When asked which online activities they thought would grow the most in popularity, the majority of the respondents (57.8%) said buying electronic products online. Other online activities Latam female Internet users say will grow in popularity are e-banking (55%), e-learning (39%), shopping with cell phones (26%) and buying plane tickets online (23%).

To find out how we can help you reach women or any other type of market segment in Latin America via any type of media, please contact us.

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latam online ad spend

In 2013, Latin America Will Be #2 in the World in Digital Ad Spend

According to new projections from eMarketer, in 2013 online ad spend in Latin America will grow by 23%, more than any other region in the world except for the Middle East. And although Brazil remains the region’s largest online market, Mexico will lead Latin America in online ad spend growth in 2013: the country will post an increase of 32.1% in digital ad spend. Argentina will be in second place in 2013, growing by 30% in online ad spend, while Brazil will grow by 20%.

Emarketer also notes that in 2012, these three markets grew robustly in their online ad spend: Mexico’s 2012 online ad spend grew by 34%, while the online ad spend of Brazil and Argentina in 2012 grew by 40% in each country.

That said, online’s share of overall ad spend in Latin America will not grow as robustly. In 2012, online’s share of ad spend was 9.7% in Latin America and eMarketer projects online’s share of overall ad spend will reach 14% in Latin America by 2016. In contrast, online’s share of ad spend in North America will go from 22% in 2012 to 29% in 2016. Of course, the obvious reason for this is the stark difference in Internet penetration between the two regions: 40% for Latin America and 78% for North America.

Despite this, several factors could cause online’s ad spend share in Latin America to grow faster than projected. First, it’s projected that Internet penetration in the region will reach 60% by 2015, resulting in 359 million Internet users in Latin America, a gain of 127 million compared to the amount in 2012. In addition, e-commerce continues to grow spectacularly in Latin America: it grew by 44% in Argentina in 2012, by 40% in Mexico in 2012 and is projected to grow by 28% in Brazil during 2013. And 2012 statistics from e-bit indicated that 65% of Chilean Internet users shop online.  This affects online advertising because both search and banner advertising influence the purchases of Latin American online shoppers. Finally, as both mobile and social media increase their reach in Latin America, advertisers will need to increase their spend in these areas to continue to reach their customers.

To find out how we can help you reach Latin America via Internet advertising or any other type of media, please contact us.

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conectados

Latam’s Emerging Internet Markets

In covering the rise of Internet in Latin  America, there seems to be a wealth of information about the larger markets such as Brazil, Mexico, Argentina and Colombia. In contrast, it’s harder to find data about smaller but surging Internet markets, such as Peru, Ecuador, Chile and Uruguay.

To help marketers, advertisers and media agencies plan their campaigns in these markets, we decided to put together some quick Internet data portraits for them.

 


CHILE

>Penetration: In June 2012 there were 10 million Internet users in Chile out of a total population of 17 million, which is 58% Internet penetration*. Chile is edged out by Colombia (59.5%) and Argentina (66%) in Internet penetration, but ranks higher than Mexico, Brazil and many other Latin American countries.
In terms of reach within socioeconomic classes, Internet penetration in Chile is 81% with classes ABC1, at 70% with class C2 and at 57% with class C3.**

>Future Growth: There will be 16.4 million Internet users in Chile by 2015, 64% growth. This will undoubtedly be helped by 97% PC penetration in Chilean homes by 2015.***

>Time Online: Chilean internautas spend an average of 24 hours a month online per user, in line with the global average of 24.5 hours per user per month.****

>Reaching This Audience: The types of sites with deepest reach among Chilean Internet users are social media sites (96% reach), community sites (95%), multimedia sites (93%), news sites (93%), blogs (87%) and game sites (87%).****

>Social Media: Chileans spend nearly 9 hours a month on social media and the country ranks #6 in the world in terms of its social media use. Facebook rules in Chile as it does in the rest of Latam, with 91% reach and 6.7 million visitors from Chile in May 2012.****

>Social Media to Watch: Despite Facebook’s reach, advertisers should also look to other fast-growing sites in Chile, like Tumblr (209% growth between 2011 and 2012), Scribd (258%), Slideshare (58%) Deviantart (36%) and LinkedIn (32%).****

>Online Video: Chileans watch many more online videos than the rest of Latin America, offering advertisers a fresh, effective format for reaching this market. Internet users in Chile watch 172 videos per viewer per month, significantly higher than the monthly online video consumption of Mexico (154 videos per viewer per month), Brazil (125) and Argentina (117). The vast majority of online videos watched by Chileans (82%) are on Google Sites, with VEVO and Viacom responsible for 5% and 1%, respectively, of the online videos watched by the audience. Current market indicators suggest the growth should continue strongly: between August 2011 and August 2012, the overall numbers of online videos that Chileans watched went up by 48%.****

>E-Commerce: Projections from Visa suggest that e-commerce in Chile will grow 14% from US$1.4 billion in 2011 to US$1.7 billion in 2012.

>Mobile Penetration: Currently it’s at 129%.******

>Smartphone Penetration: Currently at 30% but one estimate says that by 2015, 54% of the cell phones sold in Chile will be smartphones.******* However, Chilean Telecommunications Ministry subsecretary Jorge Atton recently estimated that in 2013 as many as 75% of the mobile phones sold in Chile will be smartphones.

>Mobile Internet: In 2011 mobile broadband connections in Chile grew by 105% to reach 2.96 million and surpass fixed broadband connections, which totaled around 2 million.********

Sources: *Internet WorldStats, **Estudio General de Medios, ***Pyramid Group, ****comScore, *****Cámara de Comercio de Santiago, ******Subsecretaría de Telecomunicaciones de Chile, *******Entel, ********Ministerio de Transporte y Telecomunicaciones

 


ECUADOR
>Penetration:
Currently there are 4 million Internet users in Ecuador, which means an Internet penetration rate of 27%.*

>Future Growth: By 2015 there will be 7.5 million Internet users in Ecuador, nearly 90% growth.**

>Social Media: Ecuadorian Internet users spend 6 hours a week on social media.*** Facebook is by far the most popular site, with 4.9 million users in Ecuador.**** Among the five brands with the most amount of Facebook engagement in Ecuador are KFC Ecuador, Pingüino Ecuador, Nine West Ecuador, McDonald’s Ecuador and Fioravanti.****

>Mobile Penetration: Overall, 78% of Ecuadorian homes have a mobile phone.*****

>Smartphone Penetration: Currently at 8%, which suggest there are 1.2 million smartphone owners in Ecuador. Demographically, 53% of smartphone owners in Ecuador are men and 47% are women. Smartphone owners skew fairly young, with 11.7% between 16 and 24, 11.5% between 25 and 34, 10.1% between 25 and 34, 7.2% between 35 and 44 and 5.7% between 45 and 54.*****

Sources: *Internet WorldStats, **Latin American & Caribbean Network Information Centre (LACNIC), ***Wave 6 study by UM, ****Socialbakers, *****Instituto Nacional de Estadísticas y Censos

 


PERU

>Penetration: In June 2012 there were 10.7 million Internet users in Peru out of a total population of 29.5 million, which is 36.2% Internet penetration*.

>Time Online: Peruvian internautas spend an average of 26.5 hours a month online per user, higher than the global average of 24.5 hours per user per month and higher than the averages for Internet users in Mexico (22.8 hours/month), Argentina (25.4 hours), Chile (24.9 hours) and Colombia (23.3 hours).**

>Reaching this Audience: The types of sites with deepest reach among Peru’s Internet users are community sites (97% reach), social media sites (96%), multimedia sites (96%), news sites (95%), directories (91%), blogs (82%) and game sites (81%).**

>Social Media: Peruvians spend 8.6 hours a month per user on social media, which is higher than Latam’s average per user (7.6 hours) and the global average per user (6.1 hours). Facebook is the #1 social media site, reaching 87.9% of Peru’s online population.**

>Entertainment: 97% of Internet users in Peru visited an entertainment site in January 2012 and their usage of these sites (4.2 hours per user) is higher than that of overall Internet users in Latam (3.3). Not surprisingly, YouTube has 73% reach in Peru.**

>Mobile Penetration: Currently it’s at 110%.***

>Smartphone and Tablet Sales: While it’s difficult to pin down smartphone penetration, it’s known that 28% of the phones imported into Peru in 2012 were smartphones, double the amount imported in 2011.**** An article on the Web site Nexonet cited projections from Samsung that indicate that 50% of the cell phones sold in Peru in 2015 will be smartphones. For their part, tablet sales in Peru have spiked by 334% in the first half of 2012, with 57,800 units sold. In addition, while Samsung’s Galaxy had a 60% share of the tablet market in Peru in 2011, Apple is gaining: of the 57,800 tablets sold so far in 2012, 13,589 were from Apple.****

>E-commerce: While online shopping in Peru has yet to reach the levels that it has in Mexico, Brazil or Argentina, one recent estimate suggests that e-commerce will grow by 30% a year through 2015.*****

>Mobile Internet: In Peru, mobile Internet traffic grew by 1,700% between 2010 and 2012.******

Sources: *Internet WorldStats, **comScore, ***International Telecommunications Union, ****Dominio Consultores, *****Sociedad de Comercio Exterior del Perú, ******Telefónica Móviles

 


URUGUAY
>Penetration:
In June 2012 there were 1.8 million Internet users in Uruguay out of a total population of 3.3 million, which is 55.9% Internet penetration*. A 2012 study done by Grupo Radar of 1,800 Uruguayans—1,098 of whom were Internet users—showed that 77% of people in Montevideo and 74% of people in the rest of the country had PCs in the home. PCs were present in the homes of 97% of the highest socioeconomic classes and in 78% of the homes of the middle classes.**

>Connection: In Uruguay, 86% of Internet users connect from home, while 35% connect from the homes of family or friends, 24% from work, 23% from school and 17% from public places, while 42% connect from cybers, presumably Internet cafes. Interestingly, some 20% reported going online with mobile phones or tablets.**

>Time Online: According to Grupo Radar’s results, the average Uruguayan spends 10 hours a week online, which would average out to 40 hours a month, considerably higher than monthly figures reported for other countries in Latin America.**

>Reaching this Audience: The top activities reported by Uruguayan Internet users include search (79%), social media (77%), email (73%), chatting (72%), downloading music (65%), YouTube (63%) and reading news (62%). Relatively low numbers report playing games (35%), downloading or watching movies (34%) and buying or selling online (22%).**

>Social Media: Nearly all Uruguayans surveyed by Grupo Radar (99%) are on Facebook, while other social media sites have much lower numbers. For example, only 11% use Twitter, only 2% use Sonico or Badoo and only 2% use LinkedIn.**

>Facebook Use: The majority of Uruguayan Internet users surveyed by Grupo Radar (89%) use Facebook to chat. Other top Facebook uses include sharing links, commenting on friends’statuses, uploading photos, writing comments or joining groups. Only 42% report becoming fans of pages (57% do not) and 31% report clicking on social media ads.**

>Researching Brands: About half (52%) of Uruguayan Internet users go online to find information about brands, while 48% do not. Brand websites are were the large majority (70%) go, though social media are in second place with 29% of users going there to find out information about brands. A small amount (13%) writes comments about brands on social media.**

>Social Media Ads: Grupo Radar’s study indicates that 49% of Uruguayan Internet users like that brands promote themselves via social media, 4% do not like it and 47% don’t care one way or another.**

>E-commerce: Overall global numbers for e-commerce are difficult to pin down but only 22% of respondents in Grupo Radar’s survey reported buying online. With those online shoppers, top online products included PC accessories, appliances, cell phones, clothes and sports equipment.

>Mobile Penetration: Currently it’s at 71%, according to the Instituto Nacional de Estadísticas.

>Smartphone Penetration: Current data is scarce but Pyramid Research projects sales of 1.2 million smartphones in Uruguay by 2017.

>Digital Media: In Grupo Radar’s study, 39% of Internet users in Uruguay reported reading news on line, with 64% reading news on El País’ site. Other news sites drew significantly lower responses: Observa (17%), Montevideo.com (14%), La República (14%) and El Espectador (7%).**

>Mobile Internet: In 2011 the amount of mobile broadband connections in Uruguay grew by 60%***

Sources: *Internet WorldStats, **Grupo Radar, ***Unidad Reguladora de los servicios de Comunicación

To find out how we can help you reach these emerging Internet markets or any of the other markets in Latin America via a strategic campaign across all media, please contact us.

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Brazil luxury final

3 Reasons Why Brazil Has Become a Major Luxury Market

In 2011, Brazil’s luxury market grew by 4.7% in terms of designer clothing and footwear while sales of luxury accessories went up by 3.5% to reach US$294 million, according to research firm Euromonitor.

Overall, Brazil’s luxury market doubled its growth rates between 2008 and 2012. As such, the country’s luxury goods market is worth more than US$7 billion. Mexico is in second place—Euromonitor reports that its luxury market is worth US$1.5 billion.

The following factors are driving Brazil’s growth as a luxury market:

#1 Economic growth
Despite relatively weak economic growth of 1.5% in 2012, Brazil’s economy should grow by 4% per year from 2013 through 2016. In addition, a recent study from IPC Marketing Editora projects that Brazilian consumption will surpass 2.7 trillion reales in 2012, with household spending growing by 3.6%, more than double the growth of the country’s GDP this year.

#2 Many HNWIs
According to research firm Global Information, Brazil has the largest amount of high net worth individuals (HNWIs) in Latin America. In fact, the country ranks 11th in the world in terms of the amount of high net worth individuals. In addition, a recent report by McKinsey&Company estimates that 3 million Brazilians can afford luxury goods and that the country has 24 billionaires and 155,000 millionaires—and a third of the millionaires are under 35.

#3 Projected future growth
MCF Consultoria & Conhecimento, a retail and luxury consultancy firm based in Sao Paulo, estimates that Brazil’s luxury market will grow by 25% in 2012. In addition, Euromonitor forecasts that BRIC countries (Brazil, Russia, India, China) will account for 16% of global luxury sales by 2016, up from 11% in 2012.

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.

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internet1

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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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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