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4 Reasons Why Print Still Has Power in Brazil and Latam

Despite the challenges that print has faced in markets like the United States, the medium still provides strong reach in Latin America. Here’s why:

#1 Newspapers in Peru have grown in circulation by 50% over the past 4 years

This growth was reported by KPMG, which recently studied newspapers in Peru.

#2 Brazilian Newspapers Are Still Growing
According to the Instituto Verificador de Circulacao, Brazilian newspapers grew by 2.3% in circulation during the first 6 months of 2012 and 73% of Brazilians prefer to get their news from print media rather than online sources.

#3 Consumer magazine ad spend dropped in every region in 2009—EXCEPT in Latin America
PriceWaterhouseCooper reported these results in their Global Entertainment Media Outlook 2012-2016 study. Besides holding steady during challenging times, magazines in Latin America are projected to grow in ad spend over the next 4 years, projects PWC.

#4 Newspapers command strong shares of ad spend in several Latam markets
In 2011, newspapers and magazines commanded 36% of ad spend in Colombia, more than Internet (5%) and radio (20%), while free TV commanded 46%. In Chile in 2011, newspapers and magazines accounted for 28% of ad spend, second only to free TV (44.9%). In Argentina in 2011, newspapers and magazines accounted for 39.8% of ad spend, more than TV (37.4%) and any other medium, including radio (3.2%), Internet (6.1%), OOH (5%) and pay TV (7%). In Brazil in 2011, print media accounted for 18% of ad spend, #2 behind free TV, which took up 63% of ad spend.

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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Online videos latam

4 Reasons to Look at Online Videos in Latam When Planning for 2013

A new study from comScore called Tuning In: The Rise of Online Video en Latin America underscores the surge in popularity of online videos in Latin America—and their impact on advertising. Below we break out the study’s most important points to highlight the 4 reasons you should take advantage of this ad platform in 2013.

#1 A Growing Audience
In December 2011, Brazilian Internet users watched 4.7 billion online videos, 74% more than in December 2010. Mexican Internet users increased their online video consumption by 80% between December 2010 and December 2011 to reach 3 billion videos viewed. Argentine internautas are also avid online video watchers: they reached a total of 1.5 billion videos watched in December 2011, a 75% increase compared to December 2010. However, Chileans grew the most in this category: they upped their online video consumption by 91% between December 2010 and December 2011 to reach 1 billion videos watched.
Essentially, there’s been an enormous upswing in online video watching in the biggest 4 Internet markets in Latin America.

#2 Broad Reach
According to comScore, online videos have 85% reach with Internet users in the U.S. and 84% reach among Internet users worldwide.
In contrast, online videos reach 96% of Argentine Internet users, 92% of Chilean Internet users, 81% of Brazilian Internet users and 82% of Mexican Internet users.
Doing the math reveals:

  • Argentina has 28 million Internet users* and 96% of that total is 26.8 million
  • Brazil has 85 million Internet users** and 81% of that total is 68.8 million
  • Mexico has 40.6 million Internet users*** and 82% of that total is 33.2 million
  • Chile has 10 million Internet users* and 92% of that total is 9.2 million

Sources: *Internet World Stats, **comScore, ***AMIPCI

Adding up these totals means that you can reach 138 million people with online video in just these 4 markets—without counting the millions of Internet users in the rest of Latin America.

#3 Room to Grow
In these 4 countries, each viewer spends an average of 11 to 13 hours a month watching online videos, while in the United States, a more mature market, viewers spend 22 hours per month watching online videos. This means that there is good potential for online videos to take up more and more online time of Latin American Internet users. The same applies when you look at the amount of videos watched per user: between 120 and 168 per month in these 4 countries, compared to 245 online videos per month in the U.S.

#4 Market Evolution
First, numbers from IBOPE show that free TV has a penetration of over 90% in Argentina, Brazil, Chile and Mexico. Numbers from LAMAC show that pay TV is growing its reach in these countries: 74% penetration in Argentina, 61% in Chile and 40% in both Brazil and Mexico.

Beyond the reach of TV, a comScore study shows that 71% of online video viewers do this because they missed an episode of a TV show and 57% watch online videos for convenience. Only 38% watch online videos to avoid commercials. In addition, online video watchers indicate in surveys that they are open to seeing at least 6.5 minutes more per hour of ads.

Finally, according to comScore, advertisers fail to reach at least 30% of the audience via just television. On the other hand, according to comScore’s projections, the effective reach of the target audience can go up by 16% when advertising on TV is combined with online video ads. This could be why more American advertisers are investing more in online videos: they spent $1.8 billion in 2011 on online video ads, a 40% increase compared to 2010.

Without a doubt, we’ve been able to help various firms take advantage of the reach of online video in Latin America through our Jumba Video Network.

To explore how we can help you reach Latin America via online video or another medium, please contact us.

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In 2014 Brazil Will Become the #5 Advertising Market in the World

A new forecast from Zenith Optimedia says that Brazil’s ad spend will reach US$22 billion in 2014, making it the world’s #5 advertising market in the world. According to ZenithOptimedia, Brazil was the #6 ad market in the world in 2011, with US$16.8 billion in ad spend.

This prediction for robust growth seems to make sense, especially given the Brazilian ad market’s recent growth. According to recent report from Projecto Inter-Meios, ad spend in Brazil grew by 10% from January to July 2012, compared to the same period in 2011. Total billing was 16.67 billion reales (US$8.1 billion), compared to 15 billion reales (7.3 billion) in the same period in 2011.

Which Media Are Growing the Most in Brazil?
Internet was the medium in Brazil that grew the most in ad spend from January to July 2012—15.46% growth compared to the same period in 2011. Pay TV is another growing medium, posting 15% growth, while free TV grew by nearly 13%. Radio grew by 8.8%, out of home advertising (OOH) grew by 6.7% and newspapers grew by 2.93%. Magazine ad spend dropped by 3% from January to July 2012, but overall has a strong share of 6%.

In fact, print media remain #2 in ad spend in Brazil, with 17.5% share, while free TV remains #1, commanding nearly 65% of ad spend. Cinema advertising, despite having a low overall share of ad spend (.33%), showed a significant increase of 14.2% in ad spend in the period measured by Projeto Inter-Meios.

It’s important to note that Projeto Inter-Meios only measures Internet display advertising, not search. IAB Brasil measures both. As such, the 5% share of ad spend reported for Internet by Projeto Inter-Meios may actually be as high as 13.7% when search ad spend is included.

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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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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spiderman

70% of Argentines Watch TV and Movies Online

According to a new report entitled Manifiesto de nuevos medios 2012—produced by Consulting firm Business Bureau—70% of Argentines watch both movies and TV shows online. More than 85% of Argentinians between 18 and 25 reporting using the Internet to watch TV and movies—not a huge surprise given that quick digital adoption skews young.

But what is surprising is that watching TV and movies online isn’t just popular among younger Argentines. The study found that 68% of Internet users between 45 and 49 watch movies and TV shows online…and 59% of people over 50 also do this.

In addition, comScore has reported that Argentine Internet users watch an average of 132 videos a month per user. When you put these trends together, advertising on sites with online video seems less like an experiment and more like a necessary tactic to reach your target audience.

That’s why we created Jumba Video Network, Latin America’s most extensive online video advertising network.

For more information on how we can help you reach this growing audience of online video watchers in Latin America, please contact us.

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