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Profiling the Average Internet User in Brazil

As we all know, proper targeting is everything when it comes to a campaign, especially in the online world. A new report from IAB Brasil called Indicadores Mercado Online may help you refine your targeting. It includes statistics from a variety of studies that seem to paint a picture of the average Brazilian internautas. Here’s a brief profile of the typical Internet user in Brazil, based on this research:

Most Are Young Males
Based on March 2013 results from research produced by IBOPE Media in partnership with Nielsen, nearly 53% of active Internet users in Brazil are men and 47% are women. The largest age group among Brazilian Internet users is 25 to 34 (25.6%), and #2 is 35 to 49, with 25.5%. So slightly more than half of your target audience in Brazil is 25 to 49. If we decide to include slightly younger age groups, we find that 11.6% of Brazilian internautas are between 18 and 24 and 10.5% are 12 to 17. This means that 73% —basically 3 out of 4 Brazilians who are active Internet users—are between 12 and 49 and significantly ore more likely to be male rather than female.

Most are Classes AB
According to  2012 research from IBOPE called Internet POP, Internet has 92% reach among class A Brazilians and 79% among Class B Brazilians, with significantly lesser reach among the growing class C (54%).

The Majority Are Located in the South or Southeast of Brazil
Research from comScore MediaMetrix indicates that more than half (54.9%) of Brazilian Internet users are in the southeastern part of the country and another 18% are in the south, meaning that your web banners are more likely to be seen by people in those parts of the country. In contrast, only 4.7% of Brazilian Internet users are in the north, only 13% are in the northeast and only 9% are in the center-west region.

Their Favorite Web Sites Include News and Entertainment
The research from IBOPE and Nielsen also looked at the top Web site categories for Brazilian Internet users. Search engines were the #1 category, followed by telecommunications/Internet sites (#2), entertainment sites (#3), computer/consumer electronics sites (#4) and news/information sites (#5). Other important categories include family/lifestyle (#9), travel (#10) and finance/investment (#12).
Interestingly, here at US Media Consulting we represent or work directly with major international brands in all of these areas. For example, in Brazil we represent The Wall Street Journal (news and finance), CNET (computers and tech), Clickhoteles (travel), last.fm and SongPop (entertainment). In addition, we frequently work with top technology sites like Mashable, Wired and NetShelter, top lifestyle sites like Glam Media and Enfemenino, top entertainment sites like Grooveshark and top news sites like Forbes, Bloomberg and The New York Times.

Most are Avid Watchers of Online Videos
The IAB Brasil report cites comScore Data that indicates that 8 out of 10 Brazilian Internet users watch online videos, which have the biggest reach among those between 25 and 34 (13 million) and those between 35 and 44 (9 million). This is why we launched Jumba Video Network, which brings together many top sites with online videos all over Brazil and Latin America.

Internet Drives Their Purchase Decisions
A TG.Net survey from June 2012 shows that 74% of Brazilians said they had gone on the Internet in the past 6 months to obtain information about products before buying them. In addition, 68% agree either totally or partially with the statement “A internet me ajuda mais que a televisão para decider que produto comprar” (“The Internet  helps me more than TV does in terms of deciding which product to buy.”) In addition, nearly 7 out of 10 Brazilian Internet users (69%) say that the Internet gives them product information that they can’t get anywhere else.

They Search for Social Sites the Most, then Multimedia
IAB Brasil’s report also cites March 2013 data from Hitwise that indicates that the type of Web sites that Brazilians search the most for are social media sites (30%). The #2 type of site category that Brazilian internautas search for are multimedia sites, which means music and video. Rounding out the top 5 are game sites, portal home pages and education sites.

They Are Fairly Likely to Be Online Shoppers
In 2012 more than 42 million Brazilians bought products online. Currently, comScore estimates that there are 89 million Internet users in Brazil. This means that 47% of Brazilian Internet users engage in e-commerce. For perspective on the explosive growth of e-commerce in Brazil, consider that in 2008 only 13 million Brazilians bought products via the Internet. According to e-bit the top 5 types of products that Brazilians bought online in 2012 were appliances (#1), clothes (#2), health and beauty products (#3), tech products (#4) and home décor products (#5). Overall, Brazilians spent R$ 22 billion (US$11 billion) on e-commerce purchases in 2012 and it’s projected that Brazilians will spend R $28 billion (US$14 billion) on e-commerce in 2013.

A Significant Portion Go Online Via Mobile Devices
The IAB Brasil report includes data from a survey of more than 20,000 Brazilian Internet users done between July 2011 and August 2012. Nearly 4 out of 10 Brazilian Internet users reported using a laptop, netbook or notebook to go online, compared to just 15% in 2009. In addition, 8% of Brazilians said they used smartphones to go online in 2012. That said, 2013 data from IBOPE Media—just published in Blue Bus—paints an even more potent picture of mobile Internet in Brazil. According to IBOPE, 52 million Brazilians can access the Internet via cell phones. Out of this total, 20 million Brazilians access the Internet using a smartphone. This IBOPE study also notes some interesting facts that marketers and advertisers should keep in mind: 64% of Brazilians who go online with smartphones read news, 47% to see what’s new in the music scene and 44% to watch videos.

To find out how we can help you reach Brazilians via any other type of media, please contact us.

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hipermercados

7 Key Statistics about Brazilian Consumers

Recent studies from various sources have offered important insights about Brazilian consumers. We selected 7 of the most relevant data points so you can factor them in when setting up future campaigns.

More and More
According to market research firm IPC Marketing, Brazilian consumption will total more than R$ 3 trillion (US$1.5 trillion), an increase of nearly 10% compared to 2012, when total consumption of Brazilians was R$2.7 trillion. Class B has the most purchasing power and will spend R$1.3 trillion (US$650 billion) in 2013. Class B accounts for 48% of national consumption in Brazil, slightly less than in 2012, in which it was responsible for 50% of consumption. Brazil’s Class C1 will spend R$518 billion (US$259 billion) in 2013, very close to class A, which will spend R$ 539 billion (US$269 billion).
Home maintenance is what Brazilians will spend most of their money on in 2013: it accounts for more than 25% of total consumption. Other top spending categories in Brazil in 2013 include health/medicine/personal hygiene (almost 9%), transportation (7.5%), building materials (5%), clothing/footwear (4.7%), recreation/travel (3.5%), education (2.5%), electronics (2.2%) and furniture/household goods (1.8%).

Charging It
According to Associação Brasileira das Empresas de Cartões de Crédito e Serviços (Brazilian Association of Credit Card Companies and Services), in 2012 the use of credit cards accounted for 26% of Brazilian household consumption, up from 16% in 2007. Overall, in 2012 R$ 479 billion (US$239 billion) were spent in credit card transactions in Brazil, 16% higher than in 2011. In addition, transactions with credit or debit cards represented 58% of sector revenues in Brazil in 2012.

Electronics Are Essential
A recent study from Accenture looked at the average amount spent by consumers on electronics. According to the results, Brazil is #2 in the world in electronics spending, with an average of US$1,080. Only consumers in China spent more on electronics: an average of US$1,251 per person. The study also showed that Brazilian consumers plan to spend an average of US$1,323 on electronics in 2013. The electronic products that Brazilians say they plan to buy in 2013 include tablets (scoring 148% in purchase potential), Blu-Ray players (136%), high-def TVs (113%) and smartphones (111%).

Most Brazilians Buy on Impulse
A new survey from Serviço de Proteção ao Crédito Brasil indicates that 85% of Brazilian consumers say that they buy on impulse. More than 4 in 10 Brazilians from classes AB report buying on impulse while low self esteem was the main reason for impulse buying among Brazilian from classes C and D.

They’re Going Places
In the first quarter of 2013, Brazilians spent more than US$6 billion on foreign travel, up from the US$5.3 billion they spent on travel in the first quarter of 2012. Overall in 2012, Brazilians spent more than US$22 billion on foreign travel, a bit more than the US$21 billion they spent in 2011.

Social Shopping Becomes Significant
A survey of Internet users in 12 countries done by Rakuten—a Japanese site that’s one of the world’s largest e-commerce companies—shows that 63% of Brazilians recommend products on social media sites. Only consumers from Indonesia (67%) had a higher propensity for using social media to recommend products. The study also looked at the average amount spent per person through e-commerce transactions. On average, in 2012 Brazilians spent US$657 per person. The United Kingdom’s shoppers spent the most per person via e-commerce in 2012, with an average of US$1,700. That said, Brazil’s e-commerce average was close to Japan’s (US$694 per person), higher than Spain’s average (US$649 per person) and not that far behind from the United States’average (US$909 per person).

The Power of Positive Thinking

Given all these numbers, it’s no surprise that Brazilian consumers seem to be very optimistic. According to a global report from Nielsen that looks at consumer confidence around the world, Brazil is one of seven Latin American countries whose shoppers feel pretty good about the future. Nielsen’s scale sets 100 as the top score for consumer optimism and confidence, and it looks like Brazilians (with a score of 111) have the sunniest shopping outlook. Other countries with highly optimistic shoppers include Peru (with a score of 98), Colombia (95), Chile (95), Mexico (86), Venezuela (84) and Argentina (75).

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

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6 Reasons Why Internet Advertising is the Best Way to Reach Brazilians

A recent survey from IAB Brasil and comScore—called Brasil Conectado 2—looked at the attitudes and preferences of Brazilians when it comes to the Internet.  There are six key points that professionals in media, marketing and advertise should factor in when planning their next campaign in Brazil:

#1 >>>Brazilian Shoppers Begin Shopping by Going Online
74% of the Brazilians surveyed say they search for products online that they intend to purchase offline

#2>>> Internet Ads Drive Traffic
Nearly 70% of Brazilians say that online ads motivate them to visit the site of the advertised brand

#3>>>Internet Ads Close the Deal in Brazil
66% of Brazilians say that Internet ads motivate them to visit the store that’s being advertised and 63% of Brazilians say that Internet ads make them want to buy the products advertised

#4>>>Brazilians Are Now Confident Online Shoppers
69% of Brazilians say that Internet is easiest medium for shopping and 63% say they have no problem with using a credit card to make purchases online

#5>>>Online Video Is a Smart Option for Advertising Online in Brazil
Nearly 6 out of 10 Brazilians (58%) say they prefer to see advertising incorporated into online video rather than paying to view the content

#6>>>M-Commerce is Becoming More Popular among Brazilians
More than one-third of Brazilians surveyed said that they had bought products using their tablets and 23% of Brazilians reported that they bought products with their smartphones

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

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The Most Valuable Brands in Latam

A recent report from marketing communications firm WPP—entitled BrandZ Top 50 Most Valuable Latin American Brands 2012—offers a ranking of the region’s brands.

Overall, these top 50 brands have a total value of US$136 billion. Not surprisingly, Brazil accounts for the largest amount of this total (US$45.9 billion), with Mexico in second place (accounting for US$36.8 billion), while Chile accounts for US$27 billion, Colombia accounts for US$22 billion and Argentina accounts for US$3.76 billion.

To create the ranking, WPP worked with Millward Brown Optimor and generated the valuations based on a brand’s economic impact, i.e. its ability to generate long-term earnings for shareholders and sustained demand among consumers. Several key variables were used as part of the process, including corporate earnings, future earnings prospects and customer viewpoints about brands based on extensive quantitative research.

Here’s the list of the top 50 brands in Latin America as per the report:

 

The top 50 brands in Latin America in this ranking cut across a range of categories, but retail (with 14 brands) is the dominant category, with finance in second place.

The report also listed top brands for specific markets. Here’s a quick look, country by country:

Top 5 Brands in Argentina

  1. YPF (fuel provider)
  2. Personal (mobile telecommunications)
  3. Telecom (telecommunications)
  4. Quilmes (beer)
  5. Banco Galicia (bank)

Top 5 Brands in Brazil

  1. Petrobras (fuel)
  2. Bradesco (bank)
  3. Itaú (bank)
  4. Skol (beer)
  5. Banco do Brasil (bank)

Top 5 Brands in Chile

  1. Falabella (department store)
  2. LAN (airline)
  3. Sodimac (home improvement chain)
  4. Banco de Chile (bank)
  5. COPEC (fuel)

Top 5 Brands in Colombia

  1. Comcel (mobile services)
  2. Ecopetrol  (fuel)
  3. Bancolombia (bank)
  4. Banco de Bogotá (bank)
  5. Banco Popular (bank)

Top 5 brands in México

  1. Telcel (wireless service)
  2. Corona (beer)
  3. Telmex (telephone service)
  4. Televisa (media)
  5. Bodega Aurrera  (retail)

 

To find out how we can help you reach Latin American consumers via any 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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Ad Spend in Brazil to rise by 10% in 2013

According to Warc, a global marketing information service, ad spend in Brazil will increase by 9.8% in 2013, growing by another 12% in 2014.

Warc published this projection as part of its Consensus Ad Forecast report. The sharp increase for Brazil is significantly higher than the increase in global ad spend, which Warc predicts will be 4% in 2013. Brazil’s projected 2013 growth in ad spend is less than that of Russia (12.3%), but higher than that of China (10.9%) and of the United States (2.2%). In 2014, Warc projects that Brazil will lead the world in ad spend, with growth of 12.1%.

Growth in Different Forms of Media
According to Warc’s forecast, Internet ad spend will grow by 20.5% in Brazil in 2013, while TV ad spend will grow by 10.3%, out of home ad spend will grow by 9%, radio ad spend by 6%, magazine ad spend by 3.9% and newspaper ad spend will grow by 5%. In fact, Brazil is one of only three countries in the world (along with Russia and India) in which newspapers will post growth in ad spend in the next two years: everywhere else, newspaper ad spend will contract by 2.7%, says Warc.

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

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Brazilians buy 2012

What Brazilians Are Buying in 2012

Recently, a number of firms in Brazil have been releasing sales figures for different products during the first 6 months of the year. Reviewing the top-selling products in Brazil for the first half of 2012 may help professionals in marketing, media and advertising with their 2013 plans, so we decided to include a selection of these best sellers.

 

 


Beauty Products

In the first 6 months of 2012, sales of beauty products in Brazil totaled 15.4 billion reales (US$7.3 billion). Overall, the Brazilian beauty market should grow by 15% in 2012.* Buying beauty products online is another trend that could be contributing to these numbers. Mercado Livre reported recently that sales of health and beauty products on its site went up by 60% during the first half of 2012. The categories with the biggest growth include hand care products (up 128% in sales) and makeup (up 113% in sales).
Source: *Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria e Cosméticos



Books

In 2011 more than 469.5 million books were sold in Brazil, 7.2% more than in 2010.* In 2012,  sales of books in Brazil will increase by 14.5%.** Nearly 45% of books sold in Brazil are sold in bookstores, while door-to-door sales account for 9% of book sales. Other retail points of distribution exist but are responsible for a small amount of sales, such as supermarkets (2.4%), churches (4%) and newsstands (2.2%).**
In terms of socioeconomic class, in Brazil class B buys the most books, accounting for 51.5% of book sales, while class A accounts for 20.7%, Class C accounts for 23.7% and classes D and E  account for 3.7% of sales.**
Sources: *Fundação Instituto de Pesquisas Econômicas, **IBOPE


Cars

Between January and September 2012, 2.1 million cars were sold in Brazil, 5.8% more than in the same period of 2011.* Record-breaking sales in August 2012 probably helped boost the numbers: 420,101 cars were sold in August 2012 in Brazil, a 15% increase over sales in July 2012 and 28% higher than sales in August 2011.**
Sources: *Associação Nacional dos Veículos Automotores, **Federação Nacional da Distribuição de Veículos Automotores


Computers

Overall, computers are not really booming in sales in Brazil. According to research firm IDC, 7.8 million computers were sold in Brazil during the first half of 2012, just 2% more than in January-June 2011. However, there has been a dramatic increase in the sales of certain kinds of computers. During the second quarter of 2012, 606,000 tablets were sold in Brazil, an increase of 275% compared to the second quarter of 2011. In the first quarter of 2012, 370,000 tablets were sold in Brazil.
Overall, 2.6 million tablets will be sold in Brazil in 2012, up from an earlier forecast of 2 million. In addition, tablet sales in Brazil will reach 5.4 million units in 2013.
Source: IDC

 


Digital Cameras

Sales of digital cameras in Brazil should grow by 22% in 2012. In 2011, 4.7 million digital cameras were sold in Brazil and 2.3 million units were sold in the first half of 2012.
Source: GFK Retail and Technology

 


Drinks

Brazilians will spend 17.7 billion reais (US$8.3 billion) on drinks in 2012, 15% more than in 2011. In this context, the term “drinks” means water, soda, beer, juice, wine, champagne and distilled beverages. Class B does the majority of drinks spending, accounting for 42.6% of the total, which class C is responsible for 40%. Class A only accounts for 10% of the spending on drinks in Brazil, while classes D and E are responsible for 7% of the overall spending on drinks.
Source: Pyxis Consumo

 


E-commerce

Brazil’s e-commerce sales for the first half of 2012 totaled 10.2 billion reais (US$4.9 billion), a 21% increase compared to the first half of 2011. Around 1.3% of e-commerce purchases by Brazilians were made with a mobile device, up from 0.3% in 2011. Overall, 37.6 million Brazilians made online purchases in the first half of 2012, and 5.6 million were shopping online for the first time. E-bit projects e-commerce sales of 12.2 billion reais (US$5.8 billion) in the second half of 2012, 20% growth compared to the second half of 2011.
Here’s a look at the top-selling e-commerce products in Brazil in the first half of 2012:

  1. Appliances
  2. Health/beauty products
  3. Fashion and Accessories
  4. Books & magazine subscriptions
  5. Computer products

Source: e-bit

 


Smartphones

Sales of smartphones went up 77% in Brazil in the first half of 2012, with overall sales of 6.8 million units.* The rest of the mobile phones sold in Brazil from January to June 2012—20.5 million—were feature phones.* Sales for feature phones dropped by 16% during the first half of 2012.* By 2015, 57% of the mobile phones sold in Brazil will be smartphones.*

More smartphone facts for Brazil

  • 55% of the cell phones sold in Brazil during the first half of 2012 offered Internet access**
  • 38% of Brazilian smartphone users have more than 21 apps installed**
  • 68% of the apps most used by Brazilian smartphone users in the past 30 days are games, while 63% were music apps and 67% were social media apps**

Sources: *IDC, **Nielsen

 


Travel

Brazilians spent a record amount on travel in the first half of 2012: US$10.7 billion, compared to the US$10.2 billion they spent in the first half of 2011, an increase of 4.4%.*
In addition, business travel by Brazilians grew by 34% in the first half of 2012, record growth. The largest part of this expenditure—42%—went to the country’s airlines, while hotels received 18%. The top 3 destinations for Brazilian business travelers were São Paulo, Rio de Janeiro and Brasília.*
Sources: *Banco Central, **Associação Brasileira de Agências de Viagens Corporativas

 


TVs

Flatscreen TVs account for 90% of the TV sales in Brazil today. They surpassed tube TV in sales in Brazil starting in 2010, when they posted sales of 5.8 million units.* More than 8.8 million flatscreens were sold in Brazil in 2011 and in the first half of 2012, more than 5 million were sold, up 31% compared to the first half of 2011.*
As of June 2012, LED TVs are the most popular flatscreen in the Brazilian market, with 50.9% of sales, compared to 43.5% for LCD TVs and 5.5% for plasmas.* Currently around 20% of TVs in Brazil are Internet-connected*, compared to 38% in the United States**.
Sources: *GFK, **Leichtman Research Group

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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ecommerce3

The Future of E-Commerce in Latin America

While it’s obvious that Latin Americans don’t buy online at the same huge volume of Americans or Europeans, it’s also obvious that the region’s e-commerce commerce market is no longer tiny and limited to just a wealthy few. According to a recent story from América Economía magazine, e-commerce sales in Latin America totaled $10 billion in 2007—and tripled to $30 billion by 2010. In 2011 e-commerce sales hit $43 billion and according to the magazine’s projections, online sales in Latin America will total $69 billion by 2013. While nowhere near the $161 billion in e-commerce spending of the United States in 2011, Latam has come a long way from the $1.6 billion in e-commerce sales it posted in 2003.

Brazil is the Biggest
It’s not surprising that the region’s largest country would be the biggest e-commerce market: currently Brazil accounts for 59% of the e-commerce sales in Latin America. In addition,  América Economía also notes that there are 173 million credit cards in Brazil, where the population totals 195 million. While this doesn’t necessarily mean that over 80% of Brazilians have credit cards, it does reveal one important factor that drives the size of the country’s e-commerce market. Another is the e-commerce division created by Correios, the country’s national postal firm, which currently has 40% market share in a shipping market with nearly 30 competitors. The country has also encouraged e-commerce by reducing taxes, interest rates and permitting free returns for products bought online. Given this, it’s no surprise that Wal-Mart, Apple and Amazon all have plans to open offices in Brazil this year.

Beyond Brazil
Mexico is #2 in e-commerce in Latin America, with 14.2% of the sales. The Caribbean is third at 6.4%, followed by Argentina (6.2%), Chile (3.5%), Venezuela (3.3%), Central America (2.4%) and Colombia (2.3%). The Asociación Mexicana de Internet released a study about e-commerce in Mexico for 2011 that covered buying habits and top-selling products. You can find it in our Resources section.

Recently, the Cámara Argentina de Comercio Electronico (Argentine Chamber of E-Commerce or CACE) released a study of the country’s online shopping market that showed growth of 49.5%.  Other interesting figures from the CACE study include:

• 29.5% of Argentina’s Internet users engage in e-commerce—9 million shoppers
• 57% of dotcom businesses have implemented an m-commerce option to handle the growing amount of shoppers who use their mobile phones to shop online
• The e-commerce market in Argentina will grow 41% in 2012 to reach a total of 16 billion pesos
• 75% of Argentina Internet users research products online before buying them offline
• 89.6% of Argentine online shoppers use local firms for e-commerce and the most popular is Mercado Libre, while 10% use foreign firms like ebay and amazon
• 63% of Argentines who buy products through the Internet use a credit or debit card, 49% pay cash and 6.7% use bank transfers

Find out more here.

Other Factors in Latam E-Commerce
In its coverage of e-commerce in Latin America, America Economía noted that the original projection was sales of $35 billion in 2011. To explain why sales ended up being greater ($43 billion), the magazine cited several contributing factors:

• The launch of newer firms like Geelbe like Cuponaso to supplement larger firms like Peixe Urbano and Mercado Libre
• Social gaming sites like Vostu and Mentez that contribute to e-commerce via the sales of lower-cost online games
• Other forms of social commerce via immensely popular sites like Facebook
• Companies offering customers the option to purchase products online but pick them up at the stores, which saves both money and time for them
• The explosion of Latin America’s mobile market, which has led to users making purchases via smartphones and tablets

To read the complete América Economía story, click here.

To find out how you can reach this growing market of Latin American consumers, please contact us.

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How Brazilians Use Social Media

As social networks continue to grow in both Brazil and Latin America, it’s important to understand the details of how Internet users in Brazil access and participate in social media. A new study from research e.life offers up these details, which should be helpful for media, marketing and advertising professionals to target this audience the most effective way possible.

Conducted from November 2011 to February 2012, e.life’s survey had a sample size of 1.316 social media users in Brazil—and in fact, the company used social networks to circulate the survey questionnaire.

Here’s a look at key results.

Signing Up to Social Networks
• Nearly 60% of of Brazilian social media users have signed up to a social network in the past 3 months
• The social media sites that Brazilians signed up for the most in the past 3 months are Facebook (27.5%) and Google Plus (27%), with Twitter coming in third (11.8%) and YouTube fourth (9.4%)

It’s interesting to note that the survey did not list new signups for Orkut in significant percentages.

Shopping Habits
• 65% of Brazilian social media users who responded to the survey shop online
• 45% look for information online and shop offline
• 41% use social networks to look for information about products
• 2 out of 3 use the Internet to publish feedback about products or services
• 74% “like” companies on Facebook
• 54% follow companies on Twitter

Accessing Social Networks
• 68% of Brazilian social media users access social networks via apps
• The most popular apps for Brazilian social media users are E-Buddy (35%), Tweetdeck (31.9%) and Hootsuite (11.4%)
• App use among Brazilian social media users doubled between 2011 and 2012

The Most Popular Social Media Sites in Brazil
When asked by e.life which social media sites they were on, the vast majority of Brazilians said Facebook. Here’s a quick look at which social sites are the most popular in Brazil as per the survey responses:

#1 Facebook (94% of respondents are on it)
#2 Orkut (75%)
#3 Twitter (73%)
#4 YouTube (69%)
#5 Windows Live (66.9%)
#6 Google Plus (56%)
#7 Skype (53%)
#8 LinkedIn (24%)
#9 Blogger (23%)
#10 Flickr (19.6%)

Now, comScore results for May 2012 paints a slightly different picture of which are the top social media sites in Brazil:

#1 Facebook (41 million unique users or uu)
#2 Orkut (25 million)
#3 Twitter (11 million)
#4 Tumblr (4.4 million)
#5 LinkedIn (4.3 million)
#6 Scribd (4.3 million)
#7 Slideshare (3.3 million)
#8 Vostu (3.2 million)
#9 Badoo (2.1 million)
#10 Scribd (1.7 million)

In part, the differences between the e.life survey and comScore are due to classifications. YouTube, for example, is classified as Entertainment-Multimedia by comScore, not as social media. In May 2012 in Brazil, YouTube drew 34.5 million users, which would make it the #2 social media site. Also, Google Plus was not listed under the social networking category by comScore, but it is important to note that in May 2012 it drew 5 million users in Brazil.

Social Media Frequency of Use
When asked which sites they used most frequently, Brazilians said Facebook: 88.9% said it was the site they used the most. Twitter came in second at 41%, followed by Windows  Live Messenger (34.3%), Orkut (31.7%) and YouTube (21.7%).

Facebook Users in Brazil
• 68.5% use apps to access social media and the most popular mobile app among them is the one designed for Android
• 70% of Brazilian Facebook users access the Internet via desktops, while 60% use notebooks and 56% use mobile phones or smartphones

To download the complete study, please see our Resources section.

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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