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Top advertisers in Brazil2

The Top Advertisers in Brazil in All Media

Recently IBOPE published a list of the top 30 advertisers in Brazil during 2012. The list is based on data from IBOPE’s Monitor Evolution product and tracks results with all major forms of media, including free TV, magazines, radio, newspapers, pay TV, cinema, Internet and OOH. Here’s the list of the top 15:


Major Online Advertisers

While we don’t have a list of top online advertisers in Brazil in terms of reales invested, comScore recently published a list of companies with the most display ad impressions. While this is obviously not the same as direct investment, this measure does suggest strongly which advertisers are more active in the online world in Brazil:

Given this massive level of investment and Brazil’s projected future status as the #5 advertising market in the world by 2014, it’s not surprising that O Globo recently reported that the revenue of digital agencies in Brazil more than doubled between 2010 and 2012. The source for this was the Brazilian Association of Digital Agencies (ABRADI), which indicates that digital agency revenues went from R$974 million (US$452 million) to R$2.2 billion (US$1 billion). As part of the growth, Brazil has seen an increase in the amount of digital agencies—from 2,518 in 2010 to 3,094 in 2012.

To find out how we can help you reach Brazilian consumers via media campaigns of all types, 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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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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Latam mobile

Why Mobile Advertising is a Good Move in Latam

In recent posts we’ve documented the increase in mobile phone penetration, the rise of smartphones and tablets and other aspects of Latin America’s mobile market.

But those are external factors.

New research focuses on how smartphone users in Latin America react to mobile ads—and it’s very encouraging. According to Our Mobile Planet, a study of smartphone owners in dozens of countries conducted in partnership with Ipsos Media CT and TNS Intratest,  9 out of 10 smartphone owners in Latin American’s major markets notice mobile ads and over 60% make mobile purchases once a month.

While Our Mobile Planet doesn’t have numbers for all of Latin America, it does show some compelling data for the region’s major markets: Brazil, Argentina and Mexico. Here’s a country-by-country look at the results.


ARGENTINA

Penetration
Smartphone penetration is at 24% in Argentina. Given that Argentina’s total population is 41 million, this is a market of 10 million consumers.

Frequency of Use
71% of Argentine smartphone users access the Internet every day with their devices.

Activities
• 82% of smartphone owners in Argentina research products or service on their phones and 25% have bought products using their phones
• 83% of smartphone owners in Argentina multitask with other media: 57% listen to music, 37% watch TV, 27% read newspapers or magazines
• 68% of Argentine smartphone owners watch online videos and 21% use videos once a day
• 85% of Argentine smartphone users look for local information on their phones and 89% take action as a result
• 66% of smartphone owners in Argentina make mobile purchases once a month

Response to Mobile Ads
• 86% of Argentine smartphone users notice mobile ads: 56% do so while on a web site, 39% notice them while using a search engine and 22% while watching a video
• 76% of smartphone users in Argentina have performed a mobile search after seeing an ad
• 51% only look at the first page of results from their mobile searches

Actions After Seeing Ads
Once they sought information about businesses, 68% of Argentine smartphone owners visited the businesses, 34% made a purchase and 31% told others about them.


BRAZIL

Penetration
Smartphone penetration is at 14% in Brazil—with population estimated at 190-195 million, this is a market of 27 million consumers.

Frequency of Use
73% of Brazilian smartphone owners access the Internet every day on their devices and 73% don’t leave home without them.

Activities
• 80% of smartphone owners in Brazil research products or service on their phones and 31% have bought products using their phones
• 88% of smartphone owners in Brazil multitask with other media: 63% listen to music, 6% watch TV, 26% read newspapers or magazines
• 75% of Brazilian smartphone owners watch online videos and 21% use videos once a day
• 88% of Brazilian smartphone users look for local information on their phones and 92% take action as a result
• 66% of smartphone owners in Brazil make mobile purchases once a month and 38% expect to make more mobile purchases in the future

Response to Mobile Ads

• 94% of smartphone users in Brazil notice mobile ads, 42% while on a web site, 43% while using a search engine and 25% while watching a video
• 75% of smartphone users in Brazil have performed a mobile search after seeing an ad
• 47% of Brazilian smartphone owners only look at the first page of results from their mobile searches

Actions After Seeing Ads
Once they sought information about businesses, 66% of Brazilian smartphone owners visited the businesses, 55% made a purchase and 41% told others about them.


MEXICO

Penetration
Smartphone penetration is at 20% in Mexico—with population estimated at 113 million, this is a market of 22.6 million consumers.

Frequency of Use
66% of Mexican smartphone owners access the Internet every day on their devices and 72% don’t leave home without them.

Activities
• 84% of smartphone owners in Mexico research products or service on their phones and 26% have bought products using their phones
• 87% of smartphone owners in Mexico multitask with other media: 59% listen to music, 38% watch TV, 17% read newspapers or magazines
• 81% of Mexican smartphone owners watch online videos and 31% use videos once a day
• 91% of Mexican smartphone users look for local information on their phones and 88% take action as a result
• 62% of smartphone owners in Mexico make mobile purchases once a month and 33% expect to make more mobile purchases in the future

Response to Ads
• 93% of smartphone users in Mexico notice mobile ads, 58% while on a web site, 42% while using a search engine and 31% while watching a video
• 83% of smartphone users in Mexico have performed a mobile search after seeing an ad
• 46% of Mexican smartphone owners only look at the first page of results from their mobile searches

Actions after Seeing Ads
Once they sought information about businesses, 65% of Mexican smartphone owners visited the businesses, 28% made a purchase and 27% told others about them

Our Jumba Mobile Network and Jumba Video Network are two powerfully effective options for reaching the mobile markets in Argentina, Brazil and Mexico—as well as the rest of Latin America and U.S. Hispanics. To find out more, please contact us at info@usmediaconsulting.com.

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Brazil best sellers

Brazil’s Best Sellers

Despite conservative macroeconomic projections, it seems like Brazilians are shopping more than ever. A study from the firm IPC Marketing Editora projects that consumption in Brazil will surpass US$2.7 trillion in 2012, with household spending exceeding GDP. Classes B and C account for half of what is consumed in Brazil, though Class B seems to show the strongest purchasing power.

We’ve observed some strong spikes in sales of a number of products in Brazil. Here’s a look at what grew the most in sales in 2011 and what’s selling strongly so far in 2012.

Autos
Car sales in Brazil grew by 2.9% in 2011, according to the Associação Nacional dos Fabricantes de Veículos Automotores (National Association of Automakers). The Volkswagen Gol was the biggest selling model in Brazil in 2011, followed by the Fiat Uno. Chevrolet’s Celta and Corsa Sedan ranked #3 and #4, respectively, in sales. Overall, Fiat sold the most cars in Brazil in 2011: 273,000. In 2012, the Federação Nacional da Distribuição de Veículos de Veículos Automotores (National Federation of Motor Vehicle Distribution), predicts car sales will go up 4.5% in Brazil.   

Computers
Research firm IDC reported recently that computer sales in Brazil went up by 12% in 2011 to reach 15.4 million units sold. According to the Getulio Vargas Foundation (FGV), a Brazilian higher education and research institution, sales of computers in Brazil will reach 17.9 million in 2012, an increase of 16%. FGV’s study indicates that currently there are 99 million computers in Brazil, roughly one computer for every two Brazilians. According to Fernando Meirelles, who led the research team from FGV, by 2017 there will be one computer for every Brazilian.
Notebooks and tablets are among the hottest types of computers among Brazilian consumers. Sales of notebooks grew by 60% in 2011 to reach 5 million, according to Gfk Consumer Choices, with 800,000 units sold in December 2011 alone.
Tablets posted comparatively modest sales of 450,000 units in 2011, but research firm Navegg predicts that Brazilians will buy 1 million tablets in 2012.

Cosmetics
Brazil’s cosmetics industry logged US$14 billion in ex-factory sales in 2011, 7.9% higher than in 2010, according to Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria e Cosméticos. According to projections from Euromonitor International, in 2013 Brazil will overtake Japan to become the #2 cosmetics market in the world, just behind the United States.

E-commerce
The most recent report from market research firm e-bit indicated that in 2011, the e-commerce market in Brazil reached US$10.1 billion in sales, up 26% compared to 2010, when e-commerce sales totaled US$8 billion. In 2012, e-commerce sales in Brazil should reach US$12.6 billion, 25% higher than 2011, projects e-bit. Over 9 million new customers bought a product online for the first time in 2011, and overall around 32 million Brazilians have engaged in e-commerce. Top products for Brazilians who shop online include appliances, computers, electronics, health/beauty items and clothes/accessories.

Mobile Broadband Connections
According to Anatel, the country’s national telecommunications agency, there are now 54.3 million mobile broadband connections in Brazil, which means an overall 28% mobile broadband penetration rate. Forecasts from Teleco—an organization that tracks telecommunications in the country—suggest that Brazil will have 73 million mobile broadband connections by the end of 2012 and 124 million connections by 2014 when it hosts the World Cup. As mobile broadband connections have grown, so have the number of mobile phones with 3G services: currently 20% of the cell phones in Brazil have 3G.

Pharmaceuticals
According to IBOPE, sales of pharmaceuticals in Brazil will grow by 13% in 2012 and be four times more than the Gross Domestic Product. Classes B and C will account for 80% of the sales, spending 23 billion and 27 billion reales, respectively. A number of companies are benefiting from this surge, including Bayer HealthCare and Pfizer, which experienced increases of 13% and 14%, respectively, in their 2011 Brazil sales.

Smartphones
According to a projection by IDC, smartphone sales in Brazil will increase by 73% in 2012. In total numbers, this means that Brazilian shoppers will buy 15 million smartphones this year, whereas in 2011 they bought 8.9 million. This is a huge increase compared to 2010, when 4.8 million smartphones were sold in Brazil. IDC considers phones with operating systems, like iPhones or Blackberrys, to be smartphones. According to the firm, over 50% of the smartphones in Brazil use the Android operating system.

Videogame Consoles
According to market research firm GfK Consumer Choices, sales of video game consoles in Brazil shot up by 53% in 2011 to reach 935,000 units, up from 642,000 units in 2010.

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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Latam shoppers 1

What Latin American Shoppers Want

We recently covered what Latin Americans buy the most. However, it’s also helpful to understand the factors that influence the purchase decisions of Latin American shoppers and what they look for from both products and companies. Analyzing the following trends may help marketing, advertising and media professionals create even stronger campaigns.

Preference #1: Socially Responsible Companies
The facts: In a recent Nielsen survey, 77% of Latin Americans said that they prefer to buy products from socially responsible companies—and 49% would pay more for those products. The socially responsible qualities that the respondents seem to value the most in companies are environmentally sustainable practices, supporting small businesses, eradicating poverty and creating well-paying jobs. Nielsen’s survey also showed that 76% of the respondents look at the opinions and information that other people post online to find out about socially responsible companies.
The opportunity for advertisers: Creating online video diaries about a firm’s socially responsible programs in Latin America and promoting them through a crossmedia campaign that integrates social media, TV, print and online video sites. 

Preference #2: Being True to Themselves
The facts: The Global Monitor Study, released in 2010, focused on consumer attitudes in 20 countries, including several from Latin America. When asked what will help them succeed in today’s world, 95% of Latin Americans chose “being true to who you are” over “being the person others think you are.” The same survey also showed strong agreement with the statement “I am constant striving to improve myself and my abilities in as many ways as possible.”
The opportunity for advertisers: Focusing ad campaigns on the idea of being true to yourself and working in elements of self-improvement, perhaps by using social media. For example, a campaign that references being genuine and relates that to the brand could also work in a component—promoted via social media—that includes a contest with a prize of free courses in IT or another discipline that could help Latin Americans advance in their careers. This could speak to both preferences expressed by Latin American consumers while taking advantage of the deep reach of social media in the region. While it didn’t take strict advantage of this preference, a recent Coca-Cola campaign offers ideas for emphasizing individual aspirations among consumers in a compelling way:

http://youtu.be/b1rM8hSQgPQ

Preference #3: Cultural Traditions
The facts: The same Global Monitor study also indicated that a strong majority of Latin Americans are concerned about aspects of their cultures and tradition being lost as the world converges into a single global culture.
The opportunity for advertisers: With specific Latin American markets, advertisers can work in the concept of traditions into their messaging and extend this into social media via contests or sponsored events.
In 2011 Televisa, one of Mexico’s main television networks, launched a campaign called Tradiciones Televisa in honor of the country’s Bicentennial. The campaign focused on traditional festivities and attractions throughout the country, subtly associating the network with Mexico’s time-honored traditions.

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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Colombia Internet

5 Ways to Reach Colombian Internet Users

In 2011 Colombia’s Internet audience grew by 15%, very close to Latin America’s overall growth of 16% in terms of Internet users. While comScore reports that Colombia has 14.3 million Internet users, Internet WorldStats lists 25 million. The discrepancy may be due to the varied ways that Latin Americans access the Internet—in certain calculations, users who go online from Internet cafes aren’t counted.

Regardless, even using comScore’s 14.3 million figure, Colombia is #3 in Latin America in terms of the amount of Internet users. It has more than Argentina (13.4 million), Chile (7.4 million) and Venezuela (4.8 million), trailing only Brazil and Mexico. Combining this large audience with a 2010 comScore study that showed that 94% of Colombians say the Internet is important in providing information for purchase decisions, it’s not surprise that online ad spend went up 33% in Colombia in 2011.
After analyzing Futuro Digital, ComScore’s latest study on Colombian Internet users, we spotted 5 effective ways for media, marketing and advertising professionals to reach this audience.

#1 Social media. They have a deep penetration in Colombia, as they do in all of Latin America. In Colombia, social media have a penetration rate of 96% among Internet users. And Colombia is among the top 10 countries on the planet in terms time spent on social networks: its users average 7.6 hours per month on them.
While Facebook is #1 in reach (90%) and time spent (492 minutes a month, other growing social media sites in Colombia include Badoo, Twitter and Slideshare. In fact, Colombia is among the top 10 countries in terms of Twitter reach, ahead of the United States, Spain and Mexico.

#2 Entertainment sites. Around 96% of Colombian Internet users visited an entertainment site in January 2012. Within entertainment, multimedia is the most popular subcategory, with 83% reach among Colombia’s online audience. In March 2012, comScore results show that the top multimedia sites for Colombia are YouTube, iTunes Software, Daily Motion, Real.com and Cuevana.tv.

#3 Newspapers. In Colombia, newspapers attract a significant audience, nearly 50% of Internet users, which is more than the average for Latin America (43%) and the world (40.8%). In March 2012, El Tiempo was the #7 Web site in Colombia, drawing 5.2 million unique users, while El Espectador drew 1.9 million. Typically, users spend more time on newspaper sites, so it’s easier for advertising to stand out and draw attention—as opposed to some of the larger portals that people use primarily for webmail and instant messaging.

#4 Search. Last year comScore indicated that Colombian Internet users do more searches per user (233) than internautas from any other country. While Futuro Digital didn’t specify if Colombians are still #1, their average of 226 per user suggests strongly that search is a good way to reach this audience.

#5 Mobile. In 2011 Colombia’s Information Technology and Communications Ministry reported that mobile phone penetration in Colombia had reached 100%. That same year El Tiempo.com reported that out of every two mobile phones that are replaced in Colombia, one of them is a smartphone. More recently, Futuro Digital cites data from late 2011 that indicates that tablets are the source of 41% of non-computer web traffic in Colombia. Overall, Colombia ranks #3 in Latin America in terms of percentage of web traffic from non-computer devices. When put together, these facts suggest that mobile ads show strong potential to reach a key segment of Colombia’s Internet audience.

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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dreamstime_m_18771174

The 7 Hottest Products Among Latin American Shoppers

The new surge in purchasing power for Latin American consumers is being felt in all types of industries. To offer media, advertising and marketing professionals a quick reference guide, we put together a list of some of the hottest product categories among Latin American shoppers.


CARS
In 2011 car sales in Latin America went up by 7% to total 6.4 million units, which set a new record in the region: 12 vehicles for every 1,000 people. The most motorized company seems to be Argentina, with 20 vehicles for every 1,000 people, followed by Chile with 19.4 and Brazil with 17.7. In fact, 2011 was the best year ever for car sales in Argentina. Also, several carmakers had record-breaking sales in Latin America in 2011, including Audi, BMW, Nissan and Peugeot.


COMPUTERS

Latin Americans will buy nearly 40 million computers in 2012, according to market research firm IDC. This will be a 5% increase compared to 2011, during which Latin Americans bought 37.7 million computers. Growth will be marginal (0.3%) for desktop computers but laptop sales should go up by 8.7%. In addition, IDC forecasts that 2.1 million tablets will be sold in Latin America in 2012. Although it’s not a large percentage of the total, it could be an important trend with implications for mobile advertising.


COSMETICS
According to Research firm Euromonitor International, the total value of beauty/cosmetic and personal care products sold in Latin America in 2010 was $65 billion. These strong sales made Latin America the #4 market in the world for cosmetics/beauty products. Between 2005 and 2010 the Latin American beauty market doubled in size and now experts think the region will surpass North America to soon become the #3 beauty products market in the world.


LUXURY PRODUCTS
According to Boston Consulting Group, Latin America’s luxury market is growing by 15% every year. In Mexico, 5.2% of the population can buy luxury goods, according to consulting firm KPMG. Brazil’s luxury goods sales are expected to hit $12 billion this year, a 33% increase compared to 2011. Argentina is also a solid luxury market, moving 230 million euros in its luxury market in 2011. Given this, it’s no surprise that Sephora foresees opening 12 to 13 stores in the region and that Salvatore Ferragamo has announced expansion plans in the region.


MOBILE PHONES AND SMARTPHONES
During the second half of 2011, Latam smartphone sales went up by 25% to reach nearly 50 million units. Although the complete total of mobile phone units sold in Latin America in 2011 hasn’t yet been confirmed, it’s known that 31 million smartphones were sold in the region in 2011. In Argentina, 24% of the mobile phones sold in 2011 were smartphones. In Mexico, smartphone sales spiked up by 78% in 2011. In Brazil, 2011 smartphone sales jumped to over 100% higher than in 2010. And the smartphone surge continues: 40% of the mobile phones sold in Argentina during the first quarter of 2012 were smartphones. In addition, IDG predicts spectacular increases in smartphone sales in other countries this year, including a 43% upsurge in Chile and a 70% leap in Brazil.


REAL ESTATE
According to new figures reported by the Association of Miami Realtors, Venezuelans were the largest group of foreign buyers in 2011. That said, Brazilians and Argentines were not far behind. Thanks to these Latin American buyers, Miami real estate has gotten a strong—and quite welcome—push: home sales went up 46% in 2011.


TRAVEL
Trips to foreign destinations by Latin American tourists went up by 15% in 2011, according to Consulting firm IPK. According to IPK, the strongest markets for trips to foreign destinations from Latam are Brazil, Argentina, Mexico and Chile.
The United States is one of the most popular destinations for Latin American tourists. According to the U.S. Department of Commerce, 18% more Latin American tourists will visit the U.S. in 2012 than in 2011: 1.78 million. By 2016, the department estimates that 2.5 million Brazilians will visit the United States. In addition, Brazilians rank #3 in spending among foreign tourists that visit the U.S. They’re just behind Japanese and British tourists, spending $6.8 billion in 2011 during trips.

Florida is probably the most popular U.S. destinations for Latin Americans. In fact, 4 of the top 10 foreign countries who sent the most visitors to Florida in 2011 were Latin American: Brazil, Argentina, Mexico and Colombia. In addition, a survey by hoteles.com showed that Florida is the preferred foreign destination of both Argentine and Colombian tourists.

That said, Latin Americans don’t just travel to the U.S. Many enjoy traveling within their own region. For example, a recent survey showed that Argentine tourists rank 3 Mexican destinations—Mexico City, Riviera Maya and Cancun—among their top destination choices. And Brazilians are the foreigners that visit Argentina the most. More than 35% of the tourists that Argentina welcomed in 2011 were from Brazil, while Europe was in second place with 19.8%. For their part, when surveyed, Chileans say their favorite destinations are Argentina, Brazil and Peru.

According to Mandala Research, Mexicans seem to favor U.S. destinations, and one study showed they also outshop other tourists. On average, Mexicans spend 40% of their travel budgets at shopping malls, compared to Japanese tourists, who spend 25% of their travel budgets at malls, and British tourists, who spend 25%. The preferred U.S. destinations for Mexican tourists are Los Angeles, New York and Houston, although Miami and Orlando are also in the top 10.

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.

 

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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E-Commerce in Latin America Spikes by Nearly 43%

According to a recent study done by América Economía Intelligence and Visa, e-commerce in Latin America grew by 42.8% between 2010 and 2011 to reach $43 billion, double the amount in 2009, which was $22 billion.

The study indicates that Brazil is the leader in e-commerce in Latin America: in 2011, it accounted for 59% of e-commerce sales in the region. Mexico is #2 in Latin America in e-commerce, with 14.2% of sales. The Caribbean is in third place, with 6.4% of sales, closely followed by Argentina, with 6.2%.

Overall, the study projects that e-commerce in Latin America will increase by 26% in 2012 and then by 28% in 2013.

Why It’s Growing
The study’s authors cited a number of factors for the growth, including:

• Increase in credit card usage, as well as debit cards: both bring more purchasers into the e-commerce marketplace
• Social media and group shopping sites: discounts online attract more shoppers
• Increased online security for safer transactions: this inspires greater consumer confidence
• A larger amount of e-tailers: more Latam companies are innovating online purchase platforms to reach customers via their Web sites
• Advances in banking: lower socioeconomic classes are becoming more involved with online banking, which in turn allows them to shop online more easily

One factor not cited is an additional payment method. In Brazil, buyers can use boletos bancârios, which are vouchers they print from e-commerce sites. They take these boletos to their banks, pay for the product in person and then go back to the Web site to finish the transaction. A similar system was recently introduced in Mexico on a limited scale.

The study also noted another possible factor that could drive e-commerce growth in Latin America: mobile commerce or m-commerce. The study indicated that smartphone and tablet penetration could reach 50% in Latin America by 2015, making mobile a significant platform for e-commerce in the future. Some recent data suggest this could be true. In April e-commerce site Mercado Libre reported that in the past 9 months, it’s registered 2.5 million downloads of its mobile apps and that mobile now represents 3.5% of its traffic.

Growth in Major Markets
Argentina. According to the Cámara Argentina de Comercio Electrónico (Argentine Chamber of E-Commerce or CACE), total e-commerce sales in 2011 were 11.5 billion pesos (US $2.6 million), a 49.5% increase from 2010. In 2012, CACE estimates that e-commerce in Argentina will grow by another 41% to reach US$3.5 million.

Brazil. Research firm e-bit reported that e-commerce sales in Brazil reached US$10.1 billion in 2011. The firm also indicated that 53.7 million purchases were made over the Internet by Brazilians in 2011. In addition, in 2011 there were 9 million new e-commerce customers making a purchase for the first time online, and 61% of them were from the emerging Classe C middle class.

Mexico. In 2011, Mexico’s e-commerce sales totaled US$3.6 billion, according to AMIPCI (Asociación Mexicana del Internet or Mexican Internet Association). This represented 28% growth compared to 2010.

Colombia. There were nearly US$1.2 billion in e-commerce sales in Colombia in 2011, according to Alberto Pardo, president of the Cámara Colombiana de Comercio Electrónico (Colombian Chamber of E-Commerce). It’s projected that sales will grow by 100% in 2012 to reach US$2 billion.

Popular Products
Each market seems to favor different products when it comes to buying online. For Mexicans, for example, plane/bus tickets are the most popular group of products for  e-commerce purchases. Tickets to shows rank #2, while hotel reservations rank #3. Rounding out the top 5 are electronic equipment and clothes.

For Brazilians, appliances are the #1 product bought via e-commerce, followed by computers, electronics, health/beauty products and clothes/accessories.

For Argentines, top products to buy online include smartphones, women’s clothes, car accessories, men’s clothes and decorative items for the home.

For other Latin American markets, relatively little has been published about the top products purchased via e-commerce. However, a 2011 study done by Google and D’Alessio IROL that focused on other markets—including Puerto Rico, Ecuador, Panamá, Costa Rica and the Dominican Republic—showed that top e-commerce products in those countries included mobile phones, clothes, CDs/DVDs, Internet connection services and computers.

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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