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Why Retargeting in Facebook Exchange Will Change Online Advertising in Latin America

Internet advertising is clearly successful in Latin America, but often it’s based on typical profiles of target audiences that visit certain sites. In other words, if your target is men aged 18-34 in Brazil, you buy impressions on web sites whose visitors fit this profile.

But you don’t know if that target knows and is interested in your product.

What if you did know this? What if you knew for a fact which Internet users in Brazil and the rest of Latin America had shown interest in your product? And what if you could reach just those Internet users with your ad? And if your ad could be optimized so that only the best-performing version would be shown to the Internet users you know are interested in your products?

This is all possible through retargeting on Facebook Exchange, a service that’s now available for advertisers targeting Latin America.

What is Facebook Exchange?
Launched in September 2012, Facebook Exchange is a platform that makes available part of Facebook’s social ad inventory. But Facebook Exchange is not open access for anyone like Google AdWords—less than 20 demand side platforms (DSPs) in the world have access to Facebook Exchange. Basically, the clients of these particular DSPs can purchase impressions on Facebook Exchange, and they do it via a real-time bidding (RTB) system, with the market setting the price of impressions of different target audiences.

Precision Targeting via Triggit
US Media Consulting has partnered with Triggit, one of the DSPs that has access to Facebook Exchange. What sets Triggit apart is its dynamic creative optimization technology. Dynamic creative optimization generates the ads in Facebook that the users see and also measures which of these ads deliver the best response. Based on this data, future users only see the ads which have performed the best.

How It Works
Triggit’s software is installed on an e-commerce or travel site and tracks the specific products that each user looks at—but doesn’t buy—when navigating the site. So let’s assume that Rolando from Argentina visits an e-commerce site and looks at a brand of sneaker without buying it. Then later that day he goes into Facebook to check status updates from friends. When he does, he’ll see an ad for that same sneaker brand. In fact, that ad may even offer a special discount for those sneakers. The result? Rolando is a lot more likely to click on that ad…and buy that product. How much more likely? Initial results indicate that CTRs for these types of ads are 8 times higher than a regular banner—and that conversion rates are 10 times higher.

Below we offer some screenshots that show how the process works.

#1 The user views the product on an e-commerce site without buying it.

#2 Later, upon entering Facebook, the user sees an ad for the same product he or she viewed earlier.

What This Means for Latin America
Retargeting via Facebook Exchange is a major development for Latin America for three major reasons.

First, e-commerce is growing spectacularly in the region. According to a study by América Economía and Visa, e-commerce sales in Latin America will grow by 28% in 2013. Key individual markets with powerful growth include Brazil (24% projected growth for 2013), México (30% projected growth for 2013), Peru (20% in 2013) and Argentina (45% in 2013).  Chile’s e-commerce growth in 2013 is projected to be around 15%, on top of 20% growth in 2012. While no 2013 e-commerce projections are available yet for Colombia, the country’s e-commerce sales grew from US$1.4 billion in 2011 to more than US$2 billion in 2012.

Second, Facebook rules social media in Latin America. Before discussing Facebook, it’s key to recognize social media’s immense popularity in Latin America: it’s the #2 most popular activity among Internet users (after search) and 5 of the top 10 countries in social media usage are from Latin America.
In other words, if you’re not including social in a campaign to reach Latin American Internet users, you are missing a gigantic opportunity. And if you do plan on including social, Facebook is by far the best choice. The numbers show why: in August 2013, Facebook reported that it had 200 million users in Latin America. More importantly, comScore indicated in its Futuro Digital report that Facebook takes up 94% of the time that Latin Americans spend on social media.

Third, online travel sales have taken off in Latin America. According to a recent study from Barclays Capital, Latin America will lead all world regions in online travel sales growth through 2016. Online travel sales in Latin America will grow by 30% in 2013, by 25% in 2014, by 20% in 2015 and by 18% in 2016. In addition, this year Latin America will surpass the Asia Pacific region in terms of online travel sales as a percentage of the total, 26.8% vs. 26.6%. By 2016, online will represent 39% of the total travel sales in Latin America, not far the 53.9% projected for the United States.

So overall, it’s clear that the surging e-commerce and e-travel firms in Latin America now have a unique, powerful tool to grow their sales even further via the strategic use of the region’s most popular social media site.

The next step? Contact us to see how we can help you leverage retargeting in Facebook Exchange to spike your sales.

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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3 Reasons Why E-Mail Marketing May Be the Best Way to Reach Brazilians

We hear a lot about social media these days, with multiple experts claiming to know how to use them to deliver amazing ROI. But recent studies suggest that an older tactic—email marketing—may be the best choice for reaching Brazilian consumers. Here’s why.


#1 Brazilians Are Very Open to Receiving Marketing Emails

A recent study from ExactTarget surveyed more than 1,400 Brazilians to measure their response to email, Twitter and Facebook. The survey revealed that 91% of Brazilians who are online have registered to receive email marketing messages from at least one source. In addition, 68% of Brazilians said they made a purchase as a result of an email marketing message and 53% say they are more likely to buy from a company after receiving an email marketing message. However, only 42% have made a purchase after receiving a social media marketing message through Facebook.
What may further validate these results is that Netshoes recently reported that it has increased the volume of opens of its email marketing messages by 70% in the past year.

#2 Email Marketing Has a High Rate of Conversion among Brazilians
A study from Experian Marketing services showed that email marketing has the highest rate of conversion for e-commerce companies in Brazil, 2.53%. Search marketing yields 2% conversion while social media marketing has half the rate of email marketing, with a little over 1%. Another study from the firm Monetate found even more impressive results: 4% conversion rate from email marketing, compared to .59% from social media and 2.49% from search marketing.

#3 Mobile Opens of E-Mail Marketing Has Increased Significantly
A recent study from Spli showed that the number of Brazilians that open email marketing messages using mobile devices went up by 44% between September 2011 and June 2012. The study looked at responses from consumers not only in Brazil, but also in France, Italy, Spain and China. The open rate for Brazilians receiving email marketing messages on their mobile devices was 7%, and only consumers from Spain had a higher open rate (17%). Despite the dominance of Android in the Brazilian mobile market, mobile users with the iOS system—either iPhone or iPad, proved to account for most of the opens, with 47% and 30%, respectively. Brazilian mobile users with the Android operating system accounted for only 21% of the opens.

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

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Latam media landscape 2

Latin America’s Media Landscape 2015-2017

Predicting the future is always tricky, but different industry associations have made forecasts for different forms of media in Latin America for the next few years, all based on current trends. Using this data, here’s what experts say that Latin America’s media market will look like in the near future.

#1 THERE WILL BE 359 MILLION INTERNET USERS IN LATIN AMERICA BY 2015
Currently the population of Latin America is at around 575 million but according to the Comisión Económica para América Latina y el Caribe (CEPAL), by 2015 Latin America will have 598 million people. (This count includes Puerto Rico, projected to have 4.1 million people by 2015, but excludes non-Spanish-speaking countries like Haiti and French Guyana.)
According to a May 2012 projection from Registro de Direcciones de Internet para América Latina y Caribe (LACNIC), by 2015 Internet penetration will reach 60% in Latin America. Since 60% of 598 million is 359 million, it appears that Latin America will add 127 million Internet users over the next 3 years to its current total of 232 million Internet users.

Not surprisingly, the growth will be driven by the powerhouse Internet markets. Brazil’s Comitê Gestor da Internet estimates that 80% of Brazil’s homes will have Internet access by 2015. Given Brazil’s population of 193 million and an average of 3.3 people per household, this means that by 2015 Brazil could have 154 million Internet users—up considerably from the 85 million it has today per comScore. LACNIC also predicts that Mexico will have 65 million Internet users by 2015, up hugely from its current total of 40.6 million. Other markets predicted to gain lots of new users include Chile (16.4 million Internet users by 2015) and Ecuador (7.5 million Internet users by 2015).

#2 PAY TV PENETRATION IN LATIN AMERICA WILL REACH 68% BY 2017
According to Dataxis, by 2017 pay TV penetration in the 7 biggest Latin American markets will reach 68% and offer advertisers and audience of 97 million people. The biggest growth markets for pay TV will be Brazil, Mexico, Colombia and Argentina. In addition, the head of Brazil’s national telecommunications agency (Anatel) recently said that 90% of Brazilian homes could have pay TV by 2018. For its part, Mexico could have more than 50% of pay TV penetration by 2015.

#3 LATIN AMERICAN NEWSPAPERS WILL GROW BY 5.5% PER YEAR THROUGH 2016
The downturn experienced by newspapers around the world does not seem to be affecting Latin America. According to a recent projection from PricewaterhouseCoopers, revenues for Latin American newspapers will grow annually by 5.5% through 2016 to reach US$10.4 billion.

#4 LATAM WILL HAVE 750 MOBILE CONNECTIONS BY 2015 PLUS MAJOR MOBILE DEVICE PENETRATION
According to the GSMA, Latin America will have 750 million mobile connections by 2015. Overall mobile penetration in the region is above 100%. Brazil’s mobile penetration is at well over 100%, as is Argentina’s, but in October 2012 Brazil reached a total of 258 million active mobile lines, up from 232 million just a few months back. Mexico is slated to reach 94% mobile penetration by the end of 2012 and over 100% by the first quarter of 2013.
Beyond simple penetration, mobile is changing Latin American markets through the adoption of mobile devices. It’s really not a question of whether a brand needs a mobile ad strategy for Latin America—it’s what this mobile ad strategy will be. Just look at the numbers:

To find out how we can help you reach Latin America via a strategic campaign across all media, please contact us.

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brazil travelers online

Millions of Brazilians Use the Internet to Plan Travel

More than ever before, Brazilians are using the Internet to plan and book their travel. Recent research from comScore’s Media Metrix Service shows that 16.5 million Brazilians visited travel sites in July 2012. This is an 18% increase compared to 2011. Here’s a look at the top 10 travel sites that Brazilian Internet users are visiting, organized by amount of unique visitors during July 2012:

  1. Hotelurbano.com.br                       3.1 million
  2. Decolar.com                                     2.3 million
  3. TAM.com.br                                     2.2 million
  4. Voegol.com.br                                 1.9 million
  5. Submarinoviagens.com.nr            1.6 million
  6. Mundi.com.br                                  1.1 million
  7. Viajanet.com.br                              1.1 million
  8. Booking.com                                   1 million
  9. CVC.com.br                                     823,000
  10. Tripadvisor.com.br                        780,000

Who These Brazilian Travelers Are
Visitors to Brazilian travel sites are 50.6% male and 49.4% female. However, 1 in 3 visitors to Brazilian travel sites are between 25 and 34, making this the largest age group. Overall, the visitors tend to be younger: 73% are between 15 and 44.

In terms of geotargeting a campaign, Sao Paulo would be a good choice: 32% of visitors to Brazilian travel sites are from that city. Around 13% of the visitors are from Rio, 7.3% are from Minas de Gerais and Paraná, 6% are from Rio Grande do Sul and 4.5% are from Catarina.

Where They Are Going
While comScore didn’t report on popular destinations for Brazilian travelers, other sources have. The United States Commerce department projects that 1.5 million Brazilians will visit the United States during 2012 and that amount will increase to 2.5 million by 2016. In 2011, Brazil sent more tourists to Argentina than any other country. In terms of specific cities that Brazilian travelers visit, a study from Hotel Price Index showed that Orlando is #1, New York is #2 and Buenos Aires is #4. Also in the top 10 were Miami, Las Vegas and Paris.

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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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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