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6 Key Statistics about Latin American Consumers

Recent studies from various sources have offered important insights about Latin American consumers. We isolated out 6 of the most relevant data points so you can factor them in when setting up future campaigns.

Big & Bigger
Projections from Frost & Sullivan indicate that by  2025 there will be 661 million consumers in Latin America with a combined GDP of US$15 trillion.

Credit Cards Charge
According to a recent piece in Latin Trade by John Price—director of the market research firm Americas Market Intelligence—by 2020, 25% of Latin American homes will have a credit card; for comparison’s sake, in 1990 only 3% of homes in the region had credit cards.

Feeling Good
According to a global report from Nielsen that looks at consumer confidence around the world, 7 Latin American countries have shoppers who are feeling 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).

They Like Shopping with Tech Help
In a recent Motorola Solutions study, 70% of Latin American consumers indicated that they have a better shopping experience in stores in which retailers offer mobile computers and information kiosks.

The Pause that Refreshes
According to Euromonitor, several Latin American markets are among the top consumers of carbonated beverages. Argentina leads the world in soda consumption, with 131 liters per inhabitant in 2012, followed by Chile (121 liters per person) and Mexico (119 per person).  The other Latam country that made the world’s top 10 list of soda consumers was Uruguay, with 87 liters per persona.

Mobile Money Moving
By 2015 some 140 million Latin Americans will use mobile terminals to access their bank accounts, according to a report from Deloitte that was shared by the Federación Latinoamericana de la Banca (Latin American Banking Federation or Felaban). This is a 65% increase compared the actual amount of people in Latin American who carry out banking activities with their mobile phones. Beyond banking transactions, projections indicate that many more Latin Americans will use their cell phones to buy products: according to Tata Consultancy Services, mobile commerce in Latin America will increase by 35% every year through 2015.

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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Brazil online

The Latest on Brazil’s Internet Audience

In March 2013 comScore released its latest report on Brazil’s Internet market. As always, the report was replete with fascinating intelligence about what Brazilian Internet users enjoy doing the most online, their favorite types of Web sites and other insights. Since the report is 58 pages long, we decided to highlight some of the facts that we find to be most relevant for media, marketing and advertising professionals who wish to target Brazil’s growing online audience.

>>>ONLINE VIDEO GREW BY 18%
Between December 2011 and December 2012, the amount of online videos viewed by viewers in Brazil went from 109 to 129, 18% growth. This was much higher growth than in the United Kingdom (+11%), the United States (-1%) or worldwide (+3%).
Taking advantage: Perhaps a trial campaign with an online video network could deliver some surprisingly positive results.

>>>BRAZILIANS SEARCH ON FACEBOOK AND MERCADO LIBRE
While the large majority of searches by Brazilian Internet users are done on Google (129 searches per user per month), they do 11.8 searches per month on Mercado Libre, more than with Bing (8.6). Yahoo is #3 for searches by Brazilian Internet users at 5.9 searchers per user per month, but Facebook is not far behind with 4.6 searches per user every month.
Taking advantage: While some studies have shown that companies in Brazil don’t value social media marketing all that much, these results suggest that brands operating in the country need to have well-developed Facebook pages.

>>>LIFESTYLE AND HEALTH ARE AMONG THE FASTEST-GROWING WEB CATEGORIES IN BRAZIL
Health websites in Brazil grew by 18% in 2012, while lifestyle web sites (which mostly deliver a female audience) grew by 17%.  Although they didn’t grow by double digits, travel sites in Brazil grew by 5% in 2012.
Taking advantage: Given that lifestyle and health both skew towards younger women—a prize demographic for advertisers both in Brazil and around the world—clients may observe impressive results from running campaigns on Minha Vida (the #2 health site in the country) and popular lifestyle sites like Glam media and the Mulher channel on iG.

>>>FACEBOOK TAKES UP MOST OF THE TIME BRAZILIANS SPEND ON SOCIAL MEDIA
Brazilians went from averaging 342 minutes per user per month on social media in October 2011 to a whopping 579 minutes per user per month in December 2012. Most of that time (93%) is being spent on Facebook, the #1 social media site. Although Orkut is #2 in monthly unique visitors to social sites, Ask.fm is Brazil’s #2 social media site in terms of time spent. Comscore reports that Brazilians spend 2.1% of their time on social networks on ask.fm, while Orkut accounts for 1.6%, Tumblr for 1.0%, Twitter for 0.8% and other sites account for 1.7%
Taking advantage: While the numbers clearly argue for investing most of your social media ad budget for Brazil in Facebook campaigns, they also suggest that up-and-coming sites like ask.fm and Tumblr are worth exploring.

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

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Xmas time

The State of E-Commerce in Latin America in 2013

We’ve written quite a bit about e-commerce in Latin America but a lot of our earlier posts were focused on buying patterns or offered projections. But now that we’re in 2013, it’s important to review what happened in 2012. To that end, we have created some data portraits to help professionals in marketing, media and advertising get a quick but essential sense of what happened in e-commerce in Latin America in 2012 and what’s ahead in 2013.

ARGENTINA

  • 2012 e-commerce total sales: 16.7 billion pesos (US$3.3 billion at current exchange rates)*
  • 2011 e-commerce total sales: 11.5 billion pesos (US$2.3 billion, so overall e-commerce increased by nearly 32% in Argentina in 2012*
  • In a survey of 540 online shoppers in Argentina, 57% indicated that they buy products online using credit cards*
  • Argentina has the highest digital buyer penetration rate in Latin America—43.9% of Argentina’s Internet users made purchases online in 2012, compared to 34% in Brazil, 19.6% in Mexico and 31.7% in Latin America in general**

Sources: *Cámara Argentina de Comercio Electrónico, **eMarketer

BRAZIL

  • 2012 e-commerce total sales: R$ 22.5 billion (US$11 billion at current exchange rates)*
  • 2011 e-commerce sales: R$ 18.7 billion (US$9.2 billion), so overall e-commerce increased by 20% in Brazil in 2012*
  • Black Friday has definitely arrived in Brazil: on November 23rd, 2012, Brazilians spent more than R$ 217 million (US$110 million) in online purchases*
  • E-commerce increased by 18% during Christmas 2012 in Brazil and overall Brazilians spent more than R$ 3 billion (US$1.5 billion) in online purchases during the holidays*
  • The most popular products purchased on MercadoLivre, one of Brazil’s top e-commerce sites, include cell phones (#1), car accessories (#2), computer products (#3), electronics (#4) and clothes/shoes (#5)**
  • Online sales through tablets and smartphones in Brazil went up significantly in 2012, from 5% to 10%—the most popular mobile device for online shopping among Brazilians was the iPad, which accounted for 51% of these mobile purchases***
  • Mobile commerce in Brazil should increase by 657% in Brazil in 2013 to teach R$ 2 billion (US$1 billion)***
  • For 2013, e-commerce sales in Brazil should grow by 28% to reach R$ 28 billion (US$14 billion)*

Sources: *e-bit, **MercadoLivre, ***Câmara Brasileira de Comércio Eletrônico

MEXICO

  • 2012 e-commerce total sales: 79.6 billion pesos (US$6.2 billion)*
  • 2011 e-commerce sales: 54.5 billion pesos (US$4.2 billion), so in 2012 e-commerce in Mexico grew by 46%*
  • The most popular products for Mexican online shoppers include, in descending order, plane/bus tickets (64%), hotel reservations (37%), music & movies (37%), tickets to shows (34%), books & magazines (27%), computers (26%), electronics (23%), clothes (23%), software (23%) and mobile phones (18%)*
  • In 2012 nearly half of Mexican online buyers (47%) made e-commerce purchases with a mobile device*
  • Each Mexican online shopper spent an average of US$854 in 2012 and this will increase to more than US$1,000 by 2016**
  • Starting in 2013, Mexico’s online shoppers will lead Latin America in amount spent per shopper—more than 20% higher than Brazil’s average by 2016**
  • B2C commerce in Mexico looks to grow significantly in coming years—projected sales in 2013 will be nearly US$8 billion and will reach US$12.9 billion by 2016**
  • By 2016, Mexico will have 12.1% of the online shoppers in Latin America—more than any country except for Brazil, which will have 34.7%**

Sources: *Asociación Mexicana de Internet (AMIPCI), **eMarketer

OTHER MARKETS
It’s challenging to find the same level of detail for other e-commerce markets in Latin America besides the big three that we just highlighted. That’s because e-commerce, while growing, has still not taken off at the same level in other countries in the region. However, marketers, advertisers and media professionals should still take into account the emerging e-commerce markets in Latin America. Here’s a quick review of some numbers for these markets:

  • In Chile, e-commerce sales in 2012 are projected to reach US$1.7 billion, a 14% increase from the 2011 total of US$1.489 billion*
  • A significant portion of Chile’s e-commerce transactions (38%) involve paying taxes, though 29% are travel-related and 17% are for retail products*
  • 65% of Chile’s Internet users engage in e-commerce, significantly higher than in other Latin American markets**
  • In 2012, e-commerce sales in Colombia reached nearly US$2 billion—nearly triple the amount registered in 2010, which was US$600 million***
  • According to the general director of Linio, an e-commerce portal, e-commerce in Peru will go up by 50-60% in 2013
  • E-commerce was projected to reach US$502 million in Costa Rica in 2012, a 29% increase compared to 2011*

Sources: *Visa, **Cámara de Comercio de Santiago, Cámara de Comercio Electrónico de Colombia

To find out how we can help you reach Latin American consumers via an online campaign or any other 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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why online ads deliver

Why Online Ads Deliver Massive E-commerce Sales in Brazil

A recent study from Hi-Midia and M.Sense shows the importance of having strong digital advertising campaigns in Brazil—especially when it comes to reaching online shoppers in the country. According to the study results, 77% of the Brazilian e-shoppers surveyed said that they get information about products on search sites, social networks, blogs or corporate web sites. Nearly half of these online shoppers (47%) say that online ads are very influential in their purchase decisions, while only 38% say that TV ads are very influential in their purchase decisions.

What They Buy
For most (76%) of the online shoppers in the Hi-Midia/M.Sense study, the most popular products to buy online were appliances and computer products. Other popular products for the Internet shoppers included in the survey were books and clothes. These results are very consistent with those reported by other surveys of Brazilian online shoppers.

Why These Results Matter
Brazil was responsible for 59% of the e-commerce sales in Latin America in 2011. In 2012, e-bit, a consulting firm that tracks e-commerce sales in Brazil, projected that online sales in the country would reach R$ 22 billion (US$11 billion). In addition, the company predicts that e-commerce sales in Brazil will increase by more than 25% in 2013 to reach R$ 28 billion (US$14 billion). In 2008, e-commerce sales in Brazil totaled US$3.5 billion—so in 5 years, e-commerce sales have gone up by 300% in Brazil. And just recently, during Christmas 2012, e-commerce sales reached more than R$ 3 billion (US$1.5 billion), with 96% of Brazilian online shoppers researching products online before buying.

Given the volume of online sales in Brazil and the direct relationship between the medium that serves to both advertise products and then close the sale, it seems obvious that advertisers need to increase their online investment. This is especially true for firms whose products are highly popular among Brazil’s online consumers: fashion brands, computer companies (especially those that make tablets or notebooks), appliances and electronic manufacturers, as well as book publishers.

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

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Facebook Network

How Top Companies are Using Social Media in Latam

It’s clear that social media are hugely popular in Latin America and reach more than 90% of the region’s 232 million Internet users. Given this, how are companies in Latin America using social media to further their marketing efforts? A new study from Burson-Marstellar analyzed these efforts by looking at the social media strategies of the top 25 companies in Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.

We’ve grouped together some of the key takeaways of the study for marketing, media and advertising professionals.

65% ARE USING AT LEAST ONE SOCIAL MEDIA PLATFORM
This is an improvement from 2010, when only 49% of the Latin American companies were using social media. However, Latam firms are clearly behind the rest of the world in this regard: globally, 87% of companies are using at least one social media platform.

BRAZILIAN AND VENEZUELAN COMPANIES LEAD THE REGION IN SOCIAL MEDIA USE
In 2012, 88% of the Brazilian companies and 84% of the Venezuelan companies analyzed by the Burson-Marstellar study were using social media platforms. Other countries in which a large percentage of top firms report using social media include Colombia (76%), Mexico (76%), Chile (76%) and Argentina (64%). The lowest percentage was found in companies in Puerto Rico, where only 28% of top firms use social media. However, only 5% of companies in Puerto Rico were using social media in 2010, so the rate quintupled in just two years, obviously indicating growth in this area. 

FACEBOOK AND TWITTER ARE THE PLATFORMS OF CHOICE
In 2012, 50% of the firms studied were using Facebook and 53% were using Twitter. In third place was YouTube (31%), with Google+ in fourth place (20%). This data is interesting when you consider that comScore results indicate that Google+ is not among the top social media sites in Latin America’s largest markets. For example, in November 2012, the top social media sites in Brazil in descending order were Facebook, Orkut, LinkedIn, Twitter, Ask.fm, Tumblr, Scribd, Badoo, Deviantart and Vostu. With the exceptions of Orkut and Vostu, these are the top social sites in Argentina, Mexico and Colombia.
Of course, the issue could be about fit. LinkedIn is for professional contacts, Badoo doesn’t accept advertising and is focused on meeting people, Deviantart is about posting artwork, Scribd is a document sharing site and Ask.fm is a Q&A site.
That said, Latin American firms may want to consider Pinterest, a site that many American firms are including in their social media mix. Pinterest is gaining ground in all of these markets and has cracked the list of the top 20 social media sites in Latin America, though not the top 10—yet.

COMPANIES IN BRAZIL AND MEXICO HAVE THE MOST TWITTER FOLLOWERS
Compared to 2010, companies in Brazil and Mexico have skyrocketed in followers. For example, Brazilian firms had an average of 4,206 social media followers per account in 2010 and in 2012 this figure reached 66,958; in Mexico, the average went from 2,240 social media followers to 43,107. That said, companies in other countries have also seen huge increases in the amount of followers per account:

  • Argentina: from 777 in 2010 to 19,023 in 2012
  • Chile: from 1,624 in 2010 to 13,000 in 2012
  • Colombia: from 525 in 2010 to 8,496 in 2012
  • Peru: from 85 in 2010 to 4,814 in 2012

In all of Latin America, the average amount of social media followers of these top 25 firms went from 2,626 to 33,077.

THE PERCENTAGE OF COMPANIES WITH FACEBOOK PAGES SPIKES IN ARGENTINA, BRAZIL, PERU AND PUERTO RICO

In these countries, the percentage either doubled or nearly doubled: up by 48% in Argentina, by 52% in Brazil, by 60% in Chile and by 52% in Peru. However, the firms in Colombia showed the most impressive growth. The amount of firms in Colombia with Facebook pages went up by 76% between 2010 and 2012.

BRAZILIANS TALK THE MOST ABOUT COMPANY FACEBOOK PAGES
An average of nearly 45,000 Brazilians are talking about company Facebook pages, much more than in any other country.  No other country in Latin America even comes close to this massive level of engagement. The country that occupies second place in the amount of people discussing company Facebook pages is Peru, with just 7,781 doing so.

30% OF LATIN AMERICA’S TOP FIRMS ARE SHARING CONTENT ON YOUTUBE
Mexico has the highest percentage of firms that share content on YouTube at 52%, followed by firms in Chile and Brazil (each with 48%) and Argentina (32%). These figures are somewhat surprising given that Latin Americans are watching online videos more than ever.

THE MAJORITY OF LARGE COMPANIES IN LATIN AMERICA ARE NOT USING GOOGLE+
Currently 20% have a Google Plus page, compared to the global average of 48%.

To explore how we can help you reach Latin Americans via social media or any other type of media, please contact us.

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latam online ad spend

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

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

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

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

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

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

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Ecommerce Latam

8 Insights about E-Commerce in Latin America

It’s pretty obvious that e-commerce has taken off in Latam and in fact, in July we reported that online sales in the region will reach US$69 billion in 2013.

However, what may be more relevant to professionals in media, advertising and marketing is how Latin Americans are buying online. Recently comScore published a study about this—focusing on online consumers in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela—and below we highlight 8 key insights to consider.

#1:       MOST RESEARCH ONLINE BEFORE BUYING
According to comScore, every week 8 of 10 Latin Americans search for and research products online before buying. This figure isn’t exactly surprising, since it dovetails with other studies that have reported similar results. For instance, a study from Google, IAB Europe and TNS Infratest indicated that between January and May of this year, 57% of online consumers in Mexico and 63% of online consumers in Brazil researched products online before buying. And according to the  Cámara Argentina de Comercio Electrónico (Argentine Chamber of E-Commerce), 75% of Argentines research products online before buying.
In addition, another study done by Google and D’Alessio IROL in 2011—focusing on more than 3,500 online shoppers from Peru, the Dominican Republic, Puerto Rico, Costa Rica, Panama, Ecuador, Colombia and Chile—indicated that 6 out of 10 shoppers first become interested in a product after finding it online and the same amount said they ended up buying a product after finding it via an Internet search.

#2:       THEY SPEND A LOT
Of the Argentines surveyed by comScore, 75% said they spent between US$100 y US$1,000 in online purchases during the past 3 months, with the majority (31%) spending between US$100 and US$250. For their part, 66% of Brazilians spent between US$100 and US$1,000 in online purchases in the past 3 months, with 14% spending more than US$1,000. It’s also worth noting that 17% of Venezuelans reported that they spent more than US$1,000 through e-commerce in the past 3 months, with 73% reporting that they spent between US$100 and US$1,000 in the same period. The same high percentage reports spending in the latter range in several other countries, including Chile (76%), Colombia (69%), Mexico (78%) and Peru (78%). That said, in Chile, Argentina, Colombia, Mexico and Peru, most people reporting spending between US$100 and US$250 on e-commerce purchases in the past 3 months.

#3:       MOST USE CREDIT CARDS
Despite the relatively low penetration of credit cards in Latam, in comScore’s study, 74% of the Latam Internet users surveyed said that they use credit cards to buy online. Among the other payment methods they reported using were electronic funds transfer (41%), debit card (41%) and cash on delivery or COD (26%).

#4:       WHAT THEY BUY THE MOST ARE CLOTHES AND ELECTRONICS
The comScore survey found that 43% of Latin American online consumers buy clothes and 41% buy electronics. Among the other hot products for Latam e-commerce shoppers are music/movies/videos (36%), appliances (35%), and computer hardware (33%), tickets to shows and events (31%) and apps (31%).
These results are similar to those reported by other sources, including the Brazilian Chamber of E-Commerce, the Argentine Chamber of E-Commerce, the Mexican Internet Association (AMIPCI) and the study from Google/D’Alessio IROL cited earlier.

#5:       ONLINE ADVERTISING INFLUENCES E-COMMERCE IN LATAM
According to the comScore study, there are 4 factors that influence in the online purchase process for Latin Americans. In order of importance, the first is going directly to an e-commerce site, the second is putting in a keyword into a search engine, the third is online advertising and the fourth is recommendations from family or friends.

#6:       MERCADO LIBRE CLOSES MORE SALES
Mercado Libre (known as Mercado Livre in Brazil) attracts 81% of Latin American online shoppers and 55% buy on the site. This makes Mercado Libre the most popular international e-commerce site in the region. While 53% of Latam consumers surveyed by comScore say that they visit Amazon, only 22% buy on it. And while 35% visit Wal-Mart, only 10% buy on it. The same happens with Carrefour: 28% visit it but only 8% buy on it. Based on these results, it seems that Mercado Libre is the market leader for e-commerce in Latin America among international sites targeting the region’s shoppers.

#7:       THEY TEND TO BUY LESS FROM LOCAL SITES
Based only on the purchase rates, it appears that Latin Americans do more of their e-commerce transactions on international sites rather than local sites. For example, even though 55% of Latin Americans buy on Mercado Libre, just 23% buy on Garbarino, an e-commerce site in the Argentine market. And Garbarino seems to have a higher rate of purchase than other local Argentine e-commerce sites, such as Fravega (17%), Falabella (17%), Sodimac (3%) and Netshoes (4%). In Brazil, consumers buy the most from Americanas (27%), while in Chile the top local e-commerce site in terms of purchase rate seems to be Falabella (41%). In Colombia, the site with the highest reported purchase rate is Éxito (31%). However, Falabella is the local site that Peruvians most buy from (41%), while Mexicans buy the most from Liverpool (25%).

#8:       90% USE THEIR SMARTPHONES FOR E-COMMERCE
Now, it’s important to note that this doesn’t mean that 90% are buying with their smartphones. In fact, only 23% of the Latin Americans that comScore surveyed reported making online purchases with their smartphones. However, Latin Americans are using their smartphones in other parts of the e-commerce process. For example, 60% use them to take photos of products, 56% send text messages to family or friends about products, 42% look for nearby stores, 40% read comments about products from other consumers and 39% use their smartphones to compare prices. In addition, 34% click on mobile ads and 24% scan QR codes to compare prices.

To learn more about how we can help you with a media campaign in Latin America, please contact us.

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apple-logo

The 10 Top Brands Expanding into Latin America

A number of key brands are targeting Latin America in 2013 and beyond. To help marketers, media agencies and advertisers get a quick sense of what’s next, we developed a list of some of the major players for easy reference.

Aloft
After debuting new properties in Colombia in December 2011 and in Costa Rica this year, Starwood has announced plans to expand its Aloft hotel brand through 4 new properties: Aloft Panamá  in 2013, Aloft Mérida and Aloft Asunción in 2014 and Aloft Montevideo in 2015.

Amazon
In fall 2012 Amazon opened its first e-commerce site in Brazil. Rather than directly challenge large e-commerce players like Mercado Livre by selling all types of products, Amazon’s Brazil operation is focused strictly on the sales of e-books. Given the strong sales of tablets in the country and its booming books market, we could see a spike in Kindle sales in Brazil during 2013. No word yet on whether Amazon will target other countries in Latam.

Apple
In 2013 Apple plans to open its first Latin American store in Río de Janeiro, Brasil. While not exactly a huge incursion into the Latam marketplace, it seems likely that success with this store should lead to more, especially when you consider that Apple’s iOS system is dominant among the mobile devices owned in many Latam countries and the increasing sales of both smartphones and tablets in other Latam markets, including México and Peru.
Also noteworthy is that Apple has opened its iBookstore in Latin America, selling books in U.S. dollars in Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru and Venezuela. So far only 3,000 titles are available in Portuguese, while some 12,000 are available in Spanish.

Colloky
This chain specializes in children’s clothes and recently indicated it plans to open at least 30 stores in Colombia over the next 5 years. It’s currently the market leader in shoes in Chile, where it has 34 stores, and has recently expanded to Guatemala.

Dunkin Donuts
In summer 2012 the company announced plans to open 125 stores in Latin America over the next 10 years via a partnership with Fagase, S.A., Donucol and Nutra. The expansion includes 38 new stores in Chile, 70 in Colombia and 25 in Peru. Currently there are 300 Dunkin Donuts stores in Latin America in countries that include Chile, Colombia, Peru, Panama, Ecuador. Honduras and Guatemala.

Express
The apparel retailer will be opening more than 30 stores over the next 5 years in Peru, Panama, Costa Rica, Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras and Nicaragua.

Gap
The clothes retailer noted strong initial success with its store in Santiago, Chile, as well as with its store in Panama. As such, the chain has plans to expand to Colombia, Uruguay and Peru, with Brazil as another possibility.

HBO GO
The company launched this service—which allows download of HBO content to mobile devices to subscribers—in Colombia in November 2012, after a successful launch in Brazil earlier in the year. In Colombia the service will only be available via the Internet at first but eventually subscribers will be able to access it via tablets and other mobile devices. Available content includes not only popular American shows like The Sopranos, Rome and Boardwalk Empire, but also ones produced in Latin America, like Capadocia and Prófugos. The company previously announced plans to expand the service to 23 markets in Latin America in the coming years.

Hilton
The hotel chain recently announced that it will be opening its first hotel in Río de Janeiro in June 2014, to be called the Hilton Barra. Currently Hilton has 51 hotels and resorts in Latin America, with plans to develop more in Argentina, Brazil, Colombia, Costa Rica, Mexico, Panama, Peru and Uruguay.

Sephora
The beauty company opened its 6th store in Latin America in Mexico in November 2012, with plans to open 5 more in the country in 2013, including one in Cancun and another in Guadalajara. The brand plans to open 50 new stores in Latin America by 2016, with the majority of them in Brazil—not surprising given the booming beauty market in the country.

Starbucks
In June 2012 the company announced plans to open “several hundred” stores in Brazil over the next 5 years and more than 300 new stores in Argentina and Mexico by 2015.

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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A Merry Christmas for Brazil’s Businesspeople

Recent research from a variety of sources indicates that this Christmas will bring the gift of many sales for businesspeople in Brazil. The following factors show why this is.

Black Friday Boomed
According to comScore, Brazil’s Black Friday sales were up 368% compared to an average online shopping day in the rest of November 2012. Growth was huge in a variety of areas: 185% more buyers, 64% more spending per buyer, 202% more transactions and an order value that was 55% higher. Besides Mercado Livre, Brazil’s leading e-commerce company, other online shopping companies did well on Black Friday, including Americanas, Pontofrio, Casabahia, Submarino, MagazineLuiza and Netshoes.

More Sales
According to Federação do Comércio de Bens, Serviços e Turismo do Estado de São Paulo (São Paulo State Goods, Services and Tourism Business Federation or Fecomercio), there should be a 5% increase in sales in Brazil this Christmas.
Walmart Brasil foresees a 20% increase in sales this Christmas, while the Associação Brasileira de Shopping Centers (Brazilian Shopping Centers Association) projects a 15% increase in sales this year.

More Spending
A study from the Serviço de Proteção ao Crédito (Credit Protection Service or SPC) and the Confederação Nacional dos Lojistas (National Merchants Association or CNDL) indicate that 7 out of 10 Brazilians intend to buy Christmas gifts for their loved ones this year, with 68% paying cash and only 9% using credit cards and 4% using debit cards.
According to consulting firm Deloitte, 28% of Brazilians say they will spend more this Christmas than last Christmas and 39% say they’ll spend the same. In terms of amount, 76% of Brazilians expect to spend up to R$ 500 (US$250) on Christmas gifts, while 24% expect to spend more than this amount.

The Hottest Gifts in Brazil for Christmas 2012
According the SPC and CDNL study, 68% of Brazilians intend to give clothes as gifts, while 28% plan on giving toys and 26% plan to give footwear and accessories. The gift-giving pattern among Brazilians is a bit different from their usual buying habits, since the most popular items to buy during the rest of the year have included tablets, smartphones, flatscreen TVs and books. However, IDC does project that in 2012, smartphone sales will go up 82% in Brazil, and that 30% of these sales will take place during the last three months of this year. IDC also projects that in Brazil—compared to the second half of 2011—smartphone sales in the second half of 2012 will increase by 85%.
With 80% purchase intent, clothes were also the most popular gift item among Brazilians surveyed in the Deloitte study, followed by shoes (49%), though it is interesting to note that this study showed that 26% of Brazilians intend on giving tech gifts (gadgets, tablets, phones or computers) this Christmas.

More Christmas Shopping Online and via Mobile
Besides the huge amount of sales on Black Friday in Brazil via e-commerce, the Câmara Brasileira de Comércio Eletrônico projects that Christmas 2012 e-commerce sales in Brazil will reach R$ 3 billion (US$1.4 billion), 20% more than in Christmas 2011. One of the interesting results from the study by Deloitte was that 37% of the Brazilians surveyed say they will buy Christmas gifts this year via tablets or mobile phones.

To find out more about how to reach Brazilians with an effective media campaign during Christmas or at any time of the year, please contact us.

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