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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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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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Game of Thrones, sucesso mundial da HBO

Pay TV Keeps Surging in Brazil

In February 2012, 266,000 Brazilians signed up for pay TV service, bringing up the country’s total amount of subscribers to 13.3 million households—a 334% increase compared to 1999, when there were only 3 million households in Brazil with pay TV. These figures were recently reported by Anatel (Agência Nacional de Telecomunicações), Brazil’s National Telecommunications Agency. Given the estimate of 3.3 people per household in Brazil, this suggests that right now, pay TV has an audience of nearly 44 million in Brazil.

Besides a bigger audience, pay TV is bringing in more money. According to Projeto Inter-Meios, pay TV ad spend in Brazil went up 17.8% in 2011. In fact, pay TV grew more in ad spend in 2011 than any other medium except for Internet.

Class C, the country’s growing middle class, could be one of the key factors behind this growth. In August 2011, the Brazilian Pay TV Association (Associação Brasileira de Televisão por Assinatura) reported that Class C now makes up 30% of the subscriber base. By 2025, research firm Data Popular projects that pay TV penetration among Class C Brazilians will be the same as with classes A and B, the top two socioeconomic classes.

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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http://www.dreamstime.com/-image7098468

Internet Ad Spend in Latam Grew Massively in 2011

Between 2010 and 2011, online ad spend grew by a whopping 117% in Argentina, according to the Cámara Argentina de Agencias de Medios (Argentine Chamber of Media Agencies). The sector posted spend of 528 million pesos (US$121 million) in 2010, then jumped to 1.1 billion pesos (US$250 million) in 2011. While this huge leap is due in part to inflation and lots of political advertising during an election year, it’s still quite impressive.

Other Surging Latin American Markets in Online Ad Spend
Argentina is far from the only Latin American country in which the Internet grew powerfully in ad spend in 2011. According to Projeto Inter-Meios, online ad spend grew by 19% in Brazil in 2011, while IAB Brasil indicates that the spend was split more or less evenly between display and search.

While figures for Mexico’s online ad spend for 2011 aren’t yet available, we were able to get figures for other key markets:

• Chile: 30% growth, US$82 million spent for online ads in 2011
• Colombia: 33% growth, US$70.5 million spent for online ads in 2011
• Peru: 37% growth, US$24 million spent for online ads in 2011
• Uruguay: 50% growth, US$7 million spent for online ads, 2011

To find out how we can help you reach Latin America via a strategic online campaign, please contact us at info@usmediaconsulting.com.

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Clarins Continues Its Latam Growth

While Clarins has been in the Latin American market since the late 1970s, the region’s recent growth is unprecedented.  “I’ve seen growth of 20 percent a year and I think it will continue,” says Joël Palix, president of Clarins Fragrance Group. Historically, Latin America has represented 2-3% of the company’s turnover but now is close to 10 percent. In fact, Palix says that “the way it’s going, it will supersede the United States market sooner or later.”

What Clarins brands are experiencing seem to reflect the recent growth of Latam as a beauty market in general. For example, market research firm Euromonitor International noted that the retail value of beauty and personal care products sold in Latin America in 2010 was nearly $65 billion, making it the world’s 4th largest market, just behind North America.

As the region has become a bigger and bigger market for Clarins, it’s also influenced the company’s promotional efforts. For example, a couple of years ago Clarins selected Enrique Iglesias to represent its Azzaro Pour Homme brand because of his fame and personality—but what also played a role, says Palix, was that “we needed someone who would make an impact on Latin America.”

Upcoming Campaigns
This year the company expects to build on its past success in the region while introducing new products. One example is Aura, a perfume that Clarins created in partnership with Swarovski. Over the past 10 years Swarovski has opened stores all over Latin America. However, it was one of the few luxury brands without a fragrance, so Clarins saw an interesting opportunity in partnering to create and launch Aura. In addition, the companies were a good fit as family-owned luxury brands that share core values. To that end, Clarins is promoting Aura with a campaign this spring.

Later this year, the company plans another campaign in Latin America for its highly successful Angel perfume, leading up to a worldwide campaign in the fall that will celebrate the brand’s 20-year anniversary.

Another planned campaign this year will promote Azzaro Pour Homme, kicking off in Brazil on Father’s Day, August 12, and there will be a panregional rollout for the brand in the fall. Palix points out that Azzaro has been a perennial favorite in Latin America since its launch in 1978, with a cross-generational appeal that almost seems to be handed down from father to son.

Incorporating Internet
While Palix notes that traditional media like TV and print are powerful vehicles to promote Clarins fragrances, the firm is deeply involved in leveraging the power of online media. “We are convinced that the Internet and social media are critical,” he says. This is why the Angel campaign for this spring will have a strong online component. Palix and his team seem to be very well aware of the rapidly growing online market in Latam, particularly in Brazil. As such, Clarins is localizing the content of its Latin American Facebook pages to better engage the audience.

The company is also focused on having lines of communication open with bloggers and making sure that it’s part of the online conversation about its brands. “I think that it’s the future: collaborate with your customers, listen to them, involve them and bring them incredible content,” says Palix. For Clarins, that content includes not only what their customers say about their products but exclusive videos shot with stars like Eva Mendes, the worldwide face of Angel. “Fragrances are about design,” explains Palix, “but they also have a story, and you need to captivate the imagination of consumers with unique stories.” However, what sets Clarins apart from many other brands is its commitment to looking for new ways to tell its stories, including digital media. Considering the rapid rise of the Internet in Latin America, this could well ensure that Clarins’ growth in the region continues for years to come.

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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