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Latam digital music

Digital Music Cranks Up in Latin America

Both online music downloads and digital music subscriptions are on the rise in Latin America.

According to the most recent digital music report from the International Federation of the Phonographic Industry or IFPI—released in November 2014—Latin America posted 27% digital music revenue growth in 2013. Overall, revenues from digital music grew by 124% in Latin America between 2010 and 2013.

According to the Federation’s report, a number of Latam countries had powerful individual growth, including Peru (149%), Colombia (85%) and Argentina (69%).

But IFPI is not the only source that points to digital music growth in Latin American countries.

Colombia
Ipsos-Napoleón Franco’s Technology Tracker study, released in 2014, indicated that 37% of Colombian internet users stream music, compared to the 49% that buy CDs.

Mexico
The Mexican Association of Phonographic Producers (Amprofon) reported a 130% increase in revenues from streaming music services in Mexico during the first half of 2014. Streaming revenues totaled 175 million Mexican pesos in the first half of 2014, while digital music sales went up by 14% to reach 428 million Mexican pesos in the same period. Overall, 59% of the revenues generated by the Mexican music industry in the first half of 2014 came from digital sources, either streaming or purchases.

Brazil
A recent study from Opinion Box indicated that 28% of Brazilians stream music, though 76% still prefer to listen to music via traditional radio. However, another study from Opinion Box—done in June 2014—surveyed 1,484 Brazilian Internet users and found that 76% listened to music on their cell phones. Of these, 84% listen to MP3 files, 65% listen to the FM radio embedded in the device and nearly 31% use streaming music apps. In addition, while 2014 numbers aren’t available yet, the Associação Brasileira de Produtores de Discos, (Brazilian Association of Record Producers or ABPD) reported that digital music sales in Brazil went up by 22% in 2013 and that digital sales accounted for 36% of total music sales.

What to Do with This Data
While it’s tricky to find large scale spikes in digital music consumption for every Latin American country, there’s enough data for the larger markets to suggest a significant change is taking place. For advertisers and agencies, this means that looking into ad solutions from sites like Deezer may deliver some strong results with campaigns, especially with the younger age groups (15 to 24, 25 to 35) that make up the majority of Latam’s Internet users.

Please contact us to find out more how we can increase efficiencies for Latin American agencies through media services like planning or buying or via advertising technology solutions like programmatic buying.

conectados

Latam’s Emerging Internet Markets

In covering the rise of Internet in Latin  America, there seems to be a wealth of information about the larger markets such as Brazil, Mexico, Argentina and Colombia. In contrast, it’s harder to find data about smaller but surging Internet markets, such as Peru, Ecuador, Chile and Uruguay.

To help marketers, advertisers and media agencies plan their campaigns in these markets, we decided to put together some quick Internet data portraits for them.

 


CHILE

>Penetration: In June 2012 there were 10 million Internet users in Chile out of a total population of 17 million, which is 58% Internet penetration*. Chile is edged out by Colombia (59.5%) and Argentina (66%) in Internet penetration, but ranks higher than Mexico, Brazil and many other Latin American countries.
In terms of reach within socioeconomic classes, Internet penetration in Chile is 81% with classes ABC1, at 70% with class C2 and at 57% with class C3.**

>Future Growth: There will be 16.4 million Internet users in Chile by 2015, 64% growth. This will undoubtedly be helped by 97% PC penetration in Chilean homes by 2015.***

>Time Online: Chilean internautas spend an average of 24 hours a month online per user, in line with the global average of 24.5 hours per user per month.****

>Reaching This Audience: The types of sites with deepest reach among Chilean Internet users are social media sites (96% reach), community sites (95%), multimedia sites (93%), news sites (93%), blogs (87%) and game sites (87%).****

>Social Media: Chileans spend nearly 9 hours a month on social media and the country ranks #6 in the world in terms of its social media use. Facebook rules in Chile as it does in the rest of Latam, with 91% reach and 6.7 million visitors from Chile in May 2012.****

>Social Media to Watch: Despite Facebook’s reach, advertisers should also look to other fast-growing sites in Chile, like Tumblr (209% growth between 2011 and 2012), Scribd (258%), Slideshare (58%) Deviantart (36%) and LinkedIn (32%).****

>Online Video: Chileans watch many more online videos than the rest of Latin America, offering advertisers a fresh, effective format for reaching this market. Internet users in Chile watch 172 videos per viewer per month, significantly higher than the monthly online video consumption of Mexico (154 videos per viewer per month), Brazil (125) and Argentina (117). The vast majority of online videos watched by Chileans (82%) are on Google Sites, with VEVO and Viacom responsible for 5% and 1%, respectively, of the online videos watched by the audience. Current market indicators suggest the growth should continue strongly: between August 2011 and August 2012, the overall numbers of online videos that Chileans watched went up by 48%.****

>E-Commerce: Projections from Visa suggest that e-commerce in Chile will grow 14% from US$1.4 billion in 2011 to US$1.7 billion in 2012.

>Mobile Penetration: Currently it’s at 129%.******

>Smartphone Penetration: Currently at 30% but one estimate says that by 2015, 54% of the cell phones sold in Chile will be smartphones.******* However, Chilean Telecommunications Ministry subsecretary Jorge Atton recently estimated that in 2013 as many as 75% of the mobile phones sold in Chile will be smartphones.

>Mobile Internet: In 2011 mobile broadband connections in Chile grew by 105% to reach 2.96 million and surpass fixed broadband connections, which totaled around 2 million.********

Sources: *Internet WorldStats, **Estudio General de Medios, ***Pyramid Group, ****comScore, *****Cámara de Comercio de Santiago, ******Subsecretaría de Telecomunicaciones de Chile, *******Entel, ********Ministerio de Transporte y Telecomunicaciones

 


ECUADOR
>Penetration:
Currently there are 4 million Internet users in Ecuador, which means an Internet penetration rate of 27%.*

>Future Growth: By 2015 there will be 7.5 million Internet users in Ecuador, nearly 90% growth.**

>Social Media: Ecuadorian Internet users spend 6 hours a week on social media.*** Facebook is by far the most popular site, with 4.9 million users in Ecuador.**** Among the five brands with the most amount of Facebook engagement in Ecuador are KFC Ecuador, Pingüino Ecuador, Nine West Ecuador, McDonald’s Ecuador and Fioravanti.****

>Mobile Penetration: Overall, 78% of Ecuadorian homes have a mobile phone.*****

>Smartphone Penetration: Currently at 8%, which suggest there are 1.2 million smartphone owners in Ecuador. Demographically, 53% of smartphone owners in Ecuador are men and 47% are women. Smartphone owners skew fairly young, with 11.7% between 16 and 24, 11.5% between 25 and 34, 10.1% between 25 and 34, 7.2% between 35 and 44 and 5.7% between 45 and 54.*****

Sources: *Internet WorldStats, **Latin American & Caribbean Network Information Centre (LACNIC), ***Wave 6 study by UM, ****Socialbakers, *****Instituto Nacional de Estadísticas y Censos

 


PERU

>Penetration: In June 2012 there were 10.7 million Internet users in Peru out of a total population of 29.5 million, which is 36.2% Internet penetration*.

>Time Online: Peruvian internautas spend an average of 26.5 hours a month online per user, higher than the global average of 24.5 hours per user per month and higher than the averages for Internet users in Mexico (22.8 hours/month), Argentina (25.4 hours), Chile (24.9 hours) and Colombia (23.3 hours).**

>Reaching this Audience: The types of sites with deepest reach among Peru’s Internet users are community sites (97% reach), social media sites (96%), multimedia sites (96%), news sites (95%), directories (91%), blogs (82%) and game sites (81%).**

>Social Media: Peruvians spend 8.6 hours a month per user on social media, which is higher than Latam’s average per user (7.6 hours) and the global average per user (6.1 hours). Facebook is the #1 social media site, reaching 87.9% of Peru’s online population.**

>Entertainment: 97% of Internet users in Peru visited an entertainment site in January 2012 and their usage of these sites (4.2 hours per user) is higher than that of overall Internet users in Latam (3.3). Not surprisingly, YouTube has 73% reach in Peru.**

>Mobile Penetration: Currently it’s at 110%.***

>Smartphone and Tablet Sales: While it’s difficult to pin down smartphone penetration, it’s known that 28% of the phones imported into Peru in 2012 were smartphones, double the amount imported in 2011.**** An article on the Web site Nexonet cited projections from Samsung that indicate that 50% of the cell phones sold in Peru in 2015 will be smartphones. For their part, tablet sales in Peru have spiked by 334% in the first half of 2012, with 57,800 units sold. In addition, while Samsung’s Galaxy had a 60% share of the tablet market in Peru in 2011, Apple is gaining: of the 57,800 tablets sold so far in 2012, 13,589 were from Apple.****

>E-commerce: While online shopping in Peru has yet to reach the levels that it has in Mexico, Brazil or Argentina, one recent estimate suggests that e-commerce will grow by 30% a year through 2015.*****

>Mobile Internet: In Peru, mobile Internet traffic grew by 1,700% between 2010 and 2012.******

Sources: *Internet WorldStats, **comScore, ***International Telecommunications Union, ****Dominio Consultores, *****Sociedad de Comercio Exterior del Perú, ******Telefónica Móviles

 


URUGUAY
>Penetration:
In June 2012 there were 1.8 million Internet users in Uruguay out of a total population of 3.3 million, which is 55.9% Internet penetration*. A 2012 study done by Grupo Radar of 1,800 Uruguayans—1,098 of whom were Internet users—showed that 77% of people in Montevideo and 74% of people in the rest of the country had PCs in the home. PCs were present in the homes of 97% of the highest socioeconomic classes and in 78% of the homes of the middle classes.**

>Connection: In Uruguay, 86% of Internet users connect from home, while 35% connect from the homes of family or friends, 24% from work, 23% from school and 17% from public places, while 42% connect from cybers, presumably Internet cafes. Interestingly, some 20% reported going online with mobile phones or tablets.**

>Time Online: According to Grupo Radar’s results, the average Uruguayan spends 10 hours a week online, which would average out to 40 hours a month, considerably higher than monthly figures reported for other countries in Latin America.**

>Reaching this Audience: The top activities reported by Uruguayan Internet users include search (79%), social media (77%), email (73%), chatting (72%), downloading music (65%), YouTube (63%) and reading news (62%). Relatively low numbers report playing games (35%), downloading or watching movies (34%) and buying or selling online (22%).**

>Social Media: Nearly all Uruguayans surveyed by Grupo Radar (99%) are on Facebook, while other social media sites have much lower numbers. For example, only 11% use Twitter, only 2% use Sonico or Badoo and only 2% use LinkedIn.**

>Facebook Use: The majority of Uruguayan Internet users surveyed by Grupo Radar (89%) use Facebook to chat. Other top Facebook uses include sharing links, commenting on friends’statuses, uploading photos, writing comments or joining groups. Only 42% report becoming fans of pages (57% do not) and 31% report clicking on social media ads.**

>Researching Brands: About half (52%) of Uruguayan Internet users go online to find information about brands, while 48% do not. Brand websites are were the large majority (70%) go, though social media are in second place with 29% of users going there to find out information about brands. A small amount (13%) writes comments about brands on social media.**

>Social Media Ads: Grupo Radar’s study indicates that 49% of Uruguayan Internet users like that brands promote themselves via social media, 4% do not like it and 47% don’t care one way or another.**

>E-commerce: Overall global numbers for e-commerce are difficult to pin down but only 22% of respondents in Grupo Radar’s survey reported buying online. With those online shoppers, top online products included PC accessories, appliances, cell phones, clothes and sports equipment.

>Mobile Penetration: Currently it’s at 71%, according to the Instituto Nacional de Estadísticas.

>Smartphone Penetration: Current data is scarce but Pyramid Research projects sales of 1.2 million smartphones in Uruguay by 2017.

>Digital Media: In Grupo Radar’s study, 39% of Internet users in Uruguay reported reading news on line, with 64% reading news on El País’ site. Other news sites drew significantly lower responses: Observa (17%), Montevideo.com (14%), La República (14%) and El Espectador (7%).**

>Mobile Internet: In 2011 the amount of mobile broadband connections in Uruguay grew by 60%***

Sources: *Internet WorldStats, **Grupo Radar, ***Unidad Reguladora de los servicios de Comunicación

To find out how we can help you reach these emerging Internet markets or any of the other markets in Latin America via a strategic campaign across all media, please contact us.

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Brazil luxury final

3 Reasons Why Brazil Has Become a Major Luxury Market

In 2011, Brazil’s luxury market grew by 4.7% in terms of designer clothing and footwear while sales of luxury accessories went up by 3.5% to reach US$294 million, according to research firm Euromonitor.

Overall, Brazil’s luxury market doubled its growth rates between 2008 and 2012. As such, the country’s luxury goods market is worth more than US$7 billion. Mexico is in second place—Euromonitor reports that its luxury market is worth US$1.5 billion.

The following factors are driving Brazil’s growth as a luxury market:

#1 Economic growth
Despite relatively weak economic growth of 1.5% in 2012, Brazil’s economy should grow by 4% per year from 2013 through 2016. In addition, a recent study from IPC Marketing Editora projects that Brazilian consumption will surpass 2.7 trillion reales in 2012, with household spending growing by 3.6%, more than double the growth of the country’s GDP this year.

#2 Many HNWIs
According to research firm Global Information, Brazil has the largest amount of high net worth individuals (HNWIs) in Latin America. In fact, the country ranks 11th in the world in terms of the amount of high net worth individuals. In addition, a recent report by McKinsey&Company estimates that 3 million Brazilians can afford luxury goods and that the country has 24 billionaires and 155,000 millionaires—and a third of the millionaires are under 35.

#3 Projected future growth
MCF Consultoria & Conhecimento, a retail and luxury consultancy firm based in Sao Paulo, estimates that Brazil’s luxury market will grow by 25% in 2012. In addition, Euromonitor forecasts that BRIC countries (Brazil, Russia, India, China) will account for 16% of global luxury sales by 2016, up from 11% in 2012.

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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