Tag Archives: smartphone penetration Brazil

Brazilians buy 2012

What Brazilians Are Buying in 2012

Recently, a number of firms in Brazil have been releasing sales figures for different products during the first 6 months of the year. Reviewing the top-selling products in Brazil for the first half of 2012 may help professionals in marketing, media and advertising with their 2013 plans, so we decided to include a selection of these best sellers.

 

 


Beauty Products

In the first 6 months of 2012, sales of beauty products in Brazil totaled 15.4 billion reales (US$7.3 billion). Overall, the Brazilian beauty market should grow by 15% in 2012.* Buying beauty products online is another trend that could be contributing to these numbers. Mercado Livre reported recently that sales of health and beauty products on its site went up by 60% during the first half of 2012. The categories with the biggest growth include hand care products (up 128% in sales) and makeup (up 113% in sales).
Source: *Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria e Cosméticos



Books

In 2011 more than 469.5 million books were sold in Brazil, 7.2% more than in 2010.* In 2012,  sales of books in Brazil will increase by 14.5%.** Nearly 45% of books sold in Brazil are sold in bookstores, while door-to-door sales account for 9% of book sales. Other retail points of distribution exist but are responsible for a small amount of sales, such as supermarkets (2.4%), churches (4%) and newsstands (2.2%).**
In terms of socioeconomic class, in Brazil class B buys the most books, accounting for 51.5% of book sales, while class A accounts for 20.7%, Class C accounts for 23.7% and classes D and E  account for 3.7% of sales.**
Sources: *Fundação Instituto de Pesquisas Econômicas, **IBOPE


Cars

Between January and September 2012, 2.1 million cars were sold in Brazil, 5.8% more than in the same period of 2011.* Record-breaking sales in August 2012 probably helped boost the numbers: 420,101 cars were sold in August 2012 in Brazil, a 15% increase over sales in July 2012 and 28% higher than sales in August 2011.**
Sources: *Associação Nacional dos Veículos Automotores, **Federação Nacional da Distribuição de Veículos Automotores


Computers

Overall, computers are not really booming in sales in Brazil. According to research firm IDC, 7.8 million computers were sold in Brazil during the first half of 2012, just 2% more than in January-June 2011. However, there has been a dramatic increase in the sales of certain kinds of computers. During the second quarter of 2012, 606,000 tablets were sold in Brazil, an increase of 275% compared to the second quarter of 2011. In the first quarter of 2012, 370,000 tablets were sold in Brazil.
Overall, 2.6 million tablets will be sold in Brazil in 2012, up from an earlier forecast of 2 million. In addition, tablet sales in Brazil will reach 5.4 million units in 2013.
Source: IDC

 


Digital Cameras

Sales of digital cameras in Brazil should grow by 22% in 2012. In 2011, 4.7 million digital cameras were sold in Brazil and 2.3 million units were sold in the first half of 2012.
Source: GFK Retail and Technology

 


Drinks

Brazilians will spend 17.7 billion reais (US$8.3 billion) on drinks in 2012, 15% more than in 2011. In this context, the term “drinks” means water, soda, beer, juice, wine, champagne and distilled beverages. Class B does the majority of drinks spending, accounting for 42.6% of the total, which class C is responsible for 40%. Class A only accounts for 10% of the spending on drinks in Brazil, while classes D and E are responsible for 7% of the overall spending on drinks.
Source: Pyxis Consumo

 


E-commerce

Brazil’s e-commerce sales for the first half of 2012 totaled 10.2 billion reais (US$4.9 billion), a 21% increase compared to the first half of 2011. Around 1.3% of e-commerce purchases by Brazilians were made with a mobile device, up from 0.3% in 2011. Overall, 37.6 million Brazilians made online purchases in the first half of 2012, and 5.6 million were shopping online for the first time. E-bit projects e-commerce sales of 12.2 billion reais (US$5.8 billion) in the second half of 2012, 20% growth compared to the second half of 2011.
Here’s a look at the top-selling e-commerce products in Brazil in the first half of 2012:

  1. Appliances
  2. Health/beauty products
  3. Fashion and Accessories
  4. Books & magazine subscriptions
  5. Computer products

Source: e-bit

 


Smartphones

Sales of smartphones went up 77% in Brazil in the first half of 2012, with overall sales of 6.8 million units.* The rest of the mobile phones sold in Brazil from January to June 2012—20.5 million—were feature phones.* Sales for feature phones dropped by 16% during the first half of 2012.* By 2015, 57% of the mobile phones sold in Brazil will be smartphones.*

More smartphone facts for Brazil

  • 55% of the cell phones sold in Brazil during the first half of 2012 offered Internet access**
  • 38% of Brazilian smartphone users have more than 21 apps installed**
  • 68% of the apps most used by Brazilian smartphone users in the past 30 days are games, while 63% were music apps and 67% were social media apps**

Sources: *IDC, **Nielsen

 


Travel

Brazilians spent a record amount on travel in the first half of 2012: US$10.7 billion, compared to the US$10.2 billion they spent in the first half of 2011, an increase of 4.4%.*
In addition, business travel by Brazilians grew by 34% in the first half of 2012, record growth. The largest part of this expenditure—42%—went to the country’s airlines, while hotels received 18%. The top 3 destinations for Brazilian business travelers were São Paulo, Rio de Janeiro and Brasília.*
Sources: *Banco Central, **Associação Brasileira de Agências de Viagens Corporativas

 


TVs

Flatscreen TVs account for 90% of the TV sales in Brazil today. They surpassed tube TV in sales in Brazil starting in 2010, when they posted sales of 5.8 million units.* More than 8.8 million flatscreens were sold in Brazil in 2011 and in the first half of 2012, more than 5 million were sold, up 31% compared to the first half of 2011.*
As of June 2012, LED TVs are the most popular flatscreen in the Brazilian market, with 50.9% of sales, compared to 43.5% for LCD TVs and 5.5% for plasmas.* Currently around 20% of TVs in Brazil are Internet-connected*, compared to 38% in the United States**.
Sources: *GFK, **Leichtman Research Group

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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Latam mobile

Why Mobile Advertising is a Good Move in Latam

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

But those are external factors.

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

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


ARGENTINA

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

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

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

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

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


BRAZIL

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

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

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

Response to Mobile Ads

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

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


MEXICO

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

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

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

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

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

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

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qr code, flashcode, smartphone

Why Mobile Ad Sales Are Set to Spike in Latam

Mobile is clearly making money. Worldwide, revenues from mobile ads will top US$3.3 billion—more than double the $1.6 billion earned in 2010.
And Latin America is driving the mobile ad surge: in Argentina alone, mobile ad revenues grew by 657% in 2010. Other countries are also showing mobile money spikes, including Brazil and Mexico.
Here’s why the mobile ad market is heating up in Latin America.

#1 Cellphone penetration. Across Latin America, it reached 100% in 2011, compared to 102% in the United States. Several Latin American countries boast more than 100% penetration, such as Argentina (142%) Uruguay (130%) and Brazil (118%). Latin Americans are also buying more and more multimedia phones—which are excellent for displaying mobile ad content.

#2 Smartphone penetration. Smartphone sales in Latin America for 2011 total 31 million so far, spiking by 165% in Brazil between 2010 and 2011. In Mexico, they make up 35% of the market, while smartphone penetration is at 20% in both Argentina and Colombia. Sales will grow by 30% a year over the next 5 years—or more. Smartphone prices in Latin America have dropped to the $100 range recently, making them more affordable than ever. For advertisers, surging smartphone sales mean that they have an even better device to reach customers in Latin America with ads, plus improved targeting.

#3 Consumer behavior. A recent study showed that 26% of online shoppers in Mexico used a mobile device to make purchases, while 79% of Brazilian cellphone owners use their phones in some part of the purchase process.

In Colombia, the amount of mobile Internet users spiked up 119% between 2010 and 2011 and 3G cellphone use went up 4% in the same period.

And when the Mobile Entertainment Forum surveyed 8,500 Latin American cell phone users in 2011, it found that 20% of them are prepared to spend 200 euros on mobile purchases, double the next closest region (India, with 10%).

Jumba Mobile Network
In response to this impressive surge, we have launched the Jumba Mobile Network to help advertisers reaching this growing Latin American mobile ad market. With Jumba, advertisers can target by:

• Demographic group
• Geographic area (country, state or DMA)
• Carrier
• Handset, brand or operating system
• Applications and sites
• Age of handset
• Time of day or day of the week
• Frequency, Wi-Fi or location-based

Ad formats include QR codes, traditional display in a range of sizes, rich media or text.

For more information about how we can help you take advantage of Latin America’s surging mobile ad market, contact us at info@usmediaconsulting.com.
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