Tag Archives: The Hottest Growth Markets in Latin America

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The Top-Selling Products in Brazil

Despite reports that the retail market in Brazil is cooling off, our team keeps seeing a flood of statistics that suggest otherwise. We went through a wide range of reports to identify some of the products in Brazil that show either dramatic increases over the past few years or especially strong leaps this year.

 


Appliances

IBOPE recently projected that appliance consumption in Brazil will increase by nearly 12% in 2013 and that Class C will account for 44% of appliances consumption in the country.
Source: IBOPE


Autos

Brazil posted a 5% increase in car sales in the first half of 2013 and overall it’s projected that the country will have a 4% increase in car sales in all of 2013.
Source: Fenabrave


Cell Phones
A recent study by Nielsen and the Mobile Marketing Association (MMA) Indicated that in the first half of 2013, sales of cellphones in Brazil went up by 121%.  Nielsen and MMA also reported that 38% of the cell phones sold in Brazil in this time period were smartphones. However, it’s important to note that IDC/Abinee reported a much more modest increase in cell phone sales in Brazil during the first half of 2013: 8%. What IDC/Abinee did note is that 13.7 million smartphones were sold in Brazil in this period—versus 15.9 million feature phones. As such, IDC, a firm that specializes in technology research, is saying that around 46% of the cell phones sold in Brazil in this period were smartphones. Given IDC’s specialization in tech, their figures could be more accurate than those of Nielsen. Either way, that fact that smartphones make up 38% to 46% of cell phone sales in Brazil is significant and points to the need to divert more investment to mobile campaigns.
Sources: Nielsen, MMA, IDC/Abinee


Cleaning Products
The average amount that Brazilians spend on cleaning products has gone up by 41% over the past 5 years and grew by 8% just in 2012. The Brazilian cleaning product market is #4 in the world, just behind those of the United States, China and Japan. Overall, Brazil’s cleaning product sector had sales of R$ 14.9 billion (US$7.5 billion) in 2012, which represents an increase of 3.5% compared to 2011.
Sources: Kantar Worldpanel, Anuário Abipla 2013


Computers

In most world markets, consumers seem to moving away from PCs and towards tablets, and Brazil is no exception. In the first half of 2013, notebook sales went down by 7% compared to 2012 and desktop sales went down by nearly 13%. But tablet sales in Brazil spiked by 165% during the first half of 2013 and totaled 3.3 million, which is more than the tablet sales total for all of 2012 in Brazil (3.1 million).
Source: IDC


E-books

Sales of e-books skyrocketed by 350% in Brazil between 2011 and 2012. While a recent survey of Brazilian publishers revealed that e-books make up less than 1% of their sales, publishing consultant Carlos Carrenho has predicted that in 2013 e-books will make up nearly 3% of publisher sales in Brazil.
Source: Câmara Brasileira do Livro


Luxury Products

Brazil’s luxury market grew by 24% in 2012 and is projected to post 25% growth over the next 5 years. In terms of specific categories, luxury watch sales in Brazil grew by 30% in 2012. In addition, in 2013 a number of luxury car brands posted massive sales increases between January and July 2013:

  • Porsche: 140%
  • Rolls-Royce: 100%
  • BMW: 68%
  • Audi: 46%

In Brazil, the luxury car model with the biggest increase in sales so far in 2013 has been the Jaguar XF, with a 572% increase, while sales of the Porsche Cayman are up by 240% and Porsche 911 sales are up by 132%.
Sources: Digital Group, World Watch Report, Associação Nacional de Veículos Automotores


Nail Polish
Sales of nail polish have grown by nearly 12% in the past year to reach R$ 600 million (US$285 million). In fact, Brazil is #2 in the world in the consumption of nail polish, trailing only the United States. Overall, in Brazil the beauty products sector is growing by more than 10% a year, with hair care responsible for 22% of sales. In addition, over the past 5 years, the amount of new beauty salons in Brazil has grown by 78%.
Sources: Associação Brasileira de Embalagem, Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosmético, Associação Nacional do Comércio de Artigos de Higiene Pessoal e Beleza


Pharmaceuticals

In 2012 the pharmaceutical market in Latin America grew by 15.8%, an even bigger rate of growth than the Asian pharma market (10%). Among the markets with the most growth, not surprisingly, is Brazil, which should see pharmaceutical sales double to reach R$ 100 billion (US$48 billion) by 2017; in fact, the country’s growth has even attracted U.S. pharmacy chains like CVS, which bought the Paulo drugstores chain, and Walgreens, which is currently looking to purchase a local chain.
Sources: IMS Health, Brasilpar


Scooters

In 2007 only about 3,200 scooters were sold in Brazil but in 2012 the number reached 29,566, an increase of 801%.
Source: Associação Brasileira dos Fabricantes de Motos (Abraciclo)


Travel

A 2013 study that focused on travel habits of 25 major markets found that Brazil is among the top 5 countries in travel spending. Brazilians spend an average of US$3,000 during international trips and rank in 4th place behind travelers from Saudi Arabia, Australia, China and South Africa.
August 2013 was the most recent month in which travel spending numbers were released by Brazil’s Central Bank. In that month, Brazilian travelers spent US$2.22 billion on their trips abroad, nearly 16% more than they did in August 2012. In addition, Brazilian travelers spent nearly US$17 billion on foreign travel between January and August 2013, nearly 15% more than in the same period during 2012.
Sources: Visa, Banco Central do Brasil


Videogames

Between 2012 and 2013, video game sales in Brazil went up by 24%. This increase came on top of an even more massive one of 131% between 2011 and 2012. The top selling video games in Brazil for 2013 are:

  • FIFA 13
  • PES 13
  • Grand Theft Auto 5
  • God of War: Ascension
  • The Last of Us
  • Call of Duty: Black Ops 2
  • Just Dance 4
  • Assassin’s Creed 3
  • Grand Theft Auto 4
  • Assassin’s Creed 2

Source: Gfk

To find out more how we can help you reach Latin American consumers with a strategic media campaigns, please contact us.

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4 Reasons Why Print Still Has Power in Brazil and Latam

Despite the challenges that print has faced in markets like the United States, the medium still provides strong reach in Latin America. Here’s why:

#1 Newspapers in Peru have grown in circulation by 50% over the past 4 years

This growth was reported by KPMG, which recently studied newspapers in Peru.

#2 Brazilian Newspapers Are Still Growing
According to the Instituto Verificador de Circulacao, Brazilian newspapers grew by 2.3% in circulation during the first 6 months of 2012 and 73% of Brazilians prefer to get their news from print media rather than online sources.

#3 Consumer magazine ad spend dropped in every region in 2009—EXCEPT in Latin America
PriceWaterhouseCooper reported these results in their Global Entertainment Media Outlook 2012-2016 study. Besides holding steady during challenging times, magazines in Latin America are projected to grow in ad spend over the next 4 years, projects PWC.

#4 Newspapers command strong shares of ad spend in several Latam markets
In 2011, newspapers and magazines commanded 36% of ad spend in Colombia, more than Internet (5%) and radio (20%), while free TV commanded 46%. In Chile in 2011, newspapers and magazines accounted for 28% of ad spend, second only to free TV (44.9%). In Argentina in 2011, newspapers and magazines accounted for 39.8% of ad spend, more than TV (37.4%) and any other medium, including radio (3.2%), Internet (6.1%), OOH (5%) and pay TV (7%). In Brazil in 2011, print media accounted for 18% of ad spend, #2 behind free TV, which took up 63% of ad spend.

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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Online videos latam

4 Reasons to Look at Online Videos in Latam When Planning for 2013

A new study from comScore called Tuning In: The Rise of Online Video en Latin America underscores the surge in popularity of online videos in Latin America—and their impact on advertising. Below we break out the study’s most important points to highlight the 4 reasons you should take advantage of this ad platform in 2013.

#1 A Growing Audience
In December 2011, Brazilian Internet users watched 4.7 billion online videos, 74% more than in December 2010. Mexican Internet users increased their online video consumption by 80% between December 2010 and December 2011 to reach 3 billion videos viewed. Argentine internautas are also avid online video watchers: they reached a total of 1.5 billion videos watched in December 2011, a 75% increase compared to December 2010. However, Chileans grew the most in this category: they upped their online video consumption by 91% between December 2010 and December 2011 to reach 1 billion videos watched.
Essentially, there’s been an enormous upswing in online video watching in the biggest 4 Internet markets in Latin America.

#2 Broad Reach
According to comScore, online videos have 85% reach with Internet users in the U.S. and 84% reach among Internet users worldwide.
In contrast, online videos reach 96% of Argentine Internet users, 92% of Chilean Internet users, 81% of Brazilian Internet users and 82% of Mexican Internet users.
Doing the math reveals:

  • Argentina has 28 million Internet users* and 96% of that total is 26.8 million
  • Brazil has 85 million Internet users** and 81% of that total is 68.8 million
  • Mexico has 40.6 million Internet users*** and 82% of that total is 33.2 million
  • Chile has 10 million Internet users* and 92% of that total is 9.2 million

Sources: *Internet World Stats, **comScore, ***AMIPCI

Adding up these totals means that you can reach 138 million people with online video in just these 4 markets—without counting the millions of Internet users in the rest of Latin America.

#3 Room to Grow
In these 4 countries, each viewer spends an average of 11 to 13 hours a month watching online videos, while in the United States, a more mature market, viewers spend 22 hours per month watching online videos. This means that there is good potential for online videos to take up more and more online time of Latin American Internet users. The same applies when you look at the amount of videos watched per user: between 120 and 168 per month in these 4 countries, compared to 245 online videos per month in the U.S.

#4 Market Evolution
First, numbers from IBOPE show that free TV has a penetration of over 90% in Argentina, Brazil, Chile and Mexico. Numbers from LAMAC show that pay TV is growing its reach in these countries: 74% penetration in Argentina, 61% in Chile and 40% in both Brazil and Mexico.

Beyond the reach of TV, a comScore study shows that 71% of online video viewers do this because they missed an episode of a TV show and 57% watch online videos for convenience. Only 38% watch online videos to avoid commercials. In addition, online video watchers indicate in surveys that they are open to seeing at least 6.5 minutes more per hour of ads.

Finally, according to comScore, advertisers fail to reach at least 30% of the audience via just television. On the other hand, according to comScore’s projections, the effective reach of the target audience can go up by 16% when advertising on TV is combined with online video ads. This could be why more American advertisers are investing more in online videos: they spent $1.8 billion in 2011 on online video ads, a 40% increase compared to 2010.

Without a doubt, we’ve been able to help various firms take advantage of the reach of online video in Latin America through our Jumba Video Network.

To explore how we can help you reach Latin America via online video or another medium, please contact us.

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Latin America: The World’s Fastest-Growing Ad Market

Recently we noted the positive growth that both eMarketer and MagnaGlobal projected for ad spend in Latin America. Zenith Optimedia has joined these two sources with its own strong projections for the region.

Zenith Optimedia predicts that in 2013, Latin America will grow by 10.1% in ad spend, which is more than any other region in the world and nearly three times the rate of growth of the United States (3.6%) and double the rate of growth of the entire world (4.6%).

In terms of specific figures, Zenith Optimedia forecasts that 2013 ad spend in Latin America will reach nearly US$42 billion and then grow another 8.7% in 2014 to total US$45.6 billion.

Of course, these are projections. To get a sense of how accurate these projections may be, we researched actual ad spend figures for Latin American markets for 2012. Here’s a look at what we found.

Argentina
According to the Cámara Argentina de Agencias de Medios, ad spend value seems to have increased in Argentina during the first half of 2012. Overall, the ad spend value is up by nearly 20% compared to 2011, with the biggest increases in Internet ad spend (56%), radio (47%), newspapers (35%), pay TV (29%) and newspapers in the capital (22%)

Brazil
According to Projeto Inter-Meios, in Brazil ad spend in the first half of 2012 increased by 11% compared to the first half of 2011 to reach 14 billion reais (US$6.8 billion). Free TV continues to dominate the Brazilian ad market, commanding nearly 65% of the ad spend and growing by 13% compared to the first 6 months of 2011. However, the two forms of media that grew the most in the first half of 2012 in Brazil were Internet and pay TV, each of which registered growth of 18% in this period. It’s also interesting to note that Brazilian newspapers grew by 4% in ad spend during the first half of 2012.

Colombia
Overall ad spend grew by 5% in Colombia during the first half of 2012, according to figures from Asomedios, Andiarios and IAB Colombia. The total reported by these organizations —which reflects ad spend in regional and local TV, magazines, newspapers, national TV, radio and Internet— is one trillion Colombian pesos, which is about US$555 million. During the first half of 2012 Internet grew the most of all Colombian media in ad spend: 12%. However, national TV still commanded the largest share of ad spend, with 45.8%, followed by newspapers (21%), radio (20%) and magazines (4.5%).

More Markets
While we could not find 2012 ad spend numbers for other Latin American markets, the figures from last year suggest that Zenith Optimedia’s positive projections make sense. For example, in 2011 ad spend grew by 11.9% in Mexico, by 10% in Chile, by 16% in Peru, by 6.5% in Ecuador, by 7.% in Uruguay and by 7.8% in Venezuela.
As such, it’s likely that we’ll be reporting strong 2012 ad spend figures for all of these markets during the first quarter of 2013.

To explore how we can help you reach Latin America’s growing consumer market through a campaign in any type of media, please contact us.

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In 2014 Brazil Will Become the #5 Advertising Market in the World

A new forecast from Zenith Optimedia says that Brazil’s ad spend will reach US$22 billion in 2014, making it the world’s #5 advertising market in the world. According to ZenithOptimedia, Brazil was the #6 ad market in the world in 2011, with US$16.8 billion in ad spend.

This prediction for robust growth seems to make sense, especially given the Brazilian ad market’s recent growth. According to recent report from Projecto Inter-Meios, ad spend in Brazil grew by 10% from January to July 2012, compared to the same period in 2011. Total billing was 16.67 billion reales (US$8.1 billion), compared to 15 billion reales (7.3 billion) in the same period in 2011.

Which Media Are Growing the Most in Brazil?
Internet was the medium in Brazil that grew the most in ad spend from January to July 2012—15.46% growth compared to the same period in 2011. Pay TV is another growing medium, posting 15% growth, while free TV grew by nearly 13%. Radio grew by 8.8%, out of home advertising (OOH) grew by 6.7% and newspapers grew by 2.93%. Magazine ad spend dropped by 3% from January to July 2012, but overall has a strong share of 6%.

In fact, print media remain #2 in ad spend in Brazil, with 17.5% share, while free TV remains #1, commanding nearly 65% of ad spend. Cinema advertising, despite having a low overall share of ad spend (.33%), showed a significant increase of 14.2% in ad spend in the period measured by Projeto Inter-Meios.

It’s important to note that Projeto Inter-Meios only measures Internet display advertising, not search. IAB Brasil measures both. As such, the 5% share of ad spend reported for Internet by Projeto Inter-Meios may actually be as high as 13.7% when search ad spend is included.

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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