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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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Latam media landscape 2

Latin America’s Media Landscape 2015-2017

Predicting the future is always tricky, but different industry associations have made forecasts for different forms of media in Latin America for the next few years, all based on current trends. Using this data, here’s what experts say that Latin America’s media market will look like in the near future.

#1 THERE WILL BE 359 MILLION INTERNET USERS IN LATIN AMERICA BY 2015
Currently the population of Latin America is at around 575 million but according to the Comisión Económica para América Latina y el Caribe (CEPAL), by 2015 Latin America will have 598 million people. (This count includes Puerto Rico, projected to have 4.1 million people by 2015, but excludes non-Spanish-speaking countries like Haiti and French Guyana.)
According to a May 2012 projection from Registro de Direcciones de Internet para América Latina y Caribe (LACNIC), by 2015 Internet penetration will reach 60% in Latin America. Since 60% of 598 million is 359 million, it appears that Latin America will add 127 million Internet users over the next 3 years to its current total of 232 million Internet users.

Not surprisingly, the growth will be driven by the powerhouse Internet markets. Brazil’s Comitê Gestor da Internet estimates that 80% of Brazil’s homes will have Internet access by 2015. Given Brazil’s population of 193 million and an average of 3.3 people per household, this means that by 2015 Brazil could have 154 million Internet users—up considerably from the 85 million it has today per comScore. LACNIC also predicts that Mexico will have 65 million Internet users by 2015, up hugely from its current total of 40.6 million. Other markets predicted to gain lots of new users include Chile (16.4 million Internet users by 2015) and Ecuador (7.5 million Internet users by 2015).

#2 PAY TV PENETRATION IN LATIN AMERICA WILL REACH 68% BY 2017
According to Dataxis, by 2017 pay TV penetration in the 7 biggest Latin American markets will reach 68% and offer advertisers and audience of 97 million people. The biggest growth markets for pay TV will be Brazil, Mexico, Colombia and Argentina. In addition, the head of Brazil’s national telecommunications agency (Anatel) recently said that 90% of Brazilian homes could have pay TV by 2018. For its part, Mexico could have more than 50% of pay TV penetration by 2015.

#3 LATIN AMERICAN NEWSPAPERS WILL GROW BY 5.5% PER YEAR THROUGH 2016
The downturn experienced by newspapers around the world does not seem to be affecting Latin America. According to a recent projection from PricewaterhouseCoopers, revenues for Latin American newspapers will grow annually by 5.5% through 2016 to reach US$10.4 billion.

#4 LATAM WILL HAVE 750 MOBILE CONNECTIONS BY 2015 PLUS MAJOR MOBILE DEVICE PENETRATION
According to the GSMA, Latin America will have 750 million mobile connections by 2015. Overall mobile penetration in the region is above 100%. Brazil’s mobile penetration is at well over 100%, as is Argentina’s, but in October 2012 Brazil reached a total of 258 million active mobile lines, up from 232 million just a few months back. Mexico is slated to reach 94% mobile penetration by the end of 2012 and over 100% by the first quarter of 2013.
Beyond simple penetration, mobile is changing Latin American markets through the adoption of mobile devices. It’s really not a question of whether a brand needs a mobile ad strategy for Latin America—it’s what this mobile ad strategy will be. Just look at the numbers:

To find out how we can help you reach Latin America via a strategic campaign across all media, please contact us.

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brazil travelers online

Millions of Brazilians Use the Internet to Plan Travel

More than ever before, Brazilians are using the Internet to plan and book their travel. Recent research from comScore’s Media Metrix Service shows that 16.5 million Brazilians visited travel sites in July 2012. This is an 18% increase compared to 2011. Here’s a look at the top 10 travel sites that Brazilian Internet users are visiting, organized by amount of unique visitors during July 2012:

  1. Hotelurbano.com.br                       3.1 million
  2. Decolar.com                                     2.3 million
  3. TAM.com.br                                     2.2 million
  4. Voegol.com.br                                 1.9 million
  5. Submarinoviagens.com.nr            1.6 million
  6. Mundi.com.br                                  1.1 million
  7. Viajanet.com.br                              1.1 million
  8. Booking.com                                   1 million
  9. CVC.com.br                                     823,000
  10. Tripadvisor.com.br                        780,000

Who These Brazilian Travelers Are
Visitors to Brazilian travel sites are 50.6% male and 49.4% female. However, 1 in 3 visitors to Brazilian travel sites are between 25 and 34, making this the largest age group. Overall, the visitors tend to be younger: 73% are between 15 and 44.

In terms of geotargeting a campaign, Sao Paulo would be a good choice: 32% of visitors to Brazilian travel sites are from that city. Around 13% of the visitors are from Rio, 7.3% are from Minas de Gerais and Paraná, 6% are from Rio Grande do Sul and 4.5% are from Catarina.

Where They Are Going
While comScore didn’t report on popular destinations for Brazilian travelers, other sources have. The United States Commerce department projects that 1.5 million Brazilians will visit the United States during 2012 and that amount will increase to 2.5 million by 2016. In 2011, Brazil sent more tourists to Argentina than any other country. In terms of specific cities that Brazilian travelers visit, a study from Hotel Price Index showed that Orlando is #1, New York is #2 and Buenos Aires is #4. Also in the top 10 were Miami, Las Vegas and Paris.

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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ecommerce3

The Future of E-Commerce in Latin America

While it’s obvious that Latin Americans don’t buy online at the same huge volume of Americans or Europeans, it’s also obvious that the region’s e-commerce commerce market is no longer tiny and limited to just a wealthy few. According to a recent story from América Economía magazine, e-commerce sales in Latin America totaled $10 billion in 2007—and tripled to $30 billion by 2010. In 2011 e-commerce sales hit $43 billion and according to the magazine’s projections, online sales in Latin America will total $69 billion by 2013. While nowhere near the $161 billion in e-commerce spending of the United States in 2011, Latam has come a long way from the $1.6 billion in e-commerce sales it posted in 2003.

Brazil is the Biggest
It’s not surprising that the region’s largest country would be the biggest e-commerce market: currently Brazil accounts for 59% of the e-commerce sales in Latin America. In addition,  América Economía also notes that there are 173 million credit cards in Brazil, where the population totals 195 million. While this doesn’t necessarily mean that over 80% of Brazilians have credit cards, it does reveal one important factor that drives the size of the country’s e-commerce market. Another is the e-commerce division created by Correios, the country’s national postal firm, which currently has 40% market share in a shipping market with nearly 30 competitors. The country has also encouraged e-commerce by reducing taxes, interest rates and permitting free returns for products bought online. Given this, it’s no surprise that Wal-Mart, Apple and Amazon all have plans to open offices in Brazil this year.

Beyond Brazil
Mexico is #2 in e-commerce in Latin America, with 14.2% of the sales. The Caribbean is third at 6.4%, followed by Argentina (6.2%), Chile (3.5%), Venezuela (3.3%), Central America (2.4%) and Colombia (2.3%). The Asociación Mexicana de Internet released a study about e-commerce in Mexico for 2011 that covered buying habits and top-selling products. You can find it in our Resources section.

Recently, the Cámara Argentina de Comercio Electronico (Argentine Chamber of E-Commerce or CACE) released a study of the country’s online shopping market that showed growth of 49.5%.  Other interesting figures from the CACE study include:

• 29.5% of Argentina’s Internet users engage in e-commerce—9 million shoppers
• 57% of dotcom businesses have implemented an m-commerce option to handle the growing amount of shoppers who use their mobile phones to shop online
• The e-commerce market in Argentina will grow 41% in 2012 to reach a total of 16 billion pesos
• 75% of Argentina Internet users research products online before buying them offline
• 89.6% of Argentine online shoppers use local firms for e-commerce and the most popular is Mercado Libre, while 10% use foreign firms like ebay and amazon
• 63% of Argentines who buy products through the Internet use a credit or debit card, 49% pay cash and 6.7% use bank transfers

Find out more here.

Other Factors in Latam E-Commerce
In its coverage of e-commerce in Latin America, America Economía noted that the original projection was sales of $35 billion in 2011. To explain why sales ended up being greater ($43 billion), the magazine cited several contributing factors:

• The launch of newer firms like Geelbe like Cuponaso to supplement larger firms like Peixe Urbano and Mercado Libre
• Social gaming sites like Vostu and Mentez that contribute to e-commerce via the sales of lower-cost online games
• Other forms of social commerce via immensely popular sites like Facebook
• Companies offering customers the option to purchase products online but pick them up at the stores, which saves both money and time for them
• The explosion of Latin America’s mobile market, which has led to users making purchases via smartphones and tablets

To read the complete América Economía story, click here.

To find out how you can reach this growing market of Latin American consumers, please contact us.

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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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dreamstime_m_18771174

The 7 Hottest Products Among Latin American Shoppers

The new surge in purchasing power for Latin American consumers is being felt in all types of industries. To offer media, advertising and marketing professionals a quick reference guide, we put together a list of some of the hottest product categories among Latin American shoppers.


CARS
In 2011 car sales in Latin America went up by 7% to total 6.4 million units, which set a new record in the region: 12 vehicles for every 1,000 people. The most motorized company seems to be Argentina, with 20 vehicles for every 1,000 people, followed by Chile with 19.4 and Brazil with 17.7. In fact, 2011 was the best year ever for car sales in Argentina. Also, several carmakers had record-breaking sales in Latin America in 2011, including Audi, BMW, Nissan and Peugeot.


COMPUTERS

Latin Americans will buy nearly 40 million computers in 2012, according to market research firm IDC. This will be a 5% increase compared to 2011, during which Latin Americans bought 37.7 million computers. Growth will be marginal (0.3%) for desktop computers but laptop sales should go up by 8.7%. In addition, IDC forecasts that 2.1 million tablets will be sold in Latin America in 2012. Although it’s not a large percentage of the total, it could be an important trend with implications for mobile advertising.


COSMETICS
According to Research firm Euromonitor International, the total value of beauty/cosmetic and personal care products sold in Latin America in 2010 was $65 billion. These strong sales made Latin America the #4 market in the world for cosmetics/beauty products. Between 2005 and 2010 the Latin American beauty market doubled in size and now experts think the region will surpass North America to soon become the #3 beauty products market in the world.


LUXURY PRODUCTS
According to Boston Consulting Group, Latin America’s luxury market is growing by 15% every year. In Mexico, 5.2% of the population can buy luxury goods, according to consulting firm KPMG. Brazil’s luxury goods sales are expected to hit $12 billion this year, a 33% increase compared to 2011. Argentina is also a solid luxury market, moving 230 million euros in its luxury market in 2011. Given this, it’s no surprise that Sephora foresees opening 12 to 13 stores in the region and that Salvatore Ferragamo has announced expansion plans in the region.


MOBILE PHONES AND SMARTPHONES
During the second half of 2011, Latam smartphone sales went up by 25% to reach nearly 50 million units. Although the complete total of mobile phone units sold in Latin America in 2011 hasn’t yet been confirmed, it’s known that 31 million smartphones were sold in the region in 2011. In Argentina, 24% of the mobile phones sold in 2011 were smartphones. In Mexico, smartphone sales spiked up by 78% in 2011. In Brazil, 2011 smartphone sales jumped to over 100% higher than in 2010. And the smartphone surge continues: 40% of the mobile phones sold in Argentina during the first quarter of 2012 were smartphones. In addition, IDG predicts spectacular increases in smartphone sales in other countries this year, including a 43% upsurge in Chile and a 70% leap in Brazil.


REAL ESTATE
According to new figures reported by the Association of Miami Realtors, Venezuelans were the largest group of foreign buyers in 2011. That said, Brazilians and Argentines were not far behind. Thanks to these Latin American buyers, Miami real estate has gotten a strong—and quite welcome—push: home sales went up 46% in 2011.


TRAVEL
Trips to foreign destinations by Latin American tourists went up by 15% in 2011, according to Consulting firm IPK. According to IPK, the strongest markets for trips to foreign destinations from Latam are Brazil, Argentina, Mexico and Chile.
The United States is one of the most popular destinations for Latin American tourists. According to the U.S. Department of Commerce, 18% more Latin American tourists will visit the U.S. in 2012 than in 2011: 1.78 million. By 2016, the department estimates that 2.5 million Brazilians will visit the United States. In addition, Brazilians rank #3 in spending among foreign tourists that visit the U.S. They’re just behind Japanese and British tourists, spending $6.8 billion in 2011 during trips.

Florida is probably the most popular U.S. destinations for Latin Americans. In fact, 4 of the top 10 foreign countries who sent the most visitors to Florida in 2011 were Latin American: Brazil, Argentina, Mexico and Colombia. In addition, a survey by hoteles.com showed that Florida is the preferred foreign destination of both Argentine and Colombian tourists.

That said, Latin Americans don’t just travel to the U.S. Many enjoy traveling within their own region. For example, a recent survey showed that Argentine tourists rank 3 Mexican destinations—Mexico City, Riviera Maya and Cancun—among their top destination choices. And Brazilians are the foreigners that visit Argentina the most. More than 35% of the tourists that Argentina welcomed in 2011 were from Brazil, while Europe was in second place with 19.8%. For their part, when surveyed, Chileans say their favorite destinations are Argentina, Brazil and Peru.

According to Mandala Research, Mexicans seem to favor U.S. destinations, and one study showed they also outshop other tourists. On average, Mexicans spend 40% of their travel budgets at shopping malls, compared to Japanese tourists, who spend 25% of their travel budgets at malls, and British tourists, who spend 25%. The preferred U.S. destinations for Mexican tourists are Los Angeles, New York and Houston, although Miami and Orlando are also in the top 10.

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.

 

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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