Latin America`s Media Market

LATIN AMERICA’S MEDIA MARKET 2013
CONTENTS
A Growing Consumer Class:
The surge of the class C
Media Penetration in Latin America
Internet: Audience size, future growth, sites
with most reach, user attitudes toward
Internet advertising, average CTRs in region
and in major markets
Social Media: Use, most popular sites, reach,
influence on consumer purchase decisions
Ad Spend Projections for Latam:
2013 and 2014
Online Videos: The audience, consumption trends
and advertising potencial
Print: Market Indicators of Growth
E-commerce: Total sales for 2012, growth since
2003, projected growth in key Latam markets,
most popular products
TV: Trends in Ad Spend & Pay TV
Penetration
Mobile Market: Penetration of mobile phones,
smartphones & tablets, the triple-digit growth
of mobile Internet in Latin America and
response to mobile advertising
A GROWING CONSUMER CLASS:
THE SURGE OF CLASS C
In the past decade, more than
50 million people have joined the
middle class in Latin America.
1 in 3
Families in Latin America are
middle class
Source: The World Bank, Economic Mobility and the Rise of the Latin American Middle Class
LATIN AMERICA’S MIDDLE CLASS (CLASS C)
HAS BECOME A SIGNIFICANT PORTION OF
THE POPULATION IN SEVERAL KEY MARKETS.
60%
55%
52%
47%
50%
40%
33%
31%
32%
28%
30%
Classes AB
Class C
21%
20%
13%
10%
7%
7%
3%
0%
Argentina
Brazil
Chile
Colombia
Mexico
Sources: 1United Nations, 2World Bank, 3Cetelam report O Observador Brasil 2012, 4Consultora W, 5Departamento Administrativo Nacional de
Estadística, 6Asociacion Mexicana de Agencias de Investigacion de Mercados y Opinión Pública, 7Asociación Peruana de Empresas de
Investigación de Mercados, 8Novomerc Chile
Peru
…PARTICULARLY IN BRAZIL. WHY?
FIRST, IT’S GROWING RAPIDLY.
40,000,000
105,000,000
Brazilians were Class C in 2011
Brazilians joined Class
C between 2003-2011
55%
of the population
In 2014
Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular
58%
of the population
will be Class C
SECOND, CLASS C IS SPENDING HUGELY:
2012
R$1.089 trillion
2015
R$1.4 trillion*
*more than classes A and B combined!
Sources: IPC Target, FecomercioSP
MEDIA PENETRATION
IN LATIN AMERICA
TV, OUT-OF-HOME AND RADIO HAVE THE DEEPEST
PENETRATION IN MANY LATIN AMERICAN COUNTRIES…
BUT INTERNET IS GROWING SIGNIFICANTLY.
Penetration by Medium, 2011
Free TV
Pay TV
Radio
Newspapers
Magazines
OOH
Internet
Argentina
95%
71%
68%
43%
21%
91%
54%
Brazil
97%
35%
76%
34%
40%
86%
44%
Chile
99%
60%
73%
48%
35%
90%
64%
Colombia
94%
78%
68%
39%
32%
91%
63%
Costa Rica
97%
58%
77%
81%
13%
94%
41%
Ecuador
98%
24%
80%
65%
41%
99%
55%
Guatemala
85%
63%
86%
74%
8%
99%
26%
Mexico
97%
36%
54%
27%
27%
98%
48%
Panama
94%
50%
62%
69%
12%
70%
51%
Peru
98%
64%
84%
69%
23%
100%
60%
Puerto Rico
87%
54%
84%
73%
22%
97%
44%
Source: IBOPE Media Book 2012
AD SPEND PROJECTIONS
FOR LATAM: 2013 AND 2014
LATIN AMERICA IS THE WORLD’S
FASTEST-GROWING REGION IN AD SPEND.
Zenith Optimedia projects 10% growth in ad spend for Latin America in 2013—
twice the growth of North America and triple the growth of Western Europe
2013
2014
Latin America
10%
9%
North America
4%
5%
Western Europe
3%
3%
Central & Eastern Europe
9%
9.9%
Asia Pacific
7%
8%
Middle East, North Africa
2.8%
2.3%
Rest of World
9.3%
10%
LATIN AMERICA’S AD SPEND IS GROWING
STRONGLY IN ALL MAJOR MARKETS.
Argentina: up 19.6% in first 9 months of
2012, 31.6% growth in all of 20111
Brazil: up 10.7% in 2012, 9.8%
projected growth in 20132
Chile: 10.4% increase in all of 20113
Colombia: 8.8% growth in 20114
Mexico: up 14% in all of 20115
Panama: up 7.7% in all of 20116
Peru: up 9% in 20127
Uruguay: up 5.6% in all of 20128
Sources: 1Cámara Argentina de Agencias de Medios, 2WARC, 3Asociación Chilena de Agencias de Publicidad, 4Asomedios, 5Confederación de
la Industria de la Comunicación Mercadotécnica, 6IBOPE Media Panamá, 7Compañía Peruana de Estudios de Mercados, 8Asociación Uruguaya
de Agencias de Publicidad
AND BY 2014, BRAZIL WILL BECOME
THE #5 AD MARKET IN THE WORLD.
Ad Spend in
2014 (billions)
Rank Country
#1
United States
#2
Japan
#3
China
#4
Germany
#5
Brazil
Source: Zenith Optimedia
173,593
53,434
48,755
27,548
22,216
ARGENTINA AD SPEND SHARE BY MEDIUM, 2011
1.3%
6.1%
3.2%
Free TV
5.0%
Pay TV
Newspapers
4.8%
37.4%
Magazines
Radio
OOH
Cinema
35.0%
9.4%
Source: Cámara Argentina de Agencias de Medios
Internet
BRAZIL AD SPEND SHARE BY MEDIUM, 2011
OOH 3%
Radio 3.%
Pay TV 4%
Internet
5.1%
Cinema
0.3%
Guides
1.1%
Magazines
7.1%
Newspapers
11.8%
Source: Projeto Inter-Meios
Free TV 63%
CHILE AD SPEND SHARE BY MEDIUM, 2011
0.3%
6.2%
Free TV
4.6%
Newspapers
8.6%
Radio
1.9%
44.9%
6.8%
Magazines
OOH
Cinema
Pay TV
26.6%
Source: Asociación Chilena de Agencias de Publicidad
Internet
MEXICO AD SPEND SHARE BY MEDIUM, 2011
8%
6%
Free TV
Radio
8%
Print
56%
7%
Internet
Pay TV
8%
Source: Confederación de la Industria de la Comunicación Mercadotécnica
OOH
PERU AD SPEND SHARE BY MEDIUM, 2011
18.2%
TV
3.5%
49.68%
12.1%
Newspapers
Radio
Internet
16.5%
Source: Compañía Peruana de Estudios de Mercados y Opinión Pública
Not specified
VENEZUELA AD SPEND SHARE BY MEDIUM, 2011
Free TV
8.5%
Internet
Pay TV
26.9%
12.2%
Newspapers
Magazines
10.2%
Cinema
6%
1.5%
5.6%
5.6%
23.5%
Source: Comité Certificador de Medios ANDA-FEVAP
Radio
Direct mail
OOH
PRINT MEDIA
IN LATIN AMERICA
PRINT IS STILL A STRONG MEDIUM THROUGHOUT
LATIN AMERICA. MARKET INDICATORS THAT
SUGGEST THIS INCLUDE:
•
•
•
•
•
•
•
•
Latin American newspapers will grow in revenue by 5.5% per year
through 2016 to reach a total of US$10.4 billion1
Newspaper circulation went up by 5% in Latin America between 2006
and 20112
In 2009 magazine ad spend dropped in every region—EXCEPT for Latin
America, and it’s forecast to grow through 20161
Latin American newspaper revenues went up by 65% between 2006
and 20112
Newspaper circulation in Brazil grew by 1.8% in all of 2012 and in 2011
grew by 3.5% to reach 4.4 million copies, a new record3
11.9% CAGR growth is forecast for newspaper ad spend in Argentina
through 20161
Magazines grew 33.7% in ad spend in Argentina in 20111
Newspapers grew by 50% in circulation in Peru between 2007 and 20124
Sources: 1PriceWaterhouseCoopers Global Entertainment Media Outlook 2012-2016, 2WAN-INFRA,, 3Instituto Verificador de Circulação, 4KPMG
PRINT ALSO COMMANDS A MAJOR PORTION
OF AD SPEND IN MANY LATAM MARKETS.
Print's Share of Ad Spend in Key Latam Markets, 2011
40%
36%
29%
29%
Print ranks #1 in ad
spend share in
Argentina and #2 (after
free TV) in Brazil, Chile,
Colombia, Ecuador, Peru
and Venezuela
18%
17%
10%
Argentina
Brazil
Chile
Colombia
Ecuador
Peru
Venezuela
Sources: Cámara Argentina de Agencias de Medios, Projeto Inter-Meios, Asociación Chilena de Agencias de Publicidad, Asomedios, Ipsa
Group Latin America, Compañía Peruana de Estudios de Mercados y Opinión Pública, Comité Certificador de Medios ANDA-FEVAP
TV IN LATIN
AMERICA
FREE TV RULES AD SPEND IN MOST OF
LATIN AMERICA…
Percentage of TV’s Ad Spend Share, 2011
Free TV Ad Spend Share in Major Latam Markets, 2011
63%
56%
49%
54%
47%
45%
37%
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Sources (left to right): Cámara Argentina de Agencias de Medios, Projeto Inter-Meios, Asociación Chilena de Agencias de Publicidad, Asomedios,
Confederación de la Industria de la Comunicación Mercadotécnica, Compañía Peruana de Estudios de Mercados, Asociación Uruguaya de
Agencias de Publicidad
Uruguay
…BUT PAY TV PENETRATION REACHED 50% IN ALL
OF LATAM
IN FEB 2012 AND IS GROWING RAPIDLY.
Percentage of TV’s Ad Spend Share, 2011
68%
pay TV penetration
in Latam by 20171
8.5 million
homes in Argentina have pay TV service4
90%
50%
of homes in Brazil
will be subscribed
to pay TV by 2018—
potential audience
of 173 million2
Projected penetration
of pay TV in Mexico
in 20133
4.2 million
homes in Colombia have pay TV service5
Sources: 1Dataxis, 2Anatel, 3Centro de Investigación en Innovación en Telecomunicaciones, 4LAMAC, 5IBOPE
INTERNET IN
LATIN AMERICA
AS OF 2012, INTERNET COMMANDS A HUGE
AUDIENCE
IN LATIN AMERICA: 232 MILLION.
Percentage of TV’s Ad Spend Share, 2011
Argentina
Bolivia
28,000,000
1,985,970
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Honduras
85,000,000
9,086,000
25,000,000
2,000,000
4,000,000
4,000,000
1,200,000
2,200,000
1,000,000
Mexico
Nicaragua
Panama
Paraguay
40,600,000
663,000
1,500,000
1,523,000
Peru 9,900,000
1,698,000
Puerto Rico
Uruguay
1,855,000
Venezuela 10,900,000
Sources: Internet WorldStats, comScore, Subsecretaría de Telecomunicaciones, Asociación Mexicana del Internet
BY 2015, THERE WILL BE 60% INTERNET PENETRATION IN
1
LATIN AMERICA
AND
120
MILLION
ADDITIONAL
USERS.
Percentage of TV’s Ad Spend Share, 2011
Growth projections for specific markets:
Brazil
168 million by 2014, up from 85 million in 20122
Chile
16.4 million by 2015, up from 9 million in 20123
Ecuador
7.5 million by 2015, up from 4 million in 20124
Mexico
65 million by 2015, up from 40 million in 20124
Paraguay
3.4 million by 2015, up from 1.5 million in 20125
Sources: 1LACNIC, 2Comitê Gestor da Internet, 3Pyramid Group, 4Latin America & Caribbean Network Information Centre, 5Comisión Nacional
de Telecomunicaciones de Paraguay
HERE’S WHERE TO REACH LATIN AMERICA’S
INTERNET
USERS.
Percentage of TV’s Ad Spend Share, 2011
Types of Web Sites with Deepest Reach among
the Region’s Internautas:
97.5%
96.3%
96.7%
96.4%
86.3%
Portals
Search
Source: Futuro Digital, comScore, March 2012
Entertainment
Social Media
News
85.3%
Community
LATIN AMERICANS IN KEY MARKETS ARE WELLDISPOSED TOWARDS INTERNET ADVERTISING.
• 67% of female shoppers in Brazil use the Internet as a source before shopping for
products and services1
• 95% of Brazilian consumers look for information online before buying a car2
• 68% of Brazilian Internet users say that online ads influence their purchasing
decisions3
• 57% of Brazilian Internet users say that Internet ads motivate them to buy the
products that are advertised4
• 75% of Mexican Internet users stop to view online ads5
• 83% of Mexican Internet users recall online ads5
• Product categories with highest recall include computer products (50%), movies
(46%), mobile phones (45%), banks (32%) and software (32%)5
• 53% like seeing ads on social media sites and 61% recall ads they see on social
media sites5
• Preferred online ad formats for Colombian Internet users are banners (37%),
videos (35%) and sponsored links6
• 7 out of 10 Colombians check opinions and recommendations on social
media before buying a product1
• Internet is the #2 medium that motivates Colombians to buy products6
Sources: 1Oh! Panel, 2IDG, 3Deloitte Media Democracy, 4IAB Brasil, 5Asociación Mexicana de Internet, 6Estudio Colombiano del Internet 2011
LATIN AMERICANS HAVE SIGNIFICANT HIGHER CTRS THAN
NORTH AMERICANS FOR STANDARD BANNERS AND ALSO
FOR RICH MEDIA.
Average Click-Thru Rate
Latin America
North America
Standard banner (overall)
0.14%
0.10%
728X90
0.14%
0.09%
120X600
0.12%
0.07%
160X600
0.15%
0.08%
Mobile banner
0.48%
0.86%
Rich media
0.34%
0.15%
Source: MediaMind Global Benchmarks Report H1 2012
IN SEVERAL KEY LATAM MARKETS, FLOATING ADS
PERFORM WELL & 300 X 250 STANDARD BANNERS
GENERALLY HAVE HIGHER THAN AVERAGE CTRS.
Average Click-Thru Rate
Standard banner (overall)
728X90
120X600
Argentina
0.13%
0.13%
0.11%
Brazil
0.14%
0.15%
0.13%
Central America
0.15%
0.13%
0.10%
Chile
0.12%
0.13%
0.12%
Colombia
0.13%
0.14%
N/A
Mexico
0.15%
0.13%
0.10%
Peru
0.19%
0.25%
N/A
0.13%
0.15%
0.17%
0.23%
0.19%
0.17%
0.21%
160X600
Rich Media
Enhanced std. banner
728X90
120X600
300X250
Polite Banner
0.14%
0.42%
0.07%
N/A
N/A
0.07%
0.18%
0.12%
0.22%
0.11%
N/A
N/A
N/A
0.11%
0.17%
0.45%
0.09%
0.08%
0.06%
0.17%
0.15%
0.23%
0.25%
N/A
N/A
N/A
N/A
0.17%
0.17%
0.72%
N/A
N/A
N/A
N/A
0.16%
0.17%
0.44%
0.09%
0.08%
0.06%
0.17%
0.15%
0.18%
0.58%
N/A
N/A
N/A
N/A
N/A
Floating Ad
1.93%
0.44%
2.59%
N/A
3.23%
2.59%
1.01%
0.43%
0.54%
0.27%
N/A
0.42%
0.36%
0.31%
0.55%
0.40%
0.23%
0.20%
0.17%
0.54%
0.69%
0.48%
0.32%
0.55%
0.27%
0.23%
0.50%
n/A
n/A
0.43%
n/A
0.61%
0.96%
N/A
N/A
N/A
0.26%
0.53%
0.69%
0.43%
0.32%
0.56%
0.27%
0.68%
0.86%
0.99%
N/A
0.36%
0.26%
300X250
Expandable Formats
234X60
728X90
160X600
300X250
PushDownBanner
Source: MediaMind Global Benchmarks Report H1 2012
BREAKDOWN OF 2011 ONLINE AD SPEND, BRAZIL
3%
Display
42%
55%
Source: IAB Brasil
Search
Other
BREAKDOWN OF 2011 ONLINE AD SPEND, CHILE
51%
Source: IAB Chile
49%
Search, Directories,
Social
Display
BREAKDOWN OF 2011 ONLINE AD SPEND, COLOMBIA
2.50% 1.16%
1.01%
8%
Display
Search
Social media
17%
Video
Mobile
70%
Source: IAB Colombia
Email marketing
BREAKDOWN OF 2011 ONLINE AD SPEND, MEXICO
12%
Display
28%
Source: IAB México
Search
61%
Classified
BREAKDOWN OF 2011 ONLINE AD SPEND, PERU
47%
Source: IAB Perú
53%
Display
Search
BREAKDOWN OF 2011 ONLINE AD SPEND, URUGUAY
3%
3%
2%
5%
Display
Search
36%
19%
Production of
materials
Email marketing
Mobile
Services
35.60%
Source: IAB Uruguay
Other
SOCIAL MEDIA IN
LATIN AMERICA
Social media have deep penetration
and heavy engagement in the region.
95%
Of Latin American
Internet users are on
social media11
Sources: 1comScore, 2Socialbakers
50%
28%
Growth in Facebook users in
2011 in Latin America: more
than 168 million users
around the region2
Of total time spent online
in Latam is spent on social
media sites1
Social media influence the purchase
decisions of 62% of Latin Americans.
• 73% of Latin Americans regularly read
comments about brands on social media
• 66.9% trust these comments
• 62% say these comments influence their
purchase decisions
• 58.9% of Latin Americans go on social media
to find product information
• 36.8% of Latin Americans follow brands on
social media
• 78.6% follow brands to learn about new
products offered by that brand
Source: Oh! Panel study, May 2011
Facebook is Latam’s America’s most popular
social media site but other sites have grown
hugely in the region.
Increase in Unique Visitors, November 2011 to November 2012
2,500%
5,000%
97%
Source: comScore
86%
43%
ONLINE VIDEOS IN
LATIN AMERICA
Online video consumption has spiked
significantly in Latin America.
11.5 million videos watched every month in
Argentina, Brazil, Chile and Mexico
96%: online videos have the deepest reach in
Argentina, followed by Chile (92%),
Brazil (84%) and Mexico (81%)
172 online videos a month are watched by
Chileans, while Mexicans watch 155 per month,
Brazilians watch 125 per month and Argentines
watch 117 per month
Source: comScore
Besides growth, online video offers
major opportunities for ROI.
Average growth of 37.5%
In online videos watched in
Argentina, Brazil, Chile and Mexico
between 2011 and 20121
• Advertisers fail to reach 30% of
the audience via just TV but can
gain 16% of effective reach by
combining TV and online video
advertising1
Sources: 1comScore, 2YouTube
Brazil is the
6th largest market in the
world for
in terms of videos watched2
In 2011, video views on
YouTube grew 67% in
Brazil2
E-COMMERCE IN
LATIN AMERICA
E-COMMERCE IN LATIN AMERICA HAS GROWN
BY 27 TIMES SINCE 2003.
E-commerce
sales in Latam
in 2003:
US$1.6 billion
US$43 billion
26%
US$69 billion
projected
growth in 2012
Source: América Economía & Visa Latin America E-Commerce study, 2012
E-commerce sales
in Latam in 2011:
Projected e-commerce sales for
Latin America in 2013
OVERALL, CLOTHES ARE THE PRODUCT THAT
LATIN AMERICANS BUY THE MOST ONLINE.
A 2012 comScore e-commerce study of Latin America revealed the most popular
products among online shoppers in the region:
1
Clothes
6
Entertainment tickets
2
Computer electronics
7
Vacation/travel
3
Music, movies or videos
8
Health and beauty care
4
Appliances
9
Books and magazines
5
Computer hardware
10
Sports and fitness
Source: comScore
BRAZIL IS THE LEADING E-COMMERCE MARKET
IN LATIN AMERICA…
59%
The percentage of
e-commerce sales in
Latin America that are
generated in Brazil1
Sources: 1América Economía & Visa E-Commerce Study, Latin America, 2012, 2e-bit
US$11
billion
2012 e-commerce sales in Brazil2
US$14
billion
Projected 2013 e-commerce
sales in Brazil2
…BUT OTHER LATIN AMERICAN MARKETS
ARE POSTING STRONG E-COMMERCE
NUMBERS.
Mexico
• #2 e-commerce market in Latam1
• US$6.2 billion in sales in 2012, 46% growth2
• Top 5 selling products are (#1) plane/train
tickets, (#2) tickets to shows, (#3) hotel
reservations, (#4) electronics, (#5) clothes2
Argentina
• US$3.3 billion in sales in 2012, 32%
growth compared to 20113
• 5 best-selling products are (#1)
smartphones, (#2) women’s clothes,
(#3) car accessories, (#4) men’s clothes,
(#5) home decor3
Chile
• US$1.7 billion in sales in 20121
• 14% growth compared to 20111
Colombia
• US$2 billion in sales in 20124
Sources: 1América Economía & Visa Latam E-commerce study, 2012, 2Asociación Mexicana del Internet, 3Cámara Argentina de Comercio
Electrónico, 4Cámara Colombiana de Comercio Electrónico,
LATIN AMERICA’S
MOBILE MARKET
MOBILE PENETRATION IN LATIN AMERICA IS AT 105%
AND WILL REACH 130% BY 20151.
Mobile & Smartphone Penetration in Major Latam Markets
142%
140%
129%
124%
120%
101%
100%
100%
98%
89%
80%
60%
40%
20%
30%
20%
20%
14%
7%
10%
Colombia
Costa Rica
11%
0%
Argentina
Brazil
Chile
Mobile penetration
Mexico
Smartphone penetration
Sources: 1GSMA, Comisión Nacional de Comunicaciones de Argentina, Anatel, Subsecretaría de Telecomunicaciones, Ministerio de Tecnologías de la
Información y las Comunicaciones, Ministerio de Ambiente, Energía y Telecomunicaciones, Superintendencia de Telecomunicaciones, Pyramid
Research, Superintendencia de Telecomunicaciones, Unión Internacional de Telecomunicaciones, Everis, Oficina de Desarrollo de las
Telecomunicaciones de la UIT, El Ministerio de Transportes y Comunicaciones, Instituto Nacional de Estadísticas, Comisión Nacional de
Telecomunicaciones, Vision Mobile, Google, 3D Chile, LG Mobile Colombia, IDC, Futuro Labs
Peru
TABLET ADOPTION IS LOW COMPARED TO OVERALL
POPULATION BUT SALES ARE SPIKING IN SEVERAL
LATAM MARKETS.
Argentina: 43% increase in tablet sales in
2012: 340,000 units sold1
Brazil: Tablet sales reached 3.1 million
in 2012 and are projected to reach 5.1 million in 20132
Chile: 27,300 tablets sold in first quarter of 2012,
11.5% share of portable PC market in the country3
Guatemala: 40,000 tablets sold during Jan-June 2012,
52% more than Jan-June 20114
Peru: Tablet sales increased by 334%
in the first half of 20125
Mexico: Tablet sales reached 2.2 million in 2012
and will reach 4.3 million units by 20161
Sources: 1IDC, 2IT Data, 3GfkChile, 4Gremial de Empresas de Informática, 5Dominio Consultores
MOBILE INTERNET IS GROWING HUGELY IN
LATIN AMERICA.
421%
194%
Growth in Brazil’s mobile
broadband subscribers,
2010-20121
Increase in Argentina’s
mobile broadband
subscribers, 2010-20122
105%
69%
Chile’s growth in
mobile broadband
connections, 20114
Increase in
Colombia’s mobile
Internet use, 20115
107%
México’s growth in mobile
broadband subscriptions,
2011-20123
60%
Uruguay’s growth in
broadband
connections in 20116
Sources: 1Huawei, 2Convergencia Research, 3COFETEL, 4Ministerio de Transportes y Telecomunicaciones, 5Nokia, 6Unidad Reguladora de los
Servicios de Comunicación
LATIN AMERICANS ARE SHOWING STRONG
RESPONSE TO MOBILE ADS.
33%
Of Latam mobile
device users
respond favorablly
to
geo-targeted ads1
Average CTR for mobile
banners in Latin
America, higher than
that of Australia,
Eastern Europe and
most of Asia1
.48%
.60%
.56%
.61%
.52%
Mobile ad CTR
for Colombia2
Mobile ad CTR
for Mexico2
Mobile ad CTR
for Brazil2
Mobile ad CTR
for Argentina2
Sources: 1MediaMinds, 2Hunt Mobile Ads
Brazil’s Media Market 2013
Key Trends, Data Points and Impact
on Consumer Purchase Decisions
CONTENTS
Ad Spend in Brazil 2005-2012 ,
fastest-growing media, future
projections
Internet in Brazil: growth, usage,
influence of Internet ads on
purchases
Media Penetration in Brazil
E-commerce: buying patterns
and hottest-selling products
Print Media in Brazil: growth
and consumption
Social Media: usage, top sites, influence
on consumer purchase decisions
TV: growth, usage and
penetration
Online Video: Brazil’s audience, video
consumption and potential for advertisers
Radio: penetration, listener
profile, reach
Mobile Market: Shopping habits and
attitudes towards mobile ads of Brazilian
smartphone users
EXECUTIVE SUMMARY
• Ad spend has grown over 100% since 2005 and Brazil will be the #5 ad market
in the world by 2014
• Internet and Pay TV are the fastest-growing media in ad spend: they have
grown by 15% and 13% in 2012
• Print is NOT dead in Brazil—print media growing in circulation (4.4 million in
2011 + 2% gain in 2012), penetration and earning record revenues (magazines
earned 1.3 billion reais in 2011)
• TV and radio retain strong penetration and influence, and pay TV will have
90% penetration by 2018
• There are 85 million Internet users in Brazil
• 68% of Brazilian women research online before buying products
• 68% of Brazilians say Internet ads influence their purchases and Internet
affects their views of products
• Brazilians are shopping online more than ever and buy 4 key products the
most
• Mobile penetration is 130%, 2.5 million tablets sold in Brazil in 2012
• 94% of Brazil’s 27 million smartphone owners view mobile ads and over 66%
make mobile purchases
A GROWING CONSUMER CLASS:
THE SURGE OF CLASS C
CLASS B IS RESPONSIBLE FOR THE
MOST CONSUMPTION IN BRASIL…
D, 4% E; 0.1% A1, 3%
C2, 9%
A2, 16%
C1, 17%
B2, 26%
B1, 25%
Source: FecomercioSP
…BUT CLASS C IS KEY FOR MARKETERS.
WHY? FIRST, IT’S GROWING RAPIDLY.
40,000,000
105,000,000
Brazilians were class C in 2011
Brazilians joined Class
between 2003-2011
55%
of the population
In 2014
Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular
58%
of the population
will be Class C
SECOND, CLASS C IS SPENDING
HUGELY:
R$1,089,000,000,000
Class C will spend $1.089 trillion
reais in 2012, then…
Source: IPC Target
THIRD, CLASS C WILL SPEND A LOT
MORE, VERY SOON.
R$1,460,000,000,000
By 2015 Class C will spend R$1.46 trillion,
more than classes A and B combined
Source: FecomercioSP
Ad Spend in Brazil
BY 2014 BRAZIL WILL BECOME
THE #5 AD MARKET IN THE WORLD
Ad Spend in
2014 (billions)
Rank Country
#1
United States
#2
Japan
#3
China
#4
Germany
#5
Brazil
Source: Zenith Optimedia
173,593
53,434
48,755
27,548
22,216
IN JUST 3 YEARS, AD SPEND IN BRAZIL WILL GROW
BY 45%: US$15.3 BILLION TO US$22.2 BILLION
22.2
15.3
2011
Source: Zenith Optimedia
16.2
2012
2014
IN THE FIRST 6 MONTHS OF 2012, INTERNET
WAS THE FASTEST-GROWING MEDIUM IN AD
SPEND IN BRAZIL
Newspapers
2.93%
Out-ofhome
6.7%
Source: Projeto Inter-Meios
Radio
8.8%
Free TV
13%
Pay TV
15%
Internet
15.46%
INTERNET AND PAY TV GREW THE MOST IN
AD SPEND IN 2011—MORE THAN TWICE THE
AMOUNT OF FREE TV.
19.60%
20.00%
17.80%
15.00%
12%
9.10%
3.48%
3.80%
3.90%
Newspapers
Radio
5.00%
Magazines
10.00%
-6.30% -2.50%
-10.00%
Source: Projeto Inter-Meios
Internet
Pay TV
Out of Home
Free TV
Guides
-5.00%
Cinema
0.00%
…BUT FREE TV LED 2011 AD
SPEND SHARE IN BRAZIL.
OOH 3%
Radio 3.%
Pay TV 4%
Internet
5.1%
Cinema
0.3%
Guides
1.1%
Magazine
7.1%
Newspapers
11.8%
Source: Projeto Inter-Meios
Free TV 63%
2012 Media Penetration Rates
in Brazil
Source: IBOPE Media Book 2012
Print Media
in Brazil
Newspapers are surging…
1.8%
3.5%
BRAZILIAN
NEWSPAPERS
CIRCULATION
GROWTH,
20121
BRAZILIAN
NEWSPAPERS,
CIRCULATION
GROWTH,
20111
46%
OF BRAZILIANS
READ
NEWSPAPERS2
Sources: 1Instituto Verificador de Circulação, 2Secretaria de Comunicação Social da Presidência da República
…and so are magazines
13.7
39%
45%
MILLION
AVERAGE CIRCULATION
BRAZILIAN MAGAZINES
2011—NEW RECORD1
GROWTH IN MAGAZINE
PENETRATION, 2011 TO 20122
1.3
BILLION
REAIS
63%
38%
MAGAZINE
PENETRATION
CLASSES AB2
MAGAZINE
PENETRATION
CLASS C2
Sources: 1Instituto Verificador de Circulação, 2Estudos Marplan EGM Next Gen 2012
REVENUES FOR
BRAZILIAN
MAGAZINES IN 2011,
A NEW RECORD1
TV in Brazil
Free TV commands a huge audience
in Brazil…
175 MILLION
BRAZILIANS WATCH TV REGULARLY
90%
OF BRAZILIANS SAY
TV IS THEIR PREFERRED
NEWS SOURCE1
Sources: 1Datafolha, 2Instituto Brasileiro de Geografia e Estatística, 3IBOPE
5 HOURS
28 MINUTES
Average time
spent watching
TV in Brazil3
…but pay TV is growing strongly.
14.5 MILLION BRAZILIAN HOUSEHOLDS SUBSCRIBE TO
PAY TV: 90% will have it by 20181
17%
30%
15%
OF PAY TV SUBSCRIBERS
ARE CLASS C
Pay TV ad spend
increase in 20112
Pay TV ad spend
increase in 20122
Sources: 1Agência Nacional de Telecomunicações (Anatel), 2Projeto Inter-Meios, 3 Associação Brasileira de TV por Assinatura
Radio in Brazil
Radio has deep penetration in
Brazil.
Radio is present in
9 out of 10
Brazilian
homes
1
1
2
75% of Brazilians say they have
listened to the radio in the past 7
days, which ranks radio #3 in
terms of media consumed in
Brazil2
49% of Brazilians with cell
phones that allow them to listen
to the radio, do so2
Sources: Levantamiento Sócio Económico do IBOPE Media, Target Group Index do IBOPE Media
Brazilian radio delivers a range of
interesting market segments.
80% of the 29.9 million cars in Brazil have a radio
1
In cars, most listeners are men of AB classes
between 25 and 54 (32%)2
2
Most radio listeners are women CDE classes (36%)
On public transportation, 63% of radio listeners are
young people 20-342
Fontes:1Instituto, 2IBOPE
Internet in Brazil
The Internet audience in Brazil grew
by 157% between 2006 and 2012 and will
nearly double 2 years from now.
In 2012 there were
85 million
Internet users
in Brazil1
1
2
Sources: comScore, Comite Gestor da Internet
By 2014 80% of Brazilian
households will have
Internet access2
This means Brazil’s
Internet audience will
reach 154 million2
Other key data points to consider:
15 million access the Internet via
mobile devices or Lan Houses1
70 million
Brazilians are “active”
Internet
users—accessing
from either home or
work1
Sources: 1IBOPE, 2comScore, 3Teleco
16.5 million Brazilians visited travel
sites to plan travel in July 2012—18%
increase from July 20112
Brazil will have 73 million mobile
broadband subscribers by the end of
2012—421% growth compared to
20103
Internet ads hugely influence the purchase decisions
of Brazilians. Here’s why:
67% of female shoppers in Brazil use the
Internet as a source before shopping for
products or services1
95% of Brazilian consumers look for
information online before buying a car2
Sources: 1IDG, 2Oh! Panel
Internet also helps close the sale:
68% of Brazilian Internet users say that online ads
influence their purchasing decisions1
57% of Brazilian Internet users say that Internet ads
motivate them to buy the products that are advertised2
56% of Internet users in Brazil say that Internet ads
motivate them to visit online stores2
56% of Brazilian social media users say they
use social media to buy products3
Sources: 1Deloitte Media Democracy, 2IAB Brasil, 3Oh! Panel
In addition, offline media drive the effectiveness
of online campaigns in Brazil.
79% of Internet users in Brazil
search for products after being
impacted by offline media
Top offline media that drive
Brazilians to search products
online are TV (51%), print (35%)
and Out of Home (27%)
Source: Iprospect & Google Brazil
Top Activities Among Brazilian
Internet Users:
1 - SHOP
31 million Brazilians visit e-commerce sites every month1
2 – LOOK
FOR DEALS
Coupon sites in Brazil grew by 379% between May 2010
and May 20112
3 – SOCIAL
MEDIA
97% of Brazilian Internet users are on social media3
4 – READ
BLOGS
Blogs have 96% penetration rate among Brazilian Internet
users*** and 91% penetration rate among Brazilian
executives4
5 – PLAY
GAMES
Brazilians spent $2 billion playing online games in 20115
6 – WATCH
VIDEOS
Brazil leads Latam in number of online videos watched
and in number of unique viewers3
Sources: 1JWT, 2IBOPE, 3comScore,4CDN, 5Newzoo
E-Commerce
in Brazil
E-commerce in Brazil grew in 2012 to reach US$11
billion and will reach US$14 billion in 2013.
• Top categories with Brazilian online shoppers:
-
Electronic appliances (15% of sales)
Computers (12% of sales)
Electronics (8% of sales)
Fashion & accessories (7%)
• 79% of Brazilians surveyed by Mobile Entertainment
Forum in 2011 said they use their cell phones in some
phase of purchase process
• 72% of Brazilians surveyed in 2011 by Associação
Brasileira das Empresas de Cartões de Crédito e
Serviços had a credit or debit card
Source: e-bit
Social Media
in Brazil
Social Media have deep penetration —
and brand engagment.
97%
77%
58%
of Brazil’s online
population is on
social media1
of Brazilians who
have a Facebook
account interact with
a brand online2
of Brazilians who
use Twitter read
posts from their
favorite companies2
Source: 1comScore, 2ExactTarget
Social media also significantly impact
the purchase process.
61% of Brazilians look for
product information on social
media pages before buying1
42% of Brazilian consumers
between 25 and 44 make a
purchase after receiving a
marketing message through a
social network2
Source: 1Oh! Panel study, 2ExactTarget
Facebook is the #1 social media site in
Brazil but other sites are growing rapidly
Social Media Site Growth in Brazil, 2011
428%
338%
206%
LinkedIn
In Oct 2012 LinkedIn reached 10
million members in Brazil
Source: comScore
Vostu
Tumblr
Online Videos
in Brazil
Brazil has the largest audience for
online videos in Latin America.
There are 42.9 million unique online
video viewers in Brazil1
84%: the reach of online video in
Brazil, an audience of 68 million,
larger than the Internet audience of
Mexico and Argentina combined2
Sources: 1ComScore, 2YouTube
5.4 billion online videos were
viewed in Brazil in August
2012, a 74% increase
compared to August 20111
Beyond growth, online video offers
superb ROI potential.
19% growth
in online video viewers
in Brazil between
2010 and 20111
Advertisers fail to reach 30%
of the audience via just TV
but can gain 16% of effective
reach by combining TV and
online video advertising1
Sources: 1ComScore, 2YouTube
Brazil is the
6th biggest market
in the world for
based on video views2
In 2011, YouTube grew
by 67% in video
views in Brazil2
Mobile Use
in Brazil
Brazil’s mobile market is surging
powerfully.
130%
55%
By 2015
Overall mobile
penetration in Brazil1
Of cell phones in Brazil
have web access3
57%
14%
Smartphone penetration
in brazil, 20122
77%
Increase in smartphone
sales in 2012 vs. 20114
Of cell phones sold in Brazil will
be smartphones4
Sources: 1Agência Nacional de Telecomunicações (Anatel), 2Google, Our Mobile Planet, 3Nielsen, 4IDC Brasil
14% smartphone penetration in Brazil means a
market of 27 million smartphone owners. Here’s
how they use their phones to shop.
80%
Research products or
services on their phones
31%
Have bought products
using theirs phone
66%
of Brazilian smartphone owners make purchase once a month
94%
3 of 4
Notice mobile ads
Performed a mobile
search after seeing an ad
Once they sought information about businesses, 66% of
Brazilian smartphone owners visited the business
Source: Google, Our Mobile Planet 2012
Tablets are also taking off in Brazil.
Tablet sales in Brazil will
3.1 million
total
units in 2012, compared
to 450,000 in 2011, a
400% increase1
1
2
Sources: IDC Brasil, comScore
42% of non-computer web
traffic in Brazil is from
tablets, 54% from mobile
phones2
As a result, mobile Internet is surging
gigantically in Brazil.
60% of class AB Brazilians access the Internet via mobile
phones, while 36% of class C Brazilians do this1
In 2011, mobile Internet service subscriptions
in Brazil increased by 99.8%2
By 2016, 21% of all Internet traffic in Brazil will be from
mobile devices like mobile phones and tablet computers3
1
2
3
Sources: IBOPE/Nielsen Online, Paulo Bernardo, Communications Minister of Brazil, Cisco
About US Media Consulting
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services firm that specializes in building links to reach Brazil, Latin
America and U.S. Hispanics
• Starting with a client’s goals, we devise media solutions that deliver
powerful results via strategic media selection and execution
• Our team specializes by media type—including Internet, online
video, mobile, SEM, print, broadcast and OOH
• For agencies and advertisers, our expertise streamlines campaign
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