2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting

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2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
2014 MEDIA MARKET REPORT FOR LATIN AMERICA
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
CONTENTS

    A Growing Consumer Class:                  Internet: Audience size, future growth, sites
    The surge of the class C middle class in   with most reach, user attitudes toward
    the region                                 Internet advertising

    Media Penetration & Consumption
                                               Social Media: Use, most popular sites, reach,
    in Latin America
                                               influence on consumer purchase decisions, social
                                               TV

    Ad Spend Projections for Latam:            Online Videos: The audience, consumption trends
    2013 and 2014                              and advertising potencial

    Print: Market indicators of growth         E-commerce: Total sales for 2013, projections
                                               for 2014, growth since 2003, most popular
                                               products

    TV: Trends in ad spend & pay TV            Mobile Market: Penetration of mobile phones,
    penetration                                smartphones & tablets, the triple-digit growth
                                               of mobile Internet in Latin America and
                                               response to mobile advertising
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
A GROWING CONSUMER CLASS:
    THE SURGE OF CLASS C
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
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
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
LATIN AMERICA’S MIDDLE CLASS (CLASS C)
    HAS BECOME A SIGNIFICANT PORTION OF
    THE POPULATION IN SEVERAL KEY MARKETS…
           60%
                                                       55%
                                                                              52%
           50%                  47%

           40%
                                                                                                 33%                        32%
                                                                                              31%
           30%                                                                                                                               28%
                                                                                                                                                   Classes AB
                                                21%
                                                                                                                                                   Class C
           20%
                                                                                                                                           13%
           10%            7%                                                                                          7%
                                                                        3%
             0%
                      Argentina                   Brazil                 Chile              Colombia                 Mexico                Peru
Sources: 1United Nations, 2World Bank, 3Cetelam report O Observador Brasil 2013, 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
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
…PARTICULARLY IN BRAZIL.
 WHY IS THIS SIGNIFICANT? FIRST, CLASS C IS
 GROWING QUICKLY.
               40,000,000                                            Brazilians joined Class
                                                                     C between 2003-2011

        105,000,000                                                    55%
        Brazilians were Class C in 2011
                                                                      of the population

                                             In 2014                  58%
                                                                      of the population
                                                                        will be Class C

Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
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
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
MEDIA PENETRATION
 IN LATIN AMERICA
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
TV, OUT-OF-HOME AND RADIO HAVE THE
       DEEPEST PENETRATION—BUT INTERNET IS
       GROWING SIGNIFICANTLY.
                                                            Penetration by Medium
                                 Free TV             Pay TV             Radio           Newspapers Magazines   OOH    Internet
       Argentina                   93%                74%                62%               40%       19%       90%      56%
         Brazil                    96%                40%                73%               31%       36%       83%      60%
         Chile                     97%                63%                58%               45%       21%       91%      64%
       Colombia                    95%                86%                75%               78%       41%       99%      50%
       Costa Rica                  97%                64%                65%               77%       8%        91%      71%
        Ecuador                    97%                27%                69%               48%       30%        96%     57%
       Guatemala                   77%                53%                82%               78%       6%        88%      30%
       Honduras                    92%                84%                77%               76%       36%       82%      41%
        Mexico                     97%                36%                54%               27%       27%       98%      48%
        Panama                     94%                50%                60%               73%       19%       75%      53%
          Peru                     98%                64%                81%               67%       15%       100%     56%

Source: IBOPE Media Book 2013 except Mexico numbers, which are from IBOPE Media Book 2012
2014 MEDIA MARKET REPORT FOR LATIN AMERICA - US Media Consulting
TV IS THE MOST-CONSUMED MEDIUM IN LATIN
      AMERICA BUT INTERNET IS TAKING UP MORE TIME.
                                          Available data for media consumption, by country

                                                TV                   RADIO                  NEWSPAPERS                    INTERNET
                  Argentina                 6 hrs./day          56% listen daily        70% buy newspapers              26 hrs./month

                     Brazil            3 hrs, 29 min/day 69% listen daily               31% read newspapers 3 hrs, 39 min/day

                                            3 hrs., 52
                      Chile                 min./day
                                                                48% listen daily        20% read newspapers              11 hrs./week

                  Colombia                  4 hrs./day            2.4 hrs./day          13% read newspapers               4.3 hrs./day

                    Mexico                2 - 4 hrs./day        56% listen daily        27% read newspapers                5 hrs./day

                                            3 hrs., 20
                      Peru                  min/day
                                                              2 hrs., 53 min/day              30 min./day             2 hrs., 40 min/day

                                                                                        12% read them every
                   Uruguay             No data available 61% listen daily
                                                                                                day
                                                                                                                      No data available

Sources: IBOPE, LAMAC, Notimex, Consejo Nacional de Lectura, ENTIC, Secretaria de Comunicação Social da Presidência da República, comScore,
Target Group Index, Fundação Perseu Abramo, Encuesta UDP, UM Chile, DANE, EGM 2013, Google, AMIPCI, Consejo Consultivo de Radio y
Televisión, Kantar Media Research , Opción Consultores
ANOTHER 2014 STUDY FROM TGI SHOWS INCREASES
        IN CONSUMPTION IN CERTAIN TRADITIONAL MEDIA:

                                         Pay TV consumption
                                          has gone up by 5%
                                           in Argentina, by
                                         12% in Brazil and by
                                            11% in Mexico

                        Newspaper
                     consumption has                         Magazine
                     gone up by 5% in                     consumption has
                     Argentina, by 6%                     gone up by 7% in
                      in Brazil and by                  Argentina, by 11% in
                       15% in Mexico                     Brazil and by 8% in
                                                               Mexico

Source: TGI Latina
AD SPEND PROJECTIONS
 FOR LATAM: 2013 AND
         2014
LATIN AMERICA IS THE WORLD’S
FASTEST-GROWING REGION IN AD SPEND...
Magna Global projects nearly 13% growth in ad spend for Latin America in 2014—more than
                double the growth of North America and Western Europe

                                                          2013               2014
          Latin America                                   9.5%               12.7%
          North America                                    1.5%               5.5%
         Western Europe                                   -0.8%               5.7%
     Central & Eastern Europe                              7.9%              10.5%
            Asia Pacific                                   6.3%               8.7%
     Middle East, North Africa                             2.8%               6.3%
          Rest of World                                    9.3%               10%
IN 2014, BRAZIL WILL BECOME
     THE #5 AD MARKET IN THE WORLD.
                                 Ad Spend in
                                 2014 (billions)
     Rank Country
                                 173,593
     #1          United States
                                 53,434
     #2          Japan
                                 48,755
     #3          China
                                 27,548
     #4          Germany
                                 22,216
     #5          Brazil

Source: Zenith Optimedia
LATIN AMERICA’S AD SPEND IS GROWING
      STRONGLY IN ALL MAJOR MARKETS.
                                                    Argentina: up 30% in 2013 after growing by 19.6%
                                                                        in 20121
                                             Brazil: up 7% in 2013 after growing by 10.7% in 20122

                                              Colombia: offline media up 12.7% in 20133, online ad
                                                                 spend up 31%4

                                                    Mexico: up 38% in 2012 (no numbers for 2013 yet)5

                                                                         Peru: up 8% in 20136

                                                                            Uruguay: up 2.6% in 20137

                                                                             Chile: up 2.5% in 20139

                                                                   Venezuela: up 19% in 20138
Sources: 1Cámara Argentina de Agencias de Medios, 2Projeto Inter-Meios, 3Asomedios and Andiarios, 4IAB Colombia, 5Confederación de la Industria de la Comunicación Mercadotécnica,
6Compañía Peruana de Estudios de Mercados, 7Asociación Uruguaya de Agencias de Publicidad, 8Magna Global, 9Asociación Chilena de Agencias de Publicidad
AD SPEND IN ARGENTINA, 2013

                                    3.6% 1.1%
                                3.8%
                            3.9%
                                                            Free TV
                                                            Newspapers
                              6.4%
                                                    36.4%   Internet
                                                            Pay TV
                          7.3%
                                                            OOH
                                                            Magazines
                                                            Radio
                                                            Cinema
                                            28.6%

Source: Cámara Argentina de Agencias de Medios
AD SPEND IN BRAZIL, 2013

                                                                            0.62% 0.32%
                                                4.0% 3.5%
                                       4.5%
                                                                                                                                                                    Free TV
                                          5%                                                                                                                        Newspapers
                                                                                                                                                                    Pay TV
                                  5.5%                                                                                                                              Magazines
                                                                                                                                                                    Internet
                                 10.1%                                                                                                                              Radio
                                                                                                                                                                    OOH
                                                                                                                      66.5%
                                                                                                                                                                    Guides
                                                                                                                                                                    Cinema

Source: Projeto Inter-Meios*
*This source shows only Internet display investment, not social or search; IAB Brasil indicates that Internet ad spend is about 11% of total spend when search and social are factored in
AD SPEND IN CHILE, 2013

                                                       2.2%     0.3%

                                                         5.4%
                                             7.0%                              Open TV
                                                                               Newspapers
                                    9.1%                               42.7%   Internet
                                                                               OOH
                                                                               Radio
                                   9.3%
                                                                               Pay TV
                                                                               Magazines
                                                                               Cinema
                                                        24.2%

Source: Asociación Chilena de Agencias de Publicidad
AD SPEND IN COLOMBIA, 2013

                                             2% 2.0%

                                            5.5%
                                                               Free TV
                                     9.9%
                                                               Newspapers
                                                               Radio
                                                       49.2%   Internet
                                  11.0%
                                                               OOH
                                                               Pay TV
                                    11%                        Magazines
                                                               Cinema
                                             14.8%

Source: ASOMEDIOS, IAB Colombia
AD SPEND IN MEXICO, 2012

                                                        2%
                                                   3%
                                            4%
                                                                                Free TV
                                  8%
                                                                                Internet
                                                                                Radio
                          8%
                                                                                Newspapers
                                                                                Pay TV
                                                                          53%
                            9%                                                  OOH
                                                                                Magazines
                                                                                Cinema
                                        9%

Source: Confederación de la Industria de la Comunicación Mercadotécnica
AD SPEND IN PERU, 2013

                                                   2.0% 2.0%
                                        5.5%

                                                                             Free TV
                                       6.2%                                  Newspapers
                                                                             Radio
                                9.9%
                                                                     49.2%   OOH
                                                                             Internet
                                 11.0%                                       Pay TV
                                                                             Magazines
                                               14.8%                         Cinema

Source: Compañía Peruana de Estudios de Mercados y Opinión Pública
AD SPEND IN URUGUAY, 2013

                                                        4%
                                        13%

                                                                   Free TV
                                                                   OOH
                           14%                                     Print media
                                                             53%   Radio
                                                                   Internet

                                       16%

Source: Asociación Uruguaya de Agencias de Publicidad
PRINT MEDIA
IN LATIN AMERICA
PRINT IS STILL A STRONG MEDIUM THROUGHOUT
      LATIN AMERICA. MARKET INDICATORS THAT
      SUGGEST THIS INCLUDE:
 Newspaper circulation went up by 2.56% in Latin America in 2013 and by 6.26% over the past 5 years1

 Newspapers grew by 50% in circulation in Peru between 2007 and 20124

                                                               In 2009 magazine ad spend dropped in every region—
                                                               EXCEPT for Latin America, and it’s forecast to grow through 20162

Latin American newspapers will grow in revenue by 5.5% per year through 2016 to reach a total
of US$10.4 billion2

 Latin American newspaper revenues went up by 65% between 2006 and 2011 and by 9.1% in 20121

 Newspaper circulation in Brazil grew by 1.8% in 20123, magazine will grow by 7% between 2013 and 20172

                                     11.9% CAGR growth is forecast for newspaper ad spend in Argentina through 20161

   Sources: 1WAN-INFRA, 2PriceWaterhouseCoopers Global Entertainment Media Outlook 2013-2017, 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, 2013                                                                        Print ranks #1 in ad
                                                                                                                               spend share in Argentina
         32%                                                                                                                   and #2 (after free TV) in
                                   27%
                                                                                                            28%                Brazil, Chile, Colombia,
                                                 26%                                                                           Ecuador, Perú, Uruguay
                                                                                                                               and Venezuela

                                                                             17%
                      15%
                                                                                             14%

                                                               10%

     Argentina       Brazil       Chile      Colombia       Ecuador          Peru         Uruguay        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, 2013
                                                     66%

                                                                                                                                                  56%
                                                                                                                 52%
                                                                                            48%                                      49%
                                                                        44%
                                 40%

                           Argentina               Brazil               Chile           Colombia              Mexico                Peru         Uruguay

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
…BUT PAY TV PENETRATION IS AT
   53% IN ALL OF LATAM4 AND IS
   GROWING
       Percentage of RAPIDLY          . 2011
                     TV’s Ad Spend Share,

              68%                          pay TV penetration
                                           in Latam by 20171
                                                                                                        11 million
                                                                                                             pay TV subscribers in Argentina4
                                           of homes in Brazil

              90%                          will be subscribed
                                           to pay TV by 2018—
                                           potential audience
                                           of 173 million2
                                                                                                      7.9 million
                                             Penetration of pay TV                                           pay TV subscribers in Colombia4
              50%                            in Mexico in
                                             December 20133

Sources: 1Dataxis, 2Anatel, 3Centro de Investigación en Innovación en Telecomunicaciones, 4Business Bureau
PAY TV HAS STRONG REACH IN SEVERAL
       LATIN AMERICAN MARKETS.
                                     Levels of Pay TV Reach in Latin American Countries
          100.0%

            90.0%      84.5%
            80.0%
                                  70.3%
            70.0%                              63%
                                                      62.1% 61.2% 61%
                                                                      58.8% 56.7%
            60.0%
                                                                                    42.7%
            50.0%
                                                                                            38.9%
            40.0%

            30.0%

            20.0%
                                                                                                    33.5%
            10.0%

             0.0%

Source: Business Bureau, June 2014 market estimates
THERE ARE ALSO NEW GROWTH MARKETS
       FOR PAY TV IN LATIN AMERICA.

                                    3.2 million subscribers
                                    18% growth since 2012

                           Chile
                                    1.6 million subscribers
                                    45% growth between 2012
                                    and 2013
                          Ecuador

                                    753,787 subscribers
                                    Projected 85% penetration by
                                    2017 with 1,000,000 subscribers
                          Uruguay

Source: Business Bureau
INTERNET IN
LATIN AMERICA
AS OF DECEMBER 2014, INTERNET WILL COMMAND
 A HUGE AUDIENCE IN LATIN AMERICA: 330
 MILLION*. CURRENT AMOUNTS OF INTERNET
        Percentage of TV’s Ad Spend Share, 2011
 USERS BELOW:
         Argentina                              32,000,000
             Bolivia                          4,199,000
              Brazil                                                                      109,773,650
               Chile                         11,546,000
          Colombia                       28,475560
         Costa Rica                    2,185,506
Dominican Republic                        6,054,013
            Ecuador                      6,316,555
        El Salvador                     1,649,980
        Guatemala                        2,885,475
         Honduras                       1,530,543
             Mexico                                 64,200,000
         Nicaragua                        906,539
            Panama                       1,548,016
          Paraguay                      2,473,724
               Peru                           11,817,991
       Puerto Rico                     2,675,843
           Uruguay                     1,936,000
         Venezuela                           13,000,000
Sources: *estimate from eMarketer, other figures from Internet WorldStats and World Internet Project
BY 2015, THERE WILL BE 60% INTERNET
    PENETRATION IN LATIN AMERICA AND
    120 MILLION             Ad Spend Share, 2011 USERS.1
                         ADDITIONAL
         Percentage of TV’s

           Growth projections for specific markets:

            Brazil                   168 million by 2014, up from 105 million in 20132

            Chile                     16.4 million by 2015, up from 10 million in 20123

            Ecuador                   7.5 million by 2015, up from 6.6 million in 20134

            Mexico                     65 million by 2015, up from 52 million in 20134

            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:
                                 100%          98.8%   97.5%   97.3%   96.9%
                                  90%                                          94.0%
                                  80%
                                  70%                                                  85.5%
                                  60%
                                  50%
                                  40%
                                  30%
                                  20%
                                  10%
                                   0%

Source: Futuro Digital, comScore, March 2013
STUDIES SHOW THAT LATIN AMERICANS ARE VERY
        RECEPTIVE TO ONLINE ADVERTISING IN SEVERAL
        MARKETS.
                                                         •    67% of Brazilian consumers use the Internet as a source before going shopping1
                                                         •    95% of Brazilian conusmers look for information online before buying a car2
                                                         •    68% of Brazilian Internet users say that online ads influence their purchase decisions 3
                                                         •    57% of Brazilian Internet users say that online ads motivate them to buy the advertised
                                                              products4

                                                         • 75% of Mexican Internet users stop to look at online ads5
                                                         • 83% of Mexican Internet users recall online ads5
                                                         • The categories with the largest recall include computer accessories (50%), movies
                                                           (46%), mobile phones (45%), banks (32%) and software (32%)5
                                                         • 53% like to see ads in social media sites and 61% recall they ads they see on those
                                                           social sites5

                                                             • Among the ad formats preferred by Colombian Internet users are banners (37%),
                                                               videos (35%) and sponsored links6
                                                             • 7 of 10 Colombians look for 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
Internet closes sales in Latin America.

         80% of Brazilian Internet users say that the Internet is how
                they first find out about new products1

               73% of Mexican Internet users research products online
                    before shopping2 and 75% stop to view online ads3

          8 of 10 Internet users in Latin America research products
                           online before buying4

                  89% of Colombian Internet users do online research
                              before buying a car5

Sources: 1Ipsos, 2Google, 3Asociación Mexicana del Internet, 4comScore, 5Oh! Panel
PROGRAMMATIC BUYING IS ANOTHER
      IMPORTANT ONLINE TREND IN LATIN
      AMERICA.

                                         600%
                                          The amount by
                                          which
                                          programmatic ad
                                          spend will grow in
                                          2015 in Latin
                                          America

Source: International Data Corporation
AND IT WILL KEEP GROWING…

                                                   2018
                                                  US$54M
                                          2017
                                                       Between 2014 and 2018,
                                         US$27M        programmatic ad spend in
                                                       Latin America will go up
                                                       by
            2016
           US$12M                                      8.900%
Source: International Data Corporation
SOCIAL MEDIA IN
 LATIN AMERICA
SOCIAL MEDIA HAVE DEEP PENETRATION
          AND HEAVY ENGAGEMENT IN THE REGION.

                     95%                                                 19%                            10
               Of Latin American                                 Growth in Facebook users in     Latin American Internet
             Internet users are on                               2012 in Latin America: more   users spend an average of
                social media11                                     than 200 million users        10 hours per month on
                                                                     around the region2         social media sites, more
                                                                                                than double the amount
                                                                                                 spent on other popular
                                                                                                      types of sites1

Sources: 1comScore, 2Socialbakers, Facebook press release August 2013
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
ALTHOUGH FACEBOOK IS BY FAR LATAM’S
     MOST POPULAR SITE, OTHER SOCIAL SITES
     HAVE GROWN ENORMOUSLY IN THE REGION.
                    Increase in unique visitors, Jan 2013 to March 2014

                                                             434%
                   300%

                   81%                   63%                   43%

Source: comScore
ANOTHER RECENT TREND IN LATIN AMERICA
       IS SOCIAL TV:

                              A large study of 12,000 TV
                              viewers around the world
                              found that 67% of viewers
                              in Mexico, Brazil and Chile
                              use tablets, smartphones
                              and laptops while they
                              watch TV

Source: Ericsson
OTHER STUDIES SUPPORT THIS TREND:

                   A UM survey of Mexicans   Google Brazil found that 37%
                   found that 50% combine    of Brazilian Internet users
                   watching TV with using    watch TV with a mobile
                   smartphones               device in their hands

       More than 5 million                                        41% of Chilean digital
       Argentines go                                              users end up using 3
       online with their                                          or more screens a day
       smartphones while
       they watch TV

Source: Ericsson
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

                         95.5%: online videos have the deepest reach
                         in Argentina, followed by Chile (91.6%),
                         Brazil (85.9%) and Mexico (81.3%)

                    156 online videos a month are watched by
                    Brazilians, while Chileans watch 144 per month,
                    Mexicans watch 125 per month and Argentines
                    watch 105 per month

Source: comScore
E-COMMERCE IN
LATIN AMERICA
E-COMMERCE IN LATIN AMERICA HAS
      GROWN BY 27 TIMES SINCE 2003.

          E-commerce
                                                                                                          E-commerce
         sales in Latam                                                                                  sales in Latam
            in 2003:                                                                                        in 2013:
         US$1.6 billion1                                                                                                           2
                                                                                                      US$70                 billion

Source: 1América Economía & Visa Latin America E-Commerce study, 2012, 2Instituto Latinoamericano de Comercio Electrónico
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…

                                                                            US$ 13.4        2013 e-commerce sales in Brazil2

                      59%                                                    billion

                The percentage of                                                 US$ 16    Projected 2014 e-commerce
               e-commerce sales in
              Latin America that are
                                                                                  billion   sales in Brazil2

               generated in Brazil1

Sources: 1América Economía & Visa E-Commerce Study, Latin America, 2012, 2e-bit
…BUT OTHER LATIN AMERICAN
       MARKETS ARE POSTING STRONG
       E-COMMERCE NUMBERS.
                       Mexico
                       • #2 e-commerce market in Latam1
                       • US$9.2 billion in sales in 20132
                       • 20% projected growth in 20142                                                                 Chile
                       • Top 5 selling products are (#1)                                                               • US$1.3 billion in sales in 20121
                         Music/movies, (#2) computers, (#3) clothes                                                    • US$1.6 billion in sales in 20135
                         & accessories, (#4) tickets to shows, (#5)
                         hotel reservations2

                       Argentina
                       • US$3.1 billion in sales in 2013, 50%                                                           Colombia
                         projected growth in 20143                                                                      • US$2.1 billion in sales in 20121
                       • 5 best-selling products are (#1)                                                               • US$3 billion in sales in 20134
                         smartphones, (#2) women’s clothes,
                         (#3) car accessories, (#4) men’s clothes,
                         (#5) home decor3

Sources: 1América Economía & Visa Latam E-commerce study, 2012, 2Asociación Mexicana de Internet, 3eMarketer, 3Cámara Argentina de
Comercio Electrónico, 4Cámara Colombiana de Comercio Electrónico, 5Cámara de Comercio de Santiago
LATIN AMERICA’S
MOBILE MARKET
MOBILE PENETRATION IN LATIN AMERICA IS
    AT 105% AND WILL REACH 130% BY 20151.

                          142%
             140%                             136%                 134%

             120%
                                                                                       106%
                                                                                                           101%                                  98%
             100%
                                                                                                                                87%
               80%

               60%

               40%                                                          30%                                                          35%
                                    20%                 23%
               20%
                                                                                                                                                       17%
                                                                                                 7%                  10%
                 0%
                           Argentina               Brazil              Chile           Colombia Costa Rica                        Mexico          Peru
                                                       Mobile penetration                    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
SMARTPHONE SALES CONTINUE TO SPIKE IN
   LATIN AMERICA1.

                          45% growth in
                           new users of
                    55%    smartphones
                             in Latin
                          America during
                              2013 1

Source: eMarketer
INDIVIDUAL LATAM MARKETS ALSO
       POSTING STRONG SMARTPHONE SALES.
       GROWTH IN 2013:

                  122% in                                                                 59% in
                   Brazil1                                                                Mexico1

                    98% in                                                                  96% in
                    Peru2                                                                   Chile3

Sources: 1IDC, 2Samsung Peru, projected growth for all of 2013, 3GK Retail y Technology
LATIN AMERICANS ALSO ARE BUYING MORE
   TABLETS THAN EVER BEFORE.

              234%
              increase in Latam
                 tablet sales
              between Q1 2012
                  & Q1 2013

Source: IDC
SEVERAL LATAM MARKETS ARE ADOPTING
        TABLETS AT SIGNIFICANT RATES.
                                         Argentina: 125% increase in tablet sales in
                                                 2013: 900,000 units sold1
                                    Brazil: Tablet sales reached 8 million
                           in 2013 and are projected to reach 10.7 million in 20142
                                 Chile: 1.5 million sold in 2014, more than 2 million
                                               units projected for 20142

                               Mexico: Tablet sales reached 4.3 million in 2013
                                  and will reach 6.2 million units by 20144

                                        Peru: Projected tablet sales of 1.6 million
                                      in 2013, a 132% increase compared to 20123

Sources: 1Carrier y Asociados, 2IDC, 3IDC and Dominio Consultores, 4IDC Mexico
MOBILE INTERNET IS GROWING
     SIGNIFICANTLY IN LATIN AMERICA.

                         332%                                                     244%                       221%
            Increase in the use of                                         Increase in the use of        Increase in the use of
           mobile Internet in Costa                                       mobile Internet in Brazil in     mobile Internet in
                Rica in 20131                                                       20132                  Argentina in 2013

                         216%                                                     213%                       185%
               Increase in the use of                                         Increase in the use of     Increase in the sue of
                 mobile Internet in                                             mobile Internet in         mobile Internet in
                 Colombia in 2013                                                Mexico in 2013              Chile in 2013

Source: Invasión Mobile Latinoamérica 2013, a report from Guialocal.com
LATIN AMERICANS ARE SHOWING
     STRONG RESPONSE TO MOBILE ADS.

                                                                              Average CTR for mobile
                                         Of Latam mobile
                                                                              banners in Latin
           33%                           device users           .48%          America, higher than
                                         respond favorably to
                                                                              that of Australia,
                                         geo-targeted ads1
                                                                              Eastern Europe and
                                                                              most of Asia1

               .60%                               .56%                 .61%             .52%

      Mobile ad CTR                           Mobile ad CTR       Mobile ad CTR      Mobile ad CTR
      for Colombia2                            for Mexico2         for Brazil2       for Argentina2

Sources: 1MediaMinds, 2Hunt Mobile Ads
MOBILE AD SPEND KEEPS GROWING IN
     LATIN AMERICA.

                                   Until 2017 mobile ad
                                 spend in Latam will keep   Mexico leads Latam mobile ad
                                        growing by          spend and in 2014 advertisers
                                                   70%      in the country will invest
                                                            $173 million in mobile ads

                                                            In Brazil mobile ad spend will
                                                            reach $132 million in 2014
                                                            and $731 million by 2017

Sources: Telefónica, eMarketer
About US Media Consulting
Launched 2003, US Media Consulting is a leading media services
agency that specializes in increasing the efficiencies of agencies in
Latin America—and in turn their profits. We do this by:

• Crafting media plans that deliver significant ROI through strategic media selection and
  efficient campaign implementation
• Innovating media technologies like MediaDesk—the leading programmatic buying
  platform in Latin America—that spike the effectiveness of the digital campaigns that
  agencies run
• Bringing new media, firms and technology to Latin America that agencies can use to
  deliver even better results for their clients
• Increasing agency profitability through financial operations and campaign management
  through both experienced staff and leading-edge technology

      Visit www.usmediaconsulting.com to learn more
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