2014 MEDIA MARKET REPORT FOR LATIN AMERICA AND BRAZIL

Transcription

1 2014 MEDIA MARKET REPORT FOR LATIN AMERICA AND BRAZIL

2 CONTENTS A Growing Consumer Class: The surge of the class C middle class in the region 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 TV: Trends in Ad Spend & Pay TV Penetration E-commerce: Total sales for 2012, projections for 2013, growth since 2003, most popular products Mobile Market: Penetration of mobile phones, smartphones & tablets, the triple-digit growth of mobile Internet in Latin America and response to mobile advertising

3 A GROWING CONSUMER CLASS: THE SURGE OF CLASS C

4 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

5 LATIN AMERICA S MIDDLE CLASS (CLASS C) HAS BECOME A SIGNIFICANT PORTION OF THE POPULATION IN SEVERAL KEY MARKETS 60% 50% 47% 55% 52% 40% 30% 20% 10% 0% 33% 31% 32% 28% 21% 13% 7% 7% 3% Argentina Brazil Chile Colombia Mexico Peru Classes AB Class C Sources: 1 United Nations, 2 World Bank, 3 Cetelam report O Observador Brasil 2012, 4 Consultora W, 5 Departamento Administrativo Nacional de Estadística, 6 Asociacion Mexicana de Agencias de Investigacion de Mercados y Opinión Pública, 7 Asociación Peruana de Empresas de Investigación de Mercados, 8 Novomerc Chile

6 PARTICULARLY IN BRAZIL. WHY IS THIS SIGNIFICANT? FIRST, CLASS C IS GROWING QUICKLY. 40,000,000 Brazilians joined Class C between ,000,000 Brazilians were Class C in % of the population In % of the population will be Class C Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular

7 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

8 MEDIA PENETRATION IN LATIN AMERICA

9 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

10 TV LEADS MEDIA CONSUMPTION IN LATAM BUT INTERNET IS GAINING Available data for consumption by medium TV RADIO NEWSPAPERS MAGAZINES INTERNET Argentina 6 hrs/day 56% listen daily Brazil Chile 20 hrs/week 69% listen daily 31% read newspapers 70% buy daily newspaper no data 26 hrs/month 35% read magazines 3.5 hrs/day 3 hrs, 52 min/day 48% listen daily 20% read newspapers no data 11 hrs/week Colombia 4hrs/day 2.4 hrs/day 13% read newspapers no data 4.3 hrs/day Mexico 2-4 hrs/day 56% listen daily 27% read newspapers no data 5 hrs/day online Peru 3 hrs, 20 min/day 2 hrs, 53 min/day 30 minutes/day no data 2 hrs, 40 min/day Uruguay no data 61% listen daily 12% read every day no data no data Sources: LAMAC, Consejo Nacional de Lectura, ENTIC, comscore, IBOPE, Motorola Mobility, Secom, Encuesta UDP, UM Chile, DANE, EGM, Google, Notimex, Asociación Mexicana de Internet, ConcorTV, Opción Consultores

11 AD SPEND PROJECTIONS FOR LATAM: 2013 AND 2014

12 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 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%

13 IN 2014, BRAZIL WILL BECOME THE #5 AD MARKET IN THE WORLD. Rank Country #1 United States #2 Japan #3 China #4 Germany #5 Brazil Ad Spend in 2014 (billions) 173,593 53,434 48,755 27,548 22,216 Source: Zenith Optimedia

14 LATIN AMERICA S AD SPEND IS GROWING STRONGLY IN ALL MAJOR MARKETS. Argentina: up 30% in Brazil: up 7% in Colombia: offline media up 12.7% in , online ad spend up 31% 4 Mexico: up 38% in 2012 (no numbers for 2013 yet) 5 Peru: up 8% in Uruguay: up 2.6% in Venezuela: up 19% in Sources: 1 Cámara Argentina de Agencias de Medios, 2 Projeto Inter-Meios, 3 Asomedios and Andiarios, 4 IAB Colombia, 5 Confederación de la Industria de la Comunicación Mercadotécnica, 6 Compañía Peruana de Estudios de Mercados, 7 Asociación Uruguaya de Agencias de Publicidad, 8 Magna Global

15 PRINT MEDIA IN LATIN AMERICA

16 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 billion 1 Newspapers grew by 50% in circulation in Peru between 2007 and In 2009 magazine ad spend dropped in every region EXCEPT for Latin America, and it s forecast to grow through Newspaper circulation went up by 5% in Latin America between 2006 and Latin American newspaper revenues went up by 65% between 2006 and 2011 and by 9.1% in Newspaper circulation in Brazil grew by 1.8% in , magazine will grow by 7% between 2013 and % CAGR growth is forecast for newspaper ad spend in Argentina through Sources: 1 PriceWaterhouseCoopers Global Entertainment Media Outlook , 2 WAN-INFRA,, 3 Instituto Verificador de Circulação, 4 KPMG

17 PRINT ALSO COMMANDS A MAJOR PORTION OF AD SPEND IN MANY LATAM MARKETS. Print's Share of Ad Spend in Key Latam Markets, % 32% 28% 26% Print ranks #1 in ad spend share in Argentina and #2 (after free TV) in Brazil, Chile, Colombia, Ecuador, Peru and Venezuela 16% 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

18 TV IN LATIN AMERICA

19 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, % 40% 44% 48% 52% 49% 56% 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

20 BUT PAY TV PENETRATION REACHED 55% IN ALL OF LATAM IN APRIL 2013 AND Percentage IS GROWING of TV s Ad Spend Share, RAPIDLY % pay TV penetration in Latam by million 90% 50% of homes in Brazil will be subscribed to pay TV by 2018 potential audience of 173 million 2 Penetration of pay TV in Mexico in December homes in Argentina have pay TV service million pay TV subscribers in Colombia 5 Sources: 1 Dataxis, 2 Anatel, 3 Centro de Investigación en Innovación en Telecomunicaciones, 4 LAMAC, 5 Business Bureau

21 INTERNET IN LATIN AMERICA

22 AS OF DECEMBER 2013, INTERNET COMMANDS A HUGE AUDIENCE IN LATIN Percentage AMERICA: of TV s Ad Spend Share, 2011 MILLION*. Argentina Bolivia Brazil Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Nicaragua Panama Paraguay Peru Puerto Rico Uruguay Venezuela 28,000,000 3,087,000 10,000,000 26,936,343 2,000,000 4,643,393 6,663,558 1,491,480 2,280,000 1,319,174 59,000, ,800 1,503,441 1,563,440 10,785,000 1,771,643 1,950,000 13,000, ,000,000 Sources: *estimate from emarketer, Internet WorldStats, comscore, IBOPE, Subsecretaría de Telecomunicaciones, Asociación Mexicana del Internet

23 BY 2015, THERE WILL BE 60% INTERNET PENETRATION IN LATIN AMERICA AND 120 MILLION Percentage of TV s ADDITIONAL Ad Spend Share, 2011 USERS. 1 Growth projections for specific markets: Brazil 168 million by 2014, up from 105 million in Chile 16.4 million by 2015, up from 10 million in Ecuador 7.5 million by 2015, up from 6.6 million in Mexico 65 million by 2015, up from 52 million in Paraguay 3.4 million by 2015, up from 1.5 million in Sources: 1 LACNIC, 2 Comitê Gestor da Internet, 3 Pyramid Group, 4 Latin America & Caribbean Network Information Centre, 5 Comisión Nacional de Telecomunicaciones de Paraguay

24 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

25 Internet closes sales in Latin America. 80% of Brazilian Internet users say that the Internet is how they first find out about new products 1 73% of Mexican Internet users research products online before shopping 2 and 75% stop to view online ads 3 8 of 10 Internet users in Latin America research products online before buying 4 89% of Colombian Internet users do online research before buying a car 5 Sources: 1 Ipsos, 2 Google, 3 Asociación Mexicana del Internet, 4 comscore, 5 Oh! Panel

26 SOCIAL MEDIA IN LATIN AMERICA

27 SOCIAL MEDIA HAVE DEEP PENETRATION AND HEAVY ENGAGEMENT IN THE REGION. 95% 19% 10 Of Latin American Internet users are on social media 11 Growth in Facebook users in 2012 in Latin America: more than 200 million users around the region 2 Latin American Internet users spend an average of 10 hours per month on social media sites, more than double the amount spent on other popular types of sites 1 Sources: 1 comscore, 2 Socialbakers, Facebook press release August 2013

28 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

29 FACEBOOK IS LATAM S AMERICA S MOST POPULAR SOCIAL MEDIA SITE BUT OTHER SITES HAVE GROWN HUGELY IN THE REGION. Increase in Unique Visitors, March 2012 to March % 270% 88% 98% 236% Source: comscore Futuro Digital Latinoamérica 2013

30 ONLINE VIDEOS IN LATIN AMERICA

31 ONLINE VIDEO CONSUMPTION HAS SPIKED SIGNIFICANTLY IN LATIN AMERICA 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%) 176 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 Futuro Digital Latinoamérica 2013

32 E-COMMERCE IN LATIN AMERICA

33 E-COMMERCE IN LATIN AMERICA HAS GROWN BY 27 TIMES SINCE E-commerce sales in Latam in 2003: US$1.6 billion 1 E-commerce sales in Latam in 2013: US$70 billion 2 Source: 1 América Economía & Visa Latin America E-Commerce study, 2012, 2 Instituto Latinoamericano de Comercio Electrónico

34 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

35 BRAZIL IS THE LEADING E-COMMERCE MARKET IN LATIN AMERICA 59% US$ 13.4 billion 2013 e-commerce sales in Brazil 2 The percentage of e-commerce sales in Latin America that are generated in Brazil 1 US$ 16 billion Projected 2014 e-commerce sales in Brazil 2 Sources: 1 América Economía & Visa E-Commerce Study, Latin America, 2012, 2 e-bit

36 BUT OTHER LATIN AMERICAN MARKETS ARE POSTING STRONG E-COMMERCE NUMBERS. Mexico #2 e-commerce market in Latam 1 US$9.2 billion in sales in % projected growth in Top 5 selling products are (#1) Music/movies, (#2) computers, (#3) clothes & accessories, (#4) tickets to shows, (#5) hotel reservations 2 Chile US$1.3 billion in sales in US$1.6 billion in sales in Argentina US$3.1 billion in sales in 2013, 50% projected growth in best-selling products are (#1) smartphones, (#2) women s clothes, (#3) car accessories, (#4) men s clothes, (#5) home decor 3 Colombia US$2.1 billion in sales in US$3 billion in sales in Sources: 1 América Economía & Visa Latam E-commerce study, 2012, 2 Asociación Mexicana de Internet, 3 emarketer, 3 Cámara Argentina de Comercio Electrónico, 4 Cámara Colombiana de Comercio Electrónico, 5 Cámara de Comercio de Santiago

37 LATIN AMERICA S MOBILE MARKET

38 MOBILE PENETRATION IN LATIN AMERICA IS AT 105% AND WILL REACH 130% BY % 142% 136% 134% 120% 100% 106% 101% 87% 98% 80% 60% 40% 20% 0% 30% 35% 20% 23% 17% 7% 10% Argentina Brazil Chile Colombia Costa Rica Mexico Peru Mobile penetration Smartphone penetration Sources: 1 GSMA, 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

39 SMARTPHONE SALES CONTINUE TO SPIKE IN LATIN AMERICA 1. 55% 45% growth in new users of smartphones in Latin America during Source: emarketer

40 INDIVIDUAL LATAM MARKETS ALSO POSTING STRONG SMARTPHONE SALES. GROWTH IN 2013: 122% in Brazil 1 59% in Mexico 1 98% in Peru 2 96% in Chile 3 Sources: 1 IDC, 2 Samsung Peru, projected growth for all of 2013, 3 GK Retail y Technology

41 LATIN AMERICANS ALSO ARE BUYING MORE TABLETS THAN EVER BEFORE. 234% increase in Latam tablet sales between Q & Q Source: IDC

42 SEVERAL LATAM MARKETS ARE ADOPTING TABLETS AT SIGNIFICANT RATES. Argentina: 125% increase in tablet sales in 2013: 900,000 units sold 1 Brazil: Tablet sales reached 8 million in 2013 and are projected to reach 10.7 million in Chile: 1.5 million sold in 2014, more than 2 million units projected for Peru: Projected tablet sales of 1.6 million in 2013, a 132% increase compared to Mexico: Tablet sales reached 4.3 million in 2013 and will reach 6.2 million units by Sources: 1 Carrier y Asociados, 2 IDC, 3 IDC and Dominio Consultores, 4 IDC Mexico

43 MOBILE INTERNET IS GROWING SIGNIFICANTLY IN LATIN AMERICA. 55% 194% 50% Growth in Brazil s mobile broadband subscribers, Increase in Argentina s mobile broadband subscribers, México s growth in mobile Internet use, % 300% 47% Chile s growth in mobile broadband connections, Increase in Colombia s broadband connections, Uruguay s growth in mobile Internet use, Sources: 1 Telebrasil, 2 Convergencia Research, 3 COFETEL, 4 Subsecretaría de Telecomunicaciones, 5 Ministerio de Tecnologías de la Información y las Comunicaciones, 6 Unidad Reguladora de los Servicios de Comunicación

44 LATIN AMERICANS ARE SHOWING STRONG RESPONSE TO MOBILE ADS. Of Latam mobile device users respond favorably to geo-targeted ads 1 33%.48% Average CTR for mobile banners in Latin America, higher than that of Australia, Eastern Europe and most of Asia 1.60%.56%.61%.52% Mobile ad CTR for Colombia 2 Mobile ad CTR for Mexico 2 Mobile ad CTR for Brazil 2 Mobile ad CTR for Argentina 2 Sources: 1 MediaMinds, 2 Hunt Mobile Ads

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