Indicadores da Economia Braileira

1. Key Trends, Data Points and Impact
on Consumer Purchase Decisions
Brazil’s Media Market 2014

2. A GROWING CONSUMER CLASS:
THE SURGE OF CLASS C

3. CLASS B IS RESPONSIBLE FOR THE
MOST CONSUMPTION IN BRASIL…
Source: FecomercioSP
A1, 3%
A2, 16%
B2, 26%
B1, 25%
C1, 17%
C2, 9%
D, 4% E; 0.1%

4. …BUT CLASS C IS KEY FOR MARKETERS.
WHY? FIRST, IT’S GROWING RAPIDLY.
105,000,000
Brazilians were class C in 2011 55%of the population
In 2014 58%of the population
will be Class C
40,000,000 Brazilians joined Class
between 2003-2011
Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular

5. 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

6. THIRD, CLASS C WILL SPEND A LOT
MORE, VERY SOON.
By 2015 Class C will spend R$1.46 trillion,
more than classes A and B combined
R$1,460,000,000,000
Source: FecomercioSP

7. Ad Spend in Brazil

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

9. IN JUST 3 YEARS, AD SPEND IN BRAZIL WILL GROW
BY 45%: US$15.3 BILLION TO US$22.2 BILLION
2011 2012 2014
15.3
16.2
22.2
Source: Zenith Optimedia

10. Source: Projeto Inter-Meios. *This source does not count search ads or social, so the
Internet ad spend figures are actually higher in Brazil.
OOH AND PAY TV GREW THE MOST IN AD SPEND
IN 2013—MORE THAN TWICE THE AMOUNT OF
FREE TV, WHILE INTERNET DROPPED.*
21.82%
18.00%
10.45% 9.84%
-7.55% -5.60% -3.76%
2.12%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%

11. Source: Projeto Inter-Meios
FREE TV LED 2013 AD SPEND
SHARE IN BRAZIL.
Newspapers
11.8%
Free TV 63%
66%
10%
6%
4.9%
4%
4.45%
3.45%
0.32% 0.62%
TV
Newspapers
Magazines
Pay TV
Radio
Internet
OOH
Cinema
Guides

12. Source: IAB Brasil
IAB BRASIL PROJECTS A 25%
INCREASE IN ONLINE AD SPEND
FOR 2014.
Newspapers
11.8%
Free TV 63%
UNLIKE
PROJECTO
INTER-MEIOS,
IAB BRASIL
TRACKS AD
SPEND FOR
DISPLAY,
SOCIAL AND
SEARCH.
By this metric, ad
spend in Brazil went
up by 25.9% in 2013
and will increase
another 25% in 2014
to reach R$7 billion
(US$3.1 billion)

13. Source: IBOPE Media Book 2013
2013 Media Penetration Rates
in Brazil
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
96%
83%
73%
60%
40% 36%
31%

14. 2013 MEDIA CONSUMPTION IN
BRAZIL (VARIOUS SOURCES)
COUNTRY TV RADIO NEWSPAPERS MAGAZINES INTERNET
Argentina 6 hrs/day
56% listen
daily
70% buy daily
newspaper no data 26 hrs/month
Brazil 20 hrs/week
69% listen
daily
31% read
newspapers
35% read
magazines 3.5 hrs/day
Chile
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

15. PERCENTAGE OF BRAZILIANS WHO
USE MAJOR MEDIA TYPES FROM
1-7 DAYS PER WEEK
97%
60%
48%
31%
24%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
TV Radio Internet Pay TV Newspapers Magazines
Source: Secretaria de Comunicação da Presidência da República, March 2014 report

16. Print Media
in Brazil

17. Newspapers posted a dip in 2013
after growth in 2012.
Sources: 1Instituto Verificador de Circulação, 2Secretaria de Comunicação Social da Presidência da República
BRAZILIAN
NEWSPAPERS
CIRCULATION
DROP,
20131
BRAZILIAN
NEWSPAPERS,
CIRCULATION
GROWTH,
20121
46%OF BRAZILIANS
READ
NEWSPAPERS2
1.8%
1.9%

18. Magazines with digital editions
are growing…but the ones
without them are losing circ.
3.1%
increase for
magazines
with digital
versions
39%
Sources: Instituto Verificador de Circulação
3 to 4.4 %
decrease for
magazines
without
digital
versions

19. TV in Brazil

20. Free TV commands a huge audience
in Brazil…
Sources: 1Datafolha, 2Instituto Brasileiro de Geografia e Estatística, 3Secretaria de Comunicacao Social de Presidencia
da Republica, Pesquisa Brasileira de Mídia, 2014
90%OF BRAZILIANS SAY
TV IS THEIR PREFERRED
NEWS SOURCE1
175 MILLION
BRAZILIANS WATCH TV REGULARLY
3 HOURS
29 MINUTES
Average time
spent watching
TV in Brazil3

21. Sources: 1Agência Nacional de Telecomunicações (Anatel), 2Projeto Inter-Meios, 3 Data Popular
18.2 MILLION BRAZILIAN HOUSEHOLDS SUBSCRIBE TO
PAY TV: 90% will have it by 20181
95%OF NEW PAY TV
SUBSCRIBERS ARE CLASS
C OR DPay TV ad spend
increase in 20122
Pay TV ad spend
increase in 20132
…but pay TV is growing strongly.
15% 18%

22. Radio in Brazil

23. Sources:
1
Levantamiento Sócio Económico do IBOPE Media,
2
Target Group Index do IBOPE Media
Radio has deep penetration in
Brazil.
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
Radio is present in
9 out of 10
Brazilian
homes
1

24. Fontes:1Instituto, 2IBOPE
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
Most radio listeners are women CDE classes (36%)
2
On public transportation, 63% of radio listeners are
young people 20-342

25. Internet in Brazil

26. Sources:
1
comScore,
2
Comite Gestor da Internet
The Internet audience in Brazil grew
by 157% between 2006 and 2012 and will
nearly double 2 years from now.
This means Brazil’s
Internet audience will
reach 168 million2
In 2013 there were
105
million
Internet users
in Brazil1
By 2014 80% of Brazilian
households will have
Internet access2

27. 43 million access the Internet via
mobile devices 1
16.5 million Brazilians visited travel
sites to plan travel in July 2012—18%
increase from July 20112
Brazil had 140 million active mobile
Internet subscriptions broadband
subscribers in February 2014—91%
growth compared to 20123
Sources: 1F/Nazca Saatchi & Saatchi & Datafolha January 2014, 2comScore, 3Anatel
Other key data points to consider:
70 million
Brazilians are “active”
Internet users—
accessing from either
home or work
1

28. 67% of female shoppers in Brazil use the
Internet as a source before shopping for
products or services1
Sources: 1IDG, 2Oh! Panel
95% of Brazilian consumers look for
information online before buying a car2
Internet ads hugely influence the purchase decisions
of Brazilians. Here’s why:

29. Sources: 1Deloitte Media Democracy, 2IAB Brasil, 3Oh! 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

30. Source: Iprospect & Google Brazil
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%)

31. Sources: 1E-bit, 2Meliuz, 3comScore,4CDN, 5Superdata Research
Top Activities Among Brazilian
Internet Users:
1 - SHOP 51 million Brazilians visited e-commerce sites in 20131
2 – LOOK
FOR DEALS
Coupon sites in Brazil are growing by more than 100% a
year2
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 will spend $2.4 billion playing online games by
20155
6 – WATCH
VIDEOS
Brazil leads Latam in number of online videos watched
and in number of unique viewers3

32. E-Commerce
in Brazil

33. Source: e-bit
• Top categories with Brazilian online shoppers:
1. Clothes and accessories
2. Appliances
3. Books and magazines
4. Tech products
5. Cell phones
• 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
E-commerce in Brazil grew in 2013 to reach US$13
billion and will grow by 20% in 2014.

34. Social Media
in Brazil

35. of Brazil’s online
population is on
social media1
Source: 1comScore, 2ExactTarget
Social Media have deep penetration —
and brand engagment.
of Brazilians who
have a Facebook
account interact with
a brand online2
of Brazilians who
use Twitter read
posts from their
favorite companies2
97% 77% 58%

36. 61% of Brazilians look for
product information on social
media pages before buying1
Source: 1Oh! Panel study, 2ExactTarget
Social media also significantly impact
the purchase process.
42% of Brazilian consumers
between 25 and 44 make a
purchase after receiving a
marketing message through a
social network2

37. Online Videos
in Brazil

38. There are 42.9 million unique online
video viewers in Brazil1
Sources: 1ComScore, 2YouTube
Brazil has the largest audience for
online videos in Latin America.
84%: the reach of online video in
Brazil, an audience of 105 million, is
larger than the Internet audience of
Mexico and Argentina combined2
5.4 billion online videos were
viewed in Brazil in August
2012, a 74% increase
compared to August 20111

39. 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
Beyond growth, online video offers
superb ROI potential.
18% growth
in online videos viewed per
viewer in Brazil between
2011 and 20121
Brazil is the
5th biggest market
in the world for
based on video views2
In 2011, YouTube grew
by 67% in video
views in Brazil2

40. Mobile Use
in Brazil

41. Sources: 1Agência Nacional de Telecomunicações (Anatel), 2Kantar Worldpanel, Our Mobile Planet, 3Instituto de
Pesquisa Economica Aplicada, 4IDC Brasil
Brazil’s mobile market is surging
powerfully.
134% Overall mobile
penetration in Brazil1
38%
Of homes in Brazil can
access the web via cell
phones3
18%
123%
Smartphone penetration
in brazil, 20132
Increase in smartphone
sales in 2013 vs. 20124
73% Of cell phones sold in Brazil will
be smartphones4in 2014

42. Once they sought information about businesses, 66% of
Brazilian smartphone owners visited the business
Source: Google, Our Mobile Planet 2012
18% smartphone penetration in Brazil means a
market of 36 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
94%
3 of 4
Notice mobile ads
Performed a mobile
search after seeing an ad
66% of Brazilian smartphone owners make purchase once a month

43. Sources:
1
IDC Brasil,
2
comScore
Tablets are also taking off in Brazil.
Tablet sales in Brazil totaled
8.4 million units in
2013, 157% increase
compared to 20121 42% of non-computer web
traffic in Brazil is from
tablets, 54% from mobile
phones2

44. 60% of class AB Brazilians access the Internet via mobile
phones, while 36% of class C Brazilians do this
1
Sources:
1
IBOPE/Nielsen Online, 2TeleBrasil,
3
Cisco
As a result, mobile Internet is surging
gigantically in Brazil.
By 2016, 21% of all Internet traffic in Brazil will be from
mobile devices like mobile phones and tablet computers
3
Mobile Internet use
in Brazil has grown by 438% since 2010
2

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