In Consumer and Retail

Obviously the LatAm Internet market continues to grow, but what matters to brands trying to maximize ROI on their campaigns are the details when it comes to behavior and preferences among Latin American online consumers. With that in mind, we reviewed available data to try and tease out trends that could help digital marketing professionals targeting LatAm. Instead of stating the trend, however, below we offer some suggestions based on the trend to help make the data more pared to actual implementation.

#1 Favor Spotify for Campaigns Targeting Music Fans

 Data from GlobalWebIndex indicates that Spotify has a 46% market share in Latin America, ahead of music streaming services like SoundCloud (16%) and Deezer (12%). Spotify ended Q1 2018 with 170 million monthly active users, with 21% of them (35.7 million) in Latin America.

#2 Explore Influencer Marketing in LatAm

 If you’re a consumer brand, it’s likely that you’ve been using influencers since at least 2014 given the rise of social media stars in gaming, beauty and other areas. But if you haven’t kicked off a campaign just yet, some recent data from the company Provokers—developed in partnership wth Google—suggested influencer marketing in Latin America has solid potential. The study asked internet users in Argentina, Chile, Colombia and Mexico about their thoughts on influencers.

More than half (54%) of Argentines said that they feel closer to Internet users because they’re more authentic. A significant percentage (40%, respectively) of Internet users in both Mexico and Chile say they make purchase decisions based on the recommendations of a YouTuber.

Lastly, rather than approach influencers one by one and going through their representatives, you may want to explore networks that allow you to work with influencers on a mass scale, like socialpubli or fluvip.

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#3 Increase Focus on Mobile Marketing

Criteo—an ad platform that works with online retailers—published an analysis of browsing and purchasing data from more than 5,000 retailers in 80+ countries. According to Criteo, 50% of e-commerce transactions in Latin America are done with mobile devices—with the rest done with desktops. Of the 50% done with mobile devices, 35% occur over the mobile web while 15% happen in-app.

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Now, 50% of e-commerce transactions occurring with mobile devices seems like a high figure. However, it’s is important to note that ComScore took a look at Internet access devices in its El estado de social media en América Latina report in March 2018. The company reported that between February 2017 and February 2018, the amount of users going online with smartphones went up in key LatAm markets:

  • +12% in Brazil
  • +6% in Mexico
  • +20% in Argentina
  • +18% in Chile

Colombia was the only exception to this trend: its smartphone audience went down by 6% during this period.

During the same period, the desktop audience in those countries dropped:

  • Brazil -17%
  • Mexico   -12%
  • Argentina  -16%
  • Colombia  -17%
  • Peru    -12%
  • Chile   -19%

So perhaps the Criteo data reflects the ongoing migration to mobile in Latin America as the amount of mobile-only users grows in the region.

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#4 Run More Mobile Video Campaigns

Facebook partnered with Nielsen and Ipsos to research mobile video habits among consumers in Latin America. Some of the research’s key findings include:

  • 61% of consumers in Argentina, Brazil, Colombia and Mexico said that video ads were more likely to capture their attention
  • 84% of consumers in Argentina, Brazil, Colombia and Mexico said that video ads were more exciting
  • 82% of consumers in Argentina, Brazil, Colombia and Mexico said that video ads were more fun
  • Consumers surveyed in Argentina, Brazil, Colombia and Mexico watch 3X more video when connected to Wi-Fi than when using other methods, like mobile data
  • One-third of consumers surveyed in Argentina, Brazil, Colombia and Mexico say they download videos to watch them later
  • Brazilians and Mexicans who preferred mobile devices to watch video also tended to be more likely to take action after watching mobile video:
    • 1.69x more likely to book a trip
    • 1.56x more likely to discover new brands or products
    • 1.52x more likely to try new fitness routines or ways to lead a healthy lifestyle
    • 1.38x more likely to try new restaurants
    • 1.31x more likely to watch new TV shows

#5 Keep up Those Targeted Campaigns

For years, marketers have been trying to target users more precisely, using programmatic campaigns to display ads based on user browsing habits or retargeting based on site visits or product views. While consumers in some markets regard this approach as too intrusive, a 2017 article by Michelle Evans—Global Head of Digital Consumer Research for Euromonitor—indicates only one-third of LatAm digital consumers view targeted ads based on online searches and purchase histories as an invasion of privacy. In comparison, half of the digital consumers in other markets view these targeted ads as invasions of privacy. Three major LatAm markets—Brazil, Colombia and Mexico—were among the countries that were least likely to view targeted ads as an invasion of privacy.

#6 Focusing on Facebook and Instagram Still Makes Sense

Recently, news media stories have suggested that Facebook is losing popularity and that other social media sites are surpassing it—including Snapchat, YouTube and Instagram. But LatAm hasn’t yet experienced this drop. Recent comScore numbers from July 2017 to February 2018 show that Facebook’s audience of unique users grew (though somewhat modestly) in 5 major LatAm markets:

Colombia was the only country studied by comScore that did not post growth.

However, Instagram grew significantly in many of these markets:

Once again, Colombia defied the trend: the amount of unique users of Instagram dropped in this period.

YouTube grew in most of these markets during this period:

However, Twitter dropped significantly in unique users in these markets: by 12% in Colombia, by 10% in Argentina, by 4% in Mexico and by 3% in Brazil. However, it did grow powerfully in Peru during this period: by 40%.

In terms of total volume of actions (reactions, comments, shares, retweets and likes), Facebook clearly dominated in 2017 in Latin America:

Facebook also leads other social media platforms in publication of content and interaction:

#7 Email Is Still a Solid Standby

While not as interesting as AI-driven native ads, dynamic creative optimization or blockchain applied to adtech, email still works to drive traffic and spur conversions. While there is not a huge amount of published data on email response in Latin American markets, what’s out there is encouraging. IBM’s 2018 Marketing Benchmark Report showed a mean open rate of 17.4% for email marketing messages in Latin America, higher than the mean open rate for Asia-Pacific, India and the Middle East. According to the report, Latin America had a mean email marketing message click-thru rate CTR) of 2.5%, which was almost double the CTR for India and higher than the mean CTRs for Asia-Pacific and Middle East/Africa.

Other studies don’t cover all—or even most—of the region, but they do show positive numbers for certain countries. Data from email marketing service Dopplers shows average email open rates of 33.4% for Argentina and 31.7% for Mexico, while a different service called GetResponse has tallied open rates and CTRs for several Latin American countries:

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While here at AMI we track developments among Latin American consumers, the main focus of our consumer/retail practice is on strategic advisory projects, such as giving you competitive intelligence on your key rivals, providing hard to find data for strategic planning and similar work. Please contact us to find out more.

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