We just published the Portada Insight Report on E-Commerce in Latin America in partnership with ComScore. The report (“El Marketing de Comercio Electrónico en Latinoamérica: Datos y Enseñanzas para Ejecutivos de Marca”) analyzes website traffic in three categories: Department Stores/Malls, Food/Supermarket/Grocery and Fragrances/Cosmetics in Brazil, Mexico and Argentina. In addition, website visits and social media marketing of the main Mexican retailers in the Food/Supermarket/Grocery categories are analyzed. Plus insights and best practices from 12 major brand marketers, including Marriott’s Diana Plazas, L’Oreal’s Pablo Sanchez Liste and PepsiCo’s Hernan Tantardini.
E-Commerce in Latin America is one of the hottest sectors worldwide and, with it brand marketers need for MarTech, is growing in leaps and bounds. While penetration over retail sales in Latin America lies at approximately 5% vs. 20% in China and 15% in the U.S, COVID-19 has brought a huge increase in e-commerce and e-commerce marketing in Latin America. We just published the Portada Insight Report on E-Commerce Marketing in Latin America in partnership with ComScore. The report in Spanish, (“El Marketing de Comercio Electrónico en Latinoamérica: Datos y Enseñanzas para Ejecutivos de Marca”) analyzes website traffic of three key categories (Food/Supermarket/Grocery, Department Stores/Malls and Fragrances/Cosmetics) in Brazil, Mexico and Argentina.
In addition, website visits and social media marketing of the main Mexican retailers in the Food/Supermarketing/Grocery categories are analyzed. Brand Marketers in the Portada Network provide intelligence about the correlation between social media marketing and website visits as well as best practices. They include senior brand marketing executives from PepsiCo, Colgate Palmolive, Best Buy, New York Life, Seguros Monterrey, Walmart Mexico, Nestle, Grupo Exito, L’Oreal, Marriott and Walmart Mexico.
E-Commerce in Latin America
Did you know that unique visitors to websites in the Food/Supermarket/Grocery Category in Brazil, Argentina and Mexico grew by 65% to 63.3 million unique users between March 2019 and September 2020? Find out how social media marketing by major retailers grew and how it impacted website visits. DOWNLOAD the report here.
Performance marketing has become even more crucial in Latin America due to the rapid acceleration of e-commerce since the pandemic started. We talked to Juan Pablo Suarez, Head of Performance LatAm at Teads to better understand attribution modelling, the use of first party data, pricing and the ascent of third party marketplaces,
Juan Pablo Suarez is an experienced performance marketer. He is now leading Teads‘ Latin American performance marketing efforts. Suarez previously had senior roles at Kontent Room and Criteo, Asked about how brand marketers should measure ROI on advertising spending, Suarez answers that “they should always talk about ROAS (Return on Ad Spend) or COS (Cost of selling) when looking at the return of advertising campaigns. The way it should be done is using a multitouch attribution model, so each media provider used can be measured according to its contribution.”
By using a multitouch attribution model each media provider can be measured according to its contribution
Performance Marketing: Setting the Price
Suarez notes that in order to set an appropriate price per consumer action (e.g. click, conversion etc), he asks his clients to to set a conversion benchmark depending on the product category, vertical and type of conversion. “For example it’s harder to convert a lead than to achieve the sale of a retail product, such as electronics.” He adds that the media inventory is bought on a dynamic CPM and CPC basis. The trick is to find the lowest possible CPM in order to reach the client’s KPI.
The trick is to find the lowest possible CPM in order to reach the client’s KPI.
According to Suarez, “in order to optimize toward conversions, he finds it best to impact users that have not
interacted with the brand yet and have not made a specific action within their site. “This is why Teads’ AI was built to find new users, to ensure we’re adding value to our clients by driving new qualified traffic.” Suarez says that he can offer first party data to his clients, taking into account all legal regulations in order to avoid any misuse. However, “if we keep targeting the same users that are already familiar with the brand, there would be no increase in traffic, actions and potentialsales, since the users impacted remain the same.”
Third Party Marketplaces and Performance Based Marketing
Third Party marketplaces including Mercado Libre, Amazon and Rakuten are becoming very important for brand marketers in Latin America. Many regional and local retailers, including multi-vertical app companies Rappi and Grupo Exito have launched or are about to launch their media sales operations. Performance based marketing needs to take this fact into account. Suarez notes that “Teads is currently working with major marketplaces in some countries in LATAM. In addition to this, since supermarkets and top retailers have seen an increase in ecommerce demand, we are leveraging our relationship with them implementing Teads’ technology in order to provide additional insights to clients beyond standard campaign information. We have put this into practice with Cencosud in Colombia and Falabella in Peru and Argentina.”
We are leveraging our relationship with retailers including Cencosud and Falabella to provide additional insights to clients.
The Ascent of Social Selling
Social selling, direct selling over social media properties like Instagram has become very important, particularly in social media over-indexing Latin America. E-commerce marketing initiatives may be well advised to take this into account and be based on performance based marketing. Suarez emphasizes that “the power of social media is based on the P2P recommendation and the massive penetration it has in the region.” “Certain markets, such as Colombia, have seen the usage of Whatsapp as a great tool for social selling. Social Media is definitely a potential channel, but brands still need to be cautious because of all the heat social receives due to fake news, lesser attention for ads, and unsafe environments,” Suarez concludes.
Portada is very excited to announce Portada Live Latam on November 19. At this by invitation only exclusive virtual Latin American marketing event, key Brand Decision Makers will share and accelerate knowledge about Digital Transformation, including e-commerce marketing and other marketing technologies.
Through a combination of exclusive bespoke workshops, pre-scheduled 1:1 meetings, and collaborative knowledge-sharing sessions, Portada Live Latin America will provide the brand marketing community and marketing service suppliers the ideal platform to gain exclusive insights and develop new business.
Latin American Marketing Event: Brand Marketer Driven Programming
A key feature of Portada’s Council System of brand marketers is that they drive the Latin American marketing conference programming. The below topics will be discussed by top thought leaders and experts from the Latin American brand marketing community:
Collaborative Knowledge-Sharing Session: How Covid-19 is Accelerating Digital Transformation in Latin America – A cross-industry perspective Brand marketing executives from the finance, QSR, retail and beauty industries will provide actionable insights about their digital transformation and readiness in these unprecedented times.
Research Spotlight: Consumer Response to Brand Communications in Latin America
An in-depth analysis of consumer receptivity and reaction to brand communications in Argentina, Brazil and Mexico in 2020. Based on proprietary country and sector consumer surveys a deep-dive into the mind of the Latin American consumer will be provided. Based on 2020 findings advice for brand communications in 2021 will be given.
Brand Marketer Challenge: The Holy Grail – Social Selling
In vastly social media over indexing Latin America, a successful social selling practice has become a crucial driver for e-commerce. Understanding the relationship between content and commerce has become hugely important for sales growth. What innovations are currently being created and what will happen next? Hear all about it from the executive at the helm of marketing at Latin American unicorn Rappi.
and much more….
Opportunities for Marketing Service Suppliers
The November 19 virtual Latin American marketing event will also have a strong networking component. According to David Karp, Sales Director at Portada. “Here’s an extraordinary opportunity for Marketing Suppliers to get pre-selected 25-minute meetings with senior-level Latin American marketing buyers who are normally very difficult to reach. Let us help you customize a schedule of 4 to 12 guaranteed meetings to assist you in your new business development efforts.” Executives at Tech, Media and Agencies can request a Marketing Services Supplier Passby filling out this form:
Puerto Vallarta, Movistar, Burger King , HBO Max…and more brands targeting the Latin American consumer right now.
Movistar, the Latin American telecommunications brand owned by Spain’s Telefónica, has awarded its B2C, B2B and digital advertising assignments in Peru to WPP, further expanding the relationship between the companies.The new assignments will be serviced by WPP’s Team Telefónica.WPP won the business in Peru after a competitive pitch that began in February that was conducted virtually. Media buying was not part of the review.Over the past 18 months, WPP’s remit with Movistar has grown with similar consolidations in Argentina and Colombia. WPP also manages the majority of Movistar’s business in Mexico and Chile.The pitch in Peru was led by Wunderman Thompson and VMLY&R. In Latin America, WPP’s Team Telefonica also includes contributions from sibling agency Superunion and Kantar.WPP works with Telefónica in most of its key markets including Brazil, Germany, Spain and the UK on its Vivo, Movistar and O2 brands.
Estee Lauder launched a worldwide, mobile-focused ANRcade site that features four video games themed around the benefits of the brand’s Advanced Night Repair Synchronized Multi-Recovery Complex product, such as “Serum Quest” and “Repair Racer.” The games are being promoted via social and digital, and Estee Lauder’s Jon Roman, Senior Vice President, Global Consumer Marketing & Online, at The Estée Lauder Companies says, “We wanted to find a more fun and innovative way of talking about the product benefits”.
Puerto Vallarta, the premier tourist destination in the Mexican state of Jalisco, is preparing a marketing campaign aimed at getting visitor numbers back to pre-pandemic levels by the end of the year. The campaign will target potential tourists in the United States – the main source country for visitors to the Pacific coast resort city – Canada and Mexico’s largest cities. The Jalisco government will contribute 100 million pesos (US $4.6 million) to the efforts to revive tourism in Vallarta, located on Banderas Bay just south of the Nayarit border. However, the marketing campaign will try to attract visitors to Vallarta in the fall and winter months, he said. The campaign will primarily target potential tourists who live in cities where it takes no more than four flying hours to get to Vallarta given that there is unlikely to be much appetite for long-haul trips while Covid-19 remains a threat. Puerto Vallarta is Jalisco’s, “star destination,” but other tourism hubs in Jalisco – among which are state capital Guadalajara and the town of Tequila – will be especially competitive in the United States market.
To find out about Portada’s new virtual networking solutions at PortadaLive Latin America involving a myriad of brand decision makers, please contact Sales Director David Karp at David@portada-online.com.
Influencer Marketing Campaign
Influencer marketing firm IZEA Worldwide, announced that it has secured a mid six-figure contract with a leading entertainment company, a division of a Fortune 100 corporation. The contract represents the largest award IZEA has received from this customer to date. IZEA will be executing a large-scale influencer marketing initiative that will include influencers in the United States, Latin America, Asia, and Europe across a variety of social media channels and content formats.
David São Paulo introduced a spot “that shows you a great time not to visit Burger King”.The agency assembled what it says is real footage of late-night shenanigans that have happened at Burger King stores in Brazil. Burger King has shut down much in-store dining in Brazil during the coronavirus pandemic,and is promoting home delivery.
HBO Max has chosen Latin America as its first market outside the U.S. WarnerMedia, HBO’s parent company, hired Hulu’s former international boss, who will be focused on the launch in the region, which is expected in 2021. But why Latin America? The answer may lie in two factors present across the region: the strength of HBO-branded channels and the company’s own assets to operate locally, Latin American Business stories, Latin American Business Stories reports.
We talked to Yocelin Delgadillo, Media Manager Victoria and Premium Brands at AB InBev during her participation at AdWeek Latam. We discussed new digital strategies for Mexican brands, particularly how marketing for Modelo and other beers has swiatched to digital. In addition, she told us all about partnerships with fairs and festivals, e-commerce, and the company’s plans for streaming entertainment platforms.
E-Commerce and New Digital Strategies
What’s your on and offline media mix?
This year, we’re becoming a digital-first company for the first time ever. This doesn’t mean 100% of our budget goes to digital, but rather that we’re growing in the digital space. For some brands, a digital-first media mix means 60% of their budget goes to digital. This varies throughout our portfolio, but we have many new digital strategies.
For some brands, a digital-first media mix means 60% of their budget goes to digital.
Strategies for Stella and Michelob Ultra, brands in our premium portfolio, are very digital and e-commerce-focused. Actually, Stella has a very strong e-commerce perspective. It’s one of the best-selling brands in our e-commerce platform Beer House.
How did you launch and reinforce e-commerce?
The key to enter e-commerce was communication with retailers such as Rappi, Amazon and Mercado Libre. We have entire teams devoted to our relationship with them, designing promotions and creating brand awareness in those platforms. We know we must take awareness as a starting point in order to speed up the funnel. It’s even more efficient in Mercado Libre and Amazon, for instance, because the purchase takes place right there.
Every single piece of digital content of ours contains a call to action. Not all of them are necessarily related to sales, but we redirect users to websites that are mainly devoted to sales. We rarely send any traffic from a branding site to see more content. “If you’ve seen Vicky Chamoy and you’re already interested, you can buy it here.” You click on the CTA and it’ll take you to Beer House or Modelorama to get the product. That’s one of the pros of having our own e-commerce platform in house. We can estimate, optimize, and actually measure sales.
That’s one of the pros of having our own e-commerce platform in house. We can estimate, optimize, and actually measure sales.
Sponsorships of Fairs and Festivals
Tell us a bit about brand presence in festivals like Corona Capital and Flow Fest.
I’m in charge of four brands: Michelob Ultra, Modelo, Stella Artois and Victoria. Therefore, I need to be very aware of the perspective and muse of each brand. Each brand has a very different target. However, we have them well defined, and that helps us understand what works and what doesn’t, as well as to design new digital strategies for them.
Each brand has a very different target. However, we have them well defined.
Yocelin Delgadillo, Director of Integrated Marketing Communications, AB InBev.
On the other hand, experience marketing has become a platform to showcase all the Modelo brands. Before, you wanted to buy beer at the Corona Capital festival and they only had Corona. Now, Corona is the headliner, but Stella has a VIP bar, or BudLight headlines EDM festivals in the North of the country, but Corona is always there. Now we have full portfolio presence instead of just activating one brand. We’ve been there since 2019. All these experiences have also become perfect sampling occasions (for new products). Fairs are very important sampling points for our new Chamoy line. Victoria is the main brand, but we want to launch the Chamoy variety and that’s where consumers can try it.
How do you manage to get your message across at festivals, which involve so many different sponsors and brands?
We have an advantage: our experiences team is part of our media area. The name of that whole department is “Connections”, and it’s in charge of all connections with consumers ranging from advertising to events. Because we’re in the same area, we speak the same language and are aware of the same strategies. Actually, at the Experiences team, when we work with OCESA and other organizers of art festivals we try to close deals that are not simply about being another sponsor looking for naming. We want to get involved with the experience, we want to sponsor a stage that receives music that resonates with the brand.
We want to get involved with the experience.
They know we’re more than just a company that wants its logo on the poster. We want to be a part of the experience. Our advantage is our long relationship with them, they know our message by now.
A Slice of the Streaming Cake
What is the marketing team focusing on most intensely at the moment?
Everything related to data. We have a new data expert entering the team who’ll put together campaigns based on first-party data. I think personalization at scale is crucial, it’s one of the area’s KPIs, and a great percentage of our digital impressions are segmented according to affinity instead of just ethnographic information. Also, our business intelligence team sends us daily reports. Together with the agency, we’re constantly monitoring asset performance per audience. We prepare a specific briefing per audience for each campaign.
We have a new data expert entering the team who’ll put together campaigns based on first-party data.
Another new thing is that we have someone dedicated to entertainment, looking at how we take part of series and movies. It’s going beyond product placemant. The question is, are we truly participating in entertainment in an active way? We already have an important relationship with Netflix and Amazon Prime, where our products play an important role in the story.
What changed in the consumer to make you enter those platforms?
People decide what they want to watch. It’s no longer a matter of choosing between open broadcast and cable TV. Many people watch content on Youtube, Hulu, Netflix. If we want our message to reach them, we have to migrate to where they are. Streaming platforms don’t want us there, so it’s interesting how we create a relationship with content creators so that they make us a part of their stories.
If we want our message to reach them, we have to migrate to where they are.
In the interview with Delgadillo, we didn’t specifically address the branding difficulties that have resulted from the Coronavirus pandemic. However, other media have discussed the confusion and consequences for the Corona brand.
Even though it could seem obvious that the virus isn’t in any way related to beer, AdWeek reports that between January 26 and February 1, Google Trends registered an important increase in searches such as “beer virus” and “corona beer virus”.
So far, the company behind the Corona brand hasn’t said anything about the subject. On the other hand, social media has created a series of memes to make fun of the confusion. AB InBev has not withdrawn from partnerships with important events such as Corona Capital, scheduled to take place in Guadalajara in May and later on in Mexico City.
Daniel Galvan Duque, Marketing Director for Flavored CSD’s at Gepp PepsiCo Mexico tells Portada about their Consumer Engagement Cycle for reaching audiences through meaningful experiences, heartfelt stories and open conversations. You may know everything about your consumers nowadays – what they wear, where they go, what they eat, and even what they need and when they need it. Perhaps your brand has been paying close attention for years. But have your brand’s consumers been paying attention to you? Read on to see how Gepp PepsiCo Engages the Mexican Consumer.
Interview conducted by Alejandra Velazquez
The Power of Storytelling
PepsiCo has been mastering the Consumer Engagement Cycle for decades. Their beverage portfolio is relatable, and their strongest brands have been household names for the fashion, music, and sports industries for decades. This isn’t just about what people like, it’s about how people live. Melding into consumers memories of meaningful events gives brands a backstage pass into people’s experiences. And once they’ve shared an experience, it’s how the story gets told.
El Peluches: Creating Engagement Through Passion
When people don’t immediately skip your ad, you know you’ve hit a home-run. “Truth is, in an era populated with so many brands, communication, and content, the challenge is grabbing people’s attention,” says Daniel Galvan Duque, the man behind PepsiCo’s marketing strategy. In August 2016, Gatorade partnered with Alejandro “El Peluches” Ruiz, a man who runs marathons wearing a vest covered entirely in plush toys. Why? Because his unique passion encourages others and brightens their day. Gatorade was clever enough to notice and share the story to connect with their Mexican audience.
Truth is, in an era populated with so many brands, communication, and content, the challenge is grabbing people’s attention.
The “El Peluches” ad was an unconventional format with a story worth telling. “You have to constantly challenge yourself to produce things that create proximity. The digital world demands you to keep your pre-rolls under five seconds long and all your content under 20, and here was this 2’30’’ narrative with a 70% view rate” reminisces Galvan Duque.
5v5 Montemorelos: Rooting for the Underdogs
The Gatorade 5v5 soccer tournament in partnership with the UEFA Champions League has gained plenty of momentum in its four-year run (check out our interview with Jill Leccia, Senior Marketing Director – Gatorade Latin America). In 2017, a team from the small rural town of Montemorelos made it to the playoffs but lost in the semifinals. “They asked us if there was a chance they could try again at the second playoffs, and we gave them permission. This time they won, and that gave us a chance to tell a great story. They ended up losing at the finals and didn’t get to travel to Barcelona for the first prize, but we still made the story fit perfectly with the brand’s message: sometimes you win, sometimes you lose, but you never quit trying” says Galvan Duque.
Sometimes you win, sometimes you lose, but you never quit trying.
The outcome was a brief 3’34’’ documentary in which the narrator says “At the end you might win. You might not win. You might have all the odds against you. But one thing is true: in Montemorelos and anywhere else, if you keep sweating, nothing can stop you”. The message matched the brand messaging and reached over seven million views.
Fido Dido Parade: Nostalgia and Influence
Relatable characters, a touch of nostalgia and partnerships with influencers can keep brand awareness alive. Fido Dido was 7UP’s beloved hand-sketched character in the nineties who was “ageless, thoughtful, chill, and compassionate towards one and all” according to one of its creators Joanna Ferrone. Reviving an ambassador like Fido Dido, highly nostalgic and relatable, does wonders for sparking all kinds of conversations, activations, experiences, and stories – the cogs that keep the Consumer Engagement Cycle alive and spinning.
We wanted each to have a different personality, imprinted by the person creating them. So we found an influencer pool that made sense with the brand.
He recently made a comeback in a series of ads and parades held across Mexico where the brand invited different artists to decorate blank forms of the beloved character. “We wanted each to have a different personality, imprinted by the person creating them. So we found an influencer pool that made sense with the brand. First thing to consider is whether they believe in your message and what you’re doing” reveals Galvan Duque. The right strategy goes a long way for how Gepp PepsiCo engages the Mexican consumer.
Daniel Galvan Duque, Marketing Director for Flavored CSD’s at Gepp, PepsiCo Mexico, will be one of the dozens of brand marketing innovators present at Portada Miami on June 4, 2020. If you are interested in participating in Portada Miami and/or in Portada’s networking and knowledge-sharing platform with brand marketers please contact us here.