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By Sebastian Yoffe, Managing Director – Latin America, Lotame

Data Collect
By Sebastian Yoffe, Managing Director – Latin America, Lotame

Data is one of the most valuable resources businesses have. The more information you have about your customers, the better you can understand their interests, wants and needs. This enhanced understanding helps you meet and exceed your customers’ expectations and allows you to create messaging and products that appeal to them.

How do you collect this data? One of the most crucial tools for collecting — as well as organizing, analyzing and activating data — is the data management platform, or DMP. Your DMP can help facilitate all these steps and provide you with the tools you need to make the most of your data. There are various data-gathering methods you can use with the help of your DMP. We’ll explore some of the most common data collection methods below.

Primary Data Collection

The term “primary data” refers to data you collect yourself. Primary data is information obtained directly from the source. You will be the first party to use this exact set of data.

When it comes to data businesses collect about their customers, primary data is also typically first-party data. First-party data could include data you gathered from online properties and apps, data in your customer relationship management system (CRM), email marketing campaigns, offline data you collect from your customers through surveys and various other sources.

Because first-party data comes directly from your audience, you can have high confidence in its accuracy, as well as its relevance to your business. However, first-party data presents a narrow view of customers within the boundaries of a particular website or app.

Because first-party data comes directly from your audience, you can have high confidence in its accuracy, as well as its relevance to your business. However, first-party data presents a narrow view of customers within the boundaries of a particular website or app. To meet the needs of marketers who require a panoramic view of customers, you will need to enrich your first-party data with other types of data.

Second-party data has many of the same positive attributes as first-party data. It comes directly from the source, so you can be confident in its accuracy, but it also gives you insights you couldn’t get with your first-party data. Third-party data offers much more scale than any other type of data, which is its primary benefit. But third-party data can also fill in the gaps of knowledge about customer passions, interests, and behaviors.

hird-party data offers much more scale than any other type of data, which is its primary benefit.

Quantitative vs. Qualitative Data

You can divide primary data into two categories: quantitative and qualitative.

Data CollectQuantitative data comes in the form of numbers, quantities and values. It describes things in concrete and easily measurable terms. Examples include the number of customers who bought a given product, the star rating a customer gave a product and the amount of time a visitor spent on your website.

Quantitative data lends itself well to analytics. When you analyze quantitative data, you may uncover insights that can help you better understand your audience. Because this kind of data deals with numbers, it is very objective and has a reputation for reliability.

Qualitative data is descriptive, by contrast. It is less concrete and less easily measurable than quantitative data. This data may contain descriptive phrases and opinions. Examples include an online review a customer writes about a product, an answer to an open-ended survey question about what type of videos a customer likes to watch online and the conversation a customer had with a customer service representative.

Qualitative data helps explain the “why” behind the information quantitative data reveals. For this reason, it is useful for supplementing quantitative data, which will form the foundation of your data strategy.

5-Step Process to Collect Data

There are many techniques for collecting different types of quantitative data, but there’s a fundamental process you’ll typically follow, which consists of the following five steps.

1. Determine What Information You Want to Collect

First, choose what details you want to collect. Decide what topics the information will cover, who you want to collect it from and how much data you need. You may want to collect data about which type of articles are most popular on your website among visitors 18–34 years old. You might also choose to gather information about the average age of all of the customers who bought a product from your company within the last month.

2. Set a Timeframe for Data Collection

Next, you can start planning how you’ll collect your data and establish a timeframe for data collection. You may want to gather some types of data continuously. When it comes to transactional data and website visitor data, for example, you may want to set up a method for tracking that data over the long term. If you’re tracking data for a specific campaign, however, you’ll track it over a defined period. In these instances, you’ll have a schedule for when you’ll start and end your data collection.

3. Determine Your Data Collection Method

At this step, you will choose the data collection method that will make up the core of your data-gathering strategy. Consider the type of information you want to collect, the timeframe over which you’ll obtain it and other aspects you determined.

4. Collect the Data

Once you have finalized your plan, you can implement your data collection strategy and start collecting data. You can store and organize your data in your DMP. Be sure to stick to your plan and check on its progress regularly. It may be useful to create a schedule for when you will check in with how your data collection is proceeding, especially if you are collecting data continuously. Update your plan as conditions change and you get new information.

5. Analyze the Data and Implement Your Findings

Once you’ve collected all your data, it’s time to analyze it and organize your findings. The analysis phase is crucial because it turns raw data into valuable insights that you can use to enhance your marketing strategies, products and business decisions. Once you’ve uncovered the patterns and insights in your data, you can implement the findings to improve your business.

There are various methods of collecting primary, quantitative data. The right one to use depends on your goals and the type of data you’re collecting. Some of the most common types of data collection used today are: surveys, online tracking (e.g., your website or mobile app), transaction data tracking (e.g., ecommerce, in-store point-of-sale system), online marketing analytics, social media monitoring, collecting subscriptions and registration data (e.g., your email list, rewards program), and in-store traffic monitoring.

There are various methods of collecting primary, quantitative data. The right one to use depends on your goals and the type of data you’re collecting

The more relevant, high-quality data you have, the more likely you are to make good choices when it comes to marketing, sales, customer service, product development and many other areas of your business. Some specific uses of customer data include the following: improving your understanding of your audience, identifying areas for improvement, predicting future patterns, and better personalizing your content and messaging.

How are you collecting your data today? Are you using data to drive your business and connect with customers? I would love to learn about your data strategy; please send me a note directly: syoffe@lotame.com

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.
Beer House Caption

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

AB InBev e-commerce

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.

Coronavirus Crisis

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.

Roberto Muñoz, Head of Loyalty Travel at Puntos Colombia manages a joint program between Colombia’s largest bank Bancolombia and Latin American retailer Grupo Éxito. Prior to his current role, he was a strategist for Aeroméxico’s loyalty program Club Premier. The brand marketing leader shares key insights about digital channels for loyalty marketing with Portada including how tech and digital channels enable companies to engage and gain new customers and keep them happy coming back.

Interview conducted by Alejandra Velazquez

Roberto Muñoz, Portada, e-mail marketing
Roberto Muñoz, Puntos Colombia @puntoscolombia

Technology plays a crucial role in enabling marketers to do a better job. In fact, 84% of executives surveyed by Accenture agree that companies are using technology to weave themselves seamlessly into how people live today. 

“Technology helps us to segment audiences. It sparks activation” Muñoz says, adding “Technology provides us the data to develop the right targeting strategies. That way, we keep captive users interested and lure in new consumers via their passion points, like travel, fashion and entertainment. The challenge is recruiting customers that actually interact with the brand, not just sign their name on a list.” But nothing matters if the information isn’t properly documented. The challenge is tracking customer data and applying it correctly in order to serve your marketing strategy. A department that manages and filters big data correctly is always a must.

But nothing matters if the information isn’t documented properly. A department that manages and filters big data correctly is always a must.

Digital Channels: E-mail Marketing is Still an Effective Tool

“Digital channels are key to bring new customers into our loyalty programs. You can target specific audiences by sending key messages. 85% of our customers say they read our news through e-mail marketing. I’ve heard many experts talk about the death of e-mail marketing, but our numbers show the contrary,” Muñoz asserts.

Segmenting information via e-mail is the only thing that ensures the client remains active in your program.

According to Muñoz, segmenting information via e-mail is the only thing that ensures the client remains active in your program. Many strategists say “leave your most valuable customers alone, you don’t want them to get bored. I think when you’re really involved with a brand, you don’t mind how often they contact you. You know you’ll get relevant content eventually.”

…Social? Not so much

“Social network strategies are too focused on massive audiences. We address and recruit a very small percentage of users on social networks. Some programs only want users to click here and then to subscribe to a given program and get an immediate benefit. However, out of all users who sign up, a tiny percentage will actually become involved. You invest a lot of money and end up with a handful of users akin to your brand. One time in Aeroméxico we set a goal to sign up one million new customers onto our base. But in the end, less than 5% of those clients were actual travelers. The rest had been “bullied into it” by the hoards of ads we’d purchased on digital.” 

You invest a lot of money and end up with a handful of users akin to your brand.

Three Ways to Get Customer Feedback

Reliable customer feedback is also an important piece of Puntos Colombia’s strategy for using digital channels for loyalty marketing. Muñoz has developed three ways to approach customers:  direct meetings, focus groups, and surveys.

“High-profile customers get invited to breakfast or lunch to offer their feedback and opinions about the program. Nothing is as valuable as having customers tell you how they feel in person. We have a very direct style of approaching customers. The director of the program may have a sit down with customers and explain what they can and can’t do about their non-conformities.”

They also have focus groups conducted through third-party researchers. Because when consumers don’t know they’re speaking directly to a brand, it helps them give unbiased feedback. Last but not least, there’s surveys. Many valuable customers take the time to respond and are often rewarded with incentives like additional points. The incentives help ensure they are interested in giving their honest opinion.

Reliable customer feedback is also an important piece of Puntos Colombia’s strategy.

Roberto Muñoz, Head of Loyalty, Travel at Puntos Colombia, 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.

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

Daniel Galvan Duque, Portada, Brand Marketing
Daniel Galvan Duque, Gepp PepsiCo Mexico @gepp

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.

Teads has invited select guests to get a preview of the platform’s product portfolio in 2020. The Teads Vision 2020: Miami Upfront will take place on November 20 at the Silverspot Cinema in Downtown Miami. 

 

Teads is one of those companies that are known because it has both eyes set on the future. For 2020, it plans to continue producing innovating solutions in advertising, and they’re not shy about it! Actually, they’re celebrating big time with an upscale event. At the Teads Vision: 2020 Miami Upfront, the company will showcase its great ideas for the future in the heart of Downtown Miami.

The sharpest minds at Teads will host an afternoon of talks on November 20th at the Silverspot Cinema. Brands will be able to see what Teads has in store, and see which products resonate with their objectives. After an introduction by Latin America SVP Eric Tourtel, Teads’ co-founders Bertrand Quesada and Gilles Moncaubeig, as well as Chief Strategy Officer Todd Tran and Monika Cerqueira, Head of Teads Studio Latin America will share their ideas and plans to deliver an optimal advertising experience in 2020.

Guests will spend an insightful time with the Teads team, building together an innovative plan for 2020 while keeping their brand’s marketing objectives insight. After the talks, Teads will host a happy hour for everyone to network and enjoy.

 

What: Retailers scramble behind Amazon and MercadoLibre to capture their share of expanding e-commerce in Latin America. This happens despite difficult payment and delivery challenges.
Why it matters: Experts predict e-commerce trends will grow by 19% in the next five years. They see it rising well above the global average of 11%. The lack of brick-and-mortar retail outlets in Latin America actually plays into the hand of e-commerce retailers. That’s because it allows them to offer products to consumers outside of major cities who don’t have many shopping options.

E-Commerce Trends Heating Up

E-commerce trends in Latin America provide no place for the timid. The challenges are well-known. Experts say they include lack of infrastructure, consumers without credit cards or bank accounts, high rates of online payment fraud, and obstacles to delivering product—to name just a few.

But the barriers to success don’t stop leading players. For example, MercadoLibre is diving into the e-commerce market and thriving.

One expert remarks the challenges are “daunting.” But competitors like Linio are finding ways to outperform. They chase what Linio’s General Director Olivier Sieuzac says is a “massive opportunity” in expected e-commerce growth in the region.

Linio has learned it had to expand its online business model. That means beyond just selling product. The strategy now includes things like creating its own delivery fleet. Linio also sells its hard-earned expertise to brands like Aeromexico who create their own online retailing presence.

To succeed in Mexico, Linio built partnerships with VISA to prevent credit card fraud. Consequently, it also joined arms with third-party payment channels. They include the convenience store chain Oxxo. Linio aims to provide the unbanked with cash-payment options.

Mexico, according to Sieuzac, offers the “worst of both worlds.” Mexico suffers high levels of online payment fraud and a low level of cooperation from banks.

As a result, Linio developed a proprietary algorithm with VISA as a response to reduce credit card fraud. Consequently, Linio also now offers its own credit card with a loyalty program. The loyalty program awards cash back on purchases.

Linio also created its own fleet in Mexico to handle the delivery of over-sized items like refrigerators and other home appliances.

Infrastructure, payment obstacles

Lack of infrastructure in Latin America makes delivering product a particularly difficult part of the e-commerce business.

Logistics and related issues amount to 15 percent of the cost of what’s sold online—well above other regions, according to Miriam Dowd, Marketing Manager at FOCUSECONOMICS.

Merchants experience the impact of “limited” access to credit card-based payment methods. Banks often don’t allow debit cards to be used for online payments.

E-commerce in Latin America faces many challenges, the most daunting of which are logistics, traffic, and infrastructure. Regulations and rules vary among countries. Merchants have and limited access to secure, credit-card based payment methods,” Dowd explains.

Online sales are expected to grow by 19% in the next five years. As a result, that is well above the global average of 11%. They are foreseen to double in value to $118 billion in 2021.

But on the positive side of the ledger, experts say market penetration is low compared to other regions. As a result, that represents lots of opportunity. Consequently, the market also offers higher growth rates.

“Online sales are expected to grow 19% in the next five years – well above the global average of 11%. As a result, they will double in value to $118 billion in 2021. Consequently, two of the three fastest-growing eCommerce markets in the world are in Latin America. They are Colombia and Argentina,” Dowd said in an email to Portada.

E-commerce trends forecaster eMarketer found even with this expected high growth rate, nearly 75 percent of the market of 650 million consumers expected to shop online is untapped.

E-commerce trends working for e-retailers

MercadoLibre boasts status as the undisputed leader in Latin America. Its huge geographic footprint and logistics expertise “have helped it to hold the lead,” Dowd said.

Amazon leverages its international recognition to become a leading player in Latin America.

And for Linio, expanding its business model and offering consumers a trusted, predictable and “formal” online shopping experience proves critical to its success, according to General Director Sieuzac.

Linio seeks to set itself apart from other online retailers by rigorously vetting its product providers to make sure what they offer Linio’s customers meets certain standards.

Linio offers free returns in its strategy of building customers’ confidence.

“We’re not leaving customers alone in a face-to-face situation with the seller,” Sieuzac said.

Linio’s strategy provides its online expertise to brands. They then create their own online shopping sites, a key component of Linio’s competitiveness.

As a result, Linio entered into a partnership to build and operate Aeromexico’s Club Premier online shopping experience.

Mexico offers the worst of both worlds: high levels of online payment fraud and a low level of cooperation from banks.

Linio also partnered with the micro-financing company ConCredito. ConCredito provides a huge presence in rural zones not necessarily within Linio’s geographic footprint.

Linio publishes its catalog of products on ConCredito’s website “Creditienda.” Linio spokesperson Paulina Maza said the company supports the ConCredito e-commerce site with specific promotion campaigns. They include digital marketing, logistics, fast delivery of products, and returns.

What lies ahead

The lack of brick and mortar retail outlets in Latin America actually plays into the hand of e-commerce retailers. That’s because they can offer products to consumers outside of major cities where consumers don’t have many shopping options. Sieuzac told Portada, “It’s a massive opportunity. You have people that simply don’t have access to products, even from a normal shop.”

A “key component” of e-commerce growth in Latin America proves to be shopping online with a mobile phone. As a result, a report by yStats.coMobile commerce reveals experts expect it to increase at a faster rate than e-commerce.

Brazil offers the largest consumer e-commerce market in Latin America. The report found experts predict Colombia to show a 20 percent growth rate through 2021.

A summary of the report reveals experts predict: “Rising internet and smartphone penetration rates, greater online payment security and development of MCommerce to contribute to the growth of online retail sales.”

A summary of the most relevant LatAm consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop shop.

 

  • In-Store Media, together with research agency IPSOS, conducted a study to understand the consumer behavior of digital grocery buyers in Mexico. The survey covered questions about their shopping habits, channels, demographic characteristics, favorite categories, and other preferences. The results show 39% of online grocery shoppers buy their groceries exclusively online. Moreover, 35% of online grocery purchases are completed via smartphones. Online-exclusive shoppers said it’s fundamental to receive their order on time (92%), while shoppers who combine online vs brick-and-mortar purchases think the priority is receiving products in good condition. 

 

  • According to Unisys’ 2019 Security Index Colombia has the second highest credit-card consumer distrust level just after the Philippines. Unisys’ Security Index found that 90% of Colombian credit-card holders are afraid of having their card information misused by third parties.  Furthermore, 87% of survey respondents said they are seriously worried about identity theft and personal data breach.

 

  • ReutersDigital News Report shows Latin American consumers have increased their use of Instagram and WhatsApp as news sources. The survey was conducted in Argentina, Brazil, Chile, and Mexico, with around 2,000 people interviewed in each country. When looking for news content, the region shows an average growth of 7.5% for Instagram and 4.2% for WhatsApp from 2018 to 2019. Even though Facebook only grew by 1.7%, it’s still the most-used social network for news consumption in the four countries, followed by WhatsApp in all except Mexico, where YouTube takes the second spot.

 

  • DAlessio Irol & Berensztein‘s latest survey shows 9 out of 10 Argentine middle-class homes have started buying cheaper food-and-beverage brands in recent months, reported Impulso Negocios. The survey found 89% of the higher-middle class, and 83% of the middle and lower-middle class have chosen second or own brands. In average, all consumers have lowered consumption of 13 food-and-beverage products. In the last 9 months, Argentines have increased their rice consumption by 43%. 

What: Kantar has published the results of a study that aims to understand millennial households in Latin America.
Why it matters: A quarter of the population of Latin America is millennial, and they account for 24% of total FMCG spend – equivalent to US $30 billion dollars.

 

Millennials are on every marketer’s mind, for one reason or another. In Latin America, they account for 24% of total FMCG spend, equivalent to US $30 billion dollars. Most of them are grown-ups, which means marketers should be thinking of understanding not only how they behave, but also how they fulfill their responsibilities and care for their families.

Kantar has released the results of a study titled Demystifying Millennial Families that aims to provide the full picture: what’s on millennials’ minds? What are their households like? What are their priorities? While it’s true that they are digitally connected all day every day, this also means they expect products, services, and experiences to be personalized, so brands need to be able to tailor their message specifically for their target if they wish to make an impact. Below are a few of the study’s main findings.

 

Millennial Families: What Makes Them Different

According to Kantar’s report, 8 in every 10 millennial households have young children, defining to a great extent the family’s cares and concerns. Two-thirds (66%) of these households are low-income families, and half are getting by on a single income. Half of millennial housewives in Latin America do not have jobs and the ones who do only work part-time. If we add to that the financial pressures of the country they live in, millennials have it difficult. Because of this reason, they are switching to economy brands and looking for special promotions.

High-income families, on the contrary, represent 34% of the millennial population in Latin America. They tend to have smaller families, of one or two people and are less likely to have kids.

Source: Kantar, Demystifying Millennial Families

What Do They Buy?

To a great extent, what millennial families buy (and how they buy) depends on their income and whether they have children. The report shows 63% of high-income families own a car, compared to only 22% of low-income families.

Millennials are also spending a big percentage of their budget on groceries, and e-commerce is growing fast in this category. As said in the report, this is set to be an increasingly key channel through which to reach millennials, with value share expected to reach 5% in Argentina and 3% in Brazil and Mexico by 2025.

The products in millennials’ baskets are directly related to their families’ needs. Diapers, powdered milk, snacks, biscuits, and bread are the most-bought products among low-income households, making up 15% of the value share. UHT milk, beer, yogurt, pet food, and cheese are the top categories (14.5% value share) for high-income families. As for their online purchases, personal care products make up almost half of all FMCG products bought online by millennials, twice that of the general population.

As the report concludes, marketers really need to be aware that the millennial generation has grown, and so have their hopes and responsibilities: “It’s time to revisit millennial shoppers and adjust our view of who they are – recognizing the line that exists between high-income and low-income households. Only then can we successfully reach, target and engage this vitally important group.”

 

 

What: MightyHive has announced the acquisition of Brazil-based ProgMedia, a programmatic solutions consulting firm.
Why it matters: This acquisition expands MightyHive’s operations into Latin America, and is expected to increase ProgMedia’s customer base by more than 200 percent over the next 12 months.

MightyHive has announced the acquisition of Brazil-based ProgMedia, a programmatic solutions consulting firm. According to the terms of the agreement, ProgMedia will become a wholly-owned subsidiary of MightyHive, which already operates throughout North America, Europe, and Asia-Pacific. This acquisition expands MightyHive’s operations into Latin America, and is expected to increase ProgMedia’s customer base by more than 200 percent over the next 12 months.

“MightyHive’s growth by acquisition this week is consistent with S4 Capital’s strategy of broadening our capabilities in first-party data, content, and media around the world,” said Pete Kim, MightyHive CEO, in a statement. “ProgMedia is the strongest programmatic company in the region and will propel our Latin American business forward so we can capitalize on the clear market opportunity here. We expect our success will lay the groundwork for further acquisitions in 2019 and 2020.”

The acquisition will allow current customers of ProgMedia to draw on MightyHive’s international strength and partnerships, as well as allow global enterprises to extend their in-housing or programmatic initiatives with MightyHive to Latin America. ProgMedia plans to rebrand itself as MightyHive in the coming year as it broadens its service offering and technology partners. Bruno Rebouças, CEO and Founder, and Natália Fernandes, COO and Partner, will remain as the leaders of the ProgMedia team and will report to Emily Del Greco, President of the Americas for MightyHive.

“We feel strongly that this move is the right one for ProgMedia’s clients and team,” said Bruno Rebouças, CEO and founder of ProgMedia. “MightyHive’s culture and values reflect ProgMedia’s high standards for client service and employee happiness. Moreover, we share a vision to help companies master the technologies required to digitally transform themselves for success. We look forward to working with MightyHive to help marketers and agencies in Latin America fully realize the potential of advanced marketing and advertising technologies.”

 

What: Marketing disruptors and innovators shared insights on the advance of marketing technology in Latin Markets at Portada Miami on April 12. Here are some of the takeaways that you missed.
Why it matters: In its twelfth annual edition, Portada Miami gathered over 100 decision-makers involved with major brands across all sectors, and provided a space for top quality networking and knowledge-sharing.

 

 

Rappi’s Carlos Leal and The Shipyard’s Kate Canel

This fragmented, hyper-connected world forces us to adapt to the new trends as soon as they appear. And even though data, the blueprint of this ship we’re all on, is there to guide us through the process, the fact is there’s too much of it available to even comprehend.

Technology is an enabler, but it demands early adoption. As demonstrated throughout the Portada Miami series of talks and panels last Friday, tools like AI are here to help, but there are barriers that have kept certain markets behind. However, both brands and service providers are getting ahead, and it is precisely spaces like Portada Miami that allow collective knowledge to grow.

Ana Laura Acevedo and Latam Airlines’ Pablo Chiozza at the Travel Marketing Board private meeting

During the private activities of the Portada Council System on Thursday, three of the council units, the Travel Marketing Board, the Americas Board, and the Brand Star Committee Latam discussed relevant topics like social media’s evolving role, knowing your customer in a multi-channel world, digital organization, brand differentiation, and strategic video use. Right after the meeting, Travel Marketing Board Ana Laura Acevedo, SVP, Marketing & Business Development at RCI Latin America, sent an email to her team to put in practice an idea that had come to her while talking to her peers.

Portada Meet-Up

Attendees could network with members of the Portada Council System the day after, and listen to the brilliant speakers on the Portada Miami agenda, who also discussed the role of the city and its future as a marketing hub. At the Portada Meet-Up session, ticket holders held one-on-one meetings with brand and agency executives of their choice. Here are some of the key takeaways of the #PortadaMIA panels.

 

 

 

“Contextual relevance is what earns you the right to engage with the multicultural consumer. We use data to vet that environment or content.”

(Ana Crandell, Group Account Director, OMD Multicultural)

 

 

“Have very clear goals and objectives, stick to your strategy and plan, and know it takes time to reach your objectives.”

(Christine Esteve, VP E-Commerce, Carnival Cruise Lines)

 

 

“Performance is something that has a very clear outcome. Make sure to understand your consumer, don’t do content for content’s sake.”

(Andrés Amezquita, VP Digital and Commercial Excellence, StanleyBlack&Decker Latin America)

 

 

“As marketers we need to understand consumers and identify what the barriers and frictions are, and only then look at how technology can help.”

(Andres Polo, Global Head of Innovation & Strategic Partnerships Marketing, Visa Inc.)

 

 

“The online consumer today is not determined by demographics but by their interaction with digital. “

(Carlos Leal, Marketing Director, Rappi)

 

 


“We started from the premise that especially in Latin America, when you really love something, you live it.”

(Carlo Espinoza, Senior Marketing Manager, Latin America Beverages

Pepsi)

 

 

“The diverse Miami workforce reflects what the United States will look like in years to come.”

(Joseph Roisman, EVP, Perry Ellis International & Jaap Donath, Ph.D., Senior Vice President, Research & Strategic Planning, The Miami-Dade Beacon Council)

 

 

What: Smart Alliance is a new company that specializes in airport advertising space, with a focus on travel retail and luxury.
Why it matters: Smart Alliance is the largest airport alliance in Latin America, reaching 40% of the passengers that move through the top 10 airports of the region.

 

Smart Alliance, a new company that specializes in the commercialization of advertising space and special airport activations with a focus on travel retail and luxury, is the largest airport alliance in Latin America. With an exclusive network in Mexico, Brazil and Colombia, it reaches about 90 million or 40% of passengers that move through the top 10 airports of the region. Global reach allows this airport network to be a point of contact between companies and passengers of the rest of the airports of the continent.

Smart Alliance’s communication services are based on the needs and interests of passengers, which they gather through a combination of technology, big data, and innovation. Rodrigo Manceñido, General Director of Smart Alliance, has over 18 years of experience in the travel retail and luxury industries throughout the Americas and Europe.

The company and its team were present at the latest edition of the TFWA Exhibition and Conference, the largest annual event for the Duty Free and Travel Retail industry worldwide, with Cannes as the epicenter of networking and business development for the company.

Another important milestone was its participation in the Festival of Media Latam (FOMLA) Miami, where Manceñido talked about “How to Use OOH in Airports Effectively in Travel Retail and Luxury.” During his presentation, he focused on Smart Alliance’s integral communication services.

Smart Alliance foresees 2019 will be an ambitious year. It will be attending the Duty Free & Travel Retail Summit of the Americas next March in Orlando, and again the TFWA in September, with a novel exhibition proposal in the Digital Village, with one2one dating service, presentation of new services, exclusive tools and expansion of its airport portfolio.

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the market and/or targeting Latin American consumers right now.

For prior Sales Leads LatAm editions, click here. 

  • Rappi

On-demand delivery platform Rappi has appointed Ogilvy Mexico as its regional agency. Founded in 2015, the company nowadays operates in 23 cities in six LatAm countries: Argentina, Brazil, Chile, Colombia, Mexico and Uruguay. Rappi landed the mexican market two years ago and has already more than one million users who make nearly 50,000 daily orders. It currently operates in the State of Mexico, Guadalajara, Querétaro, Monterrey, Mérida, Puebla and, of course, Mexico City. Rappi´s Marketing Director Carlos Leal is a member of Portada´s Brand Star Committee LatAm.

 

 

  • United Airlines

United Continental Holdings Inc is eying joint ventures with three Latin American carriers in the near future, Reuters has reported.United, the third-largest U.S. passenger carrier, is trying to finalize joint-venture agreements with Colombian airline Avianca Holdings , Panama’s Copa Airlines and Brazil’s Azul Linhas Aéreas Brasileiras. Such deals would improve connectivity between the U.S. and Latin American aviation markets and create growth opportunities.United is looking to add lie-flat beds in business class in 2020 on some of its Boeing 737 MAX 10 narrow-bodies that would fly domestic routes.

 

 

  • Holiday Inn

IHG (InterContinental Hotels Group) announced the new opening of the 4-story, 196-room Holiday Inn Ciudad Juárez hotel. Located on Juarez Tecnologico Avenue 3620, Partido Iglesias neighborhood, and a few minutes from the Abraham Gonzalez International Airport serving Ciudad Juarez, the hotel opens following an investment made by its franchisee Fibra Inn of more than MX$ 211 million pesos.Owned by Fibra Inn and managed by Grupo Hotelero Prisma, the Holiday Inn Ciudad Juarez hotel is franchised by an affiliate of IHG. Fibra Inn, who currently has 15 hotels under the IHG family of brands, is one of the longest-standing owner groups in Mexico. The Holiday Inn brand is part of IHG’s diverse family of brands in nearly 100 countries and territories.

2018 NETWORKING SOLUTIONS. To find out about Portada’s new networking solutions targeting the decision makers of the below campaigns, please contact Sales Manager Isabel Ojeda at isabel@portada-online.com.

  • Iberia

Iberia is boosting its services to Latin America with three additional weekly flights to both Buenos Aires and Mexico City. As of 27 October, the Spanish airline will raise the number of flights from 14 to 17 times a week to Buenos Aires, which it has served since 1946. Iberia is also scheduling 17 flights a week between Madrid and Mexico City for the 2018/2019 winter season, three more than in the past .Iberia is the leading airline on routes linking Europe and Latin America, with 254 flights each week to destinations in 16 countries. In addition to its Buenos Aires and Mexico City routes, the airline is adding flights to Santiago, Chile (from one daily flight to 10 per week), Rio de Janeiro (from four to five times a week) and San Juan, Puerto Rico (24% more seats than in the 2018 summer season), On 1 October it will also launch daily flights to Guatemala City (currently four flights per week).

 

  • Norwegian

Low-cost Norwegian Air is interested in operating domestic flights within Brazil, as it plans its debut in Latin America’s largest economy in March with a flight between Sao Paolo and England.The airline’s interest was made public by Brazil’s tourism minister Vinicius Lummertz, who said Norwegian can start operating international flights with approval earlier this month from Brazilian flights regulator Anac.Norwegian has not specified the destination in England.Foreign airlines cannot incorporate in Brazil, but Congress is reviewing a proposal to change the law. If approved, Lummertz said, Norwegian could slash domestic flight costs by half.The Brazilian domestic market is dominated by four main airlines, Latam Airlines Group SA, Gol Linhas Aéreas Inteligentes SA, Azul SA and Avianca Holdings SA, all of which posted net losses in the most recent quarter, due to higher oil prices and local currency devaluation.

2018 NETWORKING SOLUTIONS. To find out about Portada’s new networking solutions targeting the decision makers of the above campaigns, please contact Sales Manager Isabel Ojeda at isabel@portada-online.com.

What: AT&T obtained approval from the Department of Justice to acquire Time Warner for US $85 million after a six-week trial.
Why it matters: This was the first time in four decades that the government directly intervened in a vertical merger, gaining the attention of corporations who feared a change in the course of the history of the media industry.

One of the biggest M&A decisions happened yesterday. A federal district court has allowed AT&T to acquire Time Warner, making the Trump administration’s Justice Department the loser in a high-profile legal case that will be taught in law schools for years to come.

On Tuesday June 12, in a D.C. courtroom packed with lawyers, journalists and investors, Judge Richard Leon ruled in favor of a deal that had been pending since October 2016 to go through with no conditions after years of negotiation, political uncertainty, and a six-week trial earlier this year. He declared: “The court has now spoken and the defendants have won.”

It’s the first time since 1970 that the Justice Department has sued to block a “vertical” merger, that is, the combination of two companies that do not directly compete with one another. Time Warner is a content producer while AT&T is a content distributor via its satellite services and mobile phone business.

The outcome was of interest not only to followers of AT&T and Time Warner; at stake was not only the deal that would bring together the telecom and content giants, but also a precedent for deals of a similar scale. It is a landmark for the entire industry, as companies like Disney, Fox, and Comcast waited to see how the case turned out before moving ahead with their own mega deals, and it signaled an unusual tack under president Donald Trump who says he promotes business and opposes regulation. As expected, barely 24 hours after the ruling, Comcast has announced a new bid for assets 21 Century Fox has agreed to sell to Disney. With US $35 a share in cash, the company is outbidding Disney by 19%.

The DOJ sued last year to block the merger based on the argument that prices for consumers would go up too much if the companies were allowed to merge, as AT&T could charge rival distributors more for Time Warner content. AT&T says they expect costs to consumers to go down since the point of owning content is to get widespread distribution, which brings in affiliate fees and advertising revenue and they point out that even if the government’s math is correct it would be a matter of cents more per subscriber per month.

Properties AT&T Will Own in the U.S. After Acquiring Time Warner

In the U.S, AT&T also has an ad sales unit with a particularly strong emphasis on addressable advertising. In time, Time Warner’s myriad of content channels can be offered to advertisers with additional targeting capabilities through AT&T’s detailed information on more than 156 million cell-phone subscribers in the U.S. This is of particular importance in the Hispanic market, which heavily over-indexes in cell phone usage. The following infographic (Time Warner on the top left corner) shows the major companies owning TV and entertainment properties:

[Source: Gizmodo]

A closer look at the list of companies, however, allows us to come up with a detailed list of properties that AT&T will use to survive in the increasingly competitive media landscape:

  • HBO and Cinemax, as part of Home Box Office Inc.
  • HBO Latino
  • TBS, truTV, TNT, Studio T, and TCM, as part of Turner Entertainment Networks
  • Adult Swim and Cartoon Network, as part of the TBS, Inc. Animation, Young Adults & Kids Media (AYAKM) division
  • CNN and HLN, as part of CNN News Group,
  • CNN en Español
  • The websites Super Deluxe, Beme Inc., and CallToons
  • DC Entertainment; DC Films, including all of the “Batman” movies
  • Turner Broadcasting International, Turner Sports, including the website Bleacher Report and the rights to March Madness and NBA playoffs
  • The CW (50%)
  • Warner Bros. Animation
  • Hanna-Barbera Cartoons
  • HTV
  • Tooncast
  • Fandango Media (30%)
  • Warner Bros. Consumer Products, Warner Bros. Digital Networks, Warner Bros. Theatre Ventures, Warner Bros. Pictures International, Warner Bros. Museum, Warner Bros. Studios, Burbank, Warner Bros. Studios, Leavesden, Warner Bros. Studio Tours, Warner Bros. Pictures, Warner Animation Group, Warner Bros. Family Entertainment
  • NonStop Television
  • New Line Cinema
  • Turner Entertainment Co.
  • WaterTower Music
  • Castle Rock Entertainment
  • The Wolper Organization
  • HOOQ
  • Blue Ribbon Content
  • Warner Bros. Television, Warner Horizon Television, Warner Bros. Television Distribution, Warner Bros. Home Entertainment, Warner Bros. Interactive Entertainment
  • Telepictures
  • Alloy Entertainment
  • eleveneleven

In addition, AT&T was already in control of the following:

  • Ameritech, Ameritech Cellular, Ameritech Interactive Media Services, Ameritech Publishing
  • AT&T Communications (2017), AT&T International, AT&T Originals, AT&T Alascom, AT&T Business Internet, AT&T CallVantage, AT&T Computer Systems, AT&T FSM Library, AT&T GoPhone, AT&T Information Systems, AT&T Intellectual Property, AT&T Labs, AT&T Mobility, AT&T Technologies, AT&T Wireless Services
  • BellSouth, BellSouth Advertising & Publishing, BellSouth Long Distance, BellSouth Mobility DCS, BellSouth Telecommunications
  • Centennial Communications
  • CenturyTel of the Midwest-Kendall
  • Cricket Wireless
  • Crunchyroll
  • DirecTV
  • Fullscreen (company)
  • Illinois Bell, Indiana Bell, International Bell Telephone Company, Michigan Bell, Nevada Bell, Ohio Bell, Wisconsin Bell
  • Otter Media
  • Pacific Bell, Pacific Bell Directory, Pacific Bell Wireless
  • QLT Consumer Lease Services
  • Rooster Teeth
  • SBC Long Distance, SBC Telecom
  • Southwestern Bell, Southwestern Bell Internet Services, Southwestern Bell Mobile Systems, Southwestern Bell Yellow Pages
  • Unix System Laboratories
  • AT&T U-verse
  • Yellowpages.com
  • YP Holdings

AT&T Could Win Big in Latin Markets After Acquiring Time Warner

AT&T’s big win in the U.S. could be paralleled in Latin America thanks to the popularity of properties owned both by AT&T and Time Warner. According to Market Realist, HBO and Cinemax generate a majority of their revenues in international markets through subscription to its OTT (over-the-top) services. In fiscal 2Q16, HBO’s revenues rose by double digits, indicating its popularity. After success in Mexico, the company launched HBO Now in Argentina, Spain, and Brazil.

AT&T 3Q16 company presentation

AT&T in Latin America

AT&T has a significant footprint in Latin America since it acquired DirecTV. Time Warner’s acquisition by AT&T would result in combining Time Warner’s premium content with DirecTV’s pay-TV operations in Latin American markets, which could boost its pay-TV subscriber base. However, AT&T planned to launch an IPO for DirecTV Latin America in March. Even though the IPO was suspended in April, the company might reconsider it in order to pay down some of the debt it’ll acquire after the Time Warner acquisition.

With the acquisition, AT&T will have access to Time Warner-owned properties centered on Latin American audiences:

  • HBO Latin America
  • HBO Brazil
  • Cinemax Latin America
  • Turner Broadcasting System Latin America
  • Chilevisión
  • TNT Latin America
  • I.Sat
  • Warner Bros Pictures International (Spain, Argentina, Brazil, Mexico)

In addition, AT&T owns Nextel, Iusacell, and Unefón in Mexico, as well as Univel in Argentina.

What: Perform Group, the parent company of Goal, and Bayern Munich have announced a unique partnership that focuses on Latin America.
Why it matters: The Club, with a rich Latin American tradition in players and supporter groups, is looking to market and garner even more fans in the region.

In another example of European football clubs looking to connect with Latin American fans, Bundesliga’s FC Bayern Munich (@FCBayernENlast week announced a partnership with Perform Group (@PerformGroup), the parent company of Goal, focusing on a region from which many of its star players have historically hailed.

“When we opened FC Bayern’s first international office in New York, the intention was to grow the fan base in the Americas and help raise the level of the game in the U.S.,” said FC Bayern Munich’s president of the Americas, Rudolf Vidal. “We have seen a number of successes in the last four years, including our fan clubs growing from 8 to 138 in 39 states, six new partnerships with North American brands as well as a number of media partnerships, institutional partnerships, and a very successful grassroots program. We would like to build the same infrastructure in Latin America.”

We are interested in speaking with brands, media outlets, clubs and grassroots initiatives in Latin America.
credit: Hanson K. Joseph

Top Bayern Munich players from Latin America include Colombian James Rodríguez, Chilean Arturo Vidal, and Brazilian Rafinha. Historical stars include Martín Demichelis, Claudio Pizarro, Jorginho, Giovane Elber, Lucio and Zé Roberto, further cementing the club’s status as one of Europe’s most popular in the region. It boasts official supporter clubs in Mexico, Brazil, Colombia, Argentina, Chile and numerous other Latin American nations.

This extends to all facets of FC Bayern Munich’s plans in the region, according to Vidal.

“We are interested in speaking with brands, media outlets, clubs and grassroots initiatives in Latin America,” said Vidal, “so we can better understand the landscape and how we can form mutually better partnerships to ultimately better connect and service our millions of fans within countries, including Mexico, Colombia, Brazil, Argentina and Chile.”

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Vidal and Delgado (Perform)

And by aligning with Perform Group, the club gains a deep digital reach in Central and South America that will benefit all marketing efforts.

“We’re thrilled to be joining forces with FC Bayern to help grow their presence in Latin America – a market in which Perform has had continued growth and success both in sales and content delivery. Our partnership will enable FC Bayern to connect with a plethora of consumers and brands due to the number of high profile LATAM players the team carries,” added Juan Delgado, CEO of Perform Media.

“Perform Group have an outstanding network in Latin America,” added Vidal, “and our aim is to work very closely with them to connect with the right organizations to further raise awareness of the FC Bayern brand.”

Cover Image: Wikimedia/dronepicr - Allianz Arena München

What: Visa has announced a strategic investment in YellowPepper, a US-based mobile payments provider, in an effort to provide its digital service in Latin America.
Why it matters: Visa has targeted the Latin American market since it remains largely underpenetrated and thus provides abundant scope for Visa’s growth.

Visa announced last week a strategic investment in YellowPepper, a US-based mobile payments provider in an effort to provide its digital service in Latin America. This investment will be the first of its kind in the region and reinforces a shared vision for increasing usage of mobile payments throughout Latin American and the Caribbean.

Photo by Visa and YellowPepper

With this agreement, Visa will focus on growing opportunities for tokenized payments, increasing access to Visa APIs, and expanding the usage of push payments via Visa Direct.

Additionally, YellowPepper will become a Visa Token Service Provider, allowing it to offer Visa’s secure, digital payment token services, via any Internet-connected device.

Visa has chosen YellowPepper, given its extensive experience in the region and strength of their existing client base, which  makes them an ideal partner to build the future of payments.

Visa has targeted the Latin American market since it remains largely underpenetrated and thus provides abundant scope for Visa’s growth. “Visa is always looking for new investments that allow us to accelerate innovation for our clients, finding new ways to support our clients’ technology”. Eduardo Coello, regional president for Visa Latin America and the Caribbean, said in a press release.

Avis’ Ricardo Casco, Pepsico’s Ricardo Arias Nath, Stanley Black & Decker’s Andrés Amezquita, Group M’s José María Sanabria, and Gatorade’s Jill Leccia are some of this year’s Portada Miami expert speakers on marketing for Latin American audiences. Don’t miss their insights, save your spot here!

With only four weeks until Portada Miami 2018, the agenda for April 18-19 has been unveiled, and the speaker lineup couldn’t be more exciting. From the use of technology to the future of soccer, experts in marketing to Latin American consumers will get together at the EAST hotel to discuss key knowledge about this market’s needs for the future— which is already here.

 

Ricardo Casco

After earning his MBA with Florida International University, Ricardo Casco (@rcasco) acquired years of experience in sales and marketing strategies at firms like LATAM Airlines and Discovery Communications. As Vice President of International Sales in the Americas at Avis Budget Group, Ricardo oversees sales efforts to generate and grow business from a diverse portfolio of over 500 international customers across Latin America, EMEA and Asia Pacific.

For the first panel focused on marketing in Latin America, Ricardo will lead the discussion on Using Tech to Move From Targeted to Reactive Marketing. Avis Budget Group knows that, in order to build loyalty from the foundation, it’s necessary to tap into emerging technologies. Ricardo Casco will talk to Portada Miami attendees about some of these technologies, like connected cars.

 

Andrés Amezquita

Right after, Ricardo Arias Nath (@rickyarias), CMO at PepsiCo Latin America, and Andrés Amezquita, VP Commercial Excellence at Stanley Black & Decker will take the stage to discuss how their marketing strategies are adapting to the new realities of Latin American consumers.

 

 

 

Ricardo Arias Nath

Ricardo Arias Nath has over 20 years of experience in consumer and corporate strategy, marketing, and business development, and deeply understands FMCG, Media and Entertainment and Technology Industries in both domestic and international markets. He’ll be discussing marketing strategy with Andrés Amezquita, a marketer with extensive experience in experiential, fast moving, merchandising-heavy categories. After 3 years as CMO for L’Oréal in the Hispanic countries, Andrés has joined Stanley Black & Decker as VP of Commercial Excellence and has a great deal of knowledge to bring to the table.

 

José María Sanabria

The next panel is focused on GroupM Latin America’s CEO, José María Sanabria. He has been CEO of GroupM Latin America since 2015, and he had already led GroupM Spain since 2010. In an exclusive interview, Portada will ask José María about GroupM’s new pan-regional approach.

 

 

 

Jill Leccia

Right after the interview with José María Sanabria, Portada will be proud to present Jill Leccia (@jvleccia), Senior Marketing Director at Gatorade Latin America, who’ll be discussing the future of soccer in the U.S. and across Latin America. Jill has almost 8 years of experience in marketing of beverages to Latin Americans, and 20 years of experience and a successful track-record on Marketing, Innovation and Strategy and Insights in PepsiCo and Procter & Gamble.

Our experts in marketing for Latin American audiences are ready to take the stage on April 18-19, make sure you join the discussion, don’t miss out on Portada Miami!

What: We looked at ComScore’s data on the most-visited news websites in Latin America and particularly Mexico in January 2018.
Why it matters: 57.6% of Latin American users looked for news online, while 85% of Mexicans with an internet connection browsed news websites.

Latin Americans’ interests touch various areas, but being well-informed of the news is an activity that most people everywhere consider important. We have seen that internet users in Latin American countries look for many types of online content, from travel information to sports and entertainment, but the news is the kind of content they consume more. More than half of all Latin Americans with internet access (57.6%) looked at the news online in January, and these were the sites where they did so.

Top 10 News Websites in Latin America, January 2018

Total Audience, Home and Work, PC/LaptopTotal Unique Visitors (000)
Total Internet: Total Audience191,289
News/Information110,373
1Globo Noticias21,260
2MSN News13,952
3UOL Noticias11,575
4Grupo Clarin9,416
520MINUTOS Sites7,518
6Infobae – TKM6,756
7Folha de S. Paulo6,497
8Yahoo-HuffPost News Network6,043
9El Pais Sites5,663
10Grupo La Nacion5,529

[Source: comScore]

  • From the total of users who looked at the news online, 19.2% visited Brazilian website Globo Noticias.
  • 12.6% of users looked for information at MSN News.
  • UOL Noticias, another Brazilian website, received 10.4% of visits.
  • Argentina-based Grupo Clarin was visited by 8.5% of users.
  • 20Minutos sites in Mexico, Spain and the U.S. received 6.4% of visits.
  • Similar amounts of users looked for relevant information at Infobae-TKM, Folha de S. Paulo, and Yahoo-HuffPost. They received 6.1%5.8%, and 5.4% of visitors respectively.
  • In the last two spots were El Pais and Grupo La Nacion, with 5.1% and 5% of visits.

Top 10 News Websites in Mexico, January 2018

Total Audience, Home and Work, PC/Laptop, All Smartphones, All TabletsTotal Unique Visitors (000)
Total Internet: Total Audience68,613
News/Information58,972
1El Universal de México15,839
2DEBATE.COM.MX12,690
3Grupo SDP8,998
4Grupo Publicidad y Contenido Editorial8,756
5Grupo Proceso7,142
6Noticieros Televisa6,960
7Grupo Milenio6,753
8Organizacion Editorial Mexicana6,382
9Publimetro Sites6,176
1020MINUTOS Sites6,071

[Source: comScore]

  • 85% of Mexican internet users look for information in a wide variety of websites.
  • At the top of the ranking is El Universal, whose website received 26.8% of visits.
  • 21.5% of users looked for information at Debate.com.
  • Grupo SDP, which recently acquired fake news site El Deforma, was visited by 15.2% of users.
  • Not far behind was Grupo Publicidad y Contenido Editorial with 14.8% of visits.
  • 12.1% of users looked for news information at Grupo Proceso.
  • Noticieros Televisa received 11.8% of visits, while 11.4% of users visited the Grupo Milenio website.
  • Organización Editorial Mexicana was visited by 10.8% of users.
  • At the bottom of the list, Publimetro and 20Minutos received a similar amount of visits, 10.4% and 10.2% respectively.

What: We looked at the retail websites with the most Latin American visitors, and specifically Mexican, in December 2017.
Why it matters: By paying attention to the number of Internet users who look for retail information online, we can get a good idea of the reach of e-commerce among Latin Americans, and particularly Mexicans, as well as the kind of transactions they prefer to complete based on the type of website they look for.

It is no secret that we’re living in the era of digital transactions, and there is virtually no other sector where this is truer than retail. Buying online is easy, it’s convenient, and everyone has at least tried it. E-commerce is expected to grow by 8-12% in the next couple of years; it’s vital for marketers to keep an eye on who’s doing a good job… and who isn’t.

Top 10 E-Commerce Websites in Latin America, December 2017

Total Audience, Home & Work, PC/Laptop OnlyTotal Unique Visitors/Viewers (000)
Total Internet: Total Audience193,562
Retail124,168
1MercadoLibre59,789
2Amazon22,201
3B2W Digital19,389
4Alibaba16,543
5Wal-Mart12,337
6CNova11,020
7eBay10,263
8Apple Worldwide Sites9,583
9Google Shopping8,808
10Buscape Company8,135
    [Source: comScore]
  • Out of the total amount of internet users in Latin America, 64% visited e-commerce websites.
  • Almost half (48%) of Latin Americans looking for retail options online visited MercadoLibre. 
  • 17.8% of users preferred to shop on Amazon websites.
  • 15.6% of Latin American users were interested in finding out more about financial figures related to e-commerce on B2W Digital.
  • Alibaba received 13.3% of Latin American visits.
  • 9.9% of users visited the Wal-Mart website for shopping online.
  • 8.8% of Latin American internet viewers visited CNova sites.
  • Close behind is eBay, with 8.2% of users.
  • 7.7% of Latin American e-shoppers visited Apple sites, while 7% preferred Google Shopping.
  • Finally, Brazilian website Buscapé received 6.5% of visits.

Top 10 E-Commerce Websites in Mexico, December 2017

Total Audience, Home & Work, PC/Laptop and Mobile DevicesTotal Unique Visitors/Viewers (000)
Total Internet: Total Audience64,655
Retail43,698
1MercadoLibre19,986
2Amazon11,627­
­3Wal-Mart10,221
4Linio Sites7,974
5eBay7,663
6Liverpool.com.mx5,774
7Coppel.com4,686
8Wish.com4,511
9Samsung group4,322
10Alibaba3,989
    [Source: comScore]
  • 67.5% of Mexicans with an Internet connection visited websites dedicated to shopping online.
  • As in the rest of Latin America, MercadoLibre leads the list with 45% of visits; again, almost half of users.
  • Amazon is still in second place, although not so far behind as in the rest of Latin America, with 26.6% of users.
  • Wal-Mart is more relevant to Mexicans than to other Latin Americans: 23% of users in this country visited the company’s online store.
  • 18.2% of Mexican e-shoppers visited Linio sites.
  • 17.5% of users looking for online stores decided to visit eBay.
  • Coppel and Wish received similar amounts of visits, with 10.7% and 10.3% of users respectively.
  • 9.8% of online shoppers decided to visit Samsung‘s website, while 9.1%  went to Alibaba looking for shopping options.

It’s almost here! This week,  Portada Miami in the Hotel EAST on April 18 and 19 will provide a unique setting where Innovators and Brand Leaders will take the stage to discuss what is next for Latin Markets in the U.S. and Latin America. Topics major brand marketers and innovators will discuss include Voice-Based Technology, Gamers and Gambling, Attribution Models for Digital Media Agencies, App Marketing and much more. Register now here!

Innovators and Brand Leaders attending Portada Miami are members of Portada’s powerful Council System of Brand Marketers and Agency Execs. Other innovators and major players participating in Portada Miami include:

Chris Dougan, Head of North America Communications, Genius Sports
Ben Spoont, Founder & CEO, Team Misfits (Leads Miami Heat’s eSports strategy)
Jill Leccia, Senior Marketing Director, Gatorade Latin America
Ricardo Arias-Nath, CMO, PepsiCo Latin America
Many more to be announced soon!

To ready the discussion for Portada Miami, Portada’s Head of Content Janet Grynberg wrote the article below on 5 Drivers of Latin American Marketing in 2018.

1. GDP is Growing at a Strong Pace

Cristian Figoli, Amnet Argentina, Dentsu Aegis

Marketers and economists agree that there are unequivocal signs of recovery in several Latin American economies. For Cristian Figoli, head of Amnet Argentina, “the signs are definitely there, especially tied to higher investments and bets from global companies in the region”. Companies have their eye on Latin American countries because, as Focus Economics explains, the economy in these regions is accelerating at a great pace: the strongest recoveries are expected in Argentina thanks to various reform efforts and a healthy global backdrop, and Brazil is expected to benefit from lower interest rates and a recovering labor market.

 

The LatinFocus Consensus analysts see regional GDP growing 2.4% in 2018. In 2019, growth is seen rising modestly to 2.7%. According to Cynthia Evans, director of insights at Group M Latin America, the signs are hard to miss: “GDP is stable, advertisers are planning with a slight uptick in budgets, and currencies are more stable.”

2. Digital Growth Will Continue to Influence Marketing

Iván Marchant, VP at ComScore Mexico, Colombia, and Peru

A big sign of recovery, according to Iván Marchant, VP at ComScore Mexico, Peru and Colombia, is the growth of the digital industry: “We can see growth not only in the audiences on the internet but in the usage of different devices,” explains Marchant. “Every day people are using more and more mobile devices. In terms of advertising, investments in digital are also rising. In almost all countries in the region, the growth in digital advertising is around 10 times the growth of their national GDP.”

 

When things change, the opportunity to improve communication is larger.

 

Digital transformation is moving really fast, which should mean something for marketing and media services. For Marchant, “When things change, the opportunity to improve communication is larger.” According to Amnet’s Cristian Figoli, “stronger economies are developing technology to improve marketing services, which is beneficial for the full marketing ecosystem.”

 

3. How to Prepare for Political Risks

The main threat to economic balance in Latin America in 2018 will be the unstable political environment. The presidential elections in Costa Rica, Cuba, Paraguay, Brasil, Mexico, Chile, Peru, and Colombia mean that about 80% of the population in Latin America will be choosing new rulers this year, which makes investors wearier.

Cynthia Evans, Director of Insights at Group M

Other reforms, such as renegotiations of Free Trade Agreements, as well as energetic reforms, rend it necessary for marketers to prepare for possible unforeseen risks. Group M’s Cynthia Evans strongly recommends to “Hold some budget for opportunities and plan around presidential election or World Cup events, when the consumer’s attention is diverted.” And as ComScore Iván Marchant points out, “A lot of the advertising investments will be moving towards the government category; this year the demand for marketing services will benefit from this environment.”

4. Which Marketing Services Will Prevail?

In 2017, we saw digital spaces gain more importance than ever, and so we should expect digital to continue growing in 2018. As Iván Marchant explains, “[Mobile] devices will be leading the efforts from all marketers and media devices. Automation services like programmatic media selling/buying will be also consolidating its pace in the market.”

As digital needs evolve, we’ll see that certain marketing services are in demand. In particular, we should keep an eye on “measurement, ROI, and performance, including viewability, transparency, and proof of performance,” says Cynthia Evans. “Trading and negotiation is a strong thread especially as digital business models evolve.”

5. 3 Lessons From 2017 to Apply in 2018

For Cristian Figoli, the most valuable lesson is that we are in a moment of transformation and innovation. “People live digital lives and expect more from brands,” he asserts. “They expect to engage and transact with just a click, and companies need to adjust to this new paradigm to emerge on top.”

 

However, the path that marketers have been following so far has brought them success. According to Cynthia Evans, it’s all a matter of “Continuing building multi-platform, multi-media, multi-country synergies, integrating media, and synchronizing [the right] measures and language.”

Finally, Iván Marchant’s advice has to do with brand safety. “We saw a big number of brands whose advertising was displayed in contexts that were not appropriate,” he points out. “Now technology allows us to take care of the brand’s value by avoiding to display advertising in the wrong context.” The signs of recovery are clearly there; it is up to  brands and marketers in general to make the most of them.

 

What: Neymar is joining forces with Digible to create the Neymar Experience app.
Why it matters: This move exemplifies how star athletes can be utilized by tech companies as influencers to gain traction in Hispanic and Latin markets.

Neymar Scores Himself a New App

PSG winger Neymar is one of the world’s biggest soccer superstars, and he has partnered with Digible to create a new app, Neymar Experience, to spread his brand and interact with his fans. One of the app’s primary focus is to help users learn to play and take care of themselves like Neymar with features such as skill challenges, video tutorials, and nutrition advice. Neymar, however, will leverage his massive social media appeal (87.5M Instagram followers, 60M Facebook followers) to increase fans’ ability to connect with him through the app. Namely, Neymar will review users’ attempts to complete the app’s challenges and will post submissions of his choosing to his various social media pages. With athletes such as Tom Brady and LeBron James having created their own apps, Neymar seems to be right on track in his quest to join the world’s most notable athletes in terms of global marketing capital.

Neymar Experience shows how technology companies are recognizing the possibilities for massive growth in Latin and Hispanic markets, and a key to unlock this potential is collaboration with influencers, particularly athletes.

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Digible’s Drive for the Latino and Hispanic Market

The partnership also signifies a strategic move for Digible, as it signals a move specifically aimed at engagement with Latin and Hispanic consumers. Neymar has captained Brazil’s national team, played for Spanish giants F.C. Barcelona, and has the attention of football followers across the globe, particularly in the Americas. The app is available in Spanish, Portuguese, and English so it can accommodate Neymar’s wide-ranging appeal, and the company believes that it will allow it to have tremendous engagement in the Americas. An example of this confidence was co-founder Fabio Freitas’s comment that he expects to increase the number of the company’s Brazilian users to surpass two million just shortly after the app is released for both Android and iOS. Neymar Experience shows how technology companies are recognizing the possibilities for massive growth in Latin and Hispanic markets, and a key to unlock this potential is collaboration with influencers, particularly athletes.

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