There are many reasons why a marketer would be looking at Brazil right now. With almost 200 million people, the 7th largest GDP in the world, an increasingly strong middle-class and steady growth of private consumption in the face of worldwide economic turmoil, what’s not to like?
According to World Bank, Internet usage in the country is at 50%, with 60% of households still lacking Internet access. However, the real story is the 100 million people who are connected (68 percent of them using fixed broadband technology). According to comScore, Brazilians spend more than 27 hours per month online, compared with a global average of 24 hours. Doing what, you ask?
First, social media. Brazil is the second largest market in the world for Facebook (65 million users) and Twitter (41 million users). It is the number one market outside the US for YouTube. Brazilians’ time on Facebook increased 208 percent last year.
Then, there is the shopping. More than 61% of Brazilians made online purchases in 2013, and e-bit projects 25 percent ecommerce growth this year, reaching R$28 billion.
Curiously, the largest online advertiser in Brazil is American. Netflix reached the top of the list in March 2013 with 2.7 billion display ad impressions reaching 56.9 million people. Microsoft is not far behind, proving that US companies are jumping in with both feet.
If that isn’t enough to give the country serious thought, consider this – Brazil is already the 7th largest Internet market in the world, with 130.6 billion display ad impressions in April 2013. By 2015, it will also have the 5th largest marketing industry in the world.
Yet, digital advertising accounts for just over 10 percent of the ad market in the country, lower than the 19.8 percent global average. That is about to change. By 2015, Internet advertising will surpass print. That means a large slice of Brazil’s US$15 billion direct marketing revenue will flow to digital advertising, which is already forecast to hit US$3 billion this year.
Have we mentioned the World Cup? Advertising – online and offline – is expected to explode leading up to and during this year’s World Cup. In 2010, Nike’s use of social media generated twice as many online conversations as Adidas, an official event sponsor. Considering the host country’s heavy use of social media and enthusiasm for soccer, those 2015 numbers may come sooner than expected.
Direct marketers have plenty of reasons to love Brazil – marketing data is plentiful, detailed, and well maintained. Although changes to data privacy legislation are in the works, for now the existing regulations are reasonable and good data partners will steer you clear of trouble.
Author Contact Information:
Jade Boneff-Walsh, VP Global Markets