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Brazilian TV in the Digital EraTurn On or Turn
Off?January 2014
Bruce LedesmaDigital Marketing Strategist
Is TV in Brazil Alive and Kicking or Dying?
Brazilian TV in the Digital EraThat is the Question
OCN (Pay TV) as the underdog +33%
Brazilian TV in the Digital EraToo Much Speculation
Source: IBOPE
Greater São Paulo
TV Ratings (7am to 12am)
2011 2012 2013
Rat
ing
Poin
ts
In 2013, each rating point corresponded to 61.952 households or 185.814 individuals in the Greater SP area.
OCN (Pay TV) as the underdog + 26%
Brazilian TV in the Digital Era
Greater São Paulo
TV Ratings (Prime Time)
Too Much Speculation
2012 2013
Rat
ing
Poin
ts
Source: IBOPE
In 2013, each rating point corresponded to 61.952 households or 185.814 individuals in the Greater SP area.
What, how and why people watch TV
Brazilian TV in the Digital Era
Three types of TV viewers:Loyals Loyals watch series, soap operas and reality shows in Brazil. They watch less TV than the general population but handpick their shows. They pursue more info about their favorite programs and share it with friends. Long term commitment.
Zappers Zappers watch television. They flip channels and aren’t loyal to any show. They don’t share TV content with friends. No commitment.
CasualsCasuals fall somewhere in between. Typically they will watch a show from beginning to end, but won’t hesitate to change channel if it starts boring them. To some extent Casuals share show information with friends.
Too Much Speculation
Pay TV is Doing GREAT!
Brazilian TV in the Digital Era
Source: ANATEL
2006 2007 2008 2009 2010 2011 2012 June 2013
- 2,000,000.00 4,000,000.00 6,000,000.00 8,000,000.00
10,000,000.00 12,000,000.00 14,000,000.00 16,000,000.00 18,000,000.00
Pay TV in Brazil(millions of sub-
scriptions)# Subscriptions
4.65.4
6.37.5
9.8
12.7
16.217.0
Too Much Speculation
Robust Profits
Brazilian TV in the Digital Era
2010 2011 20120
50000100000150000200000250000300000350000400000450000
R$307,151
R$373,173 R$393,702
NET ServiçosNet Profit (BRL 000s)
Source: Net Serviços
Too Much Speculation
Impact of OCNs (Pay TV) in Brazil
Individuals are not exclusively Loyals, Zappers or Casuals. People watch TV in different ways in different contexts. Few broadcast channel options in the past and Globo’s dominance gave Brazilians limited choices on TV.Rise in disposable income as an important factor of the robust growth experienced by OCNs (Pay TV).OCN growth has created a (late) change in Brazilian TV consumption habits: there are more zappers now.
Brazilian TV in the Digital EraToo Much Speculation
More TV time
Brazilian TV in the Digital Era
% TV sets turned on
2012 201339.2
39.4
39.6
39.8
40
40.2
40.4
40.6
39.7
40.140.1
40.4
Greater SPBrazil
2008 2012 2013290
300
310
320
330
340
350
Daily TV consumption
in Brazil
Minutes
309
332
345
Source: IBOPE Media
Too Much Speculation
Classes D/E watch twice as much TV
Brazilian TV in the Digital EraToo Much Speculation
Classes A/B Class C Classes D/E0
100
200
300
400
500
600
700
800
Minutes309354
700
Source: IBOPE Media
Average Daily TV consumption
in Brazil (2013)
Rio de Janeiro (Ipanema)
Brazilian TV in the Digital EraToo Much Speculation
What’s behind the mountain?
Rio de Janeiro (Favela da Rocinha)
Brazilian TV in the Digital EraToo Much Speculation
The other side of the mountain
Everybody is tuned in!
Brazilian TV in the Digital EraToo Much Speculation
Yellow dots highlight
satellite TV antennas
TV sales behavior
Brazilian TV in the Digital Era
2012 2013216.0
217.0
218.0
219.0
220.0
221.0
222.0
223.0
224.0
TV Set Sales Worldwide
Millions
223
218.5
1H12 1H136.2
6.4
6.6
6.8
7
7.2
7.4
7.6
7.8
TV Set Sales in Brazil
Millions
Source: GfK
6.8
7.7
- 2% + 13%
Too Much Speculation
… and counting in 2014!
Brazilian TV in the Digital EraTV sales forecast in Brazil in 2014
SamsungMarketGrowth Estimate
15%SonyMarketGrowthEstimate
40%Source: Exame
Who are Brazilians?
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
Poor but emerging fast
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
BRAZIL IS POOR
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
TV still is king!
Radio (last 7 days) 73%
Broadcast TV (last 7 days) 96%
Internet (last 7 days) 59%
Pay TV (last 7 days) 42%
Magazine (recently) 35%
Newspaper (recently) 30%
Media Reach in Brazil(consumers accessing media)
Source: IBOPE 2012
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
TV still is king!
90%
of Brazilians say TV
is their favorite source for news
175million Brazilians
watch TV on a regular basis
Sources: Datafolha, IBGE (2012)
Brazilian TV in the Digital Era
TV as a driver of online search
79% of Brazilian
internet users SEARCH FOR PRODUCTS ONLINE
after seeing them OFFLINE
OFFLINE media that motivates Brazilians to SEARCH FOR
PRODUCTS on the INTERNET are…
51% TELEVISION
35%
PRINT MEDIA27%
OUTDOOR MEDIA
Sources: Iprospect, Google Brasil 2013
Brazilians & Media Consumption Habits
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
Fast growth3Q2012 4Q2012 1Q2013 2Q2013
85,000,000.00
90,000,000.00
95,000,000.00
100,000,000.00
105,000,000.00
110,000,000.00
Millions
Internet User BaseBRAZIL
92.7
94.2
102.3
105.1
Source: Nielsen/IBOPE 2Q2013
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
Southeast is the dominant region
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
Internet users in BrazilSource: Nielsen/IBOPE (October 2013)
11.2%9.9%
11.7%
25.2%
26.4%
15.5%
02 - 11 Years12 - 17 Years 18 - 24 Years25 - 34 Years35 - 49 Years50 + Years
Age Group
Gender
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
Growing middle class
Class A 90% 92%
2011 2012
Class B 73% 79%
Class C 48% 54%
Class D/E 27% 25%
Internet Reach Growth(by social class)
TOTAL 55% 60%
Source: IBOPE Media
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
Strong upward social mobility
40 MM Brazilians ascended to
Class C between 2003 and 2011
105 MM made up Class C in 2012, which represented 55% of the
population58%of the population wil make
up Class C by the end of 2014
1.46 TN
BRL will be spent by Class C by 2015, more than Classes
A/B
Sources: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular
Brazilian TV in the Digital EraBrazilians & Media Consumption Habits
Simultaneous use of media
42%
+
++
===
14%23%Source: TG.Net (April 2013)
Brazilian TV in the Digital EraSocial TV
It’s BIG!
Google Zeitgeist Brazil 2013
1. BBB Brasil2. Telexfree3. Salve Jorge4. Enem 20135. MC Daleste6. A Fazenda7. Pronatec8. Amor à Vida9. PEC 3710.BBom
1. Mercado Livre2. Casas Bahia3. Americanas4. Netshoes5. Magazine Luiza6. Ponto Frio7. Extra8. Submarino9. Decolar10.Walmart
TOP 10 SHOPPINGBrazilian TV in the Digital EraSocial TV
TV Programs TV AdvertisersPure Internet
Players
Google Zeitgeist Brazil 2013
1. BBB 132. A Fazenda3. Porta dos Fundos4. Revenge5. Shingeki no
Kyogin6. Violetta7. Pânico na TV8. Galinha Pintadinha9. José do Egito10.Naruto
Shippuden
1. Itaú2. Caixa Econômica3. Bradesco4. Santander5. Banco do Brasil6. HSBC7. Sodexo8. Itaucard9. Credicard10.Visa Vale
MULTI SCREENENTERTAINMENT
BANKS & CARDSBrazilian TV in the Digital EraSocial TV
TV Programs TV Advertisers
Old and new media collide
Brazilian TV in the Digital Era
Twitter rolls out TV trending banners on August 2013
Social TV
Ratings &Tweets influence each other
Brazilian TV in the Digital Era
Nielsen Twitter TV Rating rolled out on October 2013
Social TV
TV and sports driving tweets
Brazilian TV in the Digital Era
Almost half of TTs in Brazil are influenced by TV
Social TV
TNT live interaction: Grammy Awards
Brazilian TV in the Digital Era
TV harnessing the power of social mentions
Social TV
Social mentions
Brazilian TV in the Digital EraSocial TV
Brazilian TV in the Digital Era
Social mentions
Social TV
Social mentions per TV network
#hashtag popularity in Brazil
Brazilian TV in the Digital Era
Hashtags and daily mentions on peak days
Social TV
More opportunities on FB
Brazilian TV in the Digital EraSocial TV
Facebook Trending Feature roll out January 2014
Brazil is social and FB rules
Brazilian TV in the Digital EraSocial TV
Opportunities for marketers
Brazilian TV in the Digital EraHarnessing the Power of Social TV
5 Ways of Reaching Brazilians Through Social TV
#1 Sync social spots with TV habits
Brazilian TV in the Digital Era
86% of Brazilians like
to comment on what they’re watching on
TV
Brazilians who use social media to comment on programs while
watching TV
53%
of those aged 18-24
49%
of those aged 25-3549
% of those aged
36-45
45%
of those aged 45-60
Source: CGlobal
Reaching Brazilians Through Social TV
#2 Follow the eyeballs
Brazilian TV in the Digital EraReaching Brazilians Through Social TV
√ Reality Shows
√ Soap Operas
√ Sports (Football)
#3 Use apps like Shazam
Brazilian TV in the Digital EraReaching Brazilians Through Social TV
70%of Brazilian internet users want easier
access to information about products
advertised on TV shows
#1 Going on social media
#2 Getting information about shows#3 Searching for products advertised on TV
Favorite activities of Brazilians on the second screen while watching TV
Source: CGlobal
#4 Reach TV viewers via Facebook
Brazilian TV in the Digital EraReaching Brazilians Through Social TV
#5 Segment by device
Brazilian TV in the Digital EraReaching Brazilians Through Social TV
45% projected growth in 3 years
Brazilian TV in the Digital Era
Source: Zenith Optimedia
2011 2012 20140
5
10
15
20
25
Billions USD
15.316.2
22.2
Brazilian Ad Market is World’s 5th largest
Brazilian Ad Market
Estimate
TV leads. Internet beats newpapers as # 2.
Brazilian TV in the Digital EraBrazilian Ad Market
Source: Projeto Inter-Meios (2012)
60.63%
5.13%
3.77%
11.06%
0.84%0.25% 11.98%
3.38% 2.96%
Broadcast TVMagazineRadioNewspapersCinemaGuides/ListsInternetPay TVOutdoor Media
Ad Share Spend in Brazil
All segments growing. Internet leads.
Brazilian TV in the Digital Era
Source: Projeto Inter-Meios (2012)
Ad Share Spend Growth
Brazilian Ad Market
Low speed as a bottleneck
Brazilian TV in the Digital EraTelecom Challenges
Sources: IBOPE (October 2013)
In two years the number of internet users with + 2 Mb bandwith doubled, from 8.9 MM on October 2011 to 17.7 MM on October 2013.
Pleny of room for growth.
Brazilian TV in the Digital EraTelecom Challenges
Low Penetration (Continental country)
Expensive (Low income population)
Regulatory Issues (20% SLA for bandwidth)
What slows internet growth
Media is converging and TV is a strong ally of your digital
marketing plan in the country.
Brazilian TV in the Digital EraConvergence is the name of the gameIf someone says TV in Brazil is
dead DON’T LISTEN.
Bruce LedesmaDigital Marketing Strategist
Brazilian TV in the Digital EraContact Information
@ledesmabruce
/bruce.ledesma