Presentation Transcript
Slide1: 'Forces Shaping the Future of Advertising in Latin America'
MIAMI, January 2003
Slide2: Main Drivers of our industry Wealth distribution
as a means to increse the size of the business for all players involved.
Regionalization
as a determinant of which players will get the best share of this growth.
Slide3: Drivers Wealth distribution
Slide4: So big… and yet, so small! Source: European Union Organization.
Slide5: Source: European Union Organization. LA x EU X US
Slide6: Source: IBOPE; MÃdia Dados 2002, Grupo de MÃdia; World Bank Advertising Expenditure
Slide7: Main countries concerning Advertising Spenditure Source: IBOPE, Adspend Latina.
Slide8: SES Distribution per Country Source: IBOPE, TGI Latina - 2002.
Slide9: Source: IBOPE, Establishment Survey Cable penetration by SES
Slide10: Drivers Regionalization
Slide11: Cultural similarities Source: Latin America: A region in evolution, despite difficulties - Nelson Marangoni. There are significant similarities within Latin America.
However, at the same time, there are significant cultural differences, as well, and, in particular, differences in the way population behave, which reflects on purchase and usage habits in terms of products and services, including media consumption.
Slide12: Recent Effects of Globalization The impact of globalization and the fast and intense technological evolution, as well as the improvement of the infrastructure in the entire region, have contributed to a greater cultural, political and economical proximity across countries in Latin America. Source: Latin America: A region in evolution, despite difficulties - Nelson Marangoni.
Slide13: Global interchange
Slide14: Overview Source: MÃdia Dados 2002,Grupo de MÃdia; World Bank
Slide15: The Challenge
Trends can deeply affect the ways of our business...
At this point, still no clear definition as to where the market will move.
Slide16: AdSpend data Adspend Latina
Top consumers in Argentina, Colombia and Mexico reflect differences in SES and age group: Top consumers in Argentina, Colombia and Mexico reflect differences in SES and age group TGI Latina 2002 TGI Data
Top three brands among athletic shoes consumers in the region rank very differently in each country: regional penetration: Adidas (26.5%)-Nike (21.3%)-Reebook( 13.4%): Top three brands among athletic shoes consumers in the region rank very differently in each country: regional penetration: Adidas (26.5%)-Nike (21.3%)-Reebook( 13.4%) TGI Latina 2002 TGI Data
Opinions and Attitudes:Adidas consumers also think differently: Opinions and Attitudes: Adidas consumers also think differently
I would spend whatever I could to
look younger
23.3% I would spend whatever I could to
look younger
16.7% I would spend whatever I could to
look younger
38.0%
Practiced Sports in the last
12 months
58.4%
I know I should exercise more
56.9%
I like to be as informed as possible on
Ingredients before buying a new
food product
56.1%
Practiced Sports in the last
12 months
59.2%
I know I should exercise more
76.1% I like to be as informed as possible on
Ingredients before buying a new
food product
63.5%
Practiced Sports in the last
12 months
71.5%
I know I should exercise more
81.5% I like to be as informed as possible on
Ingredients before buying a new
food product
74.2% TGI Latina 2002
Slide20: Regional X Local Ratings Source: IBOPE Multicountry database, Oct-Dic/2002 average
Slide21: Regional X Local Ratings Source: IBOPE Multicountry database, Oct-Dic/2002 average
Slide22: Conclusions As one can see there is still no clear definition as to where the market is moving ...
While some indicators seem to lead to the conclusion that there is a growing tendency for a greater similarity between the consumer in different countries of the region and between communication strategies for worldwide brands and products, some other indicators show just the opposite.
Being able to correctly anticipate the trends and making sure that one’s company is structured to take advantage of the where the business is going can be a strong competitive advantage.