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; Mídia Dados 2002, Grupo de Mídia; 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: Mídia Dados 2002,Grupo de Mídia; 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.