The biggest market in Latin America, Brazil, is both challenging and full of amazing potential for tech development. Last week we looked at Latin American social media trends, but today we are focusing on Brazil. With last year’s World Cup and the 2016 Rio Games, Brazil looks set to stay in the global limelight for the next two years at least. While Brazil has shown a lot of positive growth, it is not without challenges. Any business thinking about entering Brazil will have to decide how to best reach Brazilian customers. Below is a primer to help you make the right decision to get the best bang for your marketing buck.
The hype from Ipanema
Brazil has received a lot of hype recently and has been dubbed the “the new social media capital of the universe” by the Wall Street Journal. It’s easy to see why:
- 92 million people using social media
- 68 million mobile social media users
- Brazil is the second fastest growing ecommerce market after China
- Brazil was Amazon’s fastest growing overseas segment in 2013 and is expanding its Brazilian operations this year
So obviously Brazil has a lot going for it in terms of social media and ecommerce growth. As mentioned in last week’s posts, social media and Facebook in particular hold a dominant position. This is especially true in Brazil but there are many upstarts in the Brazilian market that have seen record growth in the last year.
Brazil and Facebook
- In 2013, Facebook had 65 million users in Brazil making it the second biggest market after the US
- Time spent on Facebook increased by 208 percent in 2013
- Brazilian netizens spend 13.3 hours a month on social networks (Facebook makes 95 percent of that)
Brazil and YouTube
- YouTube is the second biggest social media site in Brazil with a 20 percent share in Feb 2014
- Brazil is the second biggest market for YouTube after the US
- Brazilians are going against the global trend and increasing time on YouTube to 140 minutes a month
Brazil and Linkedin
- Linkedin has really been on a roll in Brazil with 18 million users as of Nov 2014
- Brazil is now Linkedin’s third biggest user base after the US and India
Brazil and Twitter
- Twitter has been up and down in Brazil with high adoption early on before numbers fell in 2013. But now in 2014 Twitter is the fourth biggest social network with 11 million users
- Even though Twitter CEO Dick Costolo admitted that the World Cup had not impacted the user numbers, Twitter continues to grow in Brazil.
- The most popular Twitter accounts belong to football players, TV presenters and pop stars
Brazil and Orkut
- Orkut, a social network run by Google, was Brazil’s biggest in 2008 when it was handed over to Google Brazil. Orkut had a dwindling user base and was shut down by Google in September 2014.
Brazil and its Social Media Hurdles…
Brazil’s social media user base is massive and it’s growing. But there are a lot of hurdles to overcome for any company looking to make a mark in Brazil:
- Brazil has incredibly high taxes and import tax is prohibitive
- The iPhone 6 has just gone on sale for an eye-watering $1,254. The highest price in the world
- Brazil has a flat 60 percent import tax on retail goods, leading to IKEA and H&M, two of the biggest global brands, to decide against opening stores in Brazil
- Brazil has seen a dramatic rise of cybercrime in the past years and as the internet user base increases, Brazil becomes increasingly attractive to cybercriminals
- Brazil has become the nexus for cybercriminals targeting not just Brazilian netizens but all Latin America
If your company is considering Brazil, Facebook is an obvious avenue for advertising. Linkedin, YouTube and Twitter are also compelling cases depending on your audience and advertising media. If your product or service requires monetary transactions you are going to have to deal with a burgeoning cybercrime scene and high import taxes. For companies with no retail product or financial transactions Brazil is a very attractive market and with so many users on Facebook and to a lesser degree YouTube, choosing an advertising channel is a lot easier than other major markets. However considering the demise of organic reach and Facebook’s intention to continue to diminish it, Facebook ads are most likely going to be necessary.