Should Performance Marketers Invest in Brazil?

With Afiliados Brasil happening this week, here’s insight into the performance marketing world there. Come visit the HasOffers team at Booth 40. 

Brazil has long been Latin America’s key location for mobile marketers. Brazil is among the top five contenders for most connected countries in the world, and Brazilians are known for their love of interacting with digital campaigns.

With over 200 million people, Brazil ranked third for the fastest-growing mobile ad market in the world in 2015. And by 2020, mobile ad spending is estimated to account for nearly 20% of all ad spending in Brazil.

Half of all digital ad spending in Latin America is executed in Brazil, and 41.1 million people in Brazil will make at least one purchase via an Internet-connected device in 2016 — up 10.1% over 2015 figures.

Brazil, however, is experiencing some economic pain at the moment ― the country has been in recession since mid-2014, and the economy is not expected to start growing until at least 2017. Why, then, should marketers target the Brazil market?

Why Focus on Brazil During an Economic Downturn

Brazil’s sheer size makes the country a compelling region for performance and affiliate marketers. Despite the recession, it’s estimated that by 2019, 45.9%, or $5.79 billion of digital ad spending in Latin America will still happen in Brazil, Latin America’s largest economy.

While some of the growth will be powered by high inflation in Brazil, fast-expanding mobile advertising spends will also provide plenty of opportunities for savvy mobile marketers. Despite the uncertain economy, experts predict continuing double digit growth.

Native Advertising is the Way Forward

It’s estimated that as soon as 2017, more than 80% of smartphone owners around the world could be blocking ads. About 64%of Brazil users have installed ad blocking software due to intrusive advertising.

For the moment, native advertising is still whitelisted by ad blockers, which means that it’s more likely to be delivered to mobile end users than traditional advertising. It also tends to get higher engagement and more user views.

Native advertising closely resembles content that’s already on the page, and may even appear to be part of the content. Examples include promoted content on social media sites like Facebook and Twitter. Native ads appear in social feeds and can even be embedded directly within the actual editorial content of a page.

In one study, young moms (ages 18–32) in Brazil were revealed to trust sponsored content more than respondents in other countries did. Over three-quarters of Brazilian respondents said viewing a native ad with high quality content would make them think positively about the advertiser.

And, in an era of almost unlimited content, the only way to stand out and engage visitors is to focus on quality — and that’s an area where native advertising is very successful. In fact, native advertising is poised to double by 2018.

Performance Marketing in Brazil: 4 Tips to Remember

1. Get in the Market Early

Brazil’s mobile market continues to grow rapidly. With a population of over 200 million, Brazil is the largest digital advertising market in Latin America, and was ranked the third-fastest growing mobile ad market in the world in 2015. Digital ad spending in Brazil is expected to grow faster than in other markets like the U.S. and the U.K.

2. Use Social Media Like a Local

It pays to market where your customers are. In Brazil, this means on social media. In terms of total Internet users, Brazil ranks in the top 10 countries on Facebook, YouTube, Twitter, and Google Plus. When it comes to mobile messaging (which is used by 34% of Brazil’s population), 87%  of Brazilian users rely on Facebook, and 50% use Skype. Be sure to serve content to Brazilian users on their preferred platforms, such as Facebook.

3. Work With Locals

It’s always wise to find a local partner and meet with them in person in order to develop a strong working relationship. For content to engage with an audience and fulfill what it was intended to do, it must be relevant and good. Find the right people to create the best possible content — Even if you speak Portuguese, it’s worth hiring professional copywriters who can write in Brazil’s national language.

4. Focus on Quality

With the recent rise in ad blocking, delivering quality content has become more important than ever. The high ratio of mobile users in Brazil make this especially crucial. Ensure your message gets across by focusing on high-quality advertising that provides value to consumers

Brazil is a key emerging market for performance marketers to invest in. Focusing on ad quality, dealing personally with Brazilian partners, and embracing native advertising will help your Brazilian campaign be a success.

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Author

Becky is the Senior Content Marketing Manager at TUNE. Before TUNE, she handled content strategy and marketing communications at several tech startups in the Bay Area. Becky received her bachelor's degree in English from Wake Forest University. After a decade in San Francisco and Seattle, she has returned home to Charleston, SC, where you can find her strolling through Hampton Park with her pup and enjoying the simple things between adventures with friends and family.