Mobile Video Soars in Brazil with Growing Out-of-home Smartphone Usage

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Smartphone sales in Brazil have reached 13,3 million units over the the second quarter of 2014, according to analyst IDC [9]. Phablets – smartphones with bigger screens – are another growing trend locally, more than 5 million units of such devices will be sold in Brazil in 2014 – this compares to 128,000 phablet-type handsets sold in 2012 and about 2.2 million in 2013.

“The second quarter results of smartphone sales was above our forecast and represent record sales not only in Brazil but worldwide. This is the first time that Brazil enters this level, with 13 million sold, and the world surpasses 300 million units sold,” says IDC Brazil analyst Leonardo Munin.

The result is that mobile video consumption skyrocketed, and in Brazil it is the preferred mobile ad format among mobile phone owners [1].

In an attempt to understand this phenomenon, the second largest newspaper in circulation in the City of São Paulo ’O Estado de São Paulo’ talked to experts in mobile video market including high-level executives from OvermediaCast, Vevo, Cisco and Telefónica Vivo about  the impact of digital video on people and brands [2]. Below are some highlights from this subject.

A survey published by eMarketer shows that online video accounts for 53% of all mobile traffic worldwide [3]. According to Cisco, in Brazil, this number is expected to double each year for the next four years, as mobile broadband connection speeds improve.

According to Telefónica Vivo´s e-Business Director, Fernando Moulin:

“You can not build digital presence without cranking up your video presence. For us, mobile video is a strongly differentiation strategy”.

OvermediaCast, the Telefónica´s mobile video media provider, uses mobile data to put brands in consumers’ hand, delivering interactive videos in target, at the right time, wherever people are.

Mobile video engages anywhere

Video boosts all engagement marketing strategies. Studies from comScore and Online Publishers Association (OPA) show that digital video are the greater marketing catalyst:

  • 96% of consumers click at links after watching  videos

  • 90% of consumers say buying decisions are influenced by videos

Video opens up new ways for diverse people to express themselves and engage with brands, becoming allies to relevant content, or creating and co-creating their own videos.

“The engagement of the online generation with video is so impressive. Nowadays we measure the success of a video by the number of parodies and new versions that appear online”, says Fatima Pissara, General Manager at Vevo Brazil.

The video views on Vevo from Brazil  grew 50% between 2012 and 2013. The user engagement and interactions increased 80%, while mobile traffic tripled, growing 142% in the same period.

Video maximizes the ROI

According to eMarketer, 93% of marketers have used video in digital marketing strategies in 2013. Worldwide, 59.1% of these marketing professionals mentioned video as the content type with the highest ROI [5].

In order to maximize the ROI, OvermediaCast gathers all consumers data at viewer-level, a 100% opted-in. By using individual information the company  measures reach, frequency and engagement of each unique viewer. These data are used to ensure significant in-target coverage establishing the ideal frequency of exposure.

Mobile video goes beyond TV

In the article, Hugo Marques, a Cisco Technical Solution Architect from Brazil, commented he believed that mobile content will replace the TV.

“We designed a future where people no longer have TV sets, but an entire wall at their house that will serve as the TV to transmit high-resolution images from the tablet or mobile phone”.

Clearly, consumer behavior has changed and now people’s phones are considered to be an extension of themselves that cannot be disengaged. There are more people on earth that have access to a mobile phone, than have access to a toothbrush [6]. And in Brazil, young people said that mobile phones are more basic than clothes [7].

Despite that, brands are struggling to keep up with customers on mobile. There´s a big gap between mobile use and advertisers’ spend -The numbers show that mobile ads accounts for only 4% of spend, versus around 20% of consumer’s time [8].

Therefore, advertisers that innovate by creating a high-impact mobile presence will differentiate themselves in the market, engaging more with their audience and adding value to their brands.

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Mobile Interactive Videos with Customer Intelligence:

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References

[1] eMarketer ‘Video Leads Cosumer Preference’; 14/mar/2014 http://www.emarketer.com/Article/Video-Leads-Consumer-Preference-Mobile-Ads-Brazil/1010680

[2] Estadão ‘Presença digital depende cada vez mais do vídeo’; 07/09/2014 http://blogs.estadao.com.br/link/futuro-do-video-passa-por-barreiras-e-oportunidades/

[3] eMarketer ‘Smartphone Users Worldwide Will Total 1.75 Billion in 2014′, 16/01/2014. Available on:  http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-Billion-

[5]eMarketer ‘As barries tumble video marketing adoption grows’; 11/nov/2013 http://www.emarketer.com/Article/Barriers-Tumble-Video-Marketing-Adoption-Grows/1010374

[6] Mobile Marketing Mag ‘More Mobile Phone Acess Than Toothbrushes, says Google’ 01/out/2012  http://bit.ly/1uln0ZP

[7] O Estado de São Paulo; ‘Celular é mais básico que roupa para jovem’ 31/04/2014 http://blogs.estadao.com.br/link/celular-e-mais-basico-que-roupa-para-jovens/

[8] Meeker, Mary. Internet Trends 2014 – Code Conference, KPCG, 28/05/2014. Available on: http://www.kpcb.com/internet-trends.

[9] http://www.zdnet.com/smartphone-sales-surpass-13-million-in-brazil-in-q2-7000033623/

 

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