May 15, 2018 - By Ginna Hall, Senior Writer, Visual IQ
Brazil’s marketing and advertising landscape is becoming more fast paced and complex. Steady recovery from the recent economic crisis and pending elections have boosted consumer confidence to its highest level in the last two years. Employment and consumers’ perception of their personal finances have also improved.
In light of this economic upturn, consumers are adopting mobile and digital technologies at a faster rate. Brazilian internet users are multi-channel consumers. Almost half of the Brazilian audience already consumes digital content through more than one device.
The use of these devices is launching a new digital era in Brazil, which is creating opportunities for advertisers. According to an October 2016 forecast from Google and Forrester Research, the number of digital buyers in the country will climb from 40.3 million in 2016 to 67.4 million in 2021.
Demand for digital marketing expertise is high. Brazil is the world's second largest market in terms of volume of monthly impressions, with over 198 billion impressions delivered in the first quarter of 2015. Agencies and brands across industries are racing to meet the demands of consumers and leverage the opportunities of this new landscape.
At the same time, the rapid pace and complexity have made marketing effectiveness increasingly difficult. Brands and agencies are reinventing themselves and trying to find new ways of measuring their results. The challenge is how to understand the effectiveness of each media channel and overall campaign performance to continuously improve ROI.
To help Brazilian marketers navigate this increasingly complex terrain, Nielsen hosted its first Marketing Effectiveness Event in Brazil to share insights with regional marketers. Over 115 CPG and non-CPG marketing and advertising executives gathered on May 3 in a notable art building in the city of São Paulo, the Tomie Ohtake Institute.
Attendees at ““What’s Next? Effective Communication in a Multichannel Environment” came from major companies including Webmotors, Via Varejo, Itau Unibanco and Bradesco (the second and third largest banks in Brazil), Sociomantic, Ripley, BMG, OLX, Santander, Serasa Experian and Walmart.
Cristina Alvarenga, Commercial Director, Nielsen Brazil, welcomed attendees and highlighted the importance of marketing effectiveness and the challenges marketers face. She introduced the Brazilian Nielsen Marketing Effectiveness team including Janaína Brizante, Consumer Neuroscience, Miguel Hernandez, Marketing ROI Analytics, and David Eastman, Digital, and the Marketing & Communication Brazil team of Mariana Paula, Angelica Vargas and Carolina Basilio.
Guest Speaker: David Ehrhorn, RVP, Nielsen Marketing ROI Solutions, Nielsen US presented “Today's Marketing Measurement Challenges.” with a focus on how Marketing Mix Modeling and Multi-Touch Attribution can solve the most pressing performance challenges facing marketers today.
“Understanding what’s working and how to assemble the correct mix of tactics in a world with digital, cross-device and offline components is one of the biggest challenges marketers now face,” Ehrhorn said. “They need marketing intelligence that reduces the complexity of this puzzle.”
Ehrhorn focused on the opportunities offered by new ways to reach consumers and new methods needed to measure performance in the digital era. He also explained the current challenges: use of accurate metrics;, understanding how offline and online channels interact; tracking and de-duplicating individuals across channels and devices; and understanding consumer attributes and preferences.
Ehrhorn described how Magazine Luiza uses the Nielsen Visual IQ multi-touch attribution solution to understand the customer journey and improve media spend allocation.
Magazine Luiza is one of the largest retailers in Brazil, with more than 800 stores, 23,000 employees, and revenue of BRL 12 billion (USD 3.33 billion).The company offers 10 thousand items in-store and has a strong e-commerce operation with over 50 thousand items available online.
Like many retailers, Magazine Luiza was experiencing several challenges. It lacked insight into the complete customer journey. The existing path-based solution did not include all the touchpoints prior to purchase. It sought an advanced attribution approach to maximize conversions, enhance media measurement, reduce CPA and improve overall ROAS. It also wanted to better allocate a growing media budget to support strong company growth.
Using the Nielsen Visual IQ multi-touch attribution solution, the company was able to better understand the customer journey and all touchpoints to purchase. It gained the ability to understand the true impact of awareness and branding campaigns and it was able to improve its investment allocation process for driving new customer acquisition and repeat customers.
With insights from the daily model refresh and granular measurement, the company detected important channels on the customer journey that had been previously overlooked and saw a lift of more than 200 percent in TrueConversions. By focusing on these channels, the company expects to see a 22 percent increase in revenue and a 18 percent improved ROAS due to in-channel optimizations over the coming months.
Ehrhorn was followed by Dr. Carl Marci, Chief Neuroscientist with Nielsen Consumer Neuroscience, who spoke about “Leveraging Neuroscience in the Age of Distraction.” Before and after the event, attendees could try a visit to a neuroscience booth to experience how Nielsen neuro tests are performed in the laboratory and see how they are analyzed.
The event concluded with a panel on media evolution, effectiveness and optimization moderated by Janaína Brizante, Consumer Neuroscience Director, Nielsen Brazil. Brizante was joined by Ana Paula Tintim, Head Consumer Data Insights LatAm at Reckitt Benckiser; Claudia Furniel, Marketing Manager at Banco Itaú and Paulo Ramazza, Marketing Manager at Magazine Luiza.
Panelists debated important questions about the current state of marketing research and analytics in their markets and what to expect in the future. It was a very interesting moment in which the audience could see in practice how different companies are performing.
The event brought some of the best of Nielsen and provided attendees with new possibilities for day-to-day decision-making. Nielsen Visual IQ looks forward to future opportunities to help Brazilian marketing teams navigate the digital era and grow their businesses.
To learn more about how you can be a better marketer in the digital era, download our ebook: Crossing the New Digital Divide: Your Guide to Marketing Effectiveness