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Video Leads Consumer Preference for Mobile Ads in Brazil

YouTube is the top video site among the country’s smartphone owners

A November 2013 study by PricewaterhouseCoopers found that video ads were the preferred mobile ad format among mobile phone owners in Brazil, cited by 55% of respondents. In addition, mobile phone owners in Brazil were significantly more engaged by mobile video advertising than those in other countries studied. Banner ads and mobile coupons were distant runner-ups, popular among 11% and 12% of respondents, respectively.

For international context, 36% of respondents in China preferred video advertising, making it only slightly more popular than mobile coupons—which in turn were the preferred type of mobile advertising among 27% of mobile phone owners in the US. Similarly, banner ads, which ranked second in the US, were No. 1 in the UK, with 28% of respondents preferring this mobile ad format.

The varying preferences for mobile ad formats across countries shed some light on market peculiarities. The predisposition of US and UK mobile owners toward mobile coupons is perhaps linked to the markets’ better-developed mcommerce spaces, where a mobile coupon can more easily and quickly be redeemed for a purchase. In Brazil’s still-nascent mobile commerce market, the preference for mobile video ads—in a setting where most other advertising formats are overt calls to action focused on boosting conversion rates—is likely linked less to purchase intent and more to consuming the actual content of the video.

Knowing that mobile phone users in Brazil are receptive to video ads on their devices, it is helpful to know which mobile video channels these consumers are directing their attention to.

As expected, YouTube is immensely popular. A September 2013 study by the Mobile Marketing Association and IBOPE Nielsen Online ranked the Google-owned service as the top video website among smartphone owners in Brazil.

Globo TV, the online outlet for Brazil’s largest broadcast network TV Globo, tied with Netflix, both cited by 17% of respondents—and both a far cry from YouTube’s 91%. Closing off the top five were the video sites for two of Brazil’s most popular web portals, UOL and R7, which garnered the attention of 11% and 8% of respondents, respectively.

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