Media Trends And

Implications for
Advertisers Amid a
Pandemic
The impact of COVID-19 on media Change
consumption in Latin America picture

April 2020
What you will hear from us today: 4 key trends in media consumption… and some implications
for advertisers

#1 #2 #3 #4
We are consuming Audience profiles TV news has Caution among
more media than are shifting amid become a critical advertisers… but
ever… presenting the crisis… and source of is it justified?
an ever growing advertisers need information… but
opportunity for to adapt quickly viewing habits are
advertisers continuing to
evolve

2
 KEY
Snapshot: TV viewing uplifts across the world COUNTRY
% Increase vs. 2019
Our measurement fuels $86 billion of advertising spend decisions worldwide. (WEEK #, # mins in 2020)

NORWAY
+35%
MEXICO (W14, 153 mins)

+21%
(W15, 255 mins) CHINA
+41%
(W5, 190 mins)

COLOMBIA
+40%
(W15, 273 mins)

PERU
+57%
(W15, 287 mins)
UK
+29%
CHILE (W13, 226 mins)
+31% BRAZIL
(W15, 279 mins) ARGENTINA +19%
+7% (W16, 298 mins)
(W13, 229 mins)

Average Minutes Viewed per Day

3
TV Viewing in LATAM has started to stabilize
Are we heading “back to a new normal”?
2020
2019

300

200

MARCH 8TH – we start to

see a rise in viewing as
LATAM countries prepare
100 to put lockdown measures
in place

0
1st Jan 19th Apr

Daily Avrage Mins, A4+

Data source and copyright: KANTAR IBOPE MEDIA
4
Across Latin America there has been increased TV viewing during “lock-downs”- Netflix
also added 15.8 M subscribers in Q1 double the initial estimate
2020
2019
Average minutes viewed per day
BRAZIL (A4+) ARGENTINA (A4+)
350 250

300

250 200

200 20th Mar – epidemic declared in 19th Mar – mandatory

Brazil; partial lockdown in place quarantine announced

150 150
1st Mar 19th Apr 1st Mar 19th Apr 19th Apr

COLOMBIA (A4+) COSTA RICA (A4+) PERU (A4+)

350 300 350

300
300 250
250
250 200
200
200 150
150
16th March – nationwide state 15th March – nationwide
20th March – nationwide 19- of emergency announced quarantine announced
150 day quarantine announced 100 100
1st Mar 19th Apr 1st Mar 19th Apr 1st Mar 19th Apr

All viewing data based on whole day viewing on a TV set – typically for All Individuals 4+, unless stated (Average Daily Minutes Viewed) 5
Overall, increases in Pay TV viewing have exceeded that of Over the Air in recent weeks
Based on Average Time Spent

% change in average time spent March 2 nd-8th vs. April 13th -19th
30%

25%

20%

15% Pay TV
Over the Air
10%

5%

0%
Regional Argentina Brazil Chile Colombia Mexico Peru

All viewing data based on whole day viewing on a TV set – typically for All Individuals 4+, unless stated (Average Daily Minutes Viewed) 6
Who’s watching what,
where and when?
With school closures, increases in viewing among younger audiences are outpacing those of
older audiences in some markets

Average time spent

Brazil Mexico

March 2nd-8th April 13th-19th March 2nd-8th April 13th-19th

600 500
+16% 450 +11%
+19%
500 +25% +16%
+27% +22% 400
+21% +23% +14% +27% +14% +14%
350 +7%
400
300
300 250
200
200
150
100
100
50
0 0
4-11 12-17 18-24 25-34 35-49 50-54 55+ 4-11 12-17 18-24 25-34 35-49 50-54 55+

8
And in all markets we’re seeing male TV viewing increase at a faster pace than female viewing

% change in average time spent March 2 nd-8th vs. April 13th -19th

Men Women
35%

30%

25%

20%

15%

10%

5%

0%
Regional Argentina Brazil Chile Colombia Mexico Peru

All viewing data based on whole day viewing on a TV set – typically for All Individuals 4+, unless stated (Average Daily Minutes Viewed) 9
All over the world, TV news programs have become a critical source for audiences trying to
stay informed about the ever evolving pandemic

In China*, news viewing has almost doubled so far In Argentina**, news viewing has increased 55%
in 2020 (1,413 mins vs. 727 mins in 2019) since w/c 12th March (1,439 mins vs. 927 mins in 2019)

180 450

160 400

140 350

120 300

100
250

80
200
60
150
40
100
20
50
0
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week Week Week Week Week Week
10 11 12 13 14 15 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2020 *Data Provided by Kantar’s Partners CSM; Total Weekly Minutes of all News Programming
10
2019 **Data Provided by Kantar IBOPE Media; Total Weekly Minutes across seven news channels
In Argentina, we are seeing a shift in program preference as weeks go by

25,00 Share of Verified Programming in Argentina

2/24/20 - 3/1/20
3/16/20 - 3/22/20
20,00
4/13/20 - 4/19/20

15,00

10,00

5,00

0,00

Data Provided by Kantar IBOPE Media; Share of RAT% 11

In Mexico, News has leveled off and we are seeing Religion have the largest increase
in Program viewership

20,00 2/24/20 - 3/1/20

Share of Verified Programming in Mexico 3/16/20 - 3/22/20
18,00

4/13/20 - 4/19/20
16,00

14,00

12,00

10,00

8,00

6,00

4,00

2,00

0,00
Drama Sweepstakes Soap Operas Reality Show News in Magazine Comedy Talk Show Movies TV Series Cartoons Children Religion
general

Data Provided by Kantar IBOPE Media; Share of RAT% 12

In Colombia, Soap Opera and News and Comedy are the top viewed genres of interest

40,00
Share of Verified Programming in Colombia 2/24/20 - 3/1/20
35,00
3/16/20 - 3/22/20
30,00
4/13/20 - 4/19/20
25,00

20,00

15,00

10,00

5,00

0,00

Data Provided by Kantar IBOPE Media; Share of RAT% 13

$ What does all this mean
for media planning and
ad spend?
There is very little expectation that brands should stop advertising,
with only 8% of respondents
identifying it as a priority for brands.

As many brands consider ‘going dark’ to save costs Kantar estimates that a six-month
absence from TV will result in a 39% reduction in total brand communication awareness,
potentially delaying recovery in the post-pandemic world.

15
The story in Latin America is somewhat mixed

Telecomunicaciones Bancos Farmacia

Retail Turismo Eventos

Advertising Investment - Comparison between February vs March 2020 16

“ Governments are
increasing their
advertising
expenditure across
Latin America
“
+202%

+144%

+112%

Advertising Investment - Comparison between February vs March 2020 17

As media consumption grows, many sectors have increased ad spend

Categories with the most growth

Universidades
Instituciones Bancos +66% privadas +128%
+150%
Servicio Financiero
Beneficencias +10% Limpieza +28% Bancos +92%
sociales
Servicios +4% Tónicos/ +22% Operadores +19%
Bancarios Vitaminas Móviles

Shampoo
Telecomunicaciones +109% Agua +178% femenino +238%
saborizada
Alimentación +103% Farmacéuticos +102% Telecomunicaciones +166%

Bancos +68% Bancos +43% Farmacéuticos +32%

Desinfectante +179% Instituciones +257% Farmacéuticos +124%

financieras
Suplementos y
Multivitamínicos +146% Software +181% Bancos +114%

Servicio de Tónicos/
celulares +57% Vitaminas +64% Aseo Personal +70%

Advertising Investment - Comparison between February vs March 2020 18

While at the same time, some of the most impacted sectors are reducing TV advertising

Categories with the greatest decline

Cerveza -69% Super e -61% Eventos -55%
Hipermercados

Producciones -58% Universidades -52% Supermercados -42%

cinematográficas Higiene
Turismo -55% Capilar -12% Crédito vivienda -30%

Turismo -81% Eventos y -63% Jugos/Néctares -45%

Espectáculos
Eventos y -46% E-commerce -50% Gaseosas -41%
Espectáculos Viajes/Turismo
Super e Tiendas por
Retail -15% Hipermercados -36% Departamento -15%

Eventos -56% Cerveza -84% Almacenes de -72%

ropa
Almacén de Eventos -55%
Eventos -49%
electrodomésticos -50%
Super e Comidas
Universidad -48% Hipermercados -44% rápidas -21%

Advertising Investment - Comparison between February vs March 2020 19

We’ve seen before that strong brands recovered NINE TIMES faster following the financial
crisis of 2008

+317%
BrandZ Top 10
Powerful Brands

+196%
BrandZ Strong
Brands Portfolio

+128%
S&P 500

+59%
MSCI Word Index

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: BrandZ Global, 2019 20

Three important messages to address fear of COVID-19-Recession and Downtime

1. Audiences are growing helping brands reach more people. Brands must
continue to advertise during the pandemic...

… or risk being left behind as society changes. Salience is incredibly important at

times of crisis – particularly in commodity categories. And we’re currently seeing
the opportunity to connect with more consumers than ever before.

2. But it is also essential to react quickly and redefine future offerings

We will need to use the very latest insights to optimize media plans and focus on
creatives, while at the same time thinking of long term recovery prospects

3. We’re all in this together!

Solidarity is needed more than ever before. Going forward, people are looking for
pragmatism, information and support from Media, brands and businesses. No
doubt the media and marketing industry has an opportunity to play an integral role
here.

21