Brazil

Rodrigo Genoveze

Country Manager, Awin Brazil

Adaptability and resilience were very important factors in 2020. We had to readjust our business to reflect the new market - which led to changes in the way that we delivered not only products, but experiences and content. The affiliate channel continued to provide new ways of achieving results and adapting to the various changes we experienced throughout the year. We were always able to count on our network and publishers when it mattered.

Luciano Nunes Cardoso
Performance Media Specialist, Nike BR

212.6m

Population

Brazilian Real (R$)

Currency

70%

Internet penetration rate

6%

Ecommerce penetration rate
(% of total retail)

49%

Mobile penetration rate

$9.3b

Total ad spend (USD)

$3.8b

Digital ad spend (USD)

$152m

Affiliate ad spend estimate (USD)

13%

Projected ad spend growth 2021

760
Advertisers
3,442
Publishers
Share of sales by device
Share of sales by publisher type
29%
Coupon Code
28%
Loyalty & Cashback
25%
Content
6%
Social
5%
Comparison
4%
Email
2%
Display
1%
Tech Partners
1%
Search
1%
Sub Networks

Brazil has a lot to look out for in 2021. The three biggest developments will concern blockchain’s role in sales attribution, the ongoing situation within the US market following its well-publicized election drama, and the ways in which affiliate marketing can provide greater transparency.

Nicolas Bodin
Marketing Manager, B2W

Examining Brazil

Were it not for the 43% decline in ad spend, triggered by a comparable slump in consumer confidence, there would be no doubting the impact Brazil’s publishers and retailers have garnered from a complicated year to dissect. Both sides should be mindful of their unique situation which, despite the headlines occupying their news channels, remains in a good place.

President Jair Bolsonaro’s insistence that "there is no need to panic" following the country’s first COVID-related deaths in March set the tone for an ugly struggle between preserving Brazil’s economy and safeguarding public health. Rules on social distancing, masks and the operation of brick-and-mortar businesses were major points of contention between Bolsonaro and certain party members. Luis Henrique Mandetta was one of two health ministers that sparred with the president before vacating his position at a time of national crisis

The avoidance of a national lockdown gave physical retailers a pass to operate for much of the year - but while a divided population considers their stance on Bolsonaro’s fumbled response, data shows at least some being influenced by the alarming rates of infection. Tragically, warnings from the World Health Organization failed to prevent Brazil from reporting the worst death toll outside of the US. 

The avoidance of a national lockdown gave physical retailers a pass to operate for much of the year, but data shows at least some being influenced by the alarming rates of infection.

The decision by many citizens to avoid crowded environments and gain a first taste of online buying led to a 23% rise in unique online customers during H1. Awin’s Brazilian division highlighted the impact on affiliate marketing, with a 72% year-on-year increase in sales during the peak of the first wave in May. Growth dropped to 49% in June as stores began to reopen, but a 19% lift in publisher clicks for 2020 suggests a year in which activity was more up than down. 

Retailer experimentation followed closely behind enhancements to the Awin platform – one example being the introduction of a new First Click feature that gave early adopters a 15% boost in traffic and a 4-7% increase in sales from content partners.

Still, perhaps the most interesting point from last year centered on a much smaller figure of just -1%. The unlikely owner? Discount Code commission, declining in a period where many consumers were expected to look for chances to save.

Positive rises in commission were seen for Social platforms (3%) and the more familiar entity of Cashback & Loyalty (5%), but with plenty of assistance from Fintech publishers – another emerging source, which now accounts for 15% of earnings within the Cashback vertical. Awin BR is pioneering the development of Fintech affiliates like Next, Pagbank and XpInvestimentos. For those in the dark over their true potential, we’d advise checking out this Awin Report’s Brazil case study to see how we helped Banco Inter land one million new customers in 24 hours.

Another highlight of 2020 concerned the type of campaigns run via the network, particularly within the Content vertical. It’s hard to pick favorites in such a promising space, but the launch of Motorola’s new Edge+ smartphone - fueled by review articles, unboxing videos from YouTubers and several interactive elements - shows how aligned the affiliate model is with modern-day media consumption.

We also praised the ingenuity of retailers like Evino, a specialist in the wine market, who used the decline in bar and restaurant patrons as an opportunity to promote its wares through food influencers. More agility and lateral thinking should be on the menu for 2021, as Brazil’s inability to control rates of infection in December suggests a prolonged effect on economic and public health.

The avoidance of a national lockdown gave physical retailers a pass to operate for much of the year, but data shows at least some being influenced by the alarming rates of infection.

The decision by many citizens to avoid crowded environments and gain a first taste of online buying led to a 23% rise in unique online customers during H1. Awin’s Brazilian division highlighted the impact on affiliate marketing, with a 72% year-on-year increase in sales during the peak of the first wave in May. Growth dropped to 49% in June as stores began to reopen, but a 19% lift in publisher clicks for 2020 suggests a year in which activity was more up than down. 

Retailer experimentation followed closely behind enhancements to the Awin platform – one example being the introduction of a new First Click feature that gave early adopters a 15% boost in traffic and a 4-7% increase in sales from content partners.

Still, perhaps the most interesting point from last year centered on a much smaller figure of just -1%. The unlikely owner? Discount Code commission, declining in a period where many consumers were expected to look for chances to save.

Positive rises in commission were seen for Social platforms (3%) and the more familiar entity of Cashback & Loyalty (5%), but with plenty of assistance from Fintech publishers – another emerging source, which now accounts for 15% of earnings within the Cashback vertical. Awin BR is pioneering the development of Fintech affiliates like Next, Pagbank and XpInvestimentos. For those in the dark over their true potential, we’d advise checking out this Awin Report’s Brazil case study to see how we helped Banco Inter land one million new customers in 24 hours.

Another highlight of 2020 concerned the type of campaigns run via the network, particularly within the Content vertical. It’s hard to pick favorites in such a promising space, but the launch of Motorola’s new Edge+ smartphone - fueled by review articles, unboxing videos from YouTubers and several interactive elements - shows how aligned the affiliate model is with modern-day media consumption.

We also praised the ingenuity of retailers like Evino, a specialist in the wine market, who used the decline in bar and restaurant patrons as an opportunity to promote its wares through food influencers. More agility and lateral thinking should be on the menu for 2021, as Brazil’s inability to control rates of infection in December suggests a prolonged effect on economic and public health.

Awin Talks
Meet the market
Awin Talks host Kevin Edwards speaks to Glaucia Traverzim, Senior Digital Media Analyst at Carrefour and an expert on the Brazilian affiliate industry. Recorded in February 2021.

Our business does not exist without the affiliate channel. We have an eight-year partnership with Awin and 2020 was by far our most productive to date. The network proved crucial to our business through reliable tracking and its wide range of advertisers. Both qualities helped us to scale our new cashback offering and manage the increased demand we saw at the height of the pandemic. 

Ivan Zeredo
Director of Growth, Cuponomia
+R$30m
revenue
+12x
average daily sales
+R$2m
cashback delivered

How Banco Inter landed one million new customers in 24 hours

+R$30m
revenue
+12x
average daily sales
+R$2m
cashback delivered

Fintech company Banco Inter devised a special one-day sales event, InterDay, to engage new customers, drive downloads for its newly-launched app and help users take advantage of app-exclusive discounts, cashback offers and other benefits.

The affiliate channel was identified as the perfect medium for achieving these goals, and Banco Inter and Awin devised a strategic campaign to maximize the 24-hour window of opportunity afforded by InterDay.

Ultimately the campaign was a massive success and emphasized how affiliate can be used to hit the sweet spot of value between brands, publishers and customers.

One of the main factors that demonstrated how the affiliate channel supported us this year was simply the speed with which it delivered results. Plus, it continued to adapt to the various changes we faced throughout the rest of the year, and we were always able to count on the valuable involvement of the network and our main publishers in achieving our goals.

Luciano Nunes Cardoso
Performance Media Specialist, Nike BR
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