Brands: Petrobras Loses, Corona Wins

Latin America’s top brands, Latin America ad growth leads the world, Mexico best TV ad.

BY LATINVEX STAFF

Corona has replaced Petrobras as the most valuable Latin American brand, according to the latest ranking from Millward Brown.
 
The Brand Z Top  50 Most Valuable Latin American Brands 2014 shows the Mexican beer brand having a brand value of $8 billion versus $3.3 billion for Brazil’s state oil giant, which fell to 14th place.

While Corona’s brand value grew 21 percent compared to last year, the Petrobras brand saw a 44 percent decline. 

Meanwhile, Brazilian beer brand Skol and Chilean retailer Falabella have Latin America’s second- and third-most valuable brands, respectively. 

The top ten rank includes three more beer brands: Brahma from Brazil (8th place), Aguila from Colombia (9^th place) and Modelo from Mexico (10^th place).

The top ten also includes Mexican wireless carrier Telcel (4^th place), Brazilian bank Bradesco (5^th place), Chilean retailer Sodimac (6^th place) and Mexican media giant Televisa (7th  place).

MEXICO GAINS, BRAZIL FALLS

Mexico remains in first place in the BrandZ Top  50 Most Valuable Latin American Brands 2014. Its contribution to the ranking grew from 28 percent in 2013 to 33 percent in 2014, led mainly by Beer, Communication Providers, Retail and Financial Institutions, the combined value of which rose 27 percent in the period, according to Millward Brown.

Brazil decreased its contribution to the BrandZ Top 50 LatAm 2014 from 28 percent to 24 percent, mainly due to the weak performance of almost all of its brands: of the eleven Brazilian brands in the ranking, eight dropped in value. The categories Energy, Financial Institutions and Cosmetics displayed the worst performance, a reflection of the Brazilian stock exchange, which in 2013 experienced the second largest drop globally (-34 percent in dollar). “This was mainly due to the commodities companies’ and investors’ insecurity about the country’s economic performance,” Millward Brown said in a statement on the Brazn Z results.

Chile, in third place, increased its contribution to the ranking in 2014 from 19 percent to 20 percent. From nine Chilean brands in the ranking, the retail category domains with six, which clearly shows the power of well-positioned brands. Meanwhile, Colombia and Peru basically maintained their positions in the BrandZ Top 50 LatAm 2014. The Financial Institutions category dominates the Colombian contribution to the ranking while for Peru, the Beer category is the most representative.

Argentina, in last place, contributed only 1 percent of the Brand Z Top 50 LatAm 2014, generated by YPF, from the Oil Industry category. 

The Beer, Food & Personal Care category continues to be the leader in value contribution to the BrandZ Top 50 LatAm 2014, with an increase of 9 percent in terms of value. The category enhanced its presence in the Latin America region, contributing 33 percent of the total brand value, against 29 percent of the previous year ranking.

Meanwhile, financial institutions (bank and insurance) is still the second most important in the region, contributing 22 percent of the total brand value, in spite of a fall of 3 percent from 2013 to 2014 driven by Brazil (-20 percent) and Chile (-13 percent). The Mexican brand value increased 43 percent, compensating for the poor performance of the other countries, according to the 2014 ranking from Millward Brown.

LATIN AMERICA ADS GROW

Latin America remains the world’s advertising growth champion, according to the latest estimate from London-based ad agency ZenithOptimedia.

Ad spending in Latin America will likely grow by 14.3 percent this year. That’s more than any other region in the world and compares with a global average of 5.3 percent.

A key driver was the World Cup in Brazil and the Olympic Games in Rio de Janeiro in 2016 will similarly help drive ad spending in Latin America that year, ZenithOptimedia says.

Brazil last year ranked as the sixth-largest ad market in the world, thanks to ad spending of $14.8 billion.  That ranked it ahead of countries like France, Australia, South Korea and Canada, according to ZenithOptimedia.

Meanwhile, digital ad spending jumped 27.6 percent in Colombia druing the first half of the year, according to a report in Colombian newspaper Portafolio quoting data from IAB.

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