CoreBiz expands its services into e-commerce with new consulting practice

14 August 2018 Consultancy.lat

Brazilian digital marketing agency CoreBiz has expanded its offerings to include e-commerce and digital consulting as a way to leverage its customers’ digital sales. 

The clash of horns between marketing agencies and consulting firms is heating up in Brazil with digital marketing agency CoreBiz extending its offerings into the consulting world. The convergence between the two worlds has been going on for the past half a decade with numerous creative and digital agencies being bought up the world’s largest consulting firms. 

Tech savvy, post-recession Brazil is the latest battleground for this global war of digital dominance, with Accenture being the first to jump the gun two years ago by making a move on AD.Dialeto to bolster its Accenture Interactive footprint throughout the continent. Global PR firm Weber Shandwick have also been encroaching on the digisphere in Brazil, having recently acquired Cappuccino, a São Paulo based full-service digital marketing and technology agency. 

Globally, Accenture, McKinsey & Company and the Big Four professional service firms – Deloitte, KPMGEY and PwC – are ramping up the heat on their digital service capabilities. The competition is fierce, with Consultancy.uk putting the dollar value that the consulting world dropped on agencies in 2017 at $1.2 billion – a 134% increase on 2016.

CoreBiz’s consulting practices will solidify the advertising agency’s position in Brazil’s digital strategy marketplace. The agency has brought in e-commerce industry pioneer Rodolfo Alves as the Head of Consultancy, a position created alongside the new practice. Alves has a wealth of experience in digital merchandising, B2B support, e-commerce strategy and project management. 

Prior to joining CoreBiz, he served as the Head of Partner Care for cloud commerce platform VTEX, working on a diverse range of projects across Latin America. Alves has also led Nokia’s e-commerce business and worked for some of the region’s biggest companies at Latin online retailer, B2W.

CoreBiz expands its services into e-commerce with new consulting practice

The agency’s consulting services will add to its cognitive marketing and omni-channel offerings and bring together its services under one overarching digital strategy service. This includes combining logistics, service, IT, B2B, commercial, direct marketing, digital marketing and strategy consulting. 

According to Alves, “It is fundamental to understand the particularities of each project that a client brings to us in order to propose a cost-effective and efficient solution for the business model. This is possible through a detailed plan that looks at the size of resources and costs, as well as a clear and objective scope, able to guarantee the health of all the fronts involved in a project.”

CoreBiz was founded by Felipe Macedo and Renan Mota under the name Santa Monica and then went on to acquire a number of smaller agencies in the fields of digital media, SEO, CRM and CRO. Today the company has roughly 80 professionals and has developed its focus on cognitive marketing omni-channel. When the agency rebranded as CoreBiz back in 2016, it projected an annual revenue stream of just over $1 million. 

Speaking of the recent shift into the consulting industry, Macedo says, “CoreBiz is already consulting on almost every project of the agency, because we have no doubt that this is the success of our client's business.”

“However, we have decided to give emphasis to the area in order to guarantee all the risks at the very beginning of a project, as well as the optimization of resources and results for the retailers and consequently for us. Therefore, we bet on an experienced person who has been active in the e-commerce market for some time,” Macedo concludes, referring to Alves.

Mobile to make up over half of Latin America’s digital ad market this year

03 July 2018 Consultancy.lat

Though still a largely traditional ad market, with a heavy emphasis on traditional media spending, the mobile (smartphones, tablets) ad market is building up steam in Latin America. Market research consultancy eMarketer expects mobile ad spending to account for more than a quarter of the region’s total ad market by 2022, and over three-quarters of the digital ad market.

Latin America is currently the fourth largest ad market, accounting for 6.1% of the world ad spend, with a total regional value of $38.04 estimated for 2018. Brazil is the region’s biggest ad market at $17 billion, which makes it the sixth largest market in the world, ahead of both France and Australia.

Traditional media (TV in particular) still accounts for the largest share of ad spending in Latin America, amounting to $28.3 billion and a hefty 73.7% slice of the ad pie. As such, the region’s ad buying is still quite traditional when contrasted with the global average – 56.5%.

Unsurprisingly, then, digital’s share of the total ad spend in Latin America (26.3%) is much smaller than the global average (43.5%). However, as internet and smartphone penetration rises in the region and advertisers respond in kind, digital is expected to grow from $10 billion in 2018 to $14.76 billion in 2022 – representing one-third of the ad spend.Mobile to make up over half of Latin America's digital ad market this yearAccording to market research consultancy eMarketer, the mobile segment will account for more than half (52.9%) of digital ad spending in Latin America this year. According to eMarketer’s report, improved mobile internet access, less costly data plans, and rapid smartphone adoption in the region have been the key drivers in the growth of the mobile ad segment.

While the regional average will surpass 50% this year, the report expects mobile’s slice of digital ads to overtake the 50% mark in every country in Latin America by 2020.

This year, mobile’s total share of the entire ad market in Latin America will reach 13.9%, but it is expected to almost double to 25.8% by 2022.

eMarketer expects advertisers to shift their mindset to being ‘mobile-first’ as the segment increasingly grows its share of the region’s digital market. The report projects that mobile will command up to 77.5% of Latin America’s digital ad spending in 2022.