Exploiting the Spanish market

[truesouth]

Well, compared to the English market, the Spanish market is very very late.
You can give an idea of something in the English market and can not be exploited, but in Spanish it?

Please discuss a healthy way.

Thanks for your advice!

[grangonzo]

El problema con el mercado hispano es justamente eso, que esta demasiado atrasado.

Y no es ese solamente en inconveniente. La principal barrera es el poder adquisitivo de la gente. La gente no tiene dinero, la gente no tiene tarjeta de credito, etc etc etc.

Te lo digo por experiencia, llevo trabajando con el mercado hispano hace varios años, y cuesta unas 20 veces mas el vender algo que en el mercado anglo.

Basically what i said is:

The main issue with hispanic market is that it's waaaay behind english market, plus, people don't have money, don't have a credit card!!!

[bravo75]

Wie waere es denn vielleicht mit dem deutschen markt?

How about the german market?

[Kevin Williams]

Blah, Spanish and German ... it's like I'm back in highschool.

[7reach]

they are very lucrative markets, they just tend to work better with different campaigns. For example, mobile still does amazing in latam, cause more people have mobile phones and can sign up for stuff than those who have pcs. Also, lead generation is very easy in latam versus other countries, since it's so new there.

[MoneyOrc2.1]

I just signed up with DirectCPV and i'm running a couple advertising campaigns....they let me set up my account so that I can target each country individually. Spain isn't doing great but my south american campaigns are rocking hard. I am making some changes to my Spanish campaign and hoping to make a ****load of money.

[Chris Kent]

Have a look at some of the Spanish language translations of top Clickbank products. Some very healthy gravities there and not much in the way of competition.

[7reach]

yes, Spain is harder to convert, since their online market has been booming for a while now. Latam, on the other hand, is incredible right now. Our latam campaigns are killing it. We over deliver to our advertisers every month!

[Dave777]

Marketing to the Spanish marketplace without any written or language knowledge of Spanish if you listen to Jeff Johnson's affiliate promotion with his local friend Ryan Ringold...

Definitely interesting as with all the Great information and tools that Jeff regularly shares. No affiliation, just on his list of Quality stuff & resources...
Spanish Gold Rush Bonus Call

Dave

[richdirtygirl]

Originally Posted by 7reach

yes, Spain is harder to convert, since their online market has been booming for a while now. Latam, on the other hand, is incredible right now. Our latam campaigns are killing it. We over deliver to our advertisers every month!

can I ask which type of campaigns? is it working for info products? or services?

we were having weird activity from Argentina, too many refunds in a good quality product.

we found out later there are cultural issues about paying for information.

taking it to the extreme... most of government and university computers run pirate software, till not so long ago.

we also had some problems with Brazil for a product in Portuguese, funny enough the refunds came mostly from Rio de Janeiro and surrounding. Almost none from the other main cities like Sao Paulo.

We had good results for Spanish speaking public living in US, they have more access to resources and there are not so many cultural issues.

Laura

[Sleaklight]

In the Spanish market, there are a lot of dialect problems you are faced with. While all Spanish countries speak Spanish, there are some words that don't seamlessly translate to all countries. What one word means in one Spanish country, it can mean something else in another country/ You have to be very fluent and very neutral in the wording of your sales pages to get your message across the right way. Also, most Spanish customers (Spain, South America, etc) are VERY reluctant to pay with their credit card. I have a site here and there and I get more emails asking me if there is a shop nearby where they can buy X product because they don't trust the Internet with their CC info. It's a bit of a mess, I've started slowly been pulling out of it since I can best use my time promoting to the English market who will buy anything online without thinking twice about it.

[deckman]

Here in the Dallas area we have a very large Hispanic population probably better than 50%.
I have watched it growing over the last 30 years. There is a lot of companies spending a lot of advertising $ on this market.
There is definitely a large market there and if you could find someone that knows their culture and speaks fluently both English and Spanish I think that there could be a positive JV deal to be had.
You may have to change the products you market but its like a ground floor opportunity. Figure out what this market needs and Baby its on!
Research Research Research

[deckman]

Ask and you shall receive.

truesouth
Fernando Aguilar

Wanna JV?

[7reach]

CPL campaigns work really well right now in latam countries. Sales campaigns are much harder to make work, but you can do it, if you are at the right price point. For example, we have campaigns for latam that cost $14 whereas the same campaign in the US charges $49.

Consumers in Spain do convert much higher on sales, but as in every market, lead campaigns do a lot better.

After years of testing and running hundreds of campaigns targeted to Spanish speakers in various countries, with the exception of Spain, I would suggest that the best strategy by an advertiser is:

1. run a lead gen campaign
2. have a call center close the sale
3. offer strong support via email and call center

Hispanics/Latinos still love to complete a purchase in person or on the phone. They want to interact with the seller and make a more personal connection.

[deckman]

7reach, I have book marked your site. This may very well remove a lot of potential roadblocks.
If you guys can do the translation as well as research then you guys may very well be the answer to the cross over.

[7reach]

Deckman, hit me up with a pm to discuss. I'm interested :-)

A quick tip: We have been testing some ebook products in Mexico and I can tell you that from the initial findings conversion are about 1/4 of what we get in the US or even Europe. And the price point is also very low, since we have modified the price for the market. That said, competition is almost zero.

[Steve Ranger]

This is something I will be looking into extensively
over the next few weeks. The US and UK markets
are seriously expensive these days - have a look
at the Spanish speaking markets and you can buy
clicks for as low as 0.2$. Even a badly converting
landing page has the potential to make a profit
off those CPC's.

Just need to find some reliable translators..

[LetsGoViral]

Why do you use such an ugly word as exploit? Why not "make use of" or "embrace"? Anyway, I think language learning programs (Spanish->English) is the way to go!

[deckman]

Originally Posted by Steve Ranger

This is something I will be looking into extensively
over the next few weeks. The US and UK markets
are seriously expensive these days - have a look
at the Spanish speaking markets and you can buy
clicks for as low as 0.2$. Even a badly converting
landing page has the potential to make a profit
off those CPC's.

Just need to find some reliable translators..

Steve, the post above yours from 7reach, go to his website. This will take down a lot of barriers since they handle your advertising, translating ect in several different countries and languages. They have also been in the Spanish market for several years now and has a lot of insight on cultural differences as well as pricing. They can do this for 160 different countries
They have some very interesting statistics about global internet usage for the top 20 countries.
I am not affiliated with this company. I just find that it is making the language barrier almost nonexistent.

[seasoned]

Many Germans DO know English, and buy American products. Keep in mind laws and location. They MAY have to pay VAT, etc... for example.

It HAS been my experience that Spanish people would rather buy from other Spanish people, at least in many cultures. I don't know how free they are with credit cards, but many of their economies at least USED to STINK!!!!! And that generally means interest rates are HIGH! So that ALONE may make them more reluctant to use credit. It certainly WILL cause them to generally want a lower price.

Steve

[MarkAse]

I do think it is an incredibly lucrative market, especially when you consider most IMers are proficient in english and their native language(if it isn't english) it makes the Spanish language market generally less competitive.

For me, I wish my spanish was better, frankly it isn't good enough to take full advantage of the market.

[7reach]

seasoned, you are right about credit in latin america (Brazil is an exception). Right now, the credit is growing continuously, but most consumers use prepaid credit cards. The prepaid credit market there is ridiculously large, I'll try to post some stats once I get back in the office on Monday.

Originally Posted by seasoned

Many Germans DO know English, and buy American products. Keep in mind laws and location. They MAY have to pay VAT, etc... for example.

It HAS been my experience that Spanish people would rather buy from other Spanish people, at least in many cultures. I don't know how free they are with credit cards, but many of their economies at least USED to STINK!!!!! And that generally means interest rates are HIGH! So that ALONE may make them more reluctant to use credit. It certainly WILL cause them to generally want a lower price.

Steve

[deckman]

Thanks 7reach. I would also like to see those stats.

[Jason Perez O'Connor]

Crees q podria ganar dinero yo? puedo escribir poco de espanol pero suficiente para vender Por lo menos creo q si jeje :P

Meh I was born in Mallorca and lived there for 10 years, wonder if I should try target spanish countries with spanish capture pages hmm...

[Steve Ranger]

Originally Posted by Jason Perez O'Connor

Meh I was born in Mallorca and lived there for 10 years, wonder if I should try target spanish countries with spanish capture pages hmm...

If you can speak Spanish then you should
definitely get your feet wet. I started testing
a few things a week ago and I'm already
building an e-mail list in quite a popular niche
that I would never consider targeting in
the USA/UK market.

Oh, and you're lucky being away from all
this snow in the UK!

[SantiSantana]

I´m spanish myself, from the Canary Islands. To target Spain as a market all you have to learn is where the right triggers are. As for LatAm, pretty much the same, but take the economy into consideration, you will not find the same buying power in Spain as you will in Ecuador or Bolivia, so price points really should be tested on a per country basis.

[paulie888]

I'm pretty sure the spanish market is a huge and untapped market right now. I had recently heard about some cpa marketers making an absolute killing with french cpa offers doing a simple google adwords direct linking campaign! There are still very few people doing this in the foreign markets, and I imagine that the potential to capitalize on this is enormous right now!

[7reach]

here are some stats of credit card issuance in some latam countries. As you can see Brazil is amazing, but the language is portuguese, not Spanish.

As far as Spanish speaking markets, I have a few here and some ecommerce stats for Mexico.

BRAZIL:

According to the Febrarban banking federation.....

There are 124 million credit cards in Brazil, which has a population of

190 million, Febraban said.

The total value of credit card transactions last year was 215 billion

reais (110 billion dollars). Each holder spent an average 140 reais (70

dollars) per month on his or her card.

The number of bank accounts has also doubled between 2000 and 2008, and

Internet banking has become increasingly common, the federation said.

-------------

CHILE

23.2 million credit cards
9.8 million debit cards
Q1 of 2009 saw 1.64 billion spent in approx 20 million transactiona

Source: Business News America

-------------
ARGENTINA
22.3 million cards
16.5 million debit cards

Credit card penetration grew 116% from 2003 to 2007.

Source: Euromonitor International


-------------
COLOMBIA
6.3 million credit cards
17.2 million debit cards

number of credit cards has more than doubled since 2003.

Source: Euromonitor International



---------------
MEXICO
Almost 29 million credit cards
10.7 million debit cards

Source: Euromonitor International

More details...

More than seven out of 10 Internet users in Mexico had made a
purchase online as of October-November 2007, according to
Nielsen.That’s a smaller percentage than in several other Latin
American countries, and below the regional average of 79%.

The vast majority of online transactions in Mexico in 2007, 70%,
were conducted with a credit card, according to AMIPCI.The
second-most-widely-used method of online payment was
deposit/transfer, at 14%, followed by cash (COD), at 13%. Usage of
other payment methods was negligible.


B2C E-Commerce Sales in Mexico, by Product
Category, 2008 (millions)
Airline tickets
$647.82
Computers
$81.09
Event and movie tickets
$42.53
Mobile phones and accessories
$32.79
Audio and video
$29.37
Hotels
$20.77
Travel packages
$14.03
Video games and consoles
$12.80
Digital cameras and photos
$10.93
Clothing, watches, eyewear
$8.09
Consumer electronics
$6.54
Auto accessories
$6.37
Sports and fitness
$5.44
Animals and pets
$5.06
Other
$5.63
Source: AMIPCI (Asociación Mexicana de Internet), "Estudio de Comercio
Electrónico 2008" commissioned by Visa, September 2008

[deckman]

Originally Posted by 7reach

they are very lucrative markets, they just tend to work better with different campaigns. For example, mobile still does amazing in latam, cause more people have mobile phones and can sign up for stuff than those who have pcs. Also, lead generation is very easy in latam versus other countries, since it's so new there.

Can you elaborate a little on this?
I have seen a few threads started on this but it seems they die out quickly. I guess I should be glad since it will leave that much more room for us.

[leonardos]

Insteresting topic here.

I'm a premium copywriter and full time Internet Marketer in the spanish market, and I can say it's really behind english market without any doubt.

You can get maybe 1/4 to 1/10 results here.

However, it's a virgin island in many ways.

No competition, no services, no big names. BUT Huge Further Growing...
I think it's like do internet marketing in the States back in 90's.


BTW, I gonna put an WSO for spanish premium copywriting soon.

I'm interested in partner with a premium english copywriter too in order to do and market copywriting services in both markets. If interested let me know...


Leonardo

[OmarR]

yea I agree, the spanish market is far behind and it wont be hot anytime soon. I am trying to launch some campaings hoping to get responses from mexico, chile and spain but it's tough