Mercado Ads, Mercado Livre’s advertising business unit, has conducted a detailed study that explores consumer behavior in e-commerce, highlighting the value of First Party Data and the rise of retail media. The exclusive research, based on data collected from Mercado Livre, offers a comprehensive analysis of the purchasing preferences of different generations, lifestyles and product categories.
The report reveals that e-commerce has become a crucial source of search and purchase for consumers and, through retail media, offers brands opportunities to build their communication in order to generate real connections with their audiences in a precise and effective way.
“The ability to deeply understand our users, their purchasing preferences and connect brands with these valuable audiences with real purchasing intent is what sets us apart. This report proves the transformative power of First Party Data, providing insights that help brands and sellers optimize their strategies and connect more effectively with their audiences. This report is just a teaser of everything that is possible with Mercado Ads, standing out as a major competitive differentiator”, says Mario Meirelles, Senior Director of Mercado Ads.
With a 12.5% increase in online sales in Latin America in 2023, Mercado Livre consolidates itself as a leader in the sector, attracting 145 million potential users in the region, 80 million of which are in Brazil alone.
With the broad ecosystem that only Mercado Livre has, which includes Marketplace, Fintech (Mercado Pago) and Streaming (Mercado Play), it is possible to monitor user interest and purchasing behavior in different contexts. Millions of searches made on the platform are transformed into personalized data. After all, Mercado Livre has the largest and most granular database of active users, with more than 280 audiences and infinite combinations.
Key insights from the report:
- Audiences by generations: The research highlights how different age groups, from Baby Boomers to Generation Z, are using the platform for their purchases. Baby Boomers prefer appliances and home items, furniture and decoration, in addition to a 60% increase in spending on food and beverages compared to the Mercado Livre average. Generation X spends 60% more on music, movies and series and has an average ticket above the Mercado Livre average. Millennials represent more than half of Mercado Livre’s revenue, with emphasis on construction items and baby items, which grew 30%. Generation Zis the fastest growing group, showing a 48% growth in spending, especially on cell phones and technological items.
- Diverse lifestyles: Os Family Focused they are the largest audience with 24% representation in revenue and 75% growth in baby items and tools; Home Decorators they are the third style in terms of revenue, with a growth of 128% in portable appliances and kitchen and garden accessories; Sportsmen showed a growth of 217% in football-related items and 112% in cell phones; Gamerswith an average ticket 56% above average, had an 84% increase in smartphone purchases; Beauty-lovers grew 49.2%, with emphasis on personal care products, underwear and supplements; Fashionistas 30% of revenue comes from sportswear, with a 57.8% growth in beauty and personal care; Petlovers buy 5x more items for dogs than for cats; Techies sneakers are one of the most purchased categories and they spend 17% more than the Mercado Livre average.
- Rising product categories: Mercado Livre has more than 29 categories that can be segmented to an even more granular level of more than 2,000 subcategories. At the forefront of all of them is Home, Furniture and Decoration with a 23% increase in the last year, with 92% of searches being generic. Home furniture, kitchen items and garden tools are among the most popular products; The category of Vehicle Accessoriesauto parts are highlighted in revenue and reach 73M in monthly searches; In Shoes, Clothing and Bags has 164 million monthly searches, with fitness fashion registering more than 30M searches and 10M monthly users. The number of customers of cell phones grew 54% in the last 12 months, being the category with more than 64% of generic searches. The category of Beauty and Personal Care receives 8.9M monthly visits on skincare items, and Makeup is the 3rd most purchased category and the one that grows the most vs. previous year. Sports and Fitness showed a 49.6% increase in camping items over the past year, with supplements and clothing being the top-selling products.
The report illustrates in practice the importance and practicality of First Party Data for Mercado Livre sellers. Although many already recognize the potential of this data, understanding how to use it can always improve. Through this study, Mercado Ads clearly illustrates how data can transform sales strategies, highlighting concrete examples of growth in the Home and Decor category.
Access the full report at this link.
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