Founded in 2004, ReachLocal (NASDAQ: RLOC) helps small businesses build their brands, increase awareness, generate leads and drive conversions online. The company is based in the United States and has a total 68 locations in the Americas, Europe and Asia. It currently works with more than 22,000 active clients.
Nathan Hanks, CEO of ReachLocal, said that Brazil’s high rate of entrepreneurship and small business activity contributed heavily to the company’s decision to set up shop in the country. ReachLocal also took note of digital inclusion trends and increased access to technology.
ReachLocal’s Brazilian operations will be headed by José Geraldo de Barros Coscelli, formerly of Globalweb. Its São Paulo office will serve as a launchpad from which it will expand into other Latin American markets.
Market: A Land of Opportunities
According to ReachLocal’s research, the number of people with internet access in Brazil has increased by 32% over the last three years, representing a prime opportunity for the company. Other trends and statistics indicate good prospects for ReachLocal in Brazil and Latin America as well.
Brazilian consumers spend an average of 27 hours per month on their desktop computers – more than their counterparts in other regional locales. The country leads the way in Latin America in e-commerce, credit card access and internet population.
Moreover, ReachLocal stands to find success moving forward and entering into new locales in Latin America, where marketing and advertising growth rates are strong. Spending on digital ads in Latin America is expected to reach US$4.43 billion in 2013, and mobile marketing US$140.2 million.