Sao Paulo, Brasil. November The State of the Internet in Brazil. Alexander Banks. Managing Director, Latin America
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1 Sao Paulo, Brasil November 2009 The State of the Internet in Brazil Alexander Banks Managing Director, Latin America
2 The US is No Longer the Center of the Online Universe US Internet Population vs. Rest of the World Distribution of Worldwide Internet Audience Rest of the World Europe North America Latin America US Asia Pacific Middle East - Africa In 1996, 2/3 of the world s Internet population was in the US, yet today Asia Pacific is the largest region. Many emerging regions are likely to bypass old modes, skipping dial-up to go straight to broadband, making multimedia, video, and collaborative content immediately accessible. Early adoption of mobile web in addition to PC web will likely be popular in many of these high-growth areas. 2 Source: comscore World Metrix, July 2009
3 Latin America Continues Audience Growth Growth is flat in North America, European growth mostly driven by Russia Worldwide Online Population (Millions) Asia continues rapid growth on a very large base Growth in LatAm expected to continue on the back of increased residential broadband penetration region-wide % 1,165.2 August 2008 August % % Online Population by Region (Millions) % % +79% Aug 2008 Aug Asia Pacific Europe North America Latin America Middle East - Africa 3 Source: comscore Media Metrix, August 2008 to August 2009
4 China Surges Past the US Internet Users Age 15+ (MM) China United States Japan Germany France United Kingdom India Russian Federation Brazil South Korea Canada Italy Spain Turkey Mexico While US user growth has remained flat over the past year, China, Russia, and Brazil have experienced impressive growth rates of 31%, 26% and 23%, respectively. Millions of Internet Users (15+, home & work locations) 4 Source: comscore World Metrix, July 2009
5 The Majority of Top Properties Audiences Coming from Outside US US Audience Non-US Audience 84% Total Worldwide Unique Visitors (MM) % % % % % % % % 196 The top 10 Global Properties attract a majority of Unique Visitors from outside the US; Google Sites and Microsoft Sites attain 84% of their audience from non-us countries. All top sites have experienced a shift in visitor composition to a more international audience: non-us visitors now represent 77% and 66% of Facebook s and AOL s visitors, respectively. 64% Source: comscore World Metrix, July 2009
6 How global online behavior has changed over the last year Share of time Spent on Entertainment is growing the fastest Instant Messengers and Conversational Media both boast significant usage time 6 Source: comscore Media Metrix Share of Global Minutes on Key Online Categories, May 2008 vs. May 2009
7 What is social media? Social Media is media designed to be disseminated through social interaction a logical step in the ongoing evolution of the interactive platform the key driver of the fast-growing Web 2.0 category (including blogs, social networks, UGC sites etc.) the combination of communication ( , messenger) media-sharing (photos, music, video etc.) and/or UGC (opinion, feedback) an umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words and pictures. 7
8 Everything from Twitter to Facebook to Digg to Linkedin to Youtube Examples of social media software applications include: Communication Blogs: Blogger, LiveJournal, Open Diary, TypePad, WordPress, Vox, ExpressionEngine, Xanga Micro-blogging / Presence applications: Twitter, Plurk, Jaiku, fmylife Social networking: Bebo, Facebook, LinkedIn, MySpace, Orkut, Skyrock, Hi5, Ning, Elgg Events: Upcoming, Eventful, Meetup.com Collaboration Wikis: Wikipedia, PBwiki, wetpaint Social bookmarking: Delicious, Digg, StumbleUpon, Google Reader, CiteULike Multimedia Photo sharing: Flickr, Zooomr, Photobucket, SmugMug, Picasa Video sharing: YouTube, Vimeo, sevenload Livecasting: Ustream.tv, Justin.tv, Stickam Audio and Music Sharing: imeem, The Hype Machine, Last.fm, ccmixter Reviews and Opinions Product Reviews: Yelp, epinions.com, MouthShut.com Virtual worlds: Second Life, The Sims Online, Forterra 8
9 Profile: Twitter Age Income UVs (000) +2,613% composition index UV composition index UV Many Twitter regulars opt to access the service exclusively from their mobile devices after an initial visit to Twitter.com Who s following who on Twitter? Twitter audience in Brazil grew by a factor of almost 10 over a span of just 5 months (from 413k in March to nearly 3.6M in July of 2009) 9 Source: comscore Media Metrix United States, July 2009
10 Last tweet? 10
11 November 2009 The Brazilian Online Audience Alexander Banks Managing Director, Latin America
12 Internet audience in Latin America is to be taken seriously Brazil is the 9 th largest Internet audience in the world (15+, H&W), Mexico 15 th, Argentina 19 th and Colombia 21 st Home and work usage growing at significant rate shared-access very strong In terms of total page views in July (15+ H&W) Brazil was 10 th, ahead of Spain, India and Italy In July, Brazil consumed 3.2% of the world s PVs, Mexico next with just over 1% Argentina (47.6) and Brazil (47.3) are both above the WW average in average visits to the Internet per visitor each month (47.2) The WW average percentage of year-olds online is 27.6% (15+, H&W) Venezuela 50% Colombia 48% Mexico 47% Brazil 31% Argentina 27% Chile 27% 12
13 The size and level of engagement of the Brazilian Internet audience Brazil has the largest Internet population in Latin America, with more than 30 million home and work users, 15+ (total online pop. is approx 70M) The average Internet user in Brazil clocks 26.7 hours of usage per month, which is nearly four hours more than the worldwide average Internet User (Millions) in Latin America Total Hours Online per Visitor in Latin America WW Avg: 22.9 Brazil 31.9 Brazil 26.7 Mexico 14.0 Mexico 25.8 Argentina 11.8 Chile 23.6 Colombia 9.0 Venezuela 23.5 Chile 6.5 Colombia 23.0 Venezuela 2.1 Argentina 21.6 Puerto Rico 1.1 Puerto Rico Source: comscore Media Metrix, September 2009
14 Comparison to other countries outside region The 15+ Home and Work Internet population in Brazil is similar in size to the Internet populations in the Russian Federation and South Korea Internet users in Brazil spend a similar amount of time online as users in South Korea and the United Kingdom but significantly more time than those in India and the Russian Federation Internet User (Millions) Total Online Hours per Visitor United Kingdom 37.3 United Kingdom WW Avg: India 35.8 India 11.3 Russian Federation 34.7 Russian Federation 15.8 Brazil 31.9 Brazil 26.7 South Korea 29.2 South Korea 32.4 Canada 22.9 Canada Source: comscore Media Metrix, September 2009
15 Less mature Internet audiences are less active online Average time spent online is an indicator of the state of development of internet markets, and Brazil appears very similar to the UK in this regard Online ad spend in UK recently surpassed that of TV Average Time Spent and Pages Viewed per Unique Visitor per Month 3,500 3,000 2,500 2,000 1,500 1, Turkey United Kingdom Brazil China Russian Federation India Time Spent (mins) Pages Viewed 15 Source: comscore World Metrix, September 2009
16 Age breakdown of the Internet audience in Brazil Internet users in Brazil skew slightly young: 65% of the Internet audience in Brazil is under 35 years old In comparison, only 54% of the global online population is under 35 Brazil 31.4% 33.6% 21.0% 9.1% 4.9% Latin America 35.5% 28.0% 19.0% 10.8% 6.7% Worldwide 27.6% 26.4% 21.6% 14.0% 10.4% Persons: Persons: Persons: Persons: Persons: Source: comscore Media Metrix,September 2009
17 Demographic profile of the Brazilian Internet audience - Sept
18 Heavy users most visible in markets that are still maturing In all of the largest developing markets, heavy internet users account for a higher volume of total pages Russia has the highest page consumption disparity, with 73% of pages viewed by 20% of the population Share of Page Views by User Segment 100% 80% 60% 57% 57% 59% 60% 69% 73% Heavy Users Medium Users 40% Light Users 20% 34% 31% 30% 30% 24% 23% 0% 9% 11% 11% 10% 7% 4% United Kingdom Turkey China Brazil India Russian Federation 18 Source: comscore World Metrix, August 2009
19 How the world uses the Internet 19 Source: comscore World Metrix, July 2009
20 How the Brazilian audience compares to the rest of the world in terms of reach and time spent in key content categories On-ramp Categories Web 2.0 Categories Portals Reference Search/Navigation Social Networking Blogs Utility & Content Categories Instant Messengers Retail News/Information Travel Sports Entertainment Categories Entertainment Multimedia Online Gaming Source: comscore Media Metrix September 2009
21 Highest-indexing sub-categories in Brazil Lifestyles and interests of the Brazil internet user are reflected in the sub-category visitation Gay/Lesbian Government Consumer Electronics Religion/Spirituality Sports/Outdoors Beauty/Fashion/Style Content preferences also align with behavior typically seen by newer Internet audiences Instant Messengers E-cards Information Job Search Brazil: Highest-Indexing Web Categories Index Compared to WW Reach Gay/Lesbian e-cards Government Radio Consumer Electronics Entertainment - News Religion/Spirituality Sports/Outdoor Beauty/Fashion/Style Instant Messengers Comparison Shopping Pharmacy Kids Information Job Search WW Reach 69.3 Brazil Reach Source: comscore Media Metrix September 2009
22 Brazilian s appetite for social networking is impressive Brazil is 2 nd in the world in terms average pages per visitor in the social networking category (1,374), and 4 th in the world in page views with over 33.4 billion (15+, H&W) 9.5B minutes spent in category also amongst the leading countries, sure to pass UK very soon Average visits per visitor per month is only exceeded by Canada, Israel and Turkey Brazilians Internet users, on average, visit the category 34 times a month UK and United States considerably less; 26 and 22 average visits a month 22
23 Orkut clearly leads the Social Networking category in Brazil Orkut, one of the top 3 web domains in terms of audience, continues to lead the way Almost 75% of Orkut s total global page views comes from Brazil 33.1 average visits per visitor per month 33% of entire Orkut audience in Brazil is over the age of 35 66% of entire audience is over the age of 25 Social Networking Share of Total Pages 50% 40% 30% 20% 10% 0% 43% 40% 20% 19% 18% 12% Country Leading Social Network Reach Turkey 81.3% United Kingdom 74.1% Brazil 71.4% Russian Federation 46.8% India 44.0% China 24.0% 23 Source: comscore World Metrix, September 2009
24 Is Facebook s growth in Brazil hurting Orkut? January 2009 September
25 Brazilians also love Instant Messenger Brazil leads the world in Total Visits to the category almost 15% more than runner-up 12B Total Minutes spent in the category, second only to the US 25
26 The Top 25 most visited web domains in Brazil Google s dominant presence clearly seen throughout Top 10 Many Brazilian companies appear in Top 20 (UOL, Globo, Baixaki, ig, Abril, BuscaPe) Twitter, Bing, 4shared, MercadoLivre other notable inclusions 26
27 The Top 25 most visited web properties in Brazil Top 7 properties include large multi-nationals and leading portals Very strong performance seen from retail category (BuscaPe included) 27
28 In conclusion Brazilian Internet audience is Highly engaged and fast-growing Relatively young, but maturing Consuming more and more sophisticated content Relatively strong reach for portals, social media, multimedia, government and retail Social networking and communication (IM) clear enablers stimulating overall Internet audience growth helping the migration of users from shared-access to H&W Social media should be fundamental part of any digital strategy Balanced audience demographics and diversity offers significant potential for advertising, content development etc. Content consumption, as well as audience profile, will move closer towards the global averages as audience continues to mature 28
29 November 2009 Tracking audience affinity Alexander Banks Managing Director, Latin America
30 Case study: Targeting the online audience Two sites offering almost identical demographics 30 30
31 but their respective audiences show clearly distinct preferences in terms of online content 31 31
32 comscore.com em Portugues 32
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