and Brazil

Sao Paulo, Brasil
November 2009
The State of the Internet in Brazil
Alexander Banks
Managing Director, Latin America
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.
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Source: comScore World Metrix, July 2009
Latin America Continues Audience Growth
Growth is flat in North America, European
Worldwide Online Population
(Millions)
growth mostly driven by Russia
+4%
Asia continues rapid growth on a very
large base
960.2
1,165.2
Growth in LatAm expected to continue
on the back of increased residential
broadband penetration region-wide
August 2008
Online Population by Region
(Millions)
+22%
477.2
389.6
Aug 2008
Aug 2009
+20%
271.1
325.6
+4%
191.0
183.8
+28%
70.3
Asia Pacific
August 2009
Europe
North America
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90.2
Latin America
+79%
45.4
81.2
Middle East - Africa
Source: comScore Media Metrix, August 2008 to August 2009
China Surges Past the US
Internet Users Age 15+ (MM)
210.2
China
167.1
United States
66.9
Japan
42.5
Germany
France
38.1
United Kingdom
36.9
India
35.0
Russian Federation
33.2
31.0
Brazil
28.8
South Korea
Canada
22.6
Italy
21.2
Spain
19.2
Turkey
18.9
Mexico
13.6
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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)
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Source: comScore World Metrix, July 2009
The Majority of Top Properties’ Audiences Coming from Outside US
Total Worldwide
Unique Visitors (MM)
Non-US Audience
US Audience
84%
854
84%
702
592
77%
77%
370
The top 10 Global Properties attract a
66%
73%
70%
76%
64%
majority of Unique Visitors from outside
the US; Google Sites and Microsoft Sites
attain 84% of their audience from non-US
countries.
295
81%
268
237
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.
197
196
192
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Source: comScore World Metrix, July 2009
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
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Source: comScore Media Metrix
Share of Global Minutes on Key Online Categories, May 2008 vs. May 2009
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
(email, 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.
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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
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Profile: Twitter
Income
Age
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…
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)
Who’s
following who
on Twitter?
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Source: comScore Media Metrix United States, July 2009
“Last tweet?”
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November 2009
The Brazilian Online Audience
Alexander Banks
Managing Director, Latin America
Internet audience in Latin America is to be taken seriously
Brazil is the 9th largest Internet audience in the world (15+, H&W), Mexico 15th,
Argentina 19th and Colombia 21st
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 10th, 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 15-24 year-olds online is 27.6% (15+, H&W)
– Venezuela 50%
– Colombia 48%
– Mexico 47%
– Brazil 31%
– Argentina 27%
– Chile 27%
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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
Total Hours Online per
Visitor in Latin America
Internet User (Millions) in
Latin America
WW Avg: 22.9
Brazil
Mexico
11.8
Colombia
9.0
Chile
Puerto Rico
26.7
Mexico
14.0
Argentina
Venezuela
Brazil
31.9
25.8
Chile
23.6
Venezuela
23.5
Colombia
6.5
23.0
Argentina
2.1
Puerto Rico
1.1
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Source: comScore Media Metrix, September 2009
21.6
17.7
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
WW Avg: 22.9
United Kingdom
37.3
United Kingdom
India
35.8
India
Russian Federation
34.7
Brazil
31.9
South Korea
Canada
Russian Federation
11.3
15.8
Brazil
29.2
South Korea
22.9
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28.6
Canada
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Source: comScore Media Metrix, September 2009
26.7
32.4
40.1
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
1,000
500
0
Turkey
United
Kingdom
Brazil
China
Time Spent (mins)
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Russian
Federation
India
Pages Viewed
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Source: comScore World Metrix, September 2009
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
Latin America
Worldwide
Persons: 15-24
31.4%
33.6%
35.5%
27.6%
Persons: 25-34
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21.0%
28.0%
26.4%
16
19.0%
21.6%
Persons: 35-44
9.1% 4.9%
10.8%
14.0%
Persons: 45-54
Source: comScore Media Metrix ,September 2009
6.7%
10.4%
Persons: 55+
Demographic profile of the Brazilian Internet audience - Sept 2009
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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%
57%
57%
59%
60%
60%
69%
73%
Heavy Users
Medium Users
40%
20%
0%
Light Users
34%
31%
30%
30%
24%
23%
9%
11%
11%
10%
7%
4%
United
Kingdom
Turkey
China
Brazil
India
Russian
Federation
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Source: comScore World Metrix, August 2009
How the world uses the Internet
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Source: comScore World Metrix, July 2009
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
97
Search/Navigation
96
90
Reference
157
66
97
112
Social Networking
176
125
127
Blogs
Utility & Content Categories
e-mail
93
105
Entertainment Categories
157
135
Instant Messengers
Retail
News/Information
Travel
Sports
103
69
51
93
76
58
58
96
Multimedia
98
90
Online Gaming
121
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Entertainment
20
101
108
78
Source: comScore Media Metrix September 2009
Highest-indexing sub-categories in Brazil
Lifestyles and interests of the
Brazil: Highest-Indexing Web Categories
Brazil internet user are reflected in
the sub-category visitation
Index Compared to WW Reach
Gay/Lesbian
– Gay/Lesbian
e-cards
– Government
1.1
2.7
251
4.8
9.6
200
19.9
Government
– Consumer Electronics
12.1
Radio
– Religion/Spirituality
– Sports/Outdoors
17.6
Entertainment - News
– Beauty/Fashion/Style
Religion/Spirituality
Sports/Outdoor
Content preferences also align
with behavior typically seen by
newer Internet audiences
– Instant Messengers
30.8
192
32.2
183
6.7
12.3
183
5.6
10.3
183
9.0
15.4
Beauty/Fashion/Style
172
44.1
Instant Messengers
24.4
Comparison Shopping
– E-cards
Pharmacy
– Information
Kids
– Job Search
Job Search
21
69.3
157
143
34.9
1.5
2.2
142
12.3
17.0
139
17.4
24.1
Information
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194
23.5
16.1
Consumer Electronics
196
39.0
5.3
7.4
138
138
WW Reach
Brazil Reach
Source: comScore Media Metrix September 2009
Brazilian’s appetite for social networking is impressive
Brazil is 2nd in the world in terms average pages per visitor in the social networking
category (1,374), and 4th 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
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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%
Country
30%
20%
10%
43%
Leading
Social
Network
Reach
Turkey
81.3%
United Kingdom
74.1%
Brazil
71.4%
Russian Federation
46.8%
India
44.0%
China
24.0%
40%
20%
19%
18%
12%
0%
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Source: comScore World Metrix, September 2009
Is Facebook’s growth in Brazil hurting Orkut?
January 2009
September 2009
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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
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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
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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)
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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
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November 2009
Tracking audience affinity
Alexander Banks
Managing Director, Latin America
Case study: Targeting the online audience
Two sites offering almost identical demographics…
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…but their respective audiences show clearly
distinct preferences in terms of online content
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