Living With The Internet

A Latin American Study On

What’s Driving Web Behavior
 Agenda

Project Objective & Methodology

Executive Summary

Evolution of the Internet

Latin America – Online Behavior

Latin America – Key Statistics

Appendix
Project Objective &
Methodology
 Project Objective & Methodology
Objective: Understand what drives people to go online in Latin America and how to integrate marketing
communications into their different online activities in best possible way.
Focus: Four major LatAm countries were analyzed in this study

Brazil Mexico Argentina Colombia

High Focus Countries Focus Countries

Top 2 countries that lead within Top 4 countries with high internet
the region, were analyzed in detail usage were analyzed
Methodology: Based on a survey done by our panel, 6,054 respondents aged between 16-64 years
answered questions about their web behavioral patterns and their online brand interaction preferences.
These respondents were further bifurcated into three sections of people;
Teens (16-24 years of age)
Men (25-64 years of age)
Women (25–64 years of age)

Other Data Sources: Leading industry data sources like eMarketer, comScore and Internet World Stats
were also used to compliment data and findings in this study
Executive Summary
 Executive Summary
Evolution of the Internet

In last 5 years, global online behaviors has change dramatically

2007- The internet village was small; people used to spend most of their time on familiar and trusted sites

2011- The internet village has evolved; users today have wider choices & bigger voices

Publishers focus on social & local offerings

Brands, products and services are now connecting with users through a social & localized angle

Evolution of internet – From U.S. to global, leisure to routined, spontaneous to planned and static to mobile

Latin America Overview

As internet growth saturates in the U.S. and Europe, Latin America has emerged as one of the fastest growing
regions in the world

Latin America contributes to over 8% of global web audience

Growth in Latin America is further expected to continue as broadband and mobile phones become more widely
available and affordable

Latin American Internet users are highly engaged and skew heavily towards a younger audience
 Executive Summary
Motivations to Go Online

Research, Entertainment and Content Sharing are the biggest motivational factors for Latin Americans to go
online

People in age group of 16-34 are very active in sharing content online

Staying in touch with friends is a common motivation to go online among all age groups, driven by women

Entertainment is main motivation for teens to go online while Research and News are main drivers for adults to
go online

Internet Usage Trends

Young people drive internet consumption in Latin America

62% of Internet audience is in the 15-35 age group (source: comScore)

53% of Teens spend 4+ hours online/day

On an average, women spend more time on Internet than men

Among young adults, 25-34 age group spends maximum time online
 Executive Summary
Activities on Social Networks

Latin American consumers have a strong appetite for high-bandwidth activities such as content sharing, video
streaming, music downloads, etc…

Uploading photos and sending messages are common activities among all age groups, especially women

Writing blogs and watching videos online are popular activities among men

Over 50% of teens use social networks to send messages, upload photos/videos and play games

Despite the rise of social networking and text messaging, e-mail and IM are still important reasons to go online

Online Brand Engagement

Brand engagement through social media is very effective, especially with teens

64% of men prefer to engage with brands through owned media

Women are more prone to get in touch with brands, if contact details are shared online

Brands that are engaging, contextual and targeted appeal to the LatAm audience

Top strategies adopted by brands to connect with LatAm online audiences are by providing discounts, superior
customer service and customized product offerings
Evolution of Internet
2007 – Internet Village was Small; People Felt Safe and In-control;
Interaction was Limited
Newsagents

News feeds,
sports homepage

Post Office Banks

E-mails -
Finance
Yahoo, Hotmail etc. Online
Neighbourhood
2007

Shops Pubs

e-Bay, Amazon Forums and Social

Networks
 How Internet has Evolved Over the Years?

Users can choose what they want to see online

1 Customized Offerings Customizable layouts and categories give users freedom
to see content in a way they want
Larger focus on consumer needs

Verticalization of content categories

2 High on Localization Use of more local and targeted content
Location based online content

Content has become more interactive and less static

Higher engagement of brand with users
3 Better Interaction Sharing of reviews & opinions
More legitimate and credible content

Use of rich media ads

User controlled ads
4 Targeted Advertising Platform specific ads
Geo-targeted ads
Behavioral targeting of ads

Online properties are optimized to render on a variety of

5 More Digital Platforms devices like tablets, smart phones, iPhone, iPad etc.
Further customization for operating systems and
different screen sizes
2011 – Internet Village has Evolved; Users Today have Wider Choices
& Bigger Voices, Publishers Focus on Social & Local Offerings
More Newsagents
Local News Focus - News feeds, RSS,
Portals, Newspapers & magazines
Social News – Social Bookmarking,
Facebook walls

Advanced Post More Banking

Offices Platforms
E-mails, IM e-Commerce, Auctions, Live
Twitter, Facebook, Skype etc, Trading Platforms, Mobile
used on variety of devices Online Payments
Social Angle – Share and Neighbourhood Local Integration – Online
Recommend Bill Payments & Banking
2011

Planned and More Gathering

Researched Shopping Places
Forums and Social Networks with
More Retailers - e-Bay, Amazon,
expanded apps, Blogs, Discussion
Online Stores of Major retailers
Boards
Localized Retail Research –
Social & Local – Fan Pages, Local
Pricewatch, Groupon, GetPrice
Communities
Five Basic Motivations that Drive Web Behavior Globally

• Sending and receiving emails

• Using IM
Communication • Using Social Networks
• Using VoIP

• Uploading photos/videos
Creation • Editing/managing websites
• Writing a blog/ news story

• Reviewing a product/brand
• Using social bookmarks
Information • Using an information aggregator
• Subscribing to RSS feeds

• Watching videos
Entertainment • Playing games
• Listening to music

• Internet banking
Transaction • Online buying
 Communication & Creation are Preferred by Global Online
Population; This Trend is Similar in LatAm

Information,
8% Transaction;
10%

Entertainment;
Entertainment;
11%
10%

Communication Communication
; 41% ; 43%
Transaction; Information;
15% 11%

Creation; 24%
Creation; 27%

• Communication is the main reason for people to go online

• LatAm Audience pay more attention on Creation and Information gathering
• Transacting online is a common Internet based activity globally, however it is on rise in LatAm
The Internet ‘Routine’ is Becoming More Important Than Ever to a
Users Lifestyle

Intimate Zones Public Zones

CNN, BBC, Newspaper

Start of Social Blogs, forums, RSS Sites, News Aggregators
Emails etc.
and spaces
the journey Networks News
updates
Check for messages Log into any forums or Log in & reply to YouTube,
& respond blogs to get updated messages (Gmail, Microsoft
Entertainment
(Facebook, Orkut) Hotmail, Live Mail) Showcase
etc.
Throughout the journey, Instant Messenger (MSN
Messenger, AOL IM) is always on as is music
(iTunes/YouTube) Online
Shopping/Banking
Information
search Amazon, eBay,
Emails Bing Shopping
Blogs, forums, RSS etc.
Google, Bing,
and spaces
End of the Social
Check emails
Wikipedia etc.
Networks
journey Final check of again
Final check of forums or blogs
social network

From intimate ⇒ public and back again

NB: From other research we know that an average of six websites are visited on a regular basis
Even Though The Internet is Growing in Popularity, Awareness Of
It’s Pitfalls Are Also Getting Bigger

Immediacy and ubiquity Personal security

Easy to express feelings Time it takes away from other aspects of one’s
personal life
Free Access to information
Can’t find what you seek
24x7 connected
Credibility of information
One Stop Solution to all needs
Subscription based content
Irrelevant ads
Detail Analysis of
Online Behavior in
Latin America
1

Top Motivations To
Go Online
 Staying in Touch, Research, and Content Sharing are Popular and
Key Motivational Factors for People to Go Online (1/2)

Stay in touch
with friends
Key Takeaways
• Staying in touch with friends is
Research for
work common activity among all age
groups
Education

Research how to
• Research and News are main
do things drivers for adults to go online

For News/events • 61% of Teens go online to

consume Entertainment related
Research
products to
content
buy
• Professional networking is low
To get ideas
and is lead by women
Entertainment
• Teens and women are more
prone to go online as compared
Networking
to men

Find music
0% 20% 40% 60% 80% 100%

Teens Men Women

Source:- Global Web Index, Wave 3+Wave 4 data

2

Internet Usage Trends

 Young People Drive Internet Consumption in Latin America

Teens Men Women Key Takeaways

• On an average 49% of all age
groups spend 4+ hours online/day
More Than 4
Hours 53% 44% 49% • 53% of Teens spend 4+ hours
online/day

• Men and Women of age group 25-

34 spend most time online
3-4 Hours 20% 21% 19% • Men aged 55-64 go online least

• Women spend more time online

than Men

2-3 Hours 17% 22% 21% • Teens outperform all other age
groups when it comes to online
consumption

1-2 Hours 9% 13% 10%

Less Than an
Hour
1% 1% 1%
Source:- Global Web Index, Wave 3+Wave 4 data
 Mobile Internet Access is On Rise in Latin America

Teens Men Women Key Takeaways

• Home is preferred place to access
Internet, however, mobile Internet
access is on a rise
Home 95% 93% 93%
• Penetration of smart phones and
mobile broadband is driving
growth of mobile Internet access

• Consumption of online multimedia

Work 62% 79% 65% content is on rise, especially
among teens

• Advertisers should build strategies

Out of home to engage consumers on new
venue devices like smart phones and
68% 57% 46% tablets
e.g. Café/Bar

Roaming
e.g. On the 32% 29% 22%
move/ travelling

Source:- Global Web Index, Wave 3+Wave 4 data

Mobile Internet in Latin America is Used Mainly to Get Access to
News followed by Research and Social Activities

Key Takeaways
• News and information is highest
consumed over mobile, especially
by men

• Men, women and teens use

Transaction mobiles to search maps and get
9%
News and
directions
Information
Watched/Uploaded 28% • Mobile social networking and
photos, videos watching videos is another popular
19% activity among teens

• Women prefer to use mobile

Social Networking Search phones for banking and online
19% 25%
buying

Source:- Global Web Index, Wave 3+Wave 4 data

3

Activities on Social
Networks
 Social Networking is a Popular Online Activity… IM, Content
Sharing & Writing Blogs are Key Activities within (1/2)

Key Takeaways
Send messages • Latin Americans are high on
to friends
social engagement

Upload photos
• Photo Sharing/Uploading and
sending messages is common
Instant message among all age groups

Search for new • IM and email is still popular

contacts
among all age groups, especially
Share a new
women
story
• More than 50% of teens use
Play game
social networks to send
Install messages, upload photos/videos
application
and play games
Join a group
• 60% of men use social networks
Upload videos to make new contacts and friends
0% 20% 40% 60% 80% 100%

Teens Men Women

Source:- Global Web Index, Wave 3+Wave 4 data

4

Interaction with
Brands Online
 Brand Engagement Through Owned Media is Preferred, But Interacting Through
Social Media is Essential to Reach out to Targeted Audiences

Key Takeaways
Website to
interact with • Online advertising is on rise in
company Latin America
Listen to
comments on
forums/social
• Men engage with brands, with
networks 64% visiting company website
Create directly
applications
/online services
• Women are more prone to get in
Videos online
featuring the
touch with brands if contact
brand details are shared online
Contact me if
brand is on a
microblog • Brand engagement through
Blogs to talk social media is very effective,
about company especially with teens

Sponsoring music • Products that target teens have a

downloads
huge potential in Latin America
Blogging about
relevant products
Social networks
for support

Creating brand
community0% 20% 40% 60% 80% 100%
Teens Men Women Source:- Global Web Index, Wave 3+Wave 4 data
 Highly Contextual and Engaging Brands are Preferred by LatAm
Online Users

Key Takeaways
Provide • LatAm consumers engage with
knowledge brands that communicate directly
Be informative
about products
• 48% of young audience between
16-34 years want brands to
Entertain
entertain them

Help in • Brands that engage with

organizing life consumers and help organize their
Communicate
lives tend to develop a close
like a real relationship with them
person

Provide real time

experience

Help in meeting
people

Be a part of
daily routine
0% 20% 40% 60% 80% 100%

Teens Men Women

Source:- Global Web Index, Wave 3+Wave 4 data

Providing Discounts and Customer Service Enhances Brand Loyalty
on Social Networks

Discounts for
future purchase

Customer service

A feature to track delivery

Access to new products prior

to release

Personalized recommendations

An ability to interact directly

An opportunity to be part of
product /service ideas

Exclusive insights about brand

Details on friends purchases

Virtual purchase opportunity

0% 20% 40% 60% 80% 100%
Teens Men Women
Source:- Global Web Index, Wave 3+Wave 4 data
Recommendations and Direct Communication Drive Purchase
Decision of Consumers Further

Key Takeaways
• Online and offline
recommendations motivate
purchase behavior

Sponsorships • TV based offline ads influence

10% purchase

Recommendations • Direct communication is preferred,

Featured on major 31% as people want to have a real time
online activities experience
18%

Direct
• Online activities like social media,
Communication email and search help in
18% Offline advertising to the target audience
advertisements
23%
• Sponsoring online videos and
sports teams creates awareness
and drive purchase

Source:- Global Web Index, Wave 3+Wave 4 data

 To Summarize…

1 The Latin American market is

4 Latin American consumers have a strong
emerging and fast growing. Thus appetite for high-bandwidth activities such as
advertisers should explore in this content sharing, video streaming etc which
region to gain early advantage over clearly indicates huge opportunity hidden for
their competition advertisers as broadband penetration
improves in this region

2 5 The impressive usage of social media

Latin American internet users are highly
categories indicate terrific opportunities
engaged and skewed towards the
for advertisers to communicate effectively
younger audience. This makes LatAm
with their target customers. There is also
demographically attractive and favorable
good potential and growth in categories
for future growth
likes Retail, News, Travel and Finance

3 6 Brand engagement through social media is

Mobile Internet access is on a rise in very effective, especially with teens.
Latin America. Hence advertisers Consumers also like to interact with
should build strategies to engage products through company webpage/site.
consumers on new devices like smart Thus advertisers should build relationships
phones and tablets with LatAm consumers through interactive
online advertising
Key Internet Statistics
in the LatAm Region
Brazil Leads in Number of Internet Users; Colombia Boasts of
Highest Internet Penetration in LatAm
Internet Users (MM)
2009 =163 MM 2011e=207 MM Key Takeaways
• Brazil & Mexico are fastest
growing Internet markets
32 40
65
79
17 25
• Mexico is fastest growing market
16 30 21 with 12% CAGR on a 3 year basis
41

• There is a significant increase in

growth of Internet penetration
rates
Brazil Mexico Argentina Colombia Other LatAm Countries
• Internet penetration in Brazil &
Internet Penetration (%) Mexico is low as compared to
2009 2011e Argentina & Colombia

43% 55%
• Colombia has highest penetration
rate with CAGR of 7%
40% 50%
• Growth in Internet penetration
33% 39%
promises high growth potential

27% 36%
Brazil Mexico Argentina Colombia

Source:- eMarketer, internet world stats and internal analysis

Latin American User Market is Big and Growing at a CAGR of 5%

Mobile Phone Users (MM)

Key Takeaways
2009 = 449 MM
• 3G introduction is driving growth
in mobile phone subscriptions
101
174 • Accessing internet through mobile
42
phones is fast becoming a major
48
84 need

• One third of Latin American mobile

users are from Brazil
2011e = 523 MM
• The pie is becoming more wide
spread rather than having a major
120
proportion confined to a few
198
43 countries only
59
103

Brazil Mexico Argentina Colombia Other LatAm Countries

Source:- eMarketer, internet world stats and internal analysis

 Online Advertising Spends are Increasing, Promising a
Dynamic Future

Key Takeaways
• Advertising spend in this region is
Online Advertising Spend (MM) increasing
2011e = $1,139 MM
• Brazil leads in total as well as
online advertising spend
$58 $55
$91
$650
• TV attracts majority of the offline
$285 spend

• The CAGR of all countries is

growing significantly

Brazil Mexico Argentina Colombia Other LatAm Countries • Brazil’s total ad market is mature
and online ad market is largest in
the region

• Online ad markets in Mexico

boasts a 3 year CAGR of 45%
respectively
Appendix
Stats from comScore
Please Note: Figures from comScore might differ from other sources
used in this presentation. comScore only takes into consideration:
• Active internet users
• Internet users of ages 15+
• Internet usages in Homes and Work Places
 LatAm Region Has Over 111 MM Internet Users Growing at Over
15% annually; Among the fastest growing regions
Internet Users by Region (MM)
Key Takeaways
1.324 +8%
• Latin America and the Middle
Worldwide
1.222 East/Africa are among the
emerging markets with high
111,4 growth rates
Latin America +15%
96,6
• North America is the most
saturated region globally, Russia
is the main driver for the growth
in the European region
• Over 8% of the worlds internet
Asia Pacific 534,0 +6%
505,7 users come from the LatAm
region

Europe 361,7 +8%

336,4 • 15 MM new web users were
added between 2009 and 2010, a
15% increase
North America 204,0
198,4 +3%
• The steady rise in broadband
penetration will help fuel the
Middle East- Africa 112,5 growth of internet users within
85,2 +32%
the region further

Dec 2009 Dec 2010 % Growth Y-o-Y

Source:- comScore Media Metrix, December 2010
 Young Audience Dominates Online Population in Latin America

% Composition of Internet Audience

Worldwide Key Takeaways
53% • There is a high % of young users in
Latin America in comparison to the
worldwide average

• 62% of the internet audience is

between 15-35 years old
27% 26% 22% 14% 12%

Latin America
62%

33% 29% 20% 11% 7%

Age Groups 15-24 25-34 35-44 44-55 55+

Source:- comScore Media Metrix February 2011

 Social Networking, Search and News are Categories with Highest
Reach in LatAm Region
% Reach of Key Categories in LatAm
Social Networking 76%
98% Key Takeaways
• Social Networking is the top

Reach Focus
Search/Navigation 86%
91% category in Latin America
80%
News/Information 72% • Sharing photos is becoming a key
79%
component of the Social
Community 69% Networking experience
78%
E-mail 61%
• IM usage still remains the highest
Multimedia 75% in Latin America, despite the
70%
drastic drop in the global usage
70%
Photos 52%

Growth Focus
• Blogs and News/Info Sites
Blogs 55%
69%
capture significant portion of
web audience
67%
Instant Messengers 34%

66%
• There is also good potential and
Technology 62% growth in categories likes Retail,
Retail 63% Sports, etc
64%

58%
Downloads 57%

56%
Games 53% Latin America

Worldwide
41%
Sports 37%
Source:- comScore Media Metrix February 2011
 Engagement Levels in LatAm are Over Worldwide Average;
Argentina and Brazil Lead Within
Total Hours Online Per Visitor in
Latin America (per month)
Key Takeaways
Brazil 22 • Overall usage levels have
remained relatively high in Latin
America
Mexico 21
• LatAm users spend approximately
Argentina
22 hours online each month
23
(global average 21 hours)

Colombia 21 • Companies in the LatAm region

have a higher potential of
engaging consumers by using
Chile 19 digital platforms

Venezuela 19

Puerto Rico 15

Worldwide Average – 21
Overall LatAm Average – 22

Source:- comScore Media Metrix February 2011

 Reach of Social Networking Sites Continues to be Very High
Throughout LatAm, Outpacing Worldwide Average
% Reach of Social Networking Sites Globally
Key Takeaways
Worldwide 75,7% • 98% of audience use Social
Asia Pacific 51,2% Networking sites with Colombia
and Argentina dominating within
Europe 91,0% the region
North America 98,0%
• In terms of Reach, Facebook is
Middle East 83,1% leader, however Orkut’s strong
Latin America 97,5% following in Brazil generates
heavier usage for the category
overall
Brazil 93,6%
• Latin America is also home to
Mexico 92,4% some of the most highly
Argentina 97,0% penetrated markets for Twitter
Colombia 97,2% • Other players like Hi5, Sonico and
Chile 96,0% Fotolog.com still hold a strong
audience in Latin America
Peru 90,9%
Venezuela 96,2%
Puerto Rico 95,8%

Source:- comScore Media Metrix February 2011

Thank You

43