comscore - state of the internet - brazil

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Data Sourced From comScore’s Global Panel of 2MM Internet Users WorldwideData Sourced From comScore’s Global Panel of 2MM Internet Users Worldwide

360°°°° View of Consumer Behavior

Media Exposure

Online Transactions

Search Behavior

DemographicsLife Stages

Streaming Video

Web Visiting and Viewing

A Global Measurement of Audience and e-Commerce

37 Individually Reported Countries

172 Countries with Sample Presence


1,100 + Blue Chip Clients1,100 + Blue Chip Clients

Internet Agencies Telecom Financial Retail Travel CPG Pharma Technology


to Measure the Search Market (qSearch)

to Deliver a Worldwide Internet Audience Measurement (World Metrix)

Video Streaming Measurement (Video Metrix)

to Provide Behavioral Ad Effectiveness (Campaign Metrix)

to Build and Project from 2M+ Longitudinal Panel

to Monitor and Report eCommerce Data

Strong Track Record of InnovationStrong Track Record of Innovation

WORLD ECONOMIC FORUMTechnology Pioneer2007

Top 100Innovative CompaniesDecember 2004

World’s LargestWindows DatabaseDecember 2001,2003, 2005

External Recognition


The US Now Accounts For Less Than a Fifth of the Worldwide Internet PopulationThe US Now Accounts For Less Than a Fifth of the Worldwide Internet Population

Online Population by Geography

66%

17%

34%

83%

1996 2008

`

Rest of the World

United States

■ Twelve years ago in 1996, two-thirds of the world’s online population was in the U.S.

Source: comScore World Metrix, September 2008

Regional Distribution of World Online Population

Non-U.S.+12.4%

U.S.+3.4%

YOY Growth


Online Populations by Region

Worldwide Online Population

778.3860.5

Worldwide

Millions of Internet Users

+10.6%

Latin America continues growthLatin America continues growth

286.7

223.9178.4

53.7 35.6

326.8

241.8

184.7

63.443.7

Asia Pacific Europe North America Latin America Middle East - Africa

Millions of Internet Users

+14.0%

+8.0%+3.6%

+18.1%+22.8%

■ Growth has slowed in North America and

Europe

■ Asia Pacific continues to show strong

growth on a large base

■ Latin America and the Middle East/Africa

are now the high-growth regions globally

June 2007

June 2008

Source: comScore World Metrix, June 2008


26.8

23.3

25.9

22.0

23.0

22.9

15.8

Brazil

Mexico

Argentina

Chile

Colombia

Venezuela

Puerto Rico

26.2

12.2

9.1

5.5

3.6

1.7

0.9

Brazil

Mexico

Argentina

Chile

Colombia

Venezuela

Puerto Rico

Brazil is largest and fastest-growing in the regionBrazil is largest and fastest-growing in the region

7

58.3

■ Brazil has, by far, the largest online population in the region, and continues to grow at a

rapid rate – YOY growth was 27%

■ Brazil has the heaviest users in the region, outpacing the worldwide average

Internet Users (MM)in Latin America

Total Online Hours per VisitorLatin America

Extended Universe estimate, including users under 15 or using shared computers


Internet users ages 15+ accessing the internet from a Home or Work computer

WW Avg: 22.4


Comparison to Other Countries Outside RegionComparison to Other Countries Outside Region

8

■ 15+ Home and Work populations in India, Russia, and Korea are roughly the same size

■ Brazil’s usage is among the heaviest in the world: only a few other countries spend more

time online per user than Brazil

Internet Users (MM) Total Online Hours per Visitor


Internet users ages 15+ accessing the internet from a Home or Work computer

26.2

168.3

27.4

26.7

20.2

17.1

Brazil

China

India

Russian Federation

South Korea

Italy

Spain

30.7

58.3

254.3

46.1

Extended Universe estimates for Brazil, China & India, including users under 15 or using shared computers

26.8

18.6

10.5

14.7

21.9

18.4

23.0

Brazil

China

India

Russian Federation

South Korea

Italy

Spain

WW Avg: 22.4


Brazilians show strong preference for local contentBrazilians show strong preference for local content

9

■ Nine of the top 20 Internet properties

are Brazilian, and an additional 5 are

Latin American or Portuguese sites

■ Google, the #1 property in Brazil,

draws its popularity from its search

engine and Orkut, while Microsoft

traffic is driven by MSN Live

Messenger. Both benefit from

localized content versions and a

strong Brazilian version of the brand.

Continued success depends on their

ability to diversify and provide other

offerings that cater to the Brazilian

audience

Top Properties in Brazil Key Sites

Total

Unique

Visitors

(000)

% Reach in

Brazil

Total Internet : Total Audience 26,221 100.0

Google Sites Google Search, Orkut 23,755 90.6

Microsoft SitesWindows Live Messenger,

Windows Live Hotmail22,718 86.6

UOL Sites UOL.COM.BR 18,294 69.8

Organizacoes Globo Globo.com, Globo Videos 15,448 58.9

Terra Networks Terra Brasil 14,594 55.7

Grupo Brasil Telecom iG.com 14,012 53.4

Yahoo! SitesYahoo! Answers,

Homepages, Search13,912 53.1

MercadoLibre MERCADOLIVRE.COM.BR 10,909 41.6

Wikimedia Foundation Sites Portuguese Wikipedia 8,546 32.6

Lojas AmericanasSubmarino,

AMERICANAS.COM8,095 30.9

WordPress 7,119 27.2

BuscaPé Inc. BUSCAPE.COM.BR 4,780 18.2

Grupo Abril ABRIL.COM.BR 4,491 17.1

Oi - Grupo Telemar OI.COM.BR 3,572 13.6

Adobe Sites 3,480 13.3

CAIXA.GOV.BR 3,384 12.9

Portugal Telecom Sapo.pt 3,258 12.4

Grupo Carso Claro Sites 3,183 12.1

SP.GOV.BR 3,182 12.1

Batanga SONICO.COM 3,137 12.0


Brazilians, Like Audiences Worldwide, Prefer to Consume Content in their Native LanguageBrazilians, Like Audiences Worldwide, Prefer to Consume Content in their Native Language

10

Puerto Rico

Venezuela

Mexico

Colombia

Argentina

Chile

Brazil

Distribution of Pages Viewed by Language

Source: comScore Custom Analysis of Page Views by Language, February 2008


Traffic to Top Brazilian Sites from Outside BrazilTraffic to Top Brazilian Sites from Outside Brazil

11

■ The combined unduplicated audience of the Top 4 Brazilian sites draws a third of its

audience from outside the country

■ Besides their shared language, Portuguese Internet users may also view Brazilian

content in order to supplement the variety of publisher offerings at home

■ Large Brazilian expat communities in a number of countries (particularly in neighboring

Argentina and in Japan) also make up a substantial part of these sites’ Worldwide

audience. Brazilians are loyal to their local language content no matter where they may

be in the world


Total Unique

Visitors

World-Wide 32,209

Brazil 21,626

Portugal 1,512

Argentina 973

Japan 694

United States 589

Spain 346

Mexico 215

Italy 278

Source of Traffic to Top 4 Brazilian Sites


How the World Uses the Internet How the World Uses the Internet

12

Source: comScore World Metrix, June 2008

Category Growth

Glo

bal

Reach

Average Internet Growth = 10.6%

“On-ramp” categories

- Portals- Search

Everyone uses it:

High Reach,

Flat Growth

Web 2.0

- Social Networks- Blogs- Photos- Reference- Extended Web

Growing Reach,

Very Fast Growth

Web 2.0 “Casualties”

- Community- Personals- Retail Movies- Retail Music

Low Reach,

Negative Growth

Utility & Content

- Email & IM- Retail- Business/Finance- General News- Travel- Sports- Auto

Mainstream,

MidReach,

Flat Growth

- Entertainment- Multimedia- Gaming

Approaching Mainstream,

High Growth


Key Categories in Brazil cluster around Communications, Networking, EntertainmentKey Categories in Brazil cluster around Communications, Networking, Entertainment

13


Social Networking

IMs

e-mail

Blogs

Extended Web

Government

Consumer Electronics

Entertainment -News

0

50

100

150

200

250

0.0 20.0 40.0 60.0 80.0 100.0

Ind

ex t

o W

W R

each

Brasil Reach

RetailMultimedia

Brazil Reach

■ Brazilians are FAR more likely to use Social Networks and Blogs than the average global Internet user. This generates concomitant above-average usage of Extended Web technologies (widgets)

■ Communication is key: Instant Messengers and E-Mail continue to be popular

■ Entertainment sites in general are popular, but Entertainment News visitation in Brazil is above average

■ Brazilians’ love of shopping reflected in above average visiting to Retail sites, particularly Consumer Electronics

■ High index for Government sites driven by Caixa, e-Government at state level


Social Networking in Brazil Dominated by OrkutSocial Networking in Brazil Dominated by Orkut

14

■ The full category reaches 84.3% of the Brazilian audience, one of the highest rates in the

world for Social Network visiting

■ Orkut is THE primary Social Network in Brazil – both reach and usage metrics outstrip all

others

% Reach Minutes per Visitor Visits per Visitor

Social Networking Sites in Brazil


79.1

14.9

11.4

6.1

5.6

4.5

4.4

3.4

1.4

Orkut

Yahoo! Geocities

SONICO.COM

FOTOLOG.COM

8P.COM.BR

MULTIPLY.COM

HI5.COM

MYSPACE.COM

FACEBOOK.COM

28.3

1.8

2.7

5.3

1.9

1.5

2.0

2.3

2.7

496.1

2.8

10.1

22.1

11.2

4.4

10.6

13.2

14.2


Social Networking is Highly LocalizedSocial Networking is Highly Localized

15

■ Facebook leads in most of the Lat Am countries:

Argentina: Facebook, 28% of audienceChile: Facebook, 67.7% of audienceColombia: Facebook, 60.2% of audienceMexico: Sonico.com, 22.1% of audiencePR: Facebook, 47.2% of audienceVenezuela: Facebook, 49.4% of audience

■ Friendster has strongholds in Southeast Asia;

other country-dominant sites include Mixi in

Japan and CyWorld in South Korea


Brazil, 48%

Rest of Latin

America, 5%

India, 27%

Rest of the

World, 20%

% of Unique Visitors

■ Brazil accounts for nearly half

of Orkut’s global traffic

Distribution of Orkut Traffic

■ Now that Social Networking has generally become mainstream, emerging markets,

particularly, tend to “choose” a primary provider


The ‘Halo Effect’ in Social NetworkingThe ‘Halo Effect’ in Social Networking

16

■ Orkut’s 79.1% reach in Brazil indicates a high degree of comfort w/ the Social

Network concept, more so than in other countries

■ This extends to increased usage of sites incorporating the SN concept

■ Photo sites

Fotolog, Flickr, Picasaweb, Bubome

■ Video sites

Youtube, Globo Videos

■ The ‘high switching cost’ associated with Social Networks really applies more to SNs

that don’t offer anything substantially beyond the core services already provided by

Orkut

■ Sonico reached 11.4% of the Brazilian audience in September, compared to Orkut’s 79.1%, but more critically, 94% of Sonico visitors also visited Orkut

■ Global leader FaceBook is not even a player in this market, despite Brazilian Portuguese version

Most visitors to these sites are also Orkut users



Widget Publishers & PlatformsWidget Publishers & Platforms

17

■ 7th highest Extended Web (Widget) penetration rate globally, unsurprising given

popularity of Social Networks and Blogs in Brazil

■ Reflects Brazilian (and Latin American) publishers’ comfort level with Widgets

39.6

66.7 65.159.8 57.3 55.6 54.6

51.9 51.5 49.8 48.2

Extended Web Reach

% of Online Population



Search Intensity ComparisonSearch Intensity Comparison

18

Search Population & Intensity

Total Searchers (MM) Searches per Searcher

■ Countries with similarly-sized Searcher populations include developed Internet

economies and very large developing markets

■ Brazil’s search intensity aligns more closely with France, Italy, Korea than

Russia or India

26,213

23,348

22,931

21,072

20,917

20,265

17,683

14,638

France

Russian Federation

India

Korea

Brazil

Canada

Italy

Spain

106.3

63.0

51.0

109.3

106.5

122.5

105.8

96.5

France

Russian Federation

India

Korea

Brazil

Canada

Italy

Spain

Source: comScore qSearch, September 2008


Google Share of Searches

19

Search is Dominated by GoogleSearch is Dominated by Google

■ 89% of all online searches in Brazil are on Google

■ UOL Sites and iG.com rank a distant second and third after Google (with <2% share each), and all others make up the remaining 6%, the largest among them including Yahoo, Microsoft, Terra, and Ask.com

Search Intensity

Searches per Searcher

■ Generally heavy search activity in Latin America

■ Brazilian users average 106.5 searches per searcher

93%

93%

91%

89%

89%

88%

57%

Chile

Venezuela

Colombia

Argentina

Brazil

Mexico

Puerto Rico

Latin America Brazil

Source: comScore qSearch, September 2008

Google Sites,

89%

UOL Sites, 2%

iG.com, 2%

All Others, 6%

106.5

106.8

93.9

97.7

109.4

98.7

62.4

Brazil

Mexico

Argentina

Chile

Colombia

Venezuela

Puerto Rico


Online Entertainment in BrazilOnline Entertainment in Brazil

% Reach Minutes per Visitor Visits per Visitor

Entertainment Visiting & Engagement

■ Multimedia sites lead amongst Entertainment subcategories both in terms of reach

and usage

■ Heaviest users are in Multimedia and Kids categories

■ Repeat visiting indicates high interest in the category

79.0

68.7

42.7

32.1

24.6

22.6

18.5

12.4

5.5

Entertainment - Full Category

Multimedia

Entertainment - Music

TV

Entertainment - News

Radio

Kids

Entertainment - Movies

Humor

104.8

73.0

10.0

18.9

14.0

17.8

56.8

5.8

4.1

14.5

9.9

3.6

4.6

4.5

2.8

4.2

2.2

1.6



Clear Appetite for Multimedia, especially VideoClear Appetite for Multimedia, especially Video

■ Brazil ranks 14th out of 37 countries in terms of

average visits to multimedia sites each month

■ Globo Videos reached 41% of Brazilian online

population in September, YouTube.com

reached 48%

■ YouTube’s reach of the audience increased by

26% since Oct 07; Globo Videos has grown an

even faster 58%

■ Low broadband penetration rates limit

engagement and audience


37.7

25.7

47.540.7

YOUTUBE.COM Globo Videos

Oct-2007 Sep-2008

47.5

40.7

14.3

8.4

8.3

5.9

5.1

4.9

4.7

2.8

YOUTUBE.COM

Globo Videos

WindowsMedia

MSN Music

MSN Video

Real.com Network

STARTVG.COM

WinAmp (App)

4DH.COM

iTunes Software (App)

Multimedia Sites% Reach

Growth in Site Reach

+26% +58%


IM is Highly Popular in the RegionIM is Highly Popular in the Region

22

■ Instant Messenger Usage in Latin America is the highest in the world; Brazil is a close

second after Argentina in terms of IM reach of the online audience

■ Windows Live Messenger almost exclusively drives the usage in the category

% Reach

Countries with Highest IM Reach

Top Instant Messengers in Brazil

% Reach

76.8

9.1

1.7

1.4

1.3

1.2

0.5

0.3

0.2

0.2

MSN-Windows Live Messenger

TWITTER.COM

Meebo, Inc

eBuddy Sites

PLUGOO.COM

Yahoo! Messenger

Google Talk (App)

IMINENT.COM

WEBMESSENGER.COM.BR

Skype Instant Messenger (App)

78.9

78.1

77.1

76.4

73.6

71.9

66.1

65.9

65.8

63.6

Argentina

Brazil

Venezuela

Colombia

Mexico

Chile

Spain

Canada

Portugal

Singapore


WW average: 49.8


eCommerce is Taking Hold in BrazileCommerce is Taking Hold in Brazil

23

■ Brazil makes up 37% of the Latin American online population but made up 58% of e-

Commerce dollars in 1st half 2008

■ Brazil shops close to home: 95% of online dollars were spent on Latin American

sites

■ Brazilian buyer penetration 7% in Q2 2008 but ten times as many Brazilian internet

users visited a Retail site over the same time period

Users vs. $$

Latin American % Share

Shopping Activity

% of Brazilian Audience

Source: comScore World Metrix , comScore Marketing Solutions Custom Research, Q2 2008

Site Purchasing

Share of Dollars


Top Retail Sites in BrazilTop Retail Sites in Brazil

33.9

30.8

13.0

11.9

11.2

7.3

5.8

5.3

5.1

4.7

16.8

27.5

24.1

10.0

23.3

9.1

5.7

8.7

4.4

17.2

Consumer Electronics

Comparison Shopping

Books

Computer Software

Computer Hardware

Department Stores

Sports/Outdoor

Retail - Music

Toys

Apparel

Brazil WW Average

Brazil vs. WW Average Retail Category Reach

■ Consumer Electronics and Comparison Shopping sites are the largest Retail

categories in the country, and Brazilians visit those types of sites at a much heavier

rate than the worldwide average

Top Retail Sitesin Brazil

% Reach


■ Top sites are Comparison

Shopping sites and Multi-Channel

retailers

41.6

30.9

18.2

5.5

5.0

4.9

4.7

4.5

3.9

3.7

MercadoLibre

Lojas Americanas

BuscaPé.com Inc.

MAGAZINELUIZA.COM.BR

UOL Brasil Shopping

BONDFARO.COM

Apple Inc.

LIVRARIASARAIVA.COM.BR

eBay

EXTRA.COM.BR


Summary of Key FindingsSummary of Key Findings

■ Since 1996, the proportions have shifted: in 96, two-thirds of the world’s online

population was in the United States; now, the U.S. accounts for only 20% of worldwide

users

■ Brazil has the largest and fastest-growing online population in an important emerging

region

■ Though Google and MSN lead the Top Properties rankings by virtue of specific offerings

that have caught on in Brazil, there are a slew of local providers poised to take share

and Brazilians vastly prefer to consume local content

■ It can’t be denied: Orkut is a phenomenon

– Its influence extends beyond “pure” social networks and into categories where a SN-type community is brought to play

– Along with the Google Search engine, has made Brazil a stronghold for the brand

■ Low home BB penetration impedes a great deal of high-bandwidth activity, such as

video streaming, music downloads, etc, but it is clear that the desire/interest is there – a

huge opportunity for players in these categories as BB penetration grows

■ 7 of every 10 users in Brazil visit Retail sites, and consumers are becoming more

comfortable with purchasing online