digitalks day belo hortizonte 2011 - marketing digital - alex banks - comscore

DIGITALKS, BELO HORIZONTE

A Look at the Brazilian Internet Audience

Alexander BanksManaging Director, Brazil

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The Internet Audience Worldwide


1,219 1,351

Latin America Continues Audience Growth

� Growth is flat in North America, European growth mostly driven by Russia

� Growth in Latin America expected to continue on the back of increased residential broadband penetration region-wide

� Growth in Latin America likely to also continue as more people move from shared-access environment to home & work use March 2010 March 2011

+11%

+15%

---

+5%

+32% +14%

Worldwide Online Population

(Millions)

Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, March 2010 and March 2011

Mar 2011

Mar 2010

480.7

345.3

204.0

88.3 101.1

550.9

363.7

204.4

116.4 115.2

Asia Pacific Europe North America Middle East - Africa Latin America


Internet Users Age 15+ (MM)Online from Work or Home

China’s Online Population Now Over 300M (H&W, PC & Laptop)

Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, March 2011

304.2

181.1

73.2

49.7

47.4

42.8

42.3

41.5

36.2

30.4

23.3

23.0

22.8

21.3

18.7

China

United States

Japan

Germany

Russian Federation

India

France

Brazil

United Kingdom

South Korea

Canada

Italy

Turkey

Spain

Mexico

While US user growth has remained flat over the past year, China, Russia, and Brazil have

experienced impressive growth rates of 20%, 18% and 19%, respectively. Mexico’s online Home & Work population also grew by an impressive 21% over the past year.


In Terms of Reach Worldwide, the Photos Category is Growing Fastest

Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix (Panel Only), December 2009 and December 2010

Key Categories

Reach of WW Population, 2009 vs 2010

85%

70%

68%

67%

64%

63%

60%

58%

57%

53%

81%

68%

66%

63%

62%

66%

59%

56%

51%

54%

Search/Navigation

Social Networking

Directories/Resources

Multimedia

Retail

e-mail

News/Information

Community

Downloads

Technology

53%

51%

50%

46%

35%

33%

32%

31%

30%

29%

43%

50%

50%

45%

41%

32%

33%

34%

29%

30%

Photos

Games

Blogs

Business/Finance

Instant Messengers

TV

Sports

Auctions

Travel

Education2010

2009

+24%

+3%

---

+1%

-15%

+2%

-4%

-7%

+4%

-5%

Growth: +5%

+4%

+4%

+6%

+3%

-4%

+1%

+4%

+11%

-2%


Globally, SN is the Big Winner in Time Spent, IMs and Email Lost Share

Key Categories: Share of Time Spent Online

WW Population, 2009 vs 2010

3.1%

16.0%

2.2%

6.2%

3.5%

6.6%

2.4%

1.9%

0.8%

0.6%

3.0%

11.9%

1.9%

5.7%

3.1%

7.2%

2.5%

2.0%

0.8%

0.6%

Search/Navigation

Social Networking


Multimedia

Retail

e-mail

News/Information

Community

Downloads

Technology

2.6%

3.8%

0.9%

1.5%

9.2%

0.6%

1.2%

1.6%

0.5%

0.7%

0.7%

3.9%

0.8%

1.6%

12.2%

0.5%

1.2%

1.7%

0.5%

0.7%

Photos

Games

Blogs

Business/Finance

Instant Messengers

TV

Sports

Auctions

Travel

Education2010 Share

2009 Share



Mobile On Track to Eclipse the Desktop

Source: Morgan Stanley Research

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Desktop

Mobile

Number of Global Users (Millions)


Browsing Audience Larger than App Audience in USA… Mostly

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Top 10 Mobile Content CategoriesBrowser v. AppUS, April 2010

Browser

App

Product: MobiLens

Data: Three month average ending April 2010


A Quick Look at the Top Genres for Mobile Browsing in the USA

Product: MobiLens

Data: Three month average ending June 2010

Country: US – N=32,009

47.8%

46.5%

42.0%

37.1%

36.1%

30.0%

29.5%

28.2%

24.1%

23.1%

21.6%

21.0%

20.4%

20.1%

17.2%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Search

Personal Email

Social Networking

Weather

News

IM

Sports Information

Entertainment News

Work Email

Photo or Video Sharing

Maps

Tech News

Stock Quotes or Financial News

Movie Information

General Reference

Top Genres for Mobile Browsing

News and Weather GenresCommunicating and SharingOther


United States - Digital Year in Review (2010)

� The heaviest individual online spending day of the year was Cyber Monday (Monday, Nov 29, 2010) at $1.028 billion.

� First time on record that online retail spending surpassed $1 billion in a single day.

� Facebook surpassed each of the Top 3 largest web properties in the past year, capturing the #1 ranking for time spent in August 2010.

� Facebook finished 2010 accounting for 11.1% of time spent online in the U.S., up from 5.5% percent a year ago.

� Major milestones in mobile were crossed during the year as smartphone adoption reached 1 in 4 mobile Americans and 3G penetration crossed the 50 percent threshold, signaling that the mobile industry has reached a point of no return.


The Internet Audience in Brazil

(Size & Makeup)


Online Audience Sizes in Latin America, 15+ Home & Work

� Brazil has by far the largest online population in Latin America

� Continues to show terrific audience growth: ~20% from Mar 2010 to Mar 2011

Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, March 2010 to March 2011

Online Population Sizes (MM)Latin America

34.8

15.5 12.7 10.5

7.0 2.4 1.2

41.5

18.7

12.9 12.7 7.3

3.9 3.0 1.3

Brazil Mexico Argentina Colombia Chile PeruVenezuela

Puerto Rico

Mar-10 Mar-11

+19%

+21%

+2% +21%

+5%+27%

+9%


33.3 33.8 34.2 34.8 35.3 35.9 36.4 37.0 37.5 38.1 38.7 39.3 40.0

1,966 1,978 1,848

2,155 2,113 2,153 2,132 2,210 2,176 2,199 2,253 2,252 2,163

-

500

1,000

1,500

2,000

2,500

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Unique Visitors (MM) Visits (MM)

Brazilian Internet Population Growth & Consumption

Brazilian Internet Population Size and Total Internet Visits

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, December 2009 to December 2010

� Total Visits peaked in October for the presidential elections and remained high moving into November

� In December of 2010, Brazil saw more visits to the Internet than Spain + Italy


25.7

12.1

24.3

30.6

27.8

44.9

16.0

France

India

Brazil

United Kingdom

South Korea

Canada

Italy

The Size and Engagement of the Brazilian Internet Audience

� The average Internet user in Brazil views 2,019 pages per month, average in LatAm is 1,769 while Worldwide is 2,057

� The average Internet user in Brazil clocks 24.3 hours of usage per month

– Worldwide average is 22.4 hours per visitor

Total Hours Online per Visitor

WW Average: 22.4

Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, December 2010


Equal Distribution of Visitors & Usage by Gender in Brazil

Share of Online Visitors, Time, and Pages by Gender

Average Time Spent OnlineBy Gender

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, March 2011

51.0% 50.5% 50.6%

49.0% 49.5% 49.4%

Unique Visitors

Minutes Pages

Males Females

24.1 24.5

Average Hours Online

Males Females


� Internet users in Brazil skew slightly young: 63% of the Internet audience in Brazil is between 15 and 35 years old

� In comparison, only 53% of the global online population is in the same age group

Brazilian Online Population Skews Young

Composition of Internet Audience 15+

Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, December 2010

29.0%

33.6%

26.8%

33.7%

28.6%

26.0%

21.2%

20.0%

21.6%

10.7%

11.3%

14.2%

5.3%

6.6%

11.4%

Brazil

Latin America

Worldwide

15-24 25-34 35-44 45-54 55+


However, it is “Less Young” than it was in 2009

Composition of Brazilian Internet Audience 15+2009 vs 2010

� We are seeing a slight shift in the composition of the Brazilian audience: proportionally more users in older age groups

� Typical of a developing Internet market

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, December 2009 and December 2010

31%

29%

34%

34%

21%

21%

9%

11%

5%

5%

Dec-09

Dec-10

15-24 25-34 35-44 45-54 55+


Youngest Users are the Heaviest Users

Average Time Online by Age & Gender

� Users 15-24 in Brazil spent the most time online; males and females in that age group spent an equal amount of time online, an average of 28.5 hours in December

� Women 35-44 and 45-54 spent more time online than their male counterparts

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, December 2010

28.5

22.3 22.3 21.823.3

28.5

21.7

24.6 23.621.6

15-24 25-34 35-44 45-54 55+

Male

Female


Youngest Users also Visit Most Often

Average Internet Visits per Visitor by Age & Gender

� Females 35-54 visited the Internet more often than their male counterparts

� Average number of visits highest by Males 15-24, followed by Females 15-24

60.9

50.0 51.2 51.1 53.559.7

49.5

56.3 55.051.1

15-24 25-34 35-44 45-54 55+

Male

Female



Regional Internet Population Distribution and Average Usage

BR Region: Southeast 68% of Online Population Average 23.7 hours online

BR Region: Northeast11% of Online PopulationAverage 26.3 hours online

BR Region: South 13% of Online PopulationAverage 25.9 hours online

BR Region: Center-west 6%

of Online Population Average 23.9 hours online

BR Region: North 2% of Online Population Average 22.3 hours online

� Brazilian Internet population is overwhelmingly in Southeast; heaviest usage in Northeast and the South



The Internet Audience in Brazil

(Content Consumption)


Brazil vs WW - Reach of Key Categories

Reach of Key Categories

Brazilian and Global Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, December 2010

86%

85%

75%

71%

71%

70%

68%

64%

60%

60%

85%

70%

63%

50%

35%

64%

67%

68%

58%

53%

Search/Navigation

Social Networking

e-mail

Blogs

Instant Messengers

Retail

Multimedia


Community

Technology

59%

53%

59%

43%

41%

40%

40%

33%

25%

22%

57%

51%

60%

53%

46%

29%

32%

33%

30%

24%

Downloads

Games

News/Information

Photos

Business/Finance

Education

Sports

TV

Travel

AutomotiveBrazil

Worldwide

104

104

97

81

91

138

126

101

85

90

Index: 101

121

120

142

204

109

102

94

103

113


Growth in Reach of Almost All Major Online Categories in Brazil


Key Categories

Reach of Brazilian Population, 2009 vs 2010

86%

85%

75%

71%

71%

70%

68%

64%

60%

60%

80%

78%

72%

65%

67%

64%

63%

62%

57%

56%

Search/Navigation

Social Networking

e-mail

Blogs

Instant Messengers

Retail

Multimedia


Community

Technology

59%

59%

53%

43%

41%

40%

40%

33%

25%

22%

58%

59%

53%

37%

40%

41%

39%

32%

22%

22%

Downloads

News/Info

Games

Photos

Business/Finance

Education

Sports

TV

Travel

Automotive2010

2009

+2%

---

+1%

+17%

+5%

-4%

+1%

+2%

+14%

-1%

Growth: +7%

+10%

+5%

+9%

+5%

+9%

+9%

+3%

+5%

+7%


63.8% 61.8%69.6% 63.9%

Brazil Worldwide

2009 Reach 2010 Reach

+9% +3%

Retail Continues to Grow in Brazil

Retail Sites

% Reach

Retail Sites

Growth

� Seven out of ten web users in Brazil visited a Retail site in December, a rate that is the highest in the region

� Significant upside still remains, as Brazilians become more comfortable with shopping and buying online

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix (Panel Only), Dec 2009 & December 2010

63.9%

54.2%

72.8%

85.5%

62.1%

69.6%

59.3%

62.7%

51.6%

58.1%

57.8%

60.3%

60.6%

WW

Asia Pacific

Europe

North America

Latin America

Brazil

Mexico

Argentina

Colombia

Chile

Peru

Venezuela

Puerto Rico


Top Sites: Retail


29.9

26.7

21.6

13.4

9.5

7.6

7.3

7.1

7.1

6.0

MercadoLibre

Lojas Americanas

BuscaPe.com Inc.

UOL Shopping

NETSHOES.COM.BR

PONTOFRIO.COM.BR

CASASBAHIA.COM.BR

EXTRA.COM.BR

MAGAZINELUIZA.COM.BR

COMPRAFACIL.COM.BR

22.3

12.6

4.6

2.2

9.7

10.0

10.2

8.5

9.1

7.0

MercadoLibre

Lojas Americanas

BuscaPe.com Inc.

UOL Shopping

NETSHOES.COM.BR

PONTOFRIO.COM.BR

CASASBAHIA.COM.BR

EXTRA.COM.BR

MAGAZINELUIZA.COM.BR

COMPRAFACIL.COM.BR

� Mercado Libre leads the retail category in reach, but Lojas Americanas and BuscaPe are only a few percentage points behind

� In terms of time spent, comparison shopping sites lag behind a little

� Brazilian sites clearly dominate the Top Ten

Top Retail Sites: Brazil% Reach

Top Retail Sites: BrazilAverage Minutes per User


Brazilians Rate Their Local Ecommerce Sites Very Highly

Share of Survey Respondents Stating that the Quality of Local Websites

is Excellent/Very Good

Q4: How would you rate the quality of Local Websites when shopping online?

Base: Respondent makes purchases online.

Source: comScore Latin America E-Commerce Study, November 2010

� In a custom survey recently conducted by comScore, Brazilians were more likely to agree that locally-developed shopping sites were excellent or very good

54%

38%44%

29%

39%

21%

Brazil Mexico Argentina Chile Colombia Peru


Group-buying Sites Showed Impressive Growth in Late 2010

comScore World Metrix 2010

Groupon in USA during 2010

� Group-buying sites have taken off in Brazil and, based on what has been seen in the USA, are set to continue their growth in 2011.

� Three major players in the space saw close to or more than 50% growth in unique visitors from August to October


2010 was a Breakthrough Year for Online Banking


� Overall category growth of 25% from Dec 2009 to Dec 2010

� Led by very impressive audience growth seen by Itau.com.br and Bancodo Brasil which each saw more than 50% growth in UVs


So, Who Were the Drivers of the Banking Category’s Growth?

� While the category’s audience was split relatively evenly across men (52%) and women (48%) in December 2010…

� Persons under the age of 35 consumed 54% of the overall pages (in Dec 2009 the under 35 segment was responsible for 59%)

Brazilian Internet Audience 15+ accessing Internet from Home or Work

Source: comScore Media Metrix, December 2010


The World Cup’s Effect on the Sports Category

� The Sports category saw a tremendous lift from the World Cup and managed to sustain this lift very well over the 2nd half of the year

� Sports sites/channels including Lancenet.com.br, Terra Brasil Esportes & UOL Esporte saw their audiences increase in between 30%-40% from April to June

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix (Panel Only), February 2009 to December 2010


Automotive Category Continues to Develop a Strong Audience


� Category growth of 32% from December 2009 to December 2010

� Sites like Webmotors.com.br, iCarros.com.br, Vrum.com.br and meucarronovo.com.br all showed significant growth during the year


The Travel Category Continues to “Take Off”

� Was one of the leaders in 2010 with 49% category growth (7.4M to 11M)

� Persons under the age of 35 consumed 56% of the overall pages (in Dec 2009 the under 35 segment was responsible for 63%)


Source: comScore Media Metrix, December 2010


77.9%67.6%

85.3%70.5%

Brazil Worldwide

2009 Reach 2010 Reach

+10% +4%

70.5%

47.9%

84.4%

89.8%

87.7%

85.3%

88.8%

89.7%

88.6%

91.7%

90.9%

88.9%

85.9%

WW

Asia Pacific

Europe

North America

Latin America

Brazil

Mexico

Argentina

Colombia

Chile

Peru

Venezuela

Puerto Rico

Social Networking in Brazil and Around the World

Social Networking Sites

% Reach

Social Networking Sites

Growth

� The reach of the Social Networking category continues to be very high throughout Latin America

� In Brazil, even with such a high reach, the category is amazingly still growing

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix (Panel Only), December 2010


Social Networking Worldwide (15+), March 2011



0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Orkut in Brazil FACEBOOK.COM in Brazil

Un

iqu

e V

isit

ors

Dec-2009

Dec-2010

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Orkut Worldwide FACEBOOK.COM Worldwide

Un

iqu

e V

isit

ors

Orkut Still Leads in Social Networking, but Facebook is Catching Up

+28%

+258%

-1%

+41%

Orkut and Facebook

Brazil UV and Growth

Orkut and Facebook

Global UV and Growth

� Though Orkut is still the leading Social Network in Brazil, Facebook has been growing rapidly, and could potentially catch up or overtake Orkut at some point

� Brazil is certainly Orkut’s main market; even with 28% growth in Brazil, Orkut’stotal global audience declined by 1% over the past year

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix, December 2009 and December 2010


A Closer Look at Facebook and Orkut Globally

Unique Visitors

(000)

Reach Page Views

(millions)

Avg Visits/

Visit

Avg Mins/

Visit

ORKUT

Worldwide 52,755 4% 23,050 22.3 8.1

Brazil 31,279 78% 20,584 31.7 8.5

FACEBOOK

Worldwide 662,420 50% 300,600 29.6 9.7

Brazil 12,118 30% 813 10.5 3.6


Source: comScore Media Metrix, December 2009 and December 2010

� If not for Brazil, it is quite possible that Orkut would not exist in 2011

� Almost 90% of the pages consumed on Orkut are consumed in Brazil

� Brazilians, however, visit Orkut more often than the world visits Facebook


A Closer Look at Orkut and Facebook in Brazil

42


A Look at Facebook & Orkut in Brazil (and India)



Less of the Facebook Audience in Brazil is Visiting Orkut

� Cross-visiting seen in December 2009 (Total Audience, 15+)

� Cross-visiting seen in December 2010 (Total Audience, 6+)

Brazilian Internet Audience, accessing Internet from Home or Work

Source: comScore Media Metrix, December 2009 and December 2010


Twitter Reach Worldwide (15+)



Growth in Twitter.com Visits and UVs to the Blogs category



Visitation to Blogs is Very High in Brazil

News/Information Sites

% Reach

Brazilian Internet Audience 15+ accessing Internet from Home or WorkSource: comScore Media Metrix (Panel Only), December 2010

BlogSites

% Reach

50.0%

42.3%

55.1%

55.8%

62.9%

71.1%

60.4%

62.3%

55.4%

59.5%

66.9%

57.7%

46.6%

WW

Asia Pacific

Europe

North America

Latin America

Brazil

Mexico

Argentina

Colombia

Chile

Peru

Venezuela

Puerto Rico

60.3%

50.9%

67.4%

80.0%

56.5%

58.8%

54.9%

65.8%

50.9%

56.0%

55.8%

51.0%

50.8%

WW

Asia Pacific

Europe

North America

Latin America

Brazil

Mexico

Argentina

Colombia

Chile

Peru

Venezuela

Puerto Rico


The Impact of the Presidential elections

� Significant increase in Total Visits to News/Info and Blogs categories seen in lead up to and during the President Election season

� Total Visits to the Internet in Brazil were highest in Oct and Nov than during any other month in 2010

comScore World Metrix 2010 – panel-only


Brazil is 3rd in the World in terms of Conversational Media PVs



Youtube Audience as an Online Video Benchmark

� Brazil’s unique audience to Youtube grew by more than 33% over the last year

Dez/2010Dez/2009

Brazilian Audience 15+ accessing Internet from Home or WorkSource: comScore Video Metrix, December 2010


Video and Social Networking

Brazilian Audience 15+ accessing Internet from Home or WorkSource: comScore Video Metrix, December 2010

� Even with such drastic differences in terms of size of the audience, almost three times as many videos are being watched within Facebook than Orkut

� With video streaming showing such growth in Brazil, will this be another factor in the Facebook vs Orkut discussion over the coming years?


What did we learn?

� Brazil is soon to be the 7th largest Internet audience in the world (15+, H&W), much larger than both France & UK, and with nearly 40M additional Internet users from only shared-access environments

� 54% of the audience is between 25-44, with strong growth seen outside the dominant Southeast region

� More “sophisticated” kinds of content like Travel, Automotive and Banking showing growth on the back of changing demographics

� Social Media is driving growth with Orkut and Facebook reaching more than ¾ of the online audience, leading driver behind mobile globally

� Twitter and Blogs have also shown tremendous growth and proved to be an important source of news and political commentary in 2010

� Online video has a bright future in Brazil with strong content providers, improving bandwidth and usage across various demographic segments


Obrigado!

The complete video recordings of “Digital Year in Review: Brazil 2010” are available here:

English: http://comscore.com/index.php//Press_Events/Presentations_Whitepapers/2011/State_of_the_Internet_in_Brazil

Portuguese: http://comscore.com/por/Press_Events/Presentations_Whitepapers/2011/State_of_the_Internet_in_Brazil

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