viviendo con el internet

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

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)

Brazil Mexico Argentina Colombia

High Focus Countries

Top 2 countries that lead within

the region, were analyzed in detail

Focus Countries

Top 4 countries with high internet

usage were analyzed

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

Project Objective & Methodology

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

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

Evolution of the Internet

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

Latin America Overview

Executive Summary

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

Motivations to Go Online

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

Internet Usage Trends

Executive Summary

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

Activities on Social Networks

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

Online Brand Engagement

Evolution of Internet

2007 – Internet Village was Small; People Felt Safe and In-control;

Interaction was Limited

Online

Neighbourhood

2007

Newsagents

News feeds,

sports homepage

Post Office

E-mails -

Yahoo, Hotmail etc.

e-Bay, Amazon

Shops Pubs

Forums and Social

Networks

Banks

Finance

4 Targeted Advertising

1 Customized Offerings

3 Better Interaction

Use of rich media ads

User controlled ads

Platform specific ads

Geo-targeted ads

Behavioral targeting of ads

Users can choose what they want to see online

Customizable layouts and categories give users freedom

to see content in a way they want

Larger focus on consumer needs

Content has become more interactive and less static

Higher engagement of brand with users

Sharing of reviews & opinions

More legitimate and credible content

Verticalization of content categories

Use of more local and targeted content

Location based online content

5 More Digital Platforms

Online properties are optimized to render on a variety of

devices like tablets, smart phones, iPhone, iPad etc.

Further customization for operating systems and

different screen sizes

2 High on Localization

How Internet has Evolved Over the Years?

2011 – Internet Village has Evolved; Users Today have Wider Choices

& Bigger Voices, Publishers Focus on Social & Local Offerings

Online

Neighbourhood

2011

Local News Focus - News feeds, RSS,

Portals, Newspapers & magazines

Social News – Social Bookmarking,

Facebook walls

More Newsagents

e-Commerce, Auctions, Live

Trading Platforms, Mobile

Payments

Local Integration – Online

Bill Payments & Banking

More Banking

Platforms

More Retailers - e-Bay, Amazon,

Online Stores of Major retailers

Localized Retail Research –

Pricewatch, Groupon, GetPrice

Planned and

Researched Shopping

Forums and Social Networks with

expanded apps, Blogs, Discussion

Boards

Social & Local – Fan Pages, Local

Communities

More Gathering

Places

E-mails, IM

Twitter, Facebook, Skype etc,

used on variety of devices

Social Angle – Share and

Recommend

Advanced Post

Offices

Communication

• Sending and receiving emails

• Using IM

• Using Social Networks

• Using VoIP

Creation • Uploading photos/videos

• Editing/managing websites

• Writing a blog/ news story

Information

• Reviewing a product/brand

• Using social bookmarks

• Using an information aggregator

• Subscribing to RSS feeds

Entertainment • Watching videos

• Playing games

• Listening to music

Transaction • Internet banking

• Online buying

Five Basic Motivations that Drive Web Behavior Globally

Communication

; 41%

Creation; 24%

Transaction;

15%

Entertainment;

11%

Information,

8%

Communication

; 43%

Creation; 27%

Information;

11%

Entertainment;

10%

Transaction;

10%

Communication & Creation are Preferred by Global Online

Population; This Trend is Similar in LatAm

• 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

Start of

the journey

End of the

journey

Social

Networks Emails

News

updates

Entertainment

Information

search

Online

Shopping/Banking

Blogs, forums, RSS

and spaces

Check for messages

& respond

(Facebook, Orkut)

Log into any forums or

blogs to get updated

Google, Bing,

Wikipedia etc.

Amazon, eBay,

Bing Shopping

etc.

YouTube,

Microsoft

Showcase

etc.

CNN, BBC, Newspaper

Sites, News Aggregators

etc.

Check emails

again

Final check of

social network

Log in & reply to

messages (Gmail,

Hotmail, Live Mail)

Throughout the journey, Instant Messenger (MSN

Messenger, AOL IM) is always on as is music

(iTunes/YouTube)

Blogs, forums, RSS

and spaces Social

Networks

Emails

Final check of

forums or blogs

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

Easy to express feelings

Free Access to information

24x7 connected

One Stop Solution to all needs

Personal security

Time it takes away from other aspects of one’s

personal life

Can’t find what you seek

Credibility of information

Subscription based content

Irrelevant ads

Detail Analysis of

Online Behavior in

Latin America

Top Motivations To

Go Online

1

Research for

work

Education

Research how to

do things

For News/events

Research

products to

buy

Stay in touch

with friends

To get ideas

Entertainment

Networking

Find music

0% 20% 40% 60% 80% 100%

Staying in Touch, Research, and Content Sharing are Popular and

Key Motivational Factors for People to Go Online (1/2)

Teens Men Women

Key Takeaways

• Staying in touch with friends is

common activity among all age

groups

• Research and News are main

drivers for adults to go online

• 61% of Teens go online to

consume Entertainment related

content

• Professional networking is low

and is lead by women

• Teens and women are more

prone to go online as compared

to men

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

Internet Usage Trends

2

Young People Drive Internet Consumption in Latin America

49%

19%

10% 9%

44%

21%

21%

13%

53%

20%

22% 17%

1% 1% 1%

Teens Men Women

More Than 4

Hours

3-4 Hours

2-3 Hours

1-2 Hours

Less Than an

Hour

Key Takeaways • On an average 49% of all age

groups spend 4+ hours online/day

• 53% of Teens spend 4+ hours

online/day

• Men and Women of age group 25-

34 spend most time online

• Men aged 55-64 go online least

• Women spend more time online

than Men

• Teens outperform all other age

groups when it comes to online

consumption


Mobile Internet Access is On Rise in Latin America

93%

65%

22% 32%

93%

79%

46%

29%

95%

62%

57% 68%

Home

Work

Out of home

venue

e.g. Café/Bar

Roaming e.g. On the

move/ travelling

Key Takeaways

• Home is preferred place to access

Internet, however, mobile Internet

access is on a rise

• Penetration of smart phones and

mobile broadband is driving

growth of mobile Internet access

• Consumption of online multimedia

content is on rise, especially

among teens

• Advertisers should build strategies

to engage consumers on new

devices like smart phones and

tablets


Teens Men Women

News and

Information

28%

Search

25%

Social Networking

19%

Watched/Uploaded

photos, videos

19%

Transaction

9%

Key Takeaways • News and information is highest

consumed over mobile, especially

by men

• Men, women and teens use

mobiles to search maps and get

directions

• Mobile social networking and

watching videos is another popular

activity among teens

• Women prefer to use mobile

phones for banking and online

buying

Mobile Internet in Latin America is Used Mainly to Get Access to

News followed by Research and Social Activities


Activities on Social

Networks

3

Send messages

to friends

Upload photos

Instant message

Share a new

story

Play game

Install

application

Join a group

Upload videos

Search for new

contacts

0% 20% 40% 60% 80% 100%

Teens Men Women

Social Networking is a Popular Online Activity… IM, Content

Sharing & Writing Blogs are Key Activities within (1/2)

Key Takeaways

• Latin Americans are high on

social engagement

• Photo Sharing/Uploading and

sending messages is common

among all age groups

• IM and email is still popular

among all age groups, especially

women

• More than 50% of teens use

social networks to send

messages, upload photos/videos

and play games

• 60% of men use social networks

to make new contacts and friends


Interaction with

Brands Online

4

Brand Engagement Through Owned Media is Preferred, But Interacting Through

Social Media is Essential to Reach out to Targeted Audiences

Website to

interact with

company

Listen to

comments on

forums/social

networks

Create

applications

/online services

Videos online

featuring the

brand

Contact me if

brand is on a

microblog

Blogs to talk

about company

0% 20% 40% 60% 80% 100%

Teens Men Women

Key Takeaways

• Online advertising is on rise in

Latin America

• Men engage with brands, with

64% visiting company website

directly

• Women are more prone to get in

touch with brands if contact

details are shared online

• Brand engagement through

social media is very effective,

especially with teens

• Products that target teens have a

huge potential in Latin America


Sponsoring music

downloads

Blogging about

relevant products

Social networks

for support

Creating brand

community

Teens Men Women


Provide

knowledge

Be informative

about products

Entertain

Help in

organizing life

Communicate

like a real

person

Provide real time

experience

0% 20% 40% 60% 80% 100%

Help in meeting

people

Be a part of

daily routine

Highly Contextual and Engaging Brands are Preferred by LatAm

Online Users

Key Takeaways

• LatAm consumers engage with

brands that communicate directly

• 48% of young audience between

16-34 years want brands to

entertain them

• Brands that engage with

consumers and help organize their

lives tend to develop a close

relationship with them

Teens Men Women


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

0% 20% 40% 60% 80% 100%

An opportunity to be part of

product /service ideas

Exclusive insights about brand

Details on friends purchases

Virtual purchase opportunity

Providing Discounts and Customer Service Enhances Brand Loyalty

on Social Networks

Key Takeaways • Online and offline

recommendations motivate

purchase behavior

• TV based offline ads influence

purchase

• Direct communication is preferred,

as people want to have a real time

experience

• Online activities like social media,

email and search help in

advertising to the target audience

• Sponsoring online videos and

sports teams creates awareness

and drive purchase

Recommendations

31%

Offline

advertisements

23%

Direct

Communication

18%

Featured on major

online activities

18%

Sponsorships

10%

Recommendations and Direct Communication Drive Purchase

Decision of Consumers Further


The Latin American market is

emerging and fast growing. Thus

advertisers should explore in this

region to gain early advantage over

their competition

1 4

Latin American internet users are highly

engaged and skewed towards the

younger audience. This makes LatAm

demographically attractive and favorable

for future growth

Mobile Internet access is on a rise in

Latin America. Hence advertisers

should build strategies to engage

consumers on new devices like smart

phones and tablets

Brand engagement through social media is

very effective, especially with teens.

Consumers also like to interact with

products through company webpage/site.

Thus advertisers should build relationships

with LatAm consumers through interactive

online advertising

The impressive usage of social media

categories indicate terrific opportunities

for advertisers to communicate effectively

with their target customers. There is also

good potential and growth in categories

likes Retail, News, Travel and Finance

Latin American consumers have a strong

appetite for high-bandwidth activities such as

content sharing, video streaming etc which

clearly indicates huge opportunity hidden for

advertisers as broadband penetration

improves in this region

2

3

5

6

To Summarize…

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)

Key Takeaways • Brazil & Mexico are fastest

growing Internet markets

• Mexico is fastest growing market

with 12% CAGR on a 3 year basis

• There is a significant increase in

growth of Internet penetration

rates

• Internet penetration in Brazil &

Mexico is low as compared to

Argentina & Colombia

• Colombia has highest penetration

rate with CAGR of 7%

• Growth in Internet penetration

promises high growth potential

65

30 16

17

32

79

41 21

25

40

2009 =163 MM 2011e=207 MM

Internet Penetration (%)

2009 2011e

27%

33%

40%

43%

36%

39%

50%

55%

Brazil Mexico Argentina Colombia

Source:- eMarketer, internet world stats and internal analysis

Brazil Mexico Argentina Colombia Other LatAm Countries

Key Takeaways

• 3G introduction is driving growth

in mobile phone subscriptions

• Accessing internet through mobile

phones is fast becoming a major

need

• One third of Latin American mobile

users are from Brazil

• The pie is becoming more wide

spread rather than having a major

proportion confined to a few

countries only

Mobile Phone Users (MM)

2009 = 449 MM

2011e = 523 MM

174

84 48

42

101

198

103 59

43

120

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

Source:- eMarketer, internet world stats and internal analysis


Key Takeaways • Advertising spend in this region is

increasing

• Brazil leads in total as well as

online advertising spend

• TV attracts majority of the offline

spend

• The CAGR of all countries is

growing significantly

• 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

Online Advertising Spend (MM)

2011e = $1,139 MM

$650

$285

$91

$58 $55

Online Advertising Spends are Increasing, Promising a

Dynamic Future


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

85,2

198,4

336,4

505,7

96,6

1.222

112,5

204,0

361,7

534,0

111,4

1.324

Middle East- Africa

North America

Europe

Asia Pacific

Latin America

Worldwide

Source:- comScore Media Metrix, December 2010

+8%

+15%

+6%

+8%

+3%

+32%

Dec 2009 Dec 2010

Internet Users by Region (MM)

Key Takeaways • Latin America and the Middle

East/Africa are among the

emerging markets with high

growth rates

• 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

users come from the LatAm

region

• 15 MM new web users were

added between 2009 and 2010, a

15% increase

• The steady rise in broadband

penetration will help fuel the

growth of internet users within

the region further

% Growth Y-o-Y

33%

27%

29%

26%

20%

22%

11%

14%

7%

12%

Key Takeaways • 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

53%

62% Latin America

Worldwide

Young Audience Dominates Online Population in Latin America

% Composition of Internet Audience

Source:- comScore Media Metrix February 2011

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

Social Networking, Search and News are Categories with Highest

Reach in LatAm Region

37%

53%

57%

64%

62%

34%

55%

52%

70%

61%

69%

72%

86%

76%

41%

56%

58%

63%

66%

67%

69%

70%

75%

78%

79%

80%

91%

98%

Sports

Games

Downloads

Retail

Technology

Instant Messengers

Blogs

Photos

Multimedia

E-mail

Community

News/Information

Search/Navigation

Social Networking

Worldwide

Latin America


Key Takeaways • Social Networking is the top

category in Latin America

• Sharing photos is becoming a key

component of the Social

Networking experience

• IM usage still remains the highest

in Latin America, despite the

drastic drop in the global usage

• Blogs and News/Info Sites

capture significant portion of

web audience

• There is also good potential and

growth in categories likes Retail,

Sports, etc

% Reach of Key Categories in LatAm

Reach

Fo

cus

Gro

wth

Fo

cus

Engagement Levels in LatAm are Over Worldwide Average;

Argentina and Brazil Lead Within

15

19

19

21

23

21

22

Puerto Rico

Venezuela

Chile

Colombia

Argentina

Mexico

Brazil

Worldwide Average – 21

Overall LatAm Average – 22


Total Hours Online Per Visitor in

Latin America (per month) Key Takeaways

• Overall usage levels have

remained relatively high in Latin

America

• LatAm users spend approximately

22 hours online each month

(global average 21 hours)

• Companies in the LatAm region

have a higher potential of

engaging consumers by using

digital platforms

Reach of Social Networking Sites Continues to be Very High

Throughout LatAm, Outpacing Worldwide Average

95,8%

96,2%

90,9%

96,0%

97,2%

97,0%

92,4%

93,6%

97,5%

83,1%

98,0%

91,0%

51,2%

75,7%

Puerto Rico

Venezuela

Peru

Chile

Colombia

Argentina

Mexico

Brazil

Latin America

Middle East

North America

Europe

Asia Pacific

Worldwide


Key Takeaways • 98% of audience use Social

Networking sites with Colombia

and Argentina dominating within

the region

• In terms of Reach, Facebook is

leader, however Orkut’s strong

following in Brazil generates

heavier usage for the category

overall

• Latin America is also home to

some of the most highly

penetrated markets for Twitter

• Other players like Hi5, Sonico and

Fotolog.com still hold a strong

audience in Latin America

% Reach of Social Networking Sites Globally

Thank You

43

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