2012 Brazil Digital Future in Focus Key Insights from 2011 and What They Mean for the Coming Year

Alexander Banks March 2012 Managing Director, Brazil comScore is a Global Leader in Measuring the Rapidly Evolving Digital World, Blanketing the Globe with a Local Presence

NASDAQ SCOR Clients 1860+ worldwide Employees 900+ Headquarters Reston, VA 170+ countries under measurement; Global Coverage 44 markets reported

Local Presence 32 locations in 23 countries

2 Million Person Panel PERSON -Centric Panel with 360 °°°View of Person Behavior SITE -Census Measurement

Web Visiting & Search Online Behavior Online & Offline Advertising Buying Exposure PANEL CENSUS

Advertising Transactions Effectiveness

Media & Video Demographics, Consumption PANEL Lifestyles & Attitudes Unified Digital Measurement ™ (UDM) Mobile Internet Usage & Behavior Patent-Pending Methodology

Adopted by 90% of Top U.S. Media Properties

Online Audience Measurement & Rankings Online Advertising Rankings, Competitive Placement & Digital Creatives Custom Market Research & Strategic Briefings Web Analytics Media Planning & Analysis Audience Delivery/Exposure Verification & GRPs Creative, Concept & Website Pre-testing Brand Tracking/Awareness Surveys E-commerce & Online Payments Share Social Media & Video Measurement Insights on Mobile & Connected Devices Mobile Carrier Network Optimization & Customer Analytics ISP Market Share & Speed-testing

U.S. Internet Population vs. Rest of the World Distribution of Worldwide Internet Audience

Middle East - Rest of the Africa, World 34% Latin America, 8.8% 9.0% Asia 87% North Pacific, America, 41.3% U.S. 14.6% 66% Asia Pacific

Europe, 13% 26.4%

1996 2011

In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region with over 40% of online population. Many emerging regions 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.

Growth expected to continue as home broadband Worldwide Online Population penetration increases in Asia and Latin America (Millions) Growth in developing regions likely to also continue +9% 1,444 as people move from shared-access to home & work use 1,323 Growth slow in North America European growth mostly driven by Russia 2010 Dec 2011 Dec

+11 % Dec-11 Dec-10 595 534 +6% +3% 381 361 +16% +14% 210 203 129 112126 111

Asia Pac Europe North America Latin America Middle east Africa

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

China 331,477

United States 186,922

Japan 73,450

Russian Federation 53,345

Germany 51,008

India 46,854 While US user growth has remained flat over the past year, China, Russia, India and Brazil Brazil 46,272 have experienced impressive growth rates France 43,009 of 14%, 16%, 13% and 16%, respectively.

United Kingdom 37,504

South Korea 30,896

Average Hours per Visitor among 10 Largest Online Markets

United States 40.9

United Kingdom 35.6

South Korea 31.1

France 27.5

Brazil 26.7

Germany 25.2

Russian Federation 25.1

Japan 21.0

China 14.1

India 13.0

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

World 25.9% 26.0% 21.9% 14.4% 11.8%

Latin America 32.5% 28.3% 20.3% 11.7% 7.3%

Percent Composition of Total Internet Visitors

Argentina 29.4% 26.2% 18.4% 13.6% 12.5%

Brasil 28.2% 31.9% 21.1% 11.4% 7.4%

Chile 27.1% 26.2% 21.0% 15.2% 10.5%

Colombia 40.2% 25.6% 20.0% 10.2% 4.0%

México 38.6% 24.2% 20.2% 11.5% 5.5%

Perú 27.5% 31.8% 21.9% 11.9% 7.0%

Venezuela 44.7% 26.7% 15.8% 9.2% 3.6%

Puerto Rico 29.3% 26.2% 21.7% 14.0% 8.8%

Percent Composition of Total Internet Visitors

We are seeing a slight shift in the composition of the Brazilian online audience: proportionally more users in older age groups than previous years 45+ was 18% in December 2011 compared to 26% for the Worldwide online audience

Percent Composition of Brazil Visitors Age 15+

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

Dec-2009 31% 34% 21% 9% 5%

Dec-2010 29% 34% 21% 11% 5%

Dec-2011 28% 32% 21% 11% 7%

BR Region: North 4.6% of Online Population BR Region: Northeast Average 25.1 Hours Online 13.0% of Online Population BR Region: North Average 25.6 Hours Online 2% of Online Population Average 22.3 hours online BR Region: Northeast 11% of Online Population Average 26.3 hours online

BR Region: Center-west 8.4% of Online Population BR Region: Southeast Average 24.9 HoursBR Region:Online Center-west 55.0% of Online Population 6% of Online Population Average 23.5 Hours Online Average 23.9 hours online BR Region: Southeast BR Region: South 68% of Online Population 18.9% of Online Population Average 23.7 hours online BR Region: South Average 26.8 Hours Online 13% of Online Population Average 25.9 hours online

© comScore, Inc. Proprietary. 13 Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work Location, Dec-2011 Compared to Worldwide and US Users, Brazilians Display a Strong Propensity for Search, e-mail, IM, Coupons and Job Search

Selected Categories by % Reach of Visitors

99.9% Portals 93.7% 93.2% 99.3% Business/Finance 56.4% 55.8% 94.2% 89.4% 83.6% Search/Navigation 55.6% 99.1% General News 74.4%

97.8% 74.3% Entertainment 88.6% Sports 41.1% 97.5% 71.2%

99.6% 60.0% Social Networking 82.3% Travel 36.0% 97.5% 33.4%

94.2% 18.8% Retail 73.1% Instant Messengers 29.8% 87.7% 70.7%

82.4% 23.4% e-mail 63.7% Coupons 16.0% 84.6% 29.6%

70.7% 10.1% Blogs 58.9% Job Search 2.8% 95.9% 11.5%

© comScore, Inc. Proprietary. 14 Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011 In the US, Social Networking Nearly Eclipsed Portals as the Most- Engaging Web Activity in 2011…Surpassing them in January 2012

70%

60% News/Info -0.3 pts

50% Email -1.7 pts

40% Entertainment +0.4 pts

30% Social Networking +2.2 pts. 20%

10% Portals -3.6 pts. 0% Dec-2010 Dec-2011

Share of Time Spent Among Top Web Categories

© comScore, Inc. Proprietary. 15 Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011 But in Brazil, Portals Still Claim a Strong Hold on the Market by Share of Online Minutes, Although Social Networking is Growing Rapidly

Share of Time Spent in Brazil

Portals Social Networking 50% 45% 40.0% 40% 39.2% 35% 30% 25% 23.0% 20% 15% 16.7% 10% 5% 0% Dec-2010 Dec-2011

Worldwide Total Unique Visitors (MM) 1,600 +88% 1,400 Total Internet 1,200 +174% 1,000 Social Networking 800

600

400

200

0 2007 2008 2009 2010 2011

Source: comScore Media Metrix, March 2007 - October 2011 © comScore, Inc. Proprietary. 18 Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location Brazilian Social Networkers Age 15-24 Average the Most Time, Users Age 55+ Show Greatest Increase in Hours Spent Networking

Average Hours Spent Social Networking by Age Segment

Dec-10 Dec-11 8.5

6.2 5.8 6.0 5.6 5.4 5.1

3.9 3.6 3.4 3.4 2.9

Total Audience Age: 15-24 Age: 25-34 Age: 35-44 Age: 45-54 Age: 55+

Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, © comScore, Inc. Proprietary. 19 Dec-2011 vs. Dec-2010 Facebook Unseating Local Social Networks Across the Globe

Jan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011 Jan-2012 Facebook overtakes Orkut in Brazil 805.6 Facebook Facebook overtakes overtakes StudiVZ Windows Live Sites in Germany Profile in Portugal

Facebook Facebook overtakes 471.4 overtakes Hyves ZING Me in in the Facebook overtakes Vietnam Yahoo! Wretch in Netherlands Taiwan Facebook overtakes Orkut in India Facebook overtakes Windows Live Profile in Mexico Facebook’s Ascent in Recent Years Total Unique Visitors (MM)

Source: comScore Media Metrix, January 2010 - December 2011 © comScore, Inc. Proprietary. 20 Brazil Among the Fastest-Growing Markets for Facebook (15+, H&W)

Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, © comScore, Inc. Proprietary. 21 Dec-2011 vs. Dec-2010 Facebook Surpassed Orkut’s Nation-wide Audience in Dec 2011

Visitors (000) to Facebook and Orkut in Brazil

Facebook Orkut 40,000 +192% 35,000 +5% 30,000

25,000

20,000

15,000

10,000

5,000

0 Dec-2010 Dec-2011

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work, © comScore, Inc. Proprietary. 22 Dec 2010 to Dec 2011 But the Change in Average Time Spent is Dramatic

Average Minutes per Visitor in Brazil Facebook.com Orkut 300 +667%

250

200 -33% 150

In Dec. 2011, Brazil visitors to 100 Facebook averaged 4.8 hours on the site compared to 50 6.3 hours for the global average.

0 Dec-2010 Dec-2011

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work, © comScore, Inc. Proprietary. 23 Dec 2010 to Dec 2011 Facebook Leads, but Tumblr & LinkedIn Also See Growth (6+, H&W)

Top Selected Social Networking Sites in Brazil % Change Unique Visitors (000) Age 6+ vs. YA Dec-2011 +192% Facebook.com 36,098 +5% Orkut 34,419 +13% Windows Live Profile 13,301 +40% Twitter.com 12,499 N/A Google Plus 4,300 +206% Tumblr.com 4,029

LinkedIn.com 3,182 +79%

Badoo.com 2,953 -5%

Formspring.me 2,020 -58%

Slideshare.net 1,698 +65%

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work, © comScore, Inc. Proprietary. 24 Dec 2011 vs. Dec 2010 Google Plus Reached 88.6 Million Global Visitors in December, Brazil Ranked as the 4 th Largest Market for the Site

Unique Visitors (000) Age 15+ Dec-2011

United States 20,184

India 6,473

France 4,188

Brazil 4,187

Japan 3,760

United Kingdom 3,511

Germany 3,507

Canada 3,292

Turkey 2,457

Source: comScore Media Metrix, Visitors Age 6+ Home/Work, Dec 2011 © comScore, Inc. Proprietary. 25 Social Networking is Not the Only Social Activity on the Rise, The Blog Category Gained 17% in Visitation Worldwide in 2011

Visitors (000) to Blog Category Worldwide

900,000

850,000

800,000

750,000

700,000

650,000 Dec-2010 Dec-2011

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work, © comScore, Inc. Proprietary. 26 Dec 2010 to Dec 2011 Brazil Actually Leads the World in Blog Category Reach at 96%, Blog Category Audience in Brazil Grew 44% in the Past Year

Top 10 Global Markets for Blogs by Percent Reach of Unique Visitors Dec-2011

95.9% 91.8% 89.2% 88.6% 84.3% 82.9% 82.8% 82.1% 81.0% 79.3%

Brazil South Turkey Peru Portugal Chile Argentina Japan Taiwan Spain Korea

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work, Dec 2011 © comScore, Inc. Proprietary. 27 ENTERTAINMENT CONTENT AND ONLINE VIDEO ATTRACTING GROWING AUDIENCE

Percent Reach of Entertainment Category Rise in Entertainment Category World 88.6% Visitation (000) in Brazil 52,000 Latin America 96.7% +12% 50,000 Argentina 97.6%

Brazil 97.5% 48,000

Peru 96.9% 46,000 Chile 96.3% 44,000 Mexico 96.3% 42,000 Colombia 94.5%

Venezuela 93.7% 40,000 Dec-2010 Dec-2011 Puerto Rico 90.7%

42.9 MM Unique Viewers/Streamers

83 % Percent of 6+ Internet Audience

29 % Percent of Total Population

4.7 B Total Videos

27.2 BB Total Hours of Video 109 Videos per Viewer 10.6 Hours per Viewer

© comScore, Inc. Proprietary. 30 Source: comScore Video Metrix, Brazil Viewers Age 6+ Home/Work, Dec-2011 More than 4.7 Billion Videos Viewed in Brazil, +74% in Past Year, Fueled by 19% Growth in Viewers & 46% Growth in Videos per Viewer

Online Videos Viewed in Brazil (000)

6,000,000

5,000,000

4,000,000

3,000,000 Videos Viewed 2,000,000 Grows +74% in Past Year 1,000,000

0 Dec-2010 Dec-2011

Top Video Properties by Viewers Top Video Properties by Share of (000) Videos Viewed

Google Sites 42,062 Google Sites 67.4%

VEVO 18,114 VEVO 5.7%

Viacom Digital 8,366 Globo 1.4%

Globo 8,008 Viacom Digital 1.2%

Microsoft Sites 7,227 Microsoft Sites 1.1%

UOL 4,823 POP Sites 0.8% Facebook.com 3,448 Livestrea.com 0.7% Videolog.tv 2,823 Videobb.com 0.6%

© comScore, Inc. Proprietary. 32 Source: comScore Video Metrix, Brazil Viewers Age 6+ Home/Work, Dec-2011 Facebook Becoming Key Video Viewing Property for Brazilians, Room for Growth in 2012 and Beyond

Facebook Videos (000) Viewed Facebook Video Viewer Reach Oct-2011 Oct-2011 27.2% 348,314 26.1%

11.8%

66,310 17,517

Videos (000) % Reach Web Pop

In all age segments, males consume more online videos on average than their female counterparts Average Videos per Viewer Brazil, Dec-2011 Males: 15-24 156 Females: 15-24 102 Males: 25-34 135 Females: 25-34 90 Males: 35-44 121 Females: 35-44 91 Males: 45-54 110 Females: 45-54 77 Males: 55+ 119 Females: 55+ 90

Percent Reach of Retail Category Rise in Retail Audience (000) World 73.1% in Brazil 50,000 Latin America 72.8%

Brazil 87.7% 45,000 +35%

Argentina 74.1% 40,000 Chile 69.6% 35,000 Peru 67.0% 30,000 Puerto Rico 65.5%

Mexico 65.3% 25,000 Dec-2010 Dec-2011 Venezuela 63.1%

Colombia 57.1%

© comScore, Inc. Proprietary. 36 Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011 Retail Shows Strong Reach in Brazil, but Below Average Engagement Compared to Other Markets

Percent Reach of Retail Category Retail Average Minutes per Visitor Dec-2011, Age 15+ Dec-2011, Age 15+ 133.2 94.2% 93.5% 87.7% 115.6

73.1%

71.3

32.5

Worldwide U.S. UK Brazil Worldwide U.S. UK Brazil

6.9 Billion Searches Performed in Brazil in Dec-2011, +37% vs. Year Ago 8,000

7,000

6,000 Searches per Searcher: +17% to 155 searches Searches (MM) Searches in Dec. 2011 5,000

4,000

3,000 Dec-2010 Dec-2011

© comScore, Inc. Proprietary. 38 Source: comScore qSearch, Brazil Visitors Age 6+ Home/Work, Dec-2011 Google Sites Accounts for 9 of every 10 Searches in Brazil, MercadoLibre in 2 nd Place Accounting for 2% of Searches

Top Search Properties in Brazil by Share of Searches in Dec-2011

1.3% 1.2% 1.2% 2.0% 3.6%

Google Sites MercadoLibre Terra - Telefonica Microsoft Sites Facebook.com 90.7% All Other

© comScore, Inc. Proprietary. 39 Source: comScore qSearch, Brazil Visitors Age 6+ Home/Work, Dec-2011 DIGITAL ADVERTISING ENTERS ERA OF INCREASED ACCOUNTABILITY AS BRAND DOLLARS CONTINUE TO SHIFT ONLINE

Top 10 Online Display Advertisers in Brazil by Share of Display Ads Dec-2011 Netshoes.com.br 2,462,945

Dafiti.com.br 1,514,762

Telefonica Group 895,231

Microsoft Corporation 845,326

Itaú Unibanco Holding S.A. 574,311

NetMovies Entretenimento S.A. 537,591

Hotel Urbano Serviços Digitais S.A. 518,416

B2W Inc. 498,012

OLX Inc. 484,853

Netflix, Inc. 484,138

Top 10 Online Display Ad Publishers in Brazil by Share of Display Ads In the U.S. Facebook Dec-2011 Delivered 1 in Every 4 Facebook.com 17.4% Display Ads in 2011

Globo 14.1%

UOL 12.2%

Terra - Telefonica 11.4%

Google Sites 27.9%10.3% 27.9% Microsoft Sites 10.2% All iG Sites 4.3% Other, 72.1% Yahoo! Sites 1.1%

Record 0.5%

Grupo Abril 0.4%

© comScore, Inc. Proprietary. 42 Source: comScore Ad Metrix, Brazil Visitors Age 6+ Home/Work Location, Dec-2011 Arguably the Most Important Digital Advertising Initiative To Date: “Making Measurement Make Sense” (3MS) Mission

Reduce costs of doing business due to complexity of digital

advertising ecosystem

‘Single Tag’ solution to reduce complexity

Improve reporting of ad exposure

Bolster confidence that ads delivered are actually visible

Together, these insights enable more accurate ROI measurement

18 campaigns 2 billion impressions 400k sites

Allstate

http://www.comscore.com/Press_Events/Press_Releases/2012/1/comScore_Introduc es_Validated_Campaign_Essentials

Average visitor spends 33 minutes consuming News/Information during the month, consuming an average of 37 pages of content (Dec-2011) Globo Noticias, UOL Noticias-Folha, Terra News, Yahoo! News and Estadao Rank as Top News Destinations

News/Information Visitor (000) Growth 50,000 +39%

45,000

40,000

35,000

30,000

25,000 Dec-2010 Dec-2011

© comScore, Inc. Proprietary. 47 Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work Location, Dec-2011 Bahia and Paraná Online Users Over Index for News/Information Visitation and Page Views

News/Info Category Index Across States

Composition Index PV Composition Index UV

Distrito Federal Distrito Federal Online Bahia Users Average the Most Time on Santa Catarina News/Info sites at 40.2 Minutes Rio Grande do Sul in Dec-2011 Paraná

Minas Gerais

Rio de Janeiro

São Paulo

0 50 100 150

Top-gaining travel categories in 2011 included: Hotels/Resorts (+57%), Online Travel Agents (+52%) and Travel Information (+36%) Travel Site Visitation Peaks in October, November and December Top Travel Sites: Viajanet, Decolar, Hotelurbano & TAM Linhas Aereas

Travel Visitor (000) Growth 17,000 +42% 15,000

13,000

11,000

9,000

7,000 Dec-2010 Dec-2011

Top Banking Sites: Caixa, Itau, Bradesco, Banco do Brasil & Santander More than one-third of the banking audience is age 25-34, but the fastest growing audience in 2011 was the 45+ segment Men account for 56% of time spent in Banking category, and SP+RJ account for more than 50% (compared to 44% of total time spent online overall)

18,000 Banking Visitor (000) Growth +19% 16,000

14,000

12,000

10,000 Dec-2010 Dec-2011

Non-Computer Traffic for Selected Markets

Mobile Tablet Other

Singapore 11.5% UK 9.5% U.S. 8.2% Australia 7.7% Japan 7.1% Canada 6.5% Spain 5.2% India 5.1% France 2.8% Brazil 1.5%

Share of Non-computer Internet Traffic

Mobile Tablet Other

2.8% 4.3% 5.3% 6.4% 8.6% 7.3% 13.1% 17.1% 16.7% 22.2% 42.2% 25.9% 32.3% 41.6% 27.6% 34.1%

79.0% 72.5% 65.5% 60.4% 54.9% 59.3% 52.0% 48.8%

Argentina Brazil Chile Colombia Mexico Peru Puerto Venezuela Rico

© comScore, Inc. Proprietary. 53 Source: comScore Device Essentials, Dec-2011 iOS Leads Among Operating Systems on Non-computer Devices in Brazil – Particularly on Tablets, with 91% of Tablet Page Views

Brazil Device Share of Non-Computer Traffic, Dec-2011 Other, 2.8%

9.3% 26.3% Tablet, Other 7.3% 42.2% RIM Symbian 90.6% 31.4% Android Android Mobile, 54.9% iOS iOS 35.0%

Mobile Tablet

© comScore, Inc. Proprietary. 54 Source: comScore Device Essentials, Dec-2011 Understanding How People Use Multiple Devices to Consume Content Throughout the Day is Quickly Gaining Importance in Digital Strategies

GROWTH UNDENIABLE 1 Brazil is one of the fastest growing online audiences with more and more people coming online and the audience already showing very high levels of engagement. With the adoption of new technology and impressive use of social media, the market continues to represent a terrific opportunity for advertisers and agencies looking to reach and engage consumers across all kinds of socio-economic segments. MATURING MARKET 2 With News/Information content already heavily used across the country, and categories like Travel, Banking and Retail showing strong growth, the future is bright for companies to leverage the digital platform more and more during 2012. 2012 SUMMER OLYMPICS 3 With Entertainment, Online Video and Social Media all boasting very high reach in Brazil, events like the 2012 Summer Olympics could see a tremendous online audience and represent significant opportunities for both marketers and portals. ONLINE ADVERTISING 4 Already boasting significant reach and engagement, the online advertising industry in Brazil continues to mature with large advertisers investing more and requiring better performance metrics in return.