The State of the Internet in Brazil Alexander Banks

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Sao Paulo, Brasil November 2009 The State of the Internet in Brazil Alexander Banks Managing Director, Latin America The US is No Longer the Center of the Online Universe US Internet Population vs. Rest of the World Distribution of Worldwide Internet Audience Rest of the North World America Europe Latin America Middle East US Asia Pacific - Africa In 1996, 2/3 of the world’s Internet population was in the US, yet today Asia Pacific is the largest region. Many emerging regions are 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. © comScore, Inc. Proprietary and Confidential. 2 Source: comScore World Metrix, July 2009 Latin America Continues Audience Growth Growth is flat in North America, European Worldwide Online Population growth mostly driven by Russia (Millions) Asia continues rapid growth on a very +4% large base 1,165.2 960.2 Growth in LatAm expected to continue on the back of increased residential broadband penetration region-wide August 2008 August 2009 Online Population by Region Aug 2008 +22% (Millions) Aug 2009 477.2 +20% 389.6 325.6 +4% 271.1 +28% 183.8 191.0 +79% 90.2 81.2 70.3 45.4 Asia Pacific Europe North America Latin America Middle East - Africa © comScore, Inc. Proprietary and Confidential. 3 Source: comScore Media Metrix, August 2008 to August 2009 China Surges Past the US Internet Users Age 15+ (MM) China 210.2 United States 167.1 Japan 66.9 Germany 42.5 France 38.1 United Kingdom 36.9 India 35.0 Russian Federation 33.2 While US user growth has remained flat over Brazil 31.0 the past year, China, Russia, and Brazil have South Korea 28.8 experienced impressive growth rates of Canada 22.6 31%, 26% and 23%, respectively. Italy 21.2 Spain 19.2 Turkey 18.9 Mexico 13.6 Millions of Internet Users (15+, home & work locations) Source: comScore World Metrix, July 2009 © comScore, Inc. Proprietary and Confidential. 4 The Majority of Top Properties’ Audiences Coming from Outside US Total Worldwide US Audience Non-US Audience Unique Visitors (MM) 84% 854 84% 702 77% 592 77% 370 The top 10 Global Properties attract a 81% 295 majority of Unique Visitors from outside the US; Google Sites and Microsoft Sites 66% 268 attain 84% of their audience from non-US countries. 73% 237 All top sites have experienced a shift in visitor composition to a more international 70% 197 audience: non-US visitors now represent 77% and 66% of Facebook’s and AOL’s 76% 196 visitors, respectively. 64% 192 Source: comScore World Metrix, July 2009 © comScore, Inc. Proprietary and Confidential. 5 How global online behavior has changed over the last year Share of time Spent on Entertainment is growing the fastest Instant Messengers and Conversational Media both boast significant usage time Source: comScore Media Metrix © comScore, Inc. Proprietary and Confidential. 6 Share of Global Minutes on Key Online Categories, May 2008 vs. May 2009 What is social media? Social Media is… – media designed to be disseminated through social interaction – a logical step in the ongoing evolution of the interactive platform – the key driver of the fast-growing Web 2.0 category (including blogs, social networks, UGC sites etc.) – the combination of communication (email, messenger) media-sharing (photos, music, video etc.) and/or UGC (opinion, feedback) – an umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words and pictures. © comScore, Inc. Proprietary and Confidential. 7 Everything from Twitter to Facebook to Digg to Linkedin to Youtube Examples of social media software applications include: Communication Blogs: Blogger, LiveJournal, Open Diary, TypePad, WordPress, Vox, ExpressionEngine, Xanga Micro-blogging / Presence applications: Twitter, Plurk, Jaiku, fmylife Social networking: Bebo, Facebook, LinkedIn, MySpace, Orkut, Skyrock, Hi5, Ning, Elgg Events: Upcoming, Eventful, Meetup.com Collaboration Wikis: Wikipedia, PBwiki, wetpaint Social bookmarking: Delicious, Digg, StumbleUpon, Google Reader, CiteULike Multimedia Photo sharing: Flickr, Zooomr, Photobucket, SmugMug, Picasa Video sharing: YouTube, Vimeo, sevenload Livecasting: Ustream.tv, Justin.tv, Stickam Audio and Music Sharing: imeem, The Hype Machine, Last.fm, ccMixter Reviews and Opinions Product Reviews: Yelp, epinions.com, MouthShut.com Virtual worlds: Second Life, The Sims Online, Forterra © comScore, Inc. Proprietary and Confidential. 8 Profile: Twitter Age Income UVs (000) +2,613% composition index UV composition index UV Many Twitter regulars opt to access the service exclusively from their mobile devices after an initial visit to Twitter.com… Twitter audience in Brazil grew by a factor of almost 10 Who’s over a span of just 5 months following who (from 413k in March to nearly on Twitter? 3.6M in July of 2009) © comScore, Inc. Proprietary and Confidential. 9 Source: comScore Media Metrix United States, July 2009 “Last tweet?” © comScore, Inc. Proprietary and Confidential. 10 November 2009 The Brazilian Online Audience Alexander Banks Managing Director, Latin America Internet audience in Latin America is to be taken seriously Brazil is the 9 th largest Internet audience in the world (15+, H&W), Mexico 15 th , Argentina 19 th and Colombia 21 st Home and work usage growing at significant rate – shared-access very strong In terms of total page views in July (15+ H&W) Brazil was 10 th , ahead of Spain, India and Italy In July, Brazil consumed 3.2% of the world’s PVs, Mexico next with just over 1% Argentina (47.6) and Brazil (47.3) are both above the WW average in average visits to the Internet per visitor each month (47.2) The WW average percentage of 15-24 year-olds online is 27.6% (15+, H&W) – Venezuela 50% – Colombia 48% – Mexico 47% – Brazil 31% – Argentina 27% – Chile 27% © comScore, Inc. Proprietary and Confidential. 12 The size and level of engagement of the Brazilian Internet audience Brazil has the largest Internet population in Latin America, with more than 30 million home and work users, 15+ (total online pop. is approx 70M) The average Internet user in Brazil clocks 26.7 hours of usage per month, which is nearly four hours more than the worldwide average Internet User (Millions) in Total Hours Online per Latin America Visitor in Latin America WW Avg: 22.9 Brazil 31.9 Brazil 26.7 Mexico 14.0 Mexico 25.8 Argentina 11.8 Chile 23.6 Colombia 9.0 Venezuela 23.5 Chile 6.5 Colombia 23.0 Venezuela 2.1 Argentina 21.6 Puerto Rico 1.1 Puerto Rico 17.7 © comScore, Inc. Proprietary and Confidential. 13 Source: comScore Media Metrix, September 2009 Comparison to other countries outside region The 15+ Home and Work Internet population in Brazil is similar in size to the Internet populations in the Russian Federation and South Korea Internet users in Brazil spend a similar amount of time online as users in South Korea and the United Kingdom but significantly more time than those in India and the Russian Federation Internet User (Millions) Total Online Hours per Visitor WW Avg: 22.9 United Kingdom 37.3 United Kingdom 28.6 India 35.8 India 11.3 Russian Federation 34.7 Russian Federation 15.8 Brazil 31.9 Brazil 26.7 South Korea 29.2 South Korea 32.4 Canada 22.9 Canada 40.1 © comScore, Inc. Proprietary and Confidential. 14 Source: comScore Media Metrix, September 2009 Less mature Internet audiences are less active online Average time spent online is an indicator of the state of development of internet markets, and Brazil appears very similar to the UK in this regard – Online ad spend in UK recently surpassed that of TV Average Time Spent and Pages Viewed per Unique Visitor per Month 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Turkey United Brazil China Russian India Kingdom Federation Time Spent (mins) Pages Viewed © comScore, Inc. Proprietary and Confidential. 15 Source: comScore World Metrix, September 2009 Age breakdown of the Internet audience in Brazil Internet users in Brazil skew slightly young: 65% of the Internet audience in Brazil is under 35 years old In comparison, only 54% of the global online population is under 35 Brazil 31.4% 33.6% 21.0% 9.1% 4.9% Latin America 35.5% 28.0% 19.0% 10.8% 6.7% Worldwide 27.6% 26.4% 21.6% 14.0% 10.4% Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+ © comScore, Inc. Proprietary and Confidential. 16 Source: comScore Media Metrix ,September 2009 Demographic profile of the Brazilian Internet audience - Sept 2009 © comScore, Inc. Proprietary and Confidential. 17 Heavy users most visible in markets that are still maturing In all of the largest developing markets, heavy internet users account for a higher volume of total pages Russia has the highest page consumption disparity, with 73% of pages viewed by 20% of the population Share of Page Views by User Segment 100% 80% 57% 57% 59% 60% 69% 73% Heavy Users 60% Medium Users 40% Light Users 34% 31% 30% 30% 20% 24% 23% 9% 11% 11% 10% 7% 0% 4% United Turkey China Brazil India Russian Kingdom Federation © comScore, Inc. Proprietary and Confidential. 18 Source: comScore World Metrix, August 2009 How the world uses the Internet © comScore, Inc. Proprietary and Confidential. 19 Source: comScore World Metrix, July 2009 How the Brazilian audience compares to the rest of the world in terms of reach and time spent in key content categories “On-ramp” Categories Web 2.0 Categories Portals 97 97 157 Reference 66 Search/Navigation 96 112 90 Social Networking 176 125 Blogs 127 Utility & Content Categories e-mail 105 93 Entertainment Categories 157 Instant Messengers 135 Entertainment 96 103 101 Retail 69 93 Multimedia 98 News/Information 51 90 76 Travel 58 Online Gaming 108 121 78 Sports 58 © comScore, Inc.
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