Panorama Geral da Internet no Brasil - ComScore - Digitalks

Digitalks, Porto Alegre October 2011

A Look at the Brazilian Internet Audience

Alexander BanksManaging Director, Brazil

2© comScore, Inc. Proprietary and Confidential.

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Web Visiting & Search Behavior

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AdvertisingEffectiveness


The Internet Audience Worldwide


492.8

349.9

207.2

90.5 103.8

562.5

366.9

207.6

119.0 118.0

Asia Pacific Europe North America Middle East - Africa Latin America

1,244.1 1,374.0

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 May 2010 May 2011

+10%

+15%

---

+5%

+31% +14%

Worldwide Online Population

(Millions)

Internet Audience 15+ accessing Internet from Home or Work

Source: comScore Media Metrix, May 2010 and May 2011

May 2011

May 2010


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

China’s Online Population Now 313 MM (H&W, PC & Laptop)


Source: comScore Media Metrix, May 2011

313.0

184.2

73.4

50.0

48.3

43.7

42.5

42.3

36.7

30.5

23.4

23.2

22.9

21.4

19.4

China

United States

Japan

Germany

Russian Federation

India

Brazil

France

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 19%, 16% and 19%, respectively. Mexico’s online Home & Work population also grew by an impressive 21% over the past year.


Global Key Categories


Source: comScore Media Metrix (Panel Only), May 2010 and May 2011

Key Categories

Reach of WW Population, 2010 vs 2011

84%

71%

70%

66%

64%

63%

67%

53%

59%

53%

85%

76%

70%

69%

65%

63%

62%

58%

57%

54%

Search/Navigation

Social Networking

Directories/Resources

Multimedia

Retail

News/Information

e-mail

Downloads

Community

Technology

Growth: +2%

+7%

---

+5%

+1%

-1%

-7%

+10%

105

-4%

+2%

52%

51%

47%

34%

38%

34%

33%

32%

33%

26%

51%

51%

46%

35%

35%

33%

32%

32%

31%

26%

Blogs

Games

Business/Finance

TV

Instant Messengers

Sports

Auctions

Travel

Education

Automotive2010

2011

-1%

-2%

-2%

+2%

-9%

-4%

-4%

-2%

-5%

-1%


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)


0.4%0.4%

0.5%0.6%

0.2%

0.2%

0.3%

0.4%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

May 2011 June 2011 July 2011 August 2011

Non-Computer Share of Traffic - BrazilSource: comScore Device Essentials, May-August 2011

Other Non-Computer

Tablet

Mobile

0.6%

0.7%

0.8%

1.0%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

May 2011 June 2011 July 2011 August 2011

Non-Computer Share of Traffic - BrazilSource: comScore Device Essentials, May-August 2011

Other …

While less prevalent than in other countries, non-computer share of

traffic in Brazil has grown over 1.5x in a single quarter

Other

= non-computer total


Of non-PC devices, Brazilian traffic is skewed more towards tablets

and less toward phones and other devices relative to the US and UK

61% 60% 60%68% 64% 64% 68% 63% 68%

35% 36% 37% 23% 27% 28% 23% 28% 25%

5% 4% 4% 9% 8% 7% 9% 9% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

June 2011

July 2011

August 2011

June 2011

July 2011

August 2011

June 2011

July 2011

August 2011

Share of Non-Computer TrafficSource: comScore Device Essentials

Other

Tablet

Mobile


Non-computer devices account for a disproportionate share of traffic

to Technology, Photos, and Blog categories

Source: comScore Device Essentials TM – International Data May 2011

Consumers of Technology content may be more likely to be early

adopters or heavier users of new

technology such as tablet devices.

0% 1% 2% 3% 4% 5%

Technology

% of total category page requests

Non-Computer Share of Category Hits – BrazilSource: comScore Device Essentials, August 2011

1.4%

1.7%

2.8%

0.5%

0.2%

1.0%

0% 1% 2% 3% 4% 5%

Blogs

Photos

Technology

% of total category page requests

Non-Computer Share of Category Traffic – BrazilSource: comScore Device Essentials, August 2011

Mobile Tablet Other

= 0.96% non-computer share of Total Internet traffic


0%

2%

4%

6%

8%

10%

12%

14%

Total Internet

Newspapers Total Internet


Newspapers

Non-Computer Access – NewspapersSource: comscore Device Essentials

Other

Tablet

Mobile

While Brazilians are less heavy users of non-PC devices overall, they

are disproportionate users when accessing newspaper content

1.0%

2.4%

6.8%

10.9%

6.8%

12.4%

0%

2%

4%

6%

8%

10%

12%

14%

Total Internet



Newspapers

Non-Computer Access – NewspapersSource: comscore Device Essentials

Index* = 246 160 181

*Index = (non-PC share of Newspapers)/(non-PC share of Total Internet)


Putting it Together:

News Readers Across Devices Throughout the Day


Similar Patterns Found in Brazil Device Usage

Visits by device to sites in the Portals, News/Information or Newspapers categories –

Brazil Only, time aligned to local time. Source: comScore

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

iPad Mobile PC


The PC/Laptop Internet Audience in Brazil

(Size & Makeup)


27.1

25.8

28.7

26.6

25.3

27.4

22.6

18.5

Brazil

Mexico

Argentina

Colombia

Chile

Peru

Venezuela

Puerto Rico

Brazil, Argentina & Peru Have Highest Internet Usage Rates in Region

� Brazil’s population is by far the largest in the region, and it is among top three

countries in terms of heaviest usage

� Brazilian Internet users average 3 hours more online than the global audience

Internet Users (Millions) in

Latin America

Total Hours Online per

Visitor in Latin America

WW Avg: 23.9



42.5

19.4

13.0

13.0

7.3

4.1

3.2

1.3

Brazil

Mexico

Argentina

Colombia

Chile

Peru

Venezuela

Puerto Rico


Individual Countries’ Demographic Composition Vary Widely

Composition of Internet Audience 15+



� Venezuela, Colombia, Mexico and Brazil have largest proportion of young users

� Chile and Argentina’s youth composition is close to global average

27%

29%

29%

41%

40%

44%

26%

26%

33%

25%

24%

27%

21%

18%

21%

20%

20%

15%

15%

14%

11%

10%

11%

9%

10%

13%

6%

4%

5%

5%

Chile

Argentina

Brazil

Colombia

Mexico

Venezuela

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

Countries with

High Internet

Penetration

Medium

Internet

Penetration

Low Internet

Penetration


� Internet users in Latin America skew slightly young: 62% of the Internet audience

is between 15 and 35 years old, compared to 52% of the global online population

� Because of Brazil’s size, it contributes heavily to the regional average

Age Distribution in Brazil is Skews to the 25-34 Bracket

Composition of Internet Audience 15+



26%

33%

29%

26%

29%

33%

22%

20%

21%

14%

11%

11%

12%

7%

6%

Worldwide

Latin America

Brazil

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


Young People Drive Internet Consumption in Brazil

Average Time Online by AgeHours per Visitor

� The younger demographic is spending the most time online in Brazil on average

� Note that average is higher than LatAm and Worldwide in almost all demo breaks



27.1

32.2

25.1 24.7 24.8 25.9

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

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

Brazil Latin America Worldwide


The Internet Audience in Brazil

(Content Consumption)


Key Categories in Brazil

Reach of Key Categories



Index: 126

106

121

109

103

112

198

126

100

104

88%

87%

81%

76%

74%

71%

70%

68%

62%

62%

76%

85%

62%

51%

35%

69%

65%

70%

54%

57%

Social Networking

Search/Navigation

e-mail

Blogs

Instant Messengers

Multimedia

Retail

Directories/Resources

Technology

Community

Index: 117

101

131

149

213

104

109

98

105

116

109

61%

60%

53%

46%

45%

42%

40%

36%

25%

25%

63%

58%

51%

31%

33%

46%

28%

35%

32%

23%

News/Information

Downloads

Games

Education

Sports

Business/Finance

Photos

TV

Travel

HealthBrazil

Worldwide

97

103

106

149

137

91

145

104

78

108


Retail Continues to Grow in Brazil

Brazilian Internet Audience 15+ accessing Internet from Home or Work

Source: comScore Media Metrix (Panel Only), May 2010 & May 2011.

May 2010 UV (000) – 26,363 May 2011 UV (000) – 34,449

� Retail category has grown 31% from May 2010 to May 2011


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


2011 could be a breakthrough year for online banking

comScore World Metrix 2011

� Online Banking category grew 14% from May 2010 to May 2011


The Travel Category Continues to “Take Off”

� One of the leaders in terms of growth, approx. 25% year-on-year




Social Networking in Brazil

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

throughout Brazil and Latin America (white paper on comscore.com)


Source: comScore Media Metrix (Panel Only), May 2011


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

� Though Orkut is still the leading Social Network in Brazil, Facebook has been

growing rapidly, and could potentially catch up or overtake Orkut very soon

� Without Brazil, Orkut would certainly not exist




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




Less and less of the Facebook audience are visiting Orkut as well

� Cross-visiting seen in May 2010

� Cross-visiting seen in May 2011

� Cross-visiting seen in September 2011

Brazilian Internet Audience, accessing Internet from Home or Work



Youtube Audience as an Online Video Benchmark

� Brazil’s unique audience to Youtube grew by more than 30% from May to May

May 2010

Brazilian Audience 15+ accessing Internet from Home or Work

Source: comScore Video Metrix, May 2011

May 2011


What did we learn?

� Brazil is the 7th largest Internet audience in the world (15+, H&W), much larger than both France & UK, and with nearly 35M additional Internet users from only shared-access environments (82M is current estimate for total online audience)

� Currently 1 out of every 100 page views in Brazil are from non-PC/laptop devices, with non-PC usage growing fast and some categories over-indexing vs global averages, tablet and smartphone usage expected to grow quickly

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

� Communication and Social Media are driving overall audience growth; Orkut and Facebook together reach 84% of the online audience, Windows Live Messenger, Twitter & Linkedin all showing strong growth and high levels of engagement. Social Networking is leading driver behind mobile Internet adoption globally

� Usage of Blogs, Video and “Compra Coletiva” sites have increased rapidly growth over the past year

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


A Look at Rio Grande do Sul


Comparison of RS audience vs other states/regions


Source: comScore Media Metrix, Sept 2011


Overview of top online properties in RS




Comparison of RS to total Brazilian audience - top categories




Overview of select sites – RS vs national audience




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