2012 Brazil Future in Focus

Key Insights from 2011 and What They Mean for the Coming Year

2012 Brazil Digital Future in Focus

Alexander Banks March 2012

Managing Director, Brazil

2© comScore, Inc. Proprietary.

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Transactions

Online& Offline

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Online Audience Measurement & Rankings

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Audience Delivery/Exposure Verification & GRPs

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THE GROWING AND SHIFTING DIGITAL LANDSCAPE IN BRAZIL AND AROUND THE WORLD


� 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.

Asia Pacific

Distribution of Worldwide Internet Audience

66%

13%

34%

87%

1996 2011

U.S. Internet Population vs. Rest of the World

Rest of the World

U.S.

Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011

Asia Pacific, 41.3%

Europe, 26.4%

North America,

14.6%

Latin America,

9.0%

Middle East -Africa, 8.8%

The U.S. is No Longer the Center of the Online Universe


595

381210

129 126

534

361203

112 111

Asia Pac Europe North America Latin America Middle east Africa

Dec-11 Dec-10

Latin America Saw the Strongest Growth of All Global Regions

� Growth expected to continue as home broadband penetration increases in Asia and Latin America

� Growth in developing regions likely to also continueas people move from shared-access to home & work use

� Growth slow in North America

� European growth mostly driven by Russia

+11%

+3%+6%

+16% +14%

Worldwide Online Population(Millions)


1,323

1,444

2010 Dec 2011 Dec

+9%


Brazil Now Ranks as the 7th Largest Internet Audience (H&W, 15+)

Source: comScore Media Metrix, Visitors Age 15+ Home/Work, Dec-2011

331,477

186,922

73,450

53,345

51,008

46,854

46,272

43,009

37,504

30,896

China

United States

Japan

Russian Federation

Germany

India

Brazil

France

United Kingdom

South Korea

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

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


Among 10 Largest Online Markets, Brazil Ranks 5th in Engagement


40.9

35.6

31.1

27.5

26.7

25.2

25.1

21.0

14.1

13.0

United States

United Kingdom

South Korea

France

Brazil

Germany

Russian Federation

Japan

China

India

Average Hours per Visitor among 10 Largest Online Markets


Percent Composition of Total Internet Visitors

25.9%

32.5%

26.0%

28.3%

21.9%

20.3%

14.4%

11.7%

11.8%

7.3%

World

Latin America

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

Latin America’s Online Population Skews Young1 in 3 Online Users Under the Age of 25



Percent Composition of Total Internet Visitors

29.4%

28.2%

27.1%

40.2%

38.6%

27.5%

44.7%

29.3%

26.2%

31.9%

26.2%

25.6%

24.2%

31.8%

26.7%

26.2%

18.4%

21.1%

21.0%

20.0%

20.2%

21.9%

15.8%

21.7%

13.6%

11.4%

15.2%

10.2%

11.5%

11.9%

9.2%

14.0%

12.5%

7.4%

10.5%

4.0%

5.5%

7.0%

3.6%

8.8%

Argentina

Brasil

Chile

Colombia

México

Perú

Venezuela

Puerto Rico

Users in Venezuela, Colombia and Brazil Among the Region’s Youngest Online Populations



However, Brazil’s Online Population is “Less Young” Than in Past Years

� 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


31%

29%

28%

34%

34%

32%

21%

21%

21%

9%

11%

11%

5%

5%

7%

Dec-2009

Dec-2010

Dec-2011

Percent Composition of Brazil Visitors Age 15+

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


Regional Internet Population Distribution and Average Usage

BR Region: Southeast68% of Online Population

Average 23.7 hours online

BR Region: Northeast11% of Online PopulationAverage 26.3 hours online

BR Region: South13% of Online PopulationAverage 25.9 hours online

BR Region: Center-west6% of Online Population


BR Region: North2% of Online Population


BR Region: North4.6% of Online Population Average 25.1 Hours Online

BR Region: Northeast 13.0% of Online Population Average 25.6 Hours Online

BR Region: Southeast 55.0% of Online Population Average 23.5 Hours Online

BR Region: Center-west 8.4% of Online Population Average 24.9 Hours Online

BR Region: South 18.9% of Online Population Average 26.8 Hours Online

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%

94.2%

97.8%

99.6%

94.2%

82.4%

70.7%

93.7%

89.4%

88.6%

82.3%

73.1%

63.7%

58.9%

99.3%

99.1%

97.5%

97.5%

87.7%

84.6%

95.9%

Portals

Search/Navigation

Entertainment

Social Networking

Retail

e-mail

Blogs

93.2%

83.6%

74.3%

60.0%

18.8%

23.4%

10.1%

56.4%

55.6%

41.1%

36.0%

29.8%

16.0%

2.8%

55.8%

74.4%

71.2%

33.4%

70.7%

29.6%

11.5%

Business/Finance

General News

Sports

Travel

Instant Messengers

Coupons

Job Search


Share of Time Spent Among Top Web Categories

0%

10%

20%

30%

40%

50%

60%

70%

Dec-2010 Dec-2011

Portals -3.6 pts.

Entertainment +0.4 pts

Email -1.7 pts

News/Info -0.3 pts

Social Networking +2.2 pts.

In the US, Social Networking Nearly Eclipsed Portals as the Most-Engaging Web Activity in 2011…Surpassing them in January 2012



But in Brazil, Portals Still Claim a Strong Hold on the Market by Share of Online Minutes, Although Social Networking is Growing Rapidly

40.0%

39.2%

16.7%

23.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Dec-2010 Dec-2011

Share of Time Spent in Brazil

Portals Social Networking

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work Location


SOCIAL MEDIA IS REDEFINING COMMUNICATION IN THE DIGITAL AND PHYSICAL WORLDS


0

200

400

600

800

1,000

1,200

1,400

1,600

2007 2008 2009 2010 2011

+174%

+88%

Worldwide Total Unique Visitors (MM)

Total Internet

Social

Networking

Source: comScore Media Metrix, March 2007 - October 2011

The Rise of Social Networking Globally

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

3.9

5.8

3.43.6 3.4

2.9

6.2

8.5

5.65.1

5.4

6.0

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

Average Hours Spent Social Networking by Age Segment

Dec-10 Dec-11

Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location,

Dec-2011 vs. Dec-2010


471.4

805.6

Jan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011 Jan-2012

Facebook overtakes Orkut in India

Facebook overtakes Windows Live Profile in Mexico

Facebook overtakes Hyves in the Netherlands

Facebook overtakes Windows Live Profile in Portugal

Facebook overtakes Yahoo! Wretch in Taiwan

Facebook overtakes StudiVZ Sites in Germany

Facebook overtakes Orkut in Brazil

Facebook overtakes ZING Me in Vietnam

Source: comScore Media Metrix, January 2010 - December 2011

Facebook’s Ascent in Recent YearsTotal Unique Visitors (MM)

Facebook Unseating Local Social Networks Across the Globe


Brazil Among the Fastest-Growing Markets for Facebook (15+, H&W)

Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location,

Dec-2011 vs. Dec-2010


Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work,Dec 2010 to Dec 2011

+192%

+5%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Dec-2010 Dec-2011

Facebook Orkut

Visitors (000) to Facebook and Orkut in Brazil

Facebook Surpassed Orkut’s Nation-wide Audience in Dec 2011


But the Change in Average Time Spent is Dramatic

+667%

-33%

0

50

100

150

200

250

300

Dec-2010 Dec-2011

Average Minutes per Visitor in Brazil

Facebook.com Orkut

In Dec. 2011, Brazil visitors to

Facebook averaged 4.8 hours on

the site compared to

6.3 hours for the global average.



Facebook Leads, but Tumblr & LinkedIn Also See Growth (6+, H&W)

% Changevs. YA

+192%

+5%

+13%

+40%

N/A

+206%

+79%

-5%

-58%

+65%

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work,Dec 2011 vs. Dec 2010

36,098

34,419

13,301

12,499

4,300

4,029

3,182

2,953

2,020

1,698

Facebook.com

Orkut

Windows Live Profile

Twitter.com

Google Plus

Tumblr.com

LinkedIn.com

Badoo.com

Formspring.me

Slideshare.net

Top Selected Social Networking Sites in BrazilUnique Visitors (000) Age 6+

Dec-2011


Google Plus Reached 88.6 Million Global Visitors in December, Brazil Ranked as the 4th Largest Market for the Site

20,184

6,473

4,188

4,187

3,760

3,511

3,507

3,292

2,457

United States

India

France

Brazil

Japan

United Kingdom

Germany

Canada

Turkey

Unique Visitors (000) Age 15+ Dec-2011

Source: comScore Media Metrix, Visitors Age 6+ Home/Work, Dec 2011


Social Networking is Not the Only Social Activity on the Rise, The Blog Category Gained 17% in Visitation Worldwide in 2011

650,000

700,000

750,000

800,000

850,000

900,000

Dec-2010 Dec-2011

Visitors (000) to Blog Category Worldwide



Brazil Actually Leads the World in Blog Category Reach at 96%, Blog Category Audience in Brazil Grew 44% in the Past Year

95.9%91.8% 89.2% 88.6%

84.3% 82.9% 82.8% 82.1% 81.0% 79.3%

Brazil South Korea

Turkey Peru Portugal Chile Argentina Japan Taiwan Spain

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

Source: comScore Media Metrix, Brazil Visitors Age 6+ Home/Work, Dec 2011


ENTERTAINMENT CONTENT AND ONLINE VIDEO ATTRACTING GROWING AUDIENCE


88.6%

96.7%

97.6%

97.5%

96.9%

96.3%

96.3%

94.5%

93.7%

90.7%

World

Latin America

Argentina

Brazil

Peru

Chile

Mexico

Colombia

Venezuela

Puerto Rico

Percent Reach of Entertainment Category

Entertainment Category Attracts Growing Online Audience in Brazil

Source: comScore Media Metrix, Visitors Age 15+ Home/Work,

+12%

40,000

42,000

44,000

46,000

48,000

50,000

52,000

Dec-2010 Dec-2011

Rise in Entertainment Category Visitation (000) in Brazil


Online Video Consumption in Brazil

Source: comScore Video Metrix, Brazil Viewers Age 6+ Home/Work, Dec-2011

27.2BB

Unique Viewers/Streamers

Percent of 6+ Internet Audience

Percent of Total Population

Total Videos

Total Hours of Video

Videos per Viewer

Hours per Viewer

42.9MM

29%

4.7B

10910.6

83%


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

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Dec-2010 Dec-2011

Online Videos Viewed in Brazil (000)

Videos Viewed Grows +74% in

Past Year

Source: comScore Video Metrix, Brazil Viewers Age 6+ Home/Work, Dec-2010 to Dec-2011


Top Video Properties in BrazilGoogle Sites Leads Fueled by YouTube Viewing

42,062

18,114

8,366

8,008

7,227

4,823

3,448

2,823

Google Sites

VEVO

Viacom Digital

Globo

Microsoft Sites

UOL

Facebook.com

Videolog.tv

Top Video Properties by Viewers (000)

67.4%

5.7%

1.4%

1.2%

1.1%

0.8%

0.7%

0.6%

Google Sites

VEVO

Globo

Viacom Digital

Microsoft Sites

POP Sites

Livestrea.com

Videobb.com

Top Video Properties by Share of Videos Viewed



Facebook Becoming Key Video Viewing Property for Brazilians, Room for Growth in 2012 and Beyond

Source: comScore Video Metrix, Viewers Home/Work, Oct-2011

348,314

66,310

17,517

Videos (000)

Facebook Videos (000) ViewedOct-2011

27.2%26.1%

11.8%

% Reach Web Pop

Facebook Video Viewer ReachOct-2011


Gender Difference is Wider When it Comes to Video Consumption

156

102

135

90

121

91

110

77

119

90

Males: 15-24

Females: 15-24

Males: 25-34

Females: 25-34

Males: 35-44

Females: 35-44

Males: 45-54

Females: 45-54

Males: 55+

Females: 55+

Average Videos per ViewerBrazil, Dec-2011

� In all age segments, males consume more online videos on average than their female counterparts



SHOPPING AND PURCHASING ONLINE CONTINUES TO GROW DURING 2011


73.1%

72.8%

87.7%

74.1%

69.6%

67.0%

65.5%

65.3%

63.1%

57.1%

World

Latin America

Brazil

Argentina

Chile

Peru

Puerto Rico

Mexico

Venezuela

Colombia

Percent Reach of Retail Category

Online Retail Ramps Up in Brazil, Peaking During Holiday Season


+35%

25,000

30,000

35,000

40,000

45,000

50,000

Dec-2010 Dec-2011

Rise in Retail Audience (000) in Brazil


Retail Shows Strong Reach in Brazil, but Below Average Engagement Compared to Other Markets

73.1%

94.2% 93.5%87.7%

Worldwide U.S. UK Brazil

Percent Reach of Retail Category Dec-2011, Age 15+

71.3

115.6

133.2

32.5

Worldwide U.S. UK Brazil

Retail Average Minutes per VisitorDec-2011, Age 15+



Searches in Brazil Peak in October and November Fueled by the Holiday Shopping Season

3,000

4,000

5,000

6,000

7,000

8,000

Dec-2010 Dec-2011

Searc

hes

(MM

)

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

Searches per Searcher: +17% to 155 searches

in Dec. 2011

Source: comScore qSearch, Brazil Visitors Age 6+ Home/Work, Dec-2011


Google Sites Accounts for 9 of every 10 Searches in Brazil, MercadoLibre in 2nd Place Accounting for 2% of Searches

90.7%

2.0%

1.3% 1.2% 1.2%

3.6%

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

Google Sites

MercadoLibre

Terra - Telefonica

Microsoft Sites

Facebook.com

All Other

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


In December 2011, 62.9 Billion Display Ad Impressions Were Delivered Online in Brazil, Reaching 50.8 Million Internet Users

2,462,945

1,514,762

895,231

845,326

574,311

537,591

518,416

498,012

484,853

484,138

Netshoes.com.br

Dafiti.com.br

Telefonica Group

Microsoft Corporation

Itaú Unibanco Holding S.A.

NetMovies Entretenimento S.A.

Hotel Urbano Serviços Digitais S.A.

B2W Inc.

OLX Inc.

Netflix, Inc.

Top 10 Online Display Advertisers in Brazil by Share of Display Ads

Dec-2011

Source: comScore Ad Metrix, Brazil Visitors Age 6+ Home/Work Location, Dec-2011


27.9%

17.4%

14.1%

12.2%

11.4%

10.3%

10.2%

4.3%

1.1%

0.5%

0.4%

Facebook.com

Globo

UOL

Terra - Telefonica

Google Sites

Microsoft Sites

iG Sites

Yahoo! Sites

Record

Grupo Abril

Top 10 Online Display Ad Publishers in Brazil by Share of Display Ads

Dec-2011

27.9%

All Other, 72.1%

In the U.S. Facebook Delivered 1 in Every 4 Display Ads in 2011

Facebook Delivers Nearly 1 of Every 5 Display Ads in Brazil

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


� Validated impressions and

� Validated R/F

� Audience demographics

� Audience behavioral segments

� In-flight campaign alerts

� In-flight brand safety enforcement

Together, these insights enable more accurate ROI measurement


vGRP US Charter Study (for more visit comscore.com/vGRP)

18 campaigns2 billion impressions 400k sites

Allstate

http://www.comscore.com/Press_Events/Press_Releases/2012/1/comScore_Introduces_Validated_Campaign_Essentials


OTHER ACTIVITIES ON THE RISE IN BRAZIL


News/Information Visitation on the Rise, Gains 39% in Past Year

� 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 EstadaoRank as Top News Destinations

+39%

25,000

30,000

35,000

40,000

45,000

50,000

Dec-2010 Dec-2011

News/Information Visitor (000) Growth



Bahia and Paraná Online Users Over Index for News/Information Visitation and Page Views

0 50 100 150

São Paulo

Rio de Janeiro

Minas Gerais

Paraná

Rio Grande do Sul

Santa Catarina

Bahia

Distrito Federal

News/Info Category Index Across States

Composition Index PV Composition Index UV


Distrito Federal Online Users Average the

Most Time on News/Info sites at

40.2 Minutes in Dec-2011


Brazilians Increasingly Going Online to Make Travel Arrangements

� 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


+42%

7,000

9,000

11,000

13,000

15,000

17,000

Dec-2010 Dec-2011

Travel Visitor (000) Growth


Banking Visitation Grows 19% in 2011 Nearly 1 in 3 Online Brazilians Now Bank Online

� 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)


+19%

10,000

12,000

14,000

16,000

18,000

Dec-2010 Dec-2011

Banking Visitor (000) Growth


SMARTPHONES AND TABLETS FUEL THE RISE OF THE DIGITAL OMNIVORE


11.5%

9.5%

8.2%

7.7%

7.1%

6.5%

5.2%

5.1%

2.8%

1.5%

Singapore

UK

U.S.

Australia

Japan

Canada

Spain

India

France

Brazil

Non-Computer Traffic for Selected Markets

Mobile Tablet Other

Mobile & Tablet Devices Shifting How Users Connect Across the Globe

Source: comScore Device Essentials, Dec-2011


72.5%

54.9%

79.0%

52.0%59.3%

65.5%

48.8%60.4%

22.2%

42.2%

16.7%

41.6% 27.6%25.9%

34.1%

32.3%

5.3% 2.8% 4.3% 6.4%13.1%

8.6%17.1%

7.3%

Argentina Brazil Chile Colombia Mexico Peru Puerto Rico

Venezuela

Share of Non-computer Internet Traffic

Mobile Tablet Other

Tablets Account for >42% of Non-Computer Web Traffic in Brazil



iOS Leads Among Operating Systems on Non-computer Devices in Brazil – Particularly on Tablets, with 91% of Tablet Page Views

Tablet, 42.2%

Mobile, 54.9%

Other, 2.8%

35.0%

31.4%

7.3%

26.3%

Mobile

Other

Symbian

Android

iOS


Brazil Device Share of Non-Computer Traffic, Dec-2011

90.6%

9.3%

Tablet

RIM

Android

iOS


Understanding How People Use Multiple Devices to Consume Content Throughout the Day is Quickly Gaining Importance in Digital Strategies


CONCLUSIONS


GROWTH UNDENIABLE

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 MARKETWith 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 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 ADVERTISINGAlready 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.

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Stories that Will Shape Digital in Brazil during 2012

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2012 Brazil Future in Focus

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Transcript of 2012 Brazil Future in Focus