Report on brazil media market 2012

KEY FACTS ABOUT BRAZIL’S MEDIA MARKET

Your link to Brazil, Latin America and U.S. Hispanics

CONTENTS

• Ad Spend in Brazil, 2005-2011, including key trends

• 2011 Media Penetration Rates in Brazil

• Print Media in Brazil, including revenues and circulation figures for newspapers and magazines in Brazil for 2012 and 2011

• TV in Brazil, including penetration of pay TV in Brazil, average amount of TV viewership in Brazil and attitudes toward medium

• Internet in Brazil, including current amount of Internet users in Brazil, top online activities among Brazilians, social media use in Brazil, e-commerce in Brazil and favorite products among online shoppers in Brazil, mobile penetration and usage in Brazil and online video viewership in Brazil

• Fixed and mobile broadband penetration and growth in Brazil, including projections for 2012 and 2013

Ad Spend in Brazil

Brazil Advertising Spend Growth Trends

•Growth has been strong throughout the 2000s as the Brazilian economy has expanded

•Since 2006, Brazil has experienced an average growth of 10.4% per year in ad spend*

•Even during the economic crisis of 2008-2009, ad spend grew 4% in Brazil*

•The strongest growth in ad spend in Brazil in recent years was between 2010 and 2011, 19.8%—probably due to World Cup advertising*

Sources: Projeto Inter-Meios, IBOPE Midia

Advertising Spend in Brazil 2005-2011

8.7 9.5 10.411.7 12.2

14.4 15.3

2005 2006 2007 2008 2009 2010 2011

Ad Spend in Brazil (Billions of US Dollars)

Source: Projeto Inter-Meios

Year-On-Year Ad Spend Growth in Brazil, 2006-2011

Sources: Projeto Inter-Meios

9.30% 9%

12.80%

4%

19%

8.50%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

2006 2007 2008 2009 2010 2011

Ad Spend Growth by Medium in Brazil, 2010 to 2011

-6.30% -2.50%

3.48% 3.80% 3.90%

9.10%

12%

17.80%

19.60%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%


Brazil Ad Spend Share by Medium, 2011


Ad Spend Trends in Brazil A Steady Drop in Print’s Share of Ad Spend*

2006: Newspapers 15.4%, Magazines 8.61%






Other Trends in Share by Media

Internet’s share steadily increasing: 2.77% (2006) to 5.1% (2011)*

This share only represents display ads, not search

Unlike Projeto Inter-Meios, IAB Brasil counts both search and display ads so it calculates Internet’s share of ad spend in Brazil to be 11% in 2011**

TV’s share steadily increasing since 2009: 60.9% to 63.3% in 2011*

Pay TV’s share steadily increasing: 3.36% in 2007 to 4.19% in 2011*

Radio flat, OOH slight gain*

Sources: *Projeto Inter-Meios, **IAB Brasil

2011 Media Penetration Rates in Brazil

Source: Grupo de Mídia Sao Paulo

Print Media in Brazil

Key Facts and Figures for Print Media in Brazil

• Between January and June 2012, Brazilian newspapers grew by 2.3% in circulation*

• Overall, Brazilian newspapers grew 3.5% in circulation in 2011 to reach 4.4 million copies, a new record*

• 21 million Brazilians—11% of the population—read the newspaper every day*

• 73% of Brazilians prefer to get news from print media instead from online sources**

• The top-selling newspaper in Brazil in 2011 was Super Notícia—it sold 300,000 copies per day, followed by Folha São Paulo, with 297,000 copies per day sold*

• Brazilian magazines took in 1.3 billion reais in revenue in 2011, a new record***

• Average circulation for Brazilian magazines reached 13.7 million copies between June 2010 and June 2011—a 5% increase compared to the previous period and a new record*

Sources: *Instituto Verificador de Circulação, **Datafolha, ***Group M

TV in Brazil

Growth in TV in Brazil

• 175 million Brazilians watch TV regularly1

• The average Brazilian watches free TV 5 hours and 28 minutes per day2

• 90% of Brazilians say TV is their preferred source for news3

• 14.5 million households in Brazil subscribed to pay TV in June 2012, a

30% increase compared to June 20114

• Pay TV ad spend in Brazil went up 17% between 2010 and 20115

• Class C makes up 30% of the Pay TV subscriber base6

• Pay TV penetration among class C will be the same as it is among

classes AB in 13 years7

Sources: 1Instituto Brasileiro de Geografia e Estatística,

2IBOPE,

3Datafolha,

4Agência Nacional de Telecomunicações (Anatel),

5Projeto Inter-

Meios, 6Associação Brasileira de TV por Assinatura,

7Data Popular

Internet in Brazil

The Internet Audience in Brazil • There were 85 million Internet users in Brazil as of May 2012,

compared to 33 million in 2006: 157% growth1

• Brazil is the #5 market in the world in Internet usage2

• 63.5 million Brazilians are considered “active” Internet users—accessing from either home or work3

• The rest access the Internet via mobile devices or Lan Houses3

• 58 million Brazilians are in households with Internet access—up 20% compared to 20103

• Surveys suggest mobile devices are the #2 way for Brazilians to go online4

• As of May 2012, there were 99 million computers in use in Brazil, so the computer penetration rate in Brazil is 50%5

• 95% of Brazilian consumers look for information online before buying a car6

• 67% of female shoppers in Brazil use the Internet as a source before shopping for products or services7

Sources: 1comScore,

2Internet World Stats,

3IBOPE/Nielsen,

4F/Nazca Saatchi & Saatchi,

5Fundação Getulio Vargas

(FGV), 6Oh! Panel,

7IDG

Top Activities Among Brazilian Internet Users

1. Shop: 31 million Brazilians visit e-commerce sites every month*

2. Look for deals: Coupon sites in Brazil grew by 379% between May 2010 and May 2011**

3. Social Media: 97% of Brazilian Internet users are on social media***

4. Read blogs: Blogs have 96% penetration rate among Brazilian Internet users*** and 91% penetration rate among Brazilian executives****

5. Play games: Brazilians spent $2 billion playing online games in 2011****

6. Watch videos: Brazil leads Latam in number of online videos watched and in number of unique viewers***

Sources: *JWT, **IBOPE, ***comScore,****CDN, *****Newzoo

Brazilian Attitudes and Response to Internet Advertising

• 68% of Brazilian Internet users say that online ads influence their purchasing decisions*

• 79% of Internet users in Brazil search for products after being impacted by offline media**

• Top offline media that drive Brazilians to search products online are TV (51%), print (35%) and Out of Home (27%)**

• 57% of Brazilian Internet users say that Internet ads motivate them to buy the products that are advertised***

• 56% of Internet users in Brazil say that Internet ads motivate them to visit online stories***

Sources: *Deloitte Media Democracy, **Iprospect & Google Brazil, ***IAB Brasil

E-Commerce in Brazil

Overall E-Commerce Revenues in Brazil, 2011 and 2012

Source: e-bit

•In 2011 Brazil had US$11 billion total e-commerce revenue, a 26% increase over 2010, when e-commerce sales in Brasil totaled US$8.4 billion

•In 2012, e-commerce in Brazil will grow by 25% to reach projected US$12.7 billion •Top categories with Brazilian online shoppers

Electronic appliances (15% of sales) Computers (12% of sales) Electronics (8% of sales) Fashion & accessories (7%)

•January 2012 Brazilian e-commerce numbers 32% higher than January 2011

Key Facts about E-Commerce in Brazil

•79% of Brazilians surveyed by Mobile Entertainment Forum in 2011 said they use their cell phones in some phase of purchase process •72% of Brazilians surveyed in 2011 by Associação Brasileira das Empresas de Cartões de Crédito e Serviços had a credit or debit card •Same survey said nearly half of Class C had a credit/debit card, up from 38% in 2010 •A 2011 survey from the Câmara Brasileira de Comércio Eletrônico indicates that 70% of Brazilian Internet users feel that online security has improved in recent years

Social Media in Brazil

Social Media Penetration and Growth in Brazil

•97% of Brazil’s online population is on social media* •61% of Brazilians look for product information on social media pages before buying** •Facebook is the #1 social media site in Brazil: 42 million* Brazilians were on Facebook in June 2012 and only the United States has more Facebook users than Brazil*** •Brazilians spent 4.8 hours on Facebook in December 2011—up from 37 minutes in Dec 2010* •Social gaming site Vostu grew by 338% between Dec 2010 and Dec 2011* •Blog/social platform Tumblr grew by 206% in Brazil between Dec 2010 and Dec 2011* •LinkedIn grew by 428% in Brazil in 2010, opened office there in September 2011*

Source: *comScore, **Oh! Panel study, ***Socialbakers

Online Videos in Brazil

The Online Video Audience in Brazil

• There are 42.9 million unique online video viewers in Brazil*

• 4.7 billion online videos were viewed in Brazil in 2011, a 74% increase compared to 2010*

• There has been a 19% growth in online video viewers in Brazil between 2010 and 2011*

• Between 2010 and 2011 in Brazil, there was a 46% growth in videos per viewer*

• Brazil is the 6th biggest market in the world for YouTube based on video views**

• As of December 2011, YouTube reached 79% of Brazilian Internet users**

• In 2011, YouTube grew by 67% in video views in Brazil**

Sources: *ComScore, **YouTube

Mobile Use in Brazil

Mobile, Smartphone and Tablet Penetration and Usage Patterns in Brazil

•In May 2012, Brazil had 254 million active mobile phone lines and 130% mobile phone penetration rate1

•As of May 2012, smartphones have a penetration of 14% in Brazil2

•Brazilians bought 9 million smartphones in 2011 and smartphone sales will go up 73% in 2012 in Brazil—15.4 million smartphones will be sold3 •In 2011, smartphone sales in Brazil went up 179%4 •In 2011, 450,000 tablets were sold in Brazil but it’s projected that 1 million tablets will be sold in Brazil in 20125 •42% of non-computer web traffic in Brazil is from tablets, 54% from mobile phones5 •60% of class AB Brazilians access the Internet via mobile phones, while 36% of class C Brazilians do this6 •In 2011, mobile Internet service subscriptions in Brazil increased by 99.8%7

•By 2016, 21% of all Internet traffic in Brazil will be from mobile devices like mobile phones and tablet computers8

Sources:

1Anatel,

2Google,

3IDC,

4Navegg,

5comScore,

6IBOPE/Nielsen Online,

7Paulo

Bernardo, Communications Minister of Brazil, 8Cisco

Broadband Penetration in Brazil

Fixed Broadband •As of 2010 Brazil was ranked #9 in the world in total number of broadband users* •Brazil ranked #57 in broadband penetration among countries of equivalent income levels* •According to Nokia, Brazil’s fixed broadband penetration is 20 lines per 100 households, fairly low**

Mobile Broadband •Mobile broadband increased 26.2% worldwide in 2011 but in Brazil, it grew by 99%*** •In April 2012, Brazil had 54 million mobile broadband connections •By the end of 2012, Brazil will have 73 million mobile broadband connections**** •Brazil should have 124 million broadband connections by 2014***

Sources: *The World Bank, **Nokia Siemens Networks (Connectivity Scorecard), ***Anatel and Teleco, ****Huawei & Teleco

About US Media Consulting

Launched in 2003, US Media Consulting is a leading media services firm that specializes in building links to reach Brazil, Latin America and U.S. Hispanics

• Starting with a client’s goals, we devise media solutions that deliver powerful results via strategic media selection and execution

• Our team specializes by media type—including Internet, online video, mobile, SEM, print, broadcast and OOH

• For agencies and advertisers, our expertise streamlines campaign execution while maximizing impact

• For media owners, we add sales firepower through specialists across the region and in all of our core markets

• See www.usmediaconsulting.com for more information

http://www.usmediaconsulting.com/

Report on brazil media market 2012

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