Fallon Brainfood: Latin America in the Age of Participation

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Brainfood: Latin America in the Age of Participation

September 2008

Brainfood is a monthly all-agency lunchconducted by Fallon Planners. Wide-rangingtopics explore trends, business issues, andactionable opportunities for our brands.

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What we’ll talk about.

Shift of power to consumers.

Dialogue is not one-way anymore, but all-way and participatory.

Marketers need to add value.

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First, a metaphor for the advertiser/consumerrelationship in the age of participation…

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Why is this happening?

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Ideas spread faster as connective technology goteasier, faster, “smarter,” and more pervasive.

Shift HappenedShift Happened

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Everybody has access—not just the privileged or educated.

EveryoneEveryone

ParticipatesParticipates

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The language and expectations of Web 2.0 areenabling participation at “all ways.”

DEMOCRACIA

ASEQUIBLE

Establecimiento de contactos profesionales

COMPARTIR

rápido

Colaboración

Conversación

co-creacíon

FUNCIONAL

exigenciaPERSONAS-CENTRO

personalizar

DECENTRALIZED

De dos direcciones

IDENTIDAD

conexión vinculo

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So, what does all this participation mean formarketers?

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Life is no longer simple.

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People suddenly got in the way of the traditionalpath-to-purchase.

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Your ad is here.

You will never spend your way across it.And you can’t shout your way through it.

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A simple example of this shift to participation...

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Amazon leverages a human truth:Purchase decisions are not divorced from thesocial influence of others.

Sources: Joshua Porter/Bokardo, http://bokardo.com/archives/how-social-is-amazon/c

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And this mass participation is now explodingacross every category, every industry.

Participatory Web

Job Classifieds

Encyclopedia

Newspaper

Blogging

Micro-blogging

Photos

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Globally, we are witnessing a massive shifttoward a more participatory Web.

Source: Universal McCann, “Social Media Tracker,” March 2008

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…this shift in behavior will only escalate.

Source: Universal McCann, “Social Media Tracker,” March 2008

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LatAm Web usage is growing at faster rates thanestablished markets like North America and Europe.

LatAm monthly online usage growingfrom 53.6mm to 61.6mm in 2008.

Brazil, Mexico and Argentina are inthe top 20 countries with mostInternet users in the world.

A huge market that has seen growthof 590% from 2000-2007.

Source: comScore World Metrix 2008

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The top-ranked sites bolster this trend towardparticipation.

Google sites on top withapproximately 90% of the totalLatin American audience, anincrease of 22% versus the samemonth last year.

Bolstered by the growth ofseveral Google-owned entities,including YouTube.com (up 81%to 30.6 million visitors),Blogger.com (up 65% to 27.8million visitors) and Orkut (up31% to 15.2 million visitors).

Source: comScore World Metrix 2008

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60% of Internet users in Latin Americancountries are now using social networks.

While total Internet users grew 16% during the last year, social networksgrew 103% from ’06 to ’07 and 33% in ’08!

Source: comScore World Metrix 2008

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Latin Americans spend the most time online -nearly 29 hours per month on average -compared to other worldwide regions.

LatAm users spend a significant portion of their time on instant messengers (9.2 hoursper visitor), social networking sites (5.9 hours per visitor), and e-mail (4.1 hours pervisitor).

Portals, which aggregate a variety of content across a network of sites, ranked as themost engaging site category, with 13.4 hours per visitor.

Source: ComScore World Metrix 2008

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The dominant social networks are the US netswho are expanding globally

Highest growthfrom Facebook

with 4152%, 52Kusers in 2007 to2.2mm 2008 -

however is in thefifth place if we

consider thenumber of users in

the region.

13mm 12mm 8mm 4.2mm

Source: ComScore World Metrix 2008

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LatAm social network penetration is fragmentedacross the countries.

Not all the social networks have the same penetration among the markets

Orkut =huge in Brazil, no significant presence in other countries

MySpace Mexico and Puerto Rico

Sonico =Mexico

Source: ComScore World Metrix 2008

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Social nets are led by Female Gen X and Y withBoomers following fast and growing.

Expect LatAm Social Network adoption to mimic the trajectory of established markets:youth lead, then Boomers catch up fast as the technology reaches tipping point.

Source: ComScore World Metrix 2008

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What should we watch for next?

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Globally, there are more mobile devices than PCs.

TV=1.5B

PC=820MM

GAMEBOY=190MM

iPOD=100MM

PDA=30MM

MOBILE PHONE=2.5B3X morethan PCs!

Source: Google Mobile, June 2008

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This means that for many people in emergingmarkets like Latin America, the Internet hasalways been mobile.

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Mobile life is pervasive. It shadows our “real life”in ways that broadband media cannot.

Mobile Use, All Day—Every Day

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And, as our phones get “smarter,” expect them tobecome a pivotal component of daily living.

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And mobile experiences will get richer as 3Gconnectivity widens (think what broadbandpenetration did for the Web).

1. Increased streaming of TV to phones.

2. Widgetization shifts social networking andthe Internet to the phone.

3. Mobile cameras scan and source productdetails at the store shelf.

4. Contactless RFID chips make the phone thereplacement for credit cards and cash.

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TEC

HN

OLO

GY HU

MA

N B

EH

AV

IOR

These are not mere “trends.”They are fundamental shifts in human behavior.

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Cultural norms are changing in the face of thenew “anywhere consumer.”

A couple in Tokyo watches the same television program on their mobilephones. Each uses a different device while passing comments back and forth.

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“Smart Mobbing” is now putting the phone at thecenter of our shared media experiences.

Globally, people are congregating via mobile text alerts to stage protests,hold dance parties, shop at sales, or just connect.

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In this era of continuous lifestreaming,marketers will need to find their role in thestream.

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Cardinal Rule in the Age of Participation:“People Add Value.”

Experiences get better, the more people use them.

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And brands that participate will thrive.

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Advertising 2.0 has to add real value to people’slives. They have to want to use it.

Entertainment valueSony Balls, Paint, Bunnies

Utility valueSouthwest Ding

Shared valuesDove, Real Beauty

The age of participation demands three types of value:

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Case Study

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La Caida de Edgar is an example of how ideasspread among people on the social web...

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…and savvy brands like Emperador are joiningthis conversation and participating.

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We’ve covered a lot during this Brainfood lunch.Some key takeaways about LatAm in the Age ofParticipation…

Connected: Web usage is growing at a fast clip throughoutLatAm

Social: Social networking is experiencing rapid growth inLatAm

Fragmented: Social networks in LatAm are fragmented andvaried by each country - no dominant leader

Mobilizing: Mobile penetration is exploding - more thanbroadband. And for many, the web has always been mobile

Smart: Phones are getting smarter as more people demand

functionality

Shift: Social networking, TV, and purchases will continue tomigrate to mobile devices

Evolve: Cultural mores are evolving, and people are embracing

new ways that challenge the traditional institutions

Participate: The way forward for marketers is to designmarketing that adds value to people’s lives and embraceparticipation

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In the age of mass conversation andparticipation, are we prepared to jump in?

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Gracias.

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Let’s continue the conversation on our blog:http://fallontrendpoint.blogspot.com

Brainfood is a monthly all-agency lunch conducted byFallon Planners. Wide-ranging topics explore trends,business issues, and actionable opportunities for our

brands.

Connect with me at aki.spicer@fallon.com

Facebook: http://www.facebook.com/p/Aki_Spicer/803440172Twitter: http://twitter.com/akispicer

Plannersphere: http://accountplan.ning.com/profile/akispicerYahoo! Live: http://live.yahoo.com/akispicerSecond Life: Aki OctagonLinked In: http://www.linkedin.com/in/akispicer

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