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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The Internet Audience Worldwide
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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
7© comScore, Inc. Proprietary and Confidential.
Internet Users Age 15+ (MM)Online from Work or Home
China’s Online Population Now 313 MM (H&W, PC & Laptop)
Internet Audience 15+ accessing Internet from Home or Work
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.
8© comScore, Inc. Proprietary and Confidential.
Global Key Categories
Internet Audience 15+ accessing Internet from Home or Work
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
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%
9© comScore, Inc. Proprietary and Confidential.
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)
10© comScore, Inc. Proprietary and Confidential.
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
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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
12© comScore, Inc. Proprietary and Confidential.
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
13© comScore, Inc. Proprietary and Confidential.
0%
2%
4%
6%
8%
10%
12%
14%
Total Internet
Newspapers 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 Total Internet
Newspapers 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)
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Putting it Together:
News Readers Across Devices Throughout the Day
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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
16© comScore, Inc. Proprietary and Confidential.
The PC/Laptop Internet Audience in Brazil
(Size & Makeup)
17© comScore, Inc. Proprietary and Confidential.
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
Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2011
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
18© comScore, Inc. Proprietary and Confidential.
Individual Countries’ Demographic Composition Vary Widely
Composition of Internet Audience 15+
Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2011
� 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
19© comScore, Inc. Proprietary and Confidential.
� 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+
Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2011
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+
20© comScore, Inc. Proprietary and Confidential.
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
Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2011
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
21© comScore, Inc. Proprietary and Confidential.
The Internet Audience in Brazil
(Content Consumption)
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Key Categories in Brazil
Reach of Key Categories
Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2011
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
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
23© comScore, Inc. Proprietary and Confidential.
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
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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
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2011 could be a breakthrough year for online banking
comScore World Metrix 2011
� Online Banking category grew 14% from May 2010 to May 2011
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The Travel Category Continues to “Take Off”
� One of the leaders in terms of growth, approx. 25% year-on-year
Brazilian Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2011
27© comScore, Inc. Proprietary and Confidential.
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)
Brazilian Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix (Panel Only), May 2011
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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
Brazilian Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2010 and May 2011
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A Look at Facebook & Orkut in Brazil (and India)
Brazilian Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, May 2011
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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
Source: comScore Media Metrix, May 2010 and May 2011
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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
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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
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A Look at Rio Grande do Sul
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Comparison of RS audience vs other states/regions
Brazilian Audience 6+ accessing Internet from Home or Work
Source: comScore Media Metrix, Sept 2011
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Overview of top online properties in RS
Brazilian Audience 6+ accessing Internet from Home or Work
Source: comScore Media Metrix, Sept 2011
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Comparison of RS to total Brazilian audience - top categories
Brazilian Audience 6+ accessing Internet from Home or Work
Source: comScore Media Metrix, Sept 2011
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Overview of select sites – RS vs national audience
Brazilian Audience 6+ accessing Internet from Home or Work
Source: comScore Media Metrix, Sept 2011
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