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Viviendo con el Internet
- 1. Living With TheInternet A Latin American Study On What’s Driving Web Behavior
- 2. Agenda Project Objective &Methodology Executive Summary Evolution of the Internet Latin America – Online Behavior Latin America – Key Statistics Appendix
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- 4. Project Objective &Methodology Objective: Understand what drives people to go online in Latin America and how to integrate marketing communications into their different online activities in best possible way. Focus: Four major LatAm countries were analyzed in this study Brazil Mexico Argentina Colombia High Focus Countries Focus Countries Top 2 countries that lead within Top 4 countries with high internet the region, were analyzed in detail usage were analyzed Methodology: Based on a survey done by our panel, 6,054 respondents aged between 16-64 years answered questions about their web behavioral patterns and their online brand interaction preferences. These respondents were further bifurcated into three sections of people; Teens (16-24 years of age) Men (25-64 years of age) Women (25–64 years of age) Other Data Sources: Leading industry data sources like eMarketer, comScore and Internet World Stats were also used to compliment data and findings in this study
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- 6. Executive Summary Evolution ofthe Internet In last 5 years, global online behaviors has change dramatically 2007- The internet village was small; people used to spend most of their time on familiar and trusted sites 2011- The internet village has evolved; users today have wider choices & bigger voices Publishers focus on social & local offerings Brands, products and services are now connecting with users through a social & localized angle Evolution of internet – From U.S. to global, leisure to routined, spontaneous to planned and static to mobile Latin America Overview As internet growth saturates in the U.S. and Europe, Latin America has emerged as one of the fastest growing regions in the world Latin America contributes to over 8% of global web audience Growth in Latin America is further expected to continue as broadband and mobile phones become more widely available and affordable Latin American Internet users are highly engaged and skew heavily towards a younger audience
- 7. Executive Summary Motivations toGo Online Research, Entertainment and Content Sharing are the biggest motivational factors for Latin Americans to go online People in age group of 16-34 are very active in sharing content online Staying in touch with friends is a common motivation to go online among all age groups, driven by women Entertainment is main motivation for teens to go online while Research and News are main drivers for adults to go online Internet Usage Trends Young people drive internet consumption in Latin America 62% of Internet audience is in the 15-35 age group (source: comScore) 53% of Teens spend 4+ hours online/day On an average, women spend more time on Internet than men Among young adults, 25-34 age group spends maximum time online
- 8. Executive Summary Activities onSocial Networks Latin American consumers have a strong appetite for high-bandwidth activities such as content sharing, video streaming, music downloads, etc… Uploading photos and sending messages are common activities among all age groups, especially women Writing blogs and watching videos online are popular activities among men Over 50% of teens use social networks to send messages, upload photos/videos and play games Despite the rise of social networking and text messaging, e-mail and IM are still important reasons to go online Online Brand Engagement Brand engagement through social media is very effective, especially with teens 64% of men prefer to engage with brands through owned media Women are more prone to get in touch with brands, if contact details are shared online Brands that are engaging, contextual and targeted appeal to the LatAm audience Top strategies adopted by brands to connect with LatAm online audiences are by providing discounts, superior customer service and customized product offerings
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- 10. 2007 – InternetVillage was Small; People Felt Safe and In-control; Interaction was Limited Newsagents News feeds, sports homepage Post Office Banks E-mails - Finance Yahoo, Hotmail etc. Online Neighbourhood 2007 Shops Pubs e-Bay, Amazon Forums and Social Networks
- 11. How Internet hasEvolved Over the Years? Users can choose what they want to see online 1 Customized Offerings Customizable layouts and categories give users freedom to see content in a way they want Larger focus on consumer needs Verticalization of content categories 2 High on Localization Use of more local and targeted content Location based online content Content has become more interactive and less static Higher engagement of brand with users 3 Better Interaction Sharing of reviews & opinions More legitimate and credible content Use of rich media ads User controlled ads 4 Targeted Advertising Platform specific ads Geo-targeted ads Behavioral targeting of ads Online properties are optimized to render on a variety of 5 More Digital Platforms devices like tablets, smart phones, iPhone, iPad etc. Further customization for operating systems and different screen sizes
- 12. 2011 – InternetVillage has Evolved; Users Today have Wider Choices & Bigger Voices, Publishers Focus on Social & Local Offerings More Newsagents Local News Focus - News feeds, RSS, Portals, Newspapers & magazines Social News – Social Bookmarking, Facebook walls Advanced Post More Banking Offices Platforms E-mails, IM e-Commerce, Auctions, Live Twitter, Facebook, Skype etc, Trading Platforms, Mobile used on variety of devices Online Payments Social Angle – Share and Neighbourhood Local Integration – Online Recommend Bill Payments & Banking 2011 Planned and More Gathering Researched Shopping Places Forums and Social Networks with More Retailers - e-Bay, Amazon, expanded apps, Blogs, Discussion Online Stores of Major retailers Boards Localized Retail Research – Social & Local – Fan Pages, Local Pricewatch, Groupon, GetPrice Communities
- 13. Five Basic Motivationsthat Drive Web Behavior Globally • Sending and receiving emails • Using IM Communication • Using Social Networks • Using VoIP • Uploading photos/videos Creation • Editing/managing websites • Writing a blog/ news story • Reviewing a product/brand • Using social bookmarks Information • Using an information aggregator • Subscribing to RSS feeds • Watching videos Entertainment • Playing games • Listening to music • Internet banking Transaction • Online buying
- 14. Communication & Creationare Preferred by Global Online Population; This Trend is Similar in LatAm Information, 8% Transaction; 10% Entertainment; Entertainment; 11% 10% Communication Communication ; 41% ; 43% Transaction; Information; 15% 11% Creation; 24% Creation; 27% • Communication is the main reason for people to go online • LatAm Audience pay more attention on Creation and Information gathering • Transacting online is a common Internet based activity globally, however it is on rise in LatAm
- 15. The Internet ‘Routine’is Becoming More Important Than Ever to a Users Lifestyle Intimate Zones Public Zones CNN, BBC, Newspaper Start of Social Blogs, forums, RSS Sites, News Aggregators Emails etc. and spaces the journey Networks News updates Check for messages Log into any forums or Log in & reply to YouTube, & respond blogs to get updated messages (Gmail, Microsoft Entertainment (Facebook, Orkut) Hotmail, Live Mail) Showcase etc. Throughout the journey, Instant Messenger (MSN Messenger, AOL IM) is always on as is music (iTunes/YouTube) Online Shopping/Banking Information search Amazon, eBay, Emails Bing Shopping Blogs, forums, RSS etc. Google, Bing, and spaces End of the Social Check emails Wikipedia etc. Networks journey Final check of again Final check of forums or blogs social network From intimate ⇒ public and back again NB: From other research we know that an average of six websites are visited on a regular basis
- 16. Even Though TheInternet is Growing in Popularity, Awareness Of It’s Pitfalls Are Also Getting Bigger Immediacy and ubiquity Personal security Easy to express feelings Time it takes away from other aspects of one’s personal life Free Access to information Can’t find what you seek 24x7 connected Credibility of information One Stop Solution to all needs Subscription based content Irrelevant ads
- 17. Detail Analysis of OnlineBehavior in Latin America
- 18. 1 Top Motivations To GoOnline
- 19. Staying in Touch,Research, and Content Sharing are Popular and Key Motivational Factors for People to Go Online (1/2) Stay in touch with friends Key Takeaways • Staying in touch with friends is Research for work common activity among all age groups Education Research how to • Research and News are main do things drivers for adults to go online For News/events • 61% of Teens go online to consume Entertainment related Research products to content buy • Professional networking is low To get ideas and is lead by women Entertainment • Teens and women are more prone to go online as compared Networking to men Find music 0% 20% 40% 60% 80% 100% Teens Men Women Source:- Global Web Index, Wave 3+Wave 4 data
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- 21. Young People DriveInternet Consumption in Latin America Teens Men Women Key Takeaways • On an average 49% of all age groups spend 4+ hours online/day More Than 4 Hours 53% 44% 49% • 53% of Teens spend 4+ hours online/day • Men and Women of age group 25- 34 spend most time online 3-4 Hours 20% 21% 19% • Men aged 55-64 go online least • Women spend more time online than Men 2-3 Hours 17% 22% 21% • Teens outperform all other age groups when it comes to online consumption 1-2 Hours 9% 13% 10% Less Than an Hour 1% 1% 1% Source:- Global Web Index, Wave 3+Wave 4 data
- 22. Mobile Internet Accessis On Rise in Latin America Teens Men Women Key Takeaways • Home is preferred place to access Internet, however, mobile Internet access is on a rise Home 95% 93% 93% • Penetration of smart phones and mobile broadband is driving growth of mobile Internet access • Consumption of online multimedia Work 62% 79% 65% content is on rise, especially among teens • Advertisers should build strategies Out of home to engage consumers on new venue devices like smart phones and 68% 57% 46% tablets e.g. Café/Bar Roaming e.g. On the 32% 29% 22% move/ travelling Source:- Global Web Index, Wave 3+Wave 4 data
- 23. Mobile Internet inLatin America is Used Mainly to Get Access to News followed by Research and Social Activities Key Takeaways • News and information is highest consumed over mobile, especially by men • Men, women and teens use Transaction mobiles to search maps and get 9% News and directions Information Watched/Uploaded 28% • Mobile social networking and photos, videos watching videos is another popular 19% activity among teens • Women prefer to use mobile Social Networking Search phones for banking and online 19% 25% buying Source:- Global Web Index, Wave 3+Wave 4 data
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- 25. Social Networking isa Popular Online Activity… IM, Content Sharing & Writing Blogs are Key Activities within (1/2) Key Takeaways Send messages • Latin Americans are high on to friends social engagement Upload photos • Photo Sharing/Uploading and sending messages is common Instant message among all age groups Search for new • IM and email is still popular contacts among all age groups, especially Share a new women story • More than 50% of teens use Play game social networks to send Install messages, upload photos/videos application and play games Join a group • 60% of men use social networks Upload videos to make new contacts and friends 0% 20% 40% 60% 80% 100% Teens Men Women Source:- Global Web Index, Wave 3+Wave 4 data
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- 27. Brand Engagement ThroughOwned Media is Preferred, But Interacting Through Social Media is Essential to Reach out to Targeted Audiences Key Takeaways Website to interact with • Online advertising is on rise in company Latin America Listen to comments on forums/social • Men engage with brands, with networks 64% visiting company website Create directly applications /online services • Women are more prone to get in Videos online featuring the touch with brands if contact brand details are shared online Contact me if brand is on a microblog • Brand engagement through Blogs to talk social media is very effective, about company especially with teens Sponsoring music • Products that target teens have a downloads huge potential in Latin America Blogging about relevant products Social networks for support Creating brand community0% 20% 40% 60% 80% 100% Teens Men Women Source:- Global Web Index, Wave 3+Wave 4 data
- 28. Highly Contextual andEngaging Brands are Preferred by LatAm Online Users Key Takeaways Provide • LatAm consumers engage with knowledge brands that communicate directly Be informative about products • 48% of young audience between 16-34 years want brands to Entertain entertain them Help in • Brands that engage with organizing life consumers and help organize their Communicate lives tend to develop a close like a real relationship with them person Provide real time experience Help in meeting people Be a part of daily routine 0% 20% 40% 60% 80% 100% Teens Men Women Source:- Global Web Index, Wave 3+Wave 4 data
- 29. Providing Discounts andCustomer Service Enhances Brand Loyalty on Social Networks Discounts for future purchase Customer service A feature to track delivery Access to new products prior to release Personalized recommendations An ability to interact directly An opportunity to be part of product /service ideas Exclusive insights about brand Details on friends purchases Virtual purchase opportunity 0% 20% 40% 60% 80% 100% Teens Men Women Source:- Global Web Index, Wave 3+Wave 4 data
- 30. Recommendations and DirectCommunication Drive Purchase Decision of Consumers Further Key Takeaways • Online and offline recommendations motivate purchase behavior Sponsorships • TV based offline ads influence 10% purchase Recommendations • Direct communication is preferred, Featured on major 31% as people want to have a real time online activities experience 18% Direct • Online activities like social media, Communication email and search help in 18% Offline advertising to the target audience advertisements 23% • Sponsoring online videos and sports teams creates awareness and drive purchase Source:- Global Web Index, Wave 3+Wave 4 data
- 31. To Summarize… 1 The Latin American market is 4 Latin American consumers have a strong emerging and fast growing. Thus appetite for high-bandwidth activities such as advertisers should explore in this content sharing, video streaming etc which region to gain early advantage over clearly indicates huge opportunity hidden for their competition advertisers as broadband penetration improves in this region 2 5 The impressive usage of social media Latin American internet users are highly categories indicate terrific opportunities engaged and skewed towards the for advertisers to communicate effectively younger audience. This makes LatAm with their target customers. There is also demographically attractive and favorable good potential and growth in categories for future growth likes Retail, News, Travel and Finance 3 6 Brand engagement through social media is Mobile Internet access is on a rise in very effective, especially with teens. Latin America. Hence advertisers Consumers also like to interact with should build strategies to engage products through company webpage/site. consumers on new devices like smart Thus advertisers should build relationships phones and tablets with LatAm consumers through interactive online advertising
- 32. Key Internet Statistics inthe LatAm Region
- 33. Brazil Leads inNumber of Internet Users; Colombia Boasts of Highest Internet Penetration in LatAm Internet Users (MM) 2009 =163 MM 2011e=207 MM Key Takeaways • Brazil & Mexico are fastest growing Internet markets 32 40 65 79 17 25 • Mexico is fastest growing market 16 30 21 with 12% CAGR on a 3 year basis 41 • There is a significant increase in growth of Internet penetration rates Brazil Mexico Argentina Colombia Other LatAm Countries • Internet penetration in Brazil & Internet Penetration (%) Mexico is low as compared to 2009 2011e Argentina & Colombia 43% 55% • Colombia has highest penetration rate with CAGR of 7% 40% 50% • Growth in Internet penetration 33% 39% promises high growth potential 27% 36% Brazil Mexico Argentina Colombia Source:- eMarketer, internet world stats and internal analysis
- 34. Latin American UserMarket is Big and Growing at a CAGR of 5% Mobile Phone Users (MM) Key Takeaways 2009 = 449 MM • 3G introduction is driving growth in mobile phone subscriptions 101 174 • Accessing internet through mobile 42 phones is fast becoming a major 48 84 need • One third of Latin American mobile users are from Brazil 2011e = 523 MM • The pie is becoming more wide spread rather than having a major 120 proportion confined to a few 198 43 countries only 59 103 Brazil Mexico Argentina Colombia Other LatAm Countries Source:- eMarketer, internet world stats and internal analysis
- 35. Online Advertising Spendsare Increasing, Promising a Dynamic Future Key Takeaways • Advertising spend in this region is Online Advertising Spend (MM) increasing 2011e = $1,139 MM • Brazil leads in total as well as online advertising spend $58 $55 $91 $650 • TV attracts majority of the offline $285 spend • The CAGR of all countries is growing significantly Brazil Mexico Argentina Colombia Other LatAm Countries • Brazil’s total ad market is mature and online ad market is largest in the region • Online ad markets in Mexico boasts a 3 year CAGR of 45% respectively
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- 37. Stats from comScore PleaseNote: Figures from comScore might differ from other sources used in this presentation. comScore only takes into consideration: • Active internet users • Internet users of ages 15+ • Internet usages in Homes and Work Places
- 38. LatAm Region HasOver 111 MM Internet Users Growing at Over 15% annually; Among the fastest growing regions Internet Users by Region (MM) Key Takeaways 1.324 +8% • Latin America and the Middle Worldwide 1.222 East/Africa are among the emerging markets with high 111,4 growth rates Latin America +15% 96,6 • North America is the most saturated region globally, Russia is the main driver for the growth in the European region • Over 8% of the worlds internet Asia Pacific 534,0 +6% 505,7 users come from the LatAm region Europe 361,7 +8% 336,4 • 15 MM new web users were added between 2009 and 2010, a 15% increase North America 204,0 198,4 +3% • The steady rise in broadband penetration will help fuel the Middle East- Africa 112,5 growth of internet users within 85,2 +32% the region further Dec 2009 Dec 2010 % Growth Y-o-Y Source:- comScore Media Metrix, December 2010
- 39. Young Audience DominatesOnline Population in Latin America % Composition of Internet Audience Worldwide Key Takeaways 53% • There is a high % of young users in Latin America in comparison to the worldwide average • 62% of the internet audience is between 15-35 years old 27% 26% 22% 14% 12% Latin America 62% 33% 29% 20% 11% 7% Age Groups 15-24 25-34 35-44 44-55 55+ Source:- comScore Media Metrix February 2011
- 40. Social Networking, Searchand News are Categories with Highest Reach in LatAm Region % Reach of Key Categories in LatAm Social Networking 76% 98% Key Takeaways • Social Networking is the top Reach Focus Search/Navigation 86% 91% category in Latin America 80% News/Information 72% • Sharing photos is becoming a key 79% component of the Social Community 69% Networking experience 78% E-mail 61% • IM usage still remains the highest Multimedia 75% in Latin America, despite the 70% drastic drop in the global usage 70% Photos 52% Growth Focus • Blogs and News/Info Sites Blogs 55% 69% capture significant portion of web audience 67% Instant Messengers 34% 66% • There is also good potential and Technology 62% growth in categories likes Retail, Retail 63% Sports, etc 64% 58% Downloads 57% 56% Games 53% Latin America Worldwide 41% Sports 37% Source:- comScore Media Metrix February 2011
- 41. Engagement Levels inLatAm are Over Worldwide Average; Argentina and Brazil Lead Within Total Hours Online Per Visitor in Latin America (per month) Key Takeaways Brazil 22 • Overall usage levels have remained relatively high in Latin America Mexico 21 • LatAm users spend approximately Argentina 22 hours online each month 23 (global average 21 hours) Colombia 21 • Companies in the LatAm region have a higher potential of engaging consumers by using Chile 19 digital platforms Venezuela 19 Puerto Rico 15 Worldwide Average – 21 Overall LatAm Average – 22 Source:- comScore Media Metrix February 2011
- 42. Reach of SocialNetworking Sites Continues to be Very High Throughout LatAm, Outpacing Worldwide Average % Reach of Social Networking Sites Globally Key Takeaways Worldwide 75,7% • 98% of audience use Social Asia Pacific 51,2% Networking sites with Colombia and Argentina dominating within Europe 91,0% the region North America 98,0% • In terms of Reach, Facebook is Middle East 83,1% leader, however Orkut’s strong Latin America 97,5% following in Brazil generates heavier usage for the category overall Brazil 93,6% • Latin America is also home to Mexico 92,4% some of the most highly Argentina 97,0% penetrated markets for Twitter Colombia 97,2% • Other players like Hi5, Sonico and Chile 96,0% Fotolog.com still hold a strong audience in Latin America Peru 90,9% Venezuela 96,2% Puerto Rico 95,8% Source:- comScore Media Metrix February 2011
- 43. Thank You 43