Internet Marketing Trends for Latin America

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  • 1.TABLE OF CONTENTS Executive Summary 2 Internet Usage3 Advertising Spend 4 Internet Advertising5 Social Media 6 BrazilAdvertising Spend7Internet Advertising 8Social Media 9 MexicoSource of all statistics:Internet Usage 10Internet Advertising 11Social Media 12 ColombiaAdvertising Spend 13Internet Advertising 14Social Media 15 About WSI 16

2. LATIN AMERICA Executive Summary2010 A Year of Economic RecoveryIt is safe to say that 2009 was a year of economic crisis for markets all over the world. As the "R" word resonated in the minds of business owners everywhere, they began tightening their budgets to adapt to the economic challenges.Participation in the recession is a choice, and companies must challenge themselves to evaluate their businesses and understand how they can change in order to surpass the economic conditions.Though 2009 was a year of hardship, many believe that 2010 will be a year of economic recovery. Over the past year, Internet advertising spending in Latin America increased, as spending through traditional advertising venues, such as newspaper, radio and television shrank. Trends indicate that the Internet will remain strong in 2010.The #1 fastest growing advertising channel is the Internet, and businesses need to re-invent their marketing strategies and capitalize on this medium in order to rise above the economic challenges.This Internet Marketing Trends Report is a brief synopsis of the current online marketing activities in Latin America, as well as the projected trends for the coming years. The report covers Internet usage and penetration, total advertising spending, Internet marketing spending and social media trends, specifically for the regions largest markets for adspend - Brazil, Mexico and Colombia.For more information about WSIs Internet marketing services, please contact your local WSI Consultant.Copyright 2010 by Research and ManagementPage 2WSI Internet Marketing Trends Report 2010 3. LATIN AMERICAInternet UsageInternet Users in Select Countries in Latin AmericaBrazil has the most Internet users in Latin America with 31.9 million as of September 2009Mexico is the 2nd largest market for Internet usage in Latin America (14 million) The study reports that there were 11.8 million people online in Argentina and 9 million in ColombiaCommunicating and Web Surfing are the Most Popular Online ActivitiesThe majority of Internet users in Latin America (77%) use the Web to communicate with others, either through email, instant messaging or social networks76% of respondents visit websites for news, information, entertainment, work or schoolInterestingly, 28% of Internet users download digital content, such as music, videos and graphics Copyright 2010 by Research and Management Page 3WSI Internet Marketing Trends Report 2010 4. LATIN AMERICAAdvertising SpendBrazil, Mexico and Colombia are the Largest Markets for AdspendAccording to ZenithOptimedia, Brazil is the regions largest market for adspend $11.57 billion was spent advertising in Brazil in 2008 Total advertising expenditure in Mexico reached $5.43 billion, putting Mexico in 2nd place in terms of largest adspend Colombia falls close behind with $3.83 billion in total adspendAdvertising Spending in Latin America Rises Total advertising spending in Latin America is expected to reach $31.33 billion 2010 and increase each year until 2012In 2011, $33.31 billion will be spent advertising in Latin America ZenithOptimedia predicts that by 2012, total adspend in the region will reach $35.62 billion Copyright 2010 by Research and ManagementPage 4 WSI Internet Marketing Trends Report 2010 5. LATIN AMERICA Internet AdvertisingOnline Advertising Spending in Latin AmericaIn 2009, $690 million was spent advertising online in Latin America, a considerable increase over the $537 million that was spent in 2008This year, we can expect to see online advertising in Latin America reach $914 millionTrends indicate that online adspend in the region is expected to continue rising steadilyThe Internet Continues to Take a Larger Share of Total Adspend DollarsThis year, the Internets share of total adspend will reach 2.9% and increase to 3.3% in 2011 By 2012, ZenithOptimediapredicts that 3.6% of total advertising dollars will be spent marketing online As the Internet continues to take a larger share of total adspend, spending on traditional channels will naturally decline Copyright 2010 by Research and Management Page 5WSI Internet Marketing Trends Report 2010 6. LATIN AMERICASocial MediaSocial Network Site Users in Select Countries in Latin AmericaA study by comScore reports that social networking usage in Latin America has increased in several countries between 2007 and 2008As of 2008, 85.3% of Internet users in Brazil were also social network users (increase from 76% in 2007) 73% of the online population in Mexico were also on the social networks as of 2008 Almost 80% of the Colombian online population used social networking sites the same yearOnline Social Network Advertising Spending According to eMarketer, approximately $10 million was spent on social network advertising in 2009 This year, online social network adspend is expected to reach approximately $15 millionBy 2011, about $18 million will be allocated toward advertising on social networks in Latin America Copyright 2010 by Research and Management Page 6WSI Internet Marketing Trends Report 2010 7. BRAZIL Advertising SpendInternet Advertising Sees the Most Growth in BrazilIn 2009, Internet adspend growth reached 21%, while adspendgrowth on most other channels declined or grew only marginallyThis year, spending growth will increase across all channels, however the Internet will see the largest increase (29.2%)By 2011, online adspend will grow by 25% in Brazil, while spending on traditional channels will only grow between 3-5%Online Marketing Exceeds Radio Advertising In 2009, $502 million was spent advertising on the Internet in BrazilThis year, Internet advertising spending will surpass radio advertising ($649 million compared to $558 million to be spent on radio)In 2011, $811 million will be allocated toward advertising online and only $586 million toward radioTrends indicate that Internet adspend is also quickly catching up to magazine adspend Copyright 2010 by Research and ManagementPage 7 WSI Internet Marketing Trends Report 2010 8. BRAZIL Internet AdvertisingInternet AdspendContinues to RiseInternet advertising expenditure as well as spending growth in Brazil are expected to climb steadily According to ZenithOptimedia, online advertising will grow 25% in 2011 and reach $811 million By 2012, online advertising spending will reach $973 million, an increase of 20% over 2011Internet Advertising Continues to Take a Larger Share of Total Adspend Each year, the Internet will take up a larger share of total advertising dollars in Brazil This year, 5% of total adspend will be allocated toward the Internet and next year, this will increase to 5.9% By 2012, 6.5% of total advertising dollars in Brazil will be spent marketing on the InternetTraditional marketing channels will see a natural decline in adspendshare as the Internets share continues to grow Copyright 2010 by Research and ManagementPage 8 WSI Internet Marketing Trends Report 2010 9. BRAZIL Social MediaSocial Networking Usage in BrazilBrazil is 2nd in the world in terms of average pages viewed per visitor in the social networking categoryAccording to comScore, the average social network user visited on average 1,374 pagesThe same study also reports that there are approximately 24.3 million social network site users in the countryTop 10 Social Networking Sites in BrazilThe #1 social networking site in Brazil is orkut (22.85 million unique visitors as of September 2009)Facebook is the fastest growing social network with a 407% increase in unique visitors between 2008 and 2009 Ning saw a considerable increase in usage as well during this period (329% increase in unique visitors)Twitter is the 3rd fastest growing social site with 5.24 million unique visitors in September 2009, a 120% increase over the previous year Copyright 2010 by Research and ManagementPage 9 WSI Internet Marketing Trends Report 2010 10. MEXICO Internet UsageMore People Are Going Online in Mexico This year, 35.6 million people in Mexico will go online, consuming 31.6% of the countrys total population In 2011, the Mexican online population will increase to 39.5 million (34.7% of total population)eMarketer projects that 37.4% of Mexicos population will be online in 2012 (43.0 million people)Most Popular Web Properties in Mexico According to comScore, the most popular Web properties in Mexico are based in the US The study reports that 10.79 million unique visitors came to Microsoft sites (84.6% reach)Google sites were ranked in 2ndplace with 10.36 million unique visitors coming to it, reaching 81.3% of the populationIn 3rd place are Yahoo! sites, which reached 54.6% of the population (6.97 million unique visitors) Copyright 2010 by Research and Management Page 10 WSI Internet Marketing Trends Report 2010 11. MEXICO Internet AdvertisingOnline Advertising Spending in MexicoInternet marketing spending in Mexico reached $139 million in 2009, a $31 million increase over the previous yearIn 2010, online advertising spending in Mexico is expected to increase again to $182 millionOnline Advertising Opportunity - Top 12 Web Categories in MexicoMexico shows a strong focus on communication, such as email, instant messaging and social networking with a reach of 73.8%, 72.2% and 64.6% respectively52.3% of the Mexican online population visit blogs, while 51.3% visit reference sitesEducation sites reached approximately 43.3% of Internet users and newspaper sites saw a total reach of 35.0%The considerable popularity of these Web categories in Mexico present a great opportunity for online advertising through these types of communication channels and in these industries Copyright 20