1 Tracking media, prosperity and influence Understanding affluent consumers across Latin America

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Tracking media, prosperity and

influence

Understanding affluent consumers across

Latin America

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PAX Background

PAX is an international survey, which has been measuring upscale consumers across Asia and beyond since 1996.

In 2007 PAX launched in Latin America, allowing for in-depth analysis and

understanding of upscale consumers in this region

PAX paints a picture of the current marketplace, reflecting media audiences,

economies, consumer and business behaviour among society’s elite

CATI (computer-assisted telephone interviews) methodology provides the

best method to contact the most elusive and influential members of society.

Affluent adults

Business Decision Makers

Top Managers

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PAX Methodology

Random sample: Affluent and BDMs and TMs

Booster: Top Managers

Fieldwork was conducted from January to April 2007 n=4740 interviews were conducted across Latin America:

n=1694 in Argentina: Buenos Airesn=1506 in Brazil: Sao Paulo and Rio de Janeiro

n=1540 in Mexico: Mexico City

The sample was made up as follows:

Random Affluent sample, Aged 25-64 Top 20% of the population: (SEG A1, A2, B1 and B2) Affluent adults - those with

the most money to spend. Random fall out of Business Decision Makers (BDM) and Top Managers (TM) within this random, affluent sample. To

qualify as BDM respondents must be senior managers/ department heads or above, in a company with an employee

size of 10+.

Top Management booster sample Business Decision Makers (BDMs) with

the following positions within a company - CEO, CFO, MD, Director or

equivalent

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PAX Methodology

This report has been prepared for MSN

All data has been analysed by MSN and competitor users:

Sample sizes for each user group is as follows:

GoogleYahoo! UOLTerra

n=485past 30

day users

n=779past 30

day users

n=573past 30

day users

n=590 past 30

day users

MSN

n=504past 30

day users

N.B. Significance testing has been conducted against the total

column where applicable, and significant differences highlighted in

red text

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20.6%

3.7%

Top 1.6% adult population

Ad

ult

s ag

ed 2

5-64

475,000

1,078,000

6,047,000

Top Management

Business Decision Makers

Affluent Adults

7,600,000

PAX focused on the market most sought after by advertisers:

PAX Latin America universe

Total PAX Universe (top 21% of adult population)

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Sample profile

Internet users more likely to be aged 25-34, male, working full time, and university educated

S10 / D3

Total(n=1506)

Total Internet

users(n=1097)

MSN (n=504)

Yahoo! (n=485)

Google(n=779)

Terra(n=573)

UOL(n=590)

Age % Aged 25-34 31 37 47 43 40 41 40

Gender % Men 47 53 48 51 53 51 56

Marital status

Married 59 58 51 54 56 53 56

Working status

% working full time

66 75 76 76 76 77 77

Education % university

educated43 52 52 57 54 55 52

Classification %BDM 20 27 26 27 28 28 28

% TM 6 7 6 6 7 8 8

Base: Sao Paulo & Rio de Janeiro population aged 25-65 SEG AB (n=1506) (universe=4,676,600)

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*Includes laptop/ notebook, desktop computer, PDA, printer, scanner, mobile phone, MP3 player

Base: Sao Paulo & Rio de Janeiro population aged 25-65 SEG AB (n=1506) (universe=4,676,600)

Well-educated: University+

Decision makers: Purchase for company

In management positions: BDM

Quality consumers: Have a credit card

Intend to buy consumer electronics*

Alcohol consumption in past 4 weeks

Traveled outside country in past 12 months

Profile of Internet Users

The study confirms that the Internet users are of better quality than non-Internet users in the following areas, and thus are more desirable target audience for advertisers:

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38

45

53

4

71

24

50

69

10

53

73

27

52

Internetusers(n=1097)

Noninternetusers(n=409)

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Setting the picture – Brazil Adspend

Source: AAAP (Ass. Argentina de Agencias de Publicidad) 2006

• Total Brazil ad spend estimated at 7,200 million dollars in 2006 – the largest in the region

• Distribution of Ad spend reflects the regional pattern, with television dominating

• Magazine share currently small, but high potential – especially among upscale advertisers (high end target)

Others9%

Newspapers16%

Television57%

Radio4%

Magazines8%

Outdoor4%

Internet2%

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Consumers are spending more time on the Internet than reading print media

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When consumers have access to the Internet at home, they are spending less time watching TV and reading print titles

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Executive Summary (1) • The internet is a major medium among the affluent population, 70%

have access in Brazil.

• Internet users are a highly desirable target audience for advertisers being well educated more likely to be in management positions (BDMs) Likely to own a credit card More likely to have travelled abroad

• Internet users are also more likely to be younger, male and working full time.

• MSN.com ranks 5th in Brazil in terms of websites visited in the past 30 days.

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Executive Summary (2)• In Brazil, MSN users tend to be younger compared to key competitors

and have the highest proportion 25-34.

• Compared to key competitors (Google, UOL, Terra, Yahoo!), MSN users tend to be more involved with the internet spending longer purchasing products and watching videos online.

• Along with Yahoo! and Terra users they are more likely than the average internet user to use instant messaging.

• MSN & Yahoo! users spend more time online than average and MSN & Google users more likely to have broadband access at home.

• As might be expected, internet users show a greater propensity to own technological products, and ownership figures show that MSN is slightly leading this trend over its competitors.

• MSN and key competitors users spend more than affluents generally on luxury goods.

• MSN shows a strong lead over some of the big TV networks and a greater audience than key regional publications.

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influence


Latin America

MEXICO

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Sample profile

Internet users more likely to be male, working, university education and BDMs

S10 / D3

Total(n=1540)

Total Internet

users(n=753)

MSN (n=321)

Yahoo!(n=494)

Google(n=468)

Terra (n=189)

Age % Aged 25-34 38 42 51 45 46 49

Gender % Men 48 55 60 56 54 58

Marital status Married 59 55 51 54 53 55

Working status

% working full time 63 72 78 71 72 69


educated73 84 86 85 85 82

Classification %BDM 24 28 28 28 28 30

% TM 9 11 11 12 11 12

Base: Mexico City population aged 25-65 SEG AB (n=1540) (universe=1,792,300)

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Setting the picture – Mexico Adspend


• Total Mexico ad spend estimated at 3,900 million dollars in 2006 - the 2nd largest in the region

• TV proportion of Ad spend (59%) is the highest in the region – the dominant medium in this country

• Newspapers make up a smaller % of the pie than the regional average

Others11%

Newspapers7% Television

59%

Radio7%

Magazines5%

Outdoor9%

I nternet2%

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10.7%

1.2%

0.1%0.9%

50.9%

36.2%

Daily Titles

Weekly Titles

Fortnightly Titles

Monthly Titles

TV - YSD

Time Spent On Internet by type Yesterday

Time Spent on Media (%) - No Internet Access at home

17.2

2.0

0.11.4

81.8

58.1

Daily Titles

Weekly Titles

Fortnightly Titles

Monthly Titles

TV - YSD


Time Spent on Media (Minutes) - No Internet Access at home

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When consumers have access to the Internet, they are spending more time

on the Internet than other media

21.9

2.7

0.21.9

112.3

122.7

Daily Titles

Weekly Titles

Fortnightly Titles

Monthly Titles

TV - YSD


Time Spent on Media (Minutes) - With Internet Access at home

8.4%

1.0%

0.1%0.7%

42.9%

46.9%

Daily Titles

Weekly Titles

Fortnightly Titles

Monthly Titles

TV - YSD


Time Spent on Media (%) - With Internet Access at home

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Executive Summary (1) • The internet is a major medium among the affluent population, 47%

have access in in Mexico.

• Internet users are a highly desirable target audience for advertisers being Well educated More likely to be in management positions (BDMs) Likely to own a credit card More likely to have travelled abroad

• Internet users are also more likely to be younger, male and working full time.

• MSN.com ranks 3rd in Mexico in terms of websites visited in the past 30 days.

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Executive Summary (2)• In Mexico, MSN users compared to key competitors (Yahoo!, Terra and

Google) are most likely to be university educated, working full time and tend to be young men.

• MSN users are the most likely to be using the internet at work.

• Compared to internet users generally, MSN users are significantly more likely to have purchased products and services online in the past 12 months, particularly Music, Business info / services, Books, Concert / movie tickets, Computer software and MP3 players.

• MSN users in Mexico are more likely to own technological products than affluents in general, such as an MP3 player, laptop, handheld PCs and mobile with internet and camera.

• MSN and key competitors users spend more than affluents generally on luxury goods.

• Compared to regional TV channels, MSN shows a lead over some of the big networks (CNN and ESPN) and against key regional publications.

• When consumers have access to the internet at home, they are spending more time on the internet than other media

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influence


Latin America

ARGENTINA

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Sample profile

Internet users more likely to be male, working full time, university educated and BDMs

Base: Buenos Aires population aged 25-65 SEG ABC1C2 (n=1694) (universe=1,131,100) ) S10 / D3

Total(n=1694)

Total Internet

users(n=1250)

Yahoo! (n=736)

Google(n=953)

Terra(n=166)

UOL(n=89)

Age % Aged 25-34 31 32 35 36 29 21

Gender % Men 47 50 50 51 63 67

Marital status Married 54 54 52 51 45 53

Working status

% working full time 72 77 79 78 83 89


educated34 37 38 40 47 47

Classification %BDM 17 21 20 22 21 18

% TM 6 8 8 9 9 7

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Setting the picture – Argentina AdspendTotal Argentina ad spend is estimated at 1700 million dollars in 2006 (the 3rd largest in the region) – and is growing, driven by a recovering economy (high per capita spend)

Newspapers’ share of advertising revenue (31%) is the highest in the region. Accurate understanding of readers is therefore key

TV’s proportion of Adspend is lower than some LatAm countries (e.g. 57% in Brazil and 59% in Mexico) but there is high cable ownership in Argentina, and comparatively high ad spend in this sector (7%) reflects this

Others11%

Internet2%

Outdoor7%

Magazines5%

Radio2%

Television42%Newspapers

31%


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When consumers have access to the Internet at home, they are spending less time watching TV and reading print titles

Documents

1 Tracking media, prosperity and influence Understanding affluent consumers across Latin America