InFocus - Technology use in LatAm


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Emerging markets including LatAm are significantly outstripping the west in terms of adoption of Internet-enabled mobile . Read our thoughts on the opportunities that this presents for businesses.

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InFocus - Technology use in LatAm

  1. 1. Connected worldTechnology and the Internet in Latin America Share this In Focus
  2. 2. Technology and the Internet in Latin AmericaTechnology use in LatAmEmerging markets including LatAm are significantly outstrippingthe West in terms of technology adoption. Whereas the West isused to high levels of technology ownership, including PCs, fixedline telephones and fixed line Internet, Latin America doesn’t havethe same level of infrastructure. Businesses looking to grow theirpresence in the region are therefore finding innovative ways ofharnessing the technology that does exist there – one of thereasons that Internet-enabled mobile is taking off so quickly. Share this In Focus
  3. 3. Technology and the Internet in Latin AmericaMobile and social mobility Hot products to watchThe future of digital is mobile, particularly in Latin There is a particularly strong interest in tablets in the Country Mobile Internet available on phoneAmerica, where handheld technology is enabling region – stronger than in the US and very close to 2010 2011 2012and empowering new generations of consumers and European demand levels – and there’s evidence that this Argentina 30.2 55.1 68.2increasing social mobility. Lower GDP per capita tends interest is translating into actual purchases more than into mean lower levels of tech ownership, but mobile other emerging markets. One in five of Latin American Brazil 29.9 43.2 70.6has strong usage levels across the board, with 82% consumers plan to buy a tablet in the next six monthsof consumers in Latin America owning a handset. if they don’t own one already. Massive demand for Chile - 69.4 74.9In this way mobiles are helping to bridge the divide smartphones is opening up a battle between Nokia’sbetween rich and poor, and between people in rural Symbian OS and Google’s Android in the race to bring Colombia 25.2 - 67.1and urban areas. These are many Latin American phones to market that meet consumer demand, secureconsumers’ only link to the online world, with many share of wallet and start to win the platform wars. Costa Rica - 34.4 -‘leapfrogging’ web-based sites to skip straight to theirmobile counterparts. For example, many people’s Guatemala 16.8 17.4 - 82%first experience of online banking will be via theirmobile phone. Mexico 26.7 33.0 79.2 of consumers in Latin America own a handset Source: TNS Mobile Life 2012 Share this In Focus
  4. 4. Technology and the Internet in Latin AmericaCorrelation between GDP per capita and number of technology devices owned; source: IMF / TNS Mobile Life Latin American consumers have a far stronger affinity to content brands compared to other developing markets. The most accessed brands tend to be global brands such as Google, YouTube and Facebook. Only 12% of LatAm consumers are accessing Orkut via their mobiles, versus 25% who are doing so with Facebook, showing that the latter still has the most potential for companies looking to engage with new consumers via social media. 20% of mobile activity is social networking compare to...Social media Social networking is the second most popularThe social media revolution is taking over the world, service activity on the mobile in LatAm (20%), behind 32%and with 34% of LatAm consumers saying they feel uploading photos/videos to a personal computerthey can express themselves better online, the Internet (32%). In addition, consumers are looking to increaseis likely to play a greater and greater role in all kinds the number of activities they are doing in social media,of social interaction. so there are myriad opportunities for businesses to get in on the action by providing new online products uploading photos/videos to a personal computer and services. Share this In Focus
  5. 5. Technology and the Internet in Latin America strategy, but an entirely different medium requiring Consumers using mobile banking (Checking bank accounts, making purchases securely its own bespoke approach. Current tablet Intend to purchase a tablet from mobile) Country Country ownership within next 6 months 2010 2011 2012 Also, whilst many companies will be broaching new territory, the basics still apply. Mobile services still Argentina 4.7 14.6 Argentina 4.2 8.9 12.2 need to be relevant to consumers, be easy to use, and – especially given the target market – affordable. Brazil 9.8 20.9 20.4 Whilst mobile banking service mPesa has revolutionised Brazil 6.3 17.7 banking in rural Kenya, the same kind of service has Chile - 11.8 20.2 not flourished in India due to poor service delivery. Chile 8.4 18.4 Costa Rica - 2.1 - Latin America can learn from these successes and Colombia 7.1 23.2 failures, but ultimately solutions need to be closely Guatemala 3.4 1.2 - tailored to the local market: there is no place for a cookie cutter approach. Mexico 8.8 20.3 Mexico 0.6 1.8 18.3 Source: TNS Mobile Life 2012 Kenya 5.6 17.7 23.2Implications for businesses India 1.9 1.3 1.7The most enlightened companies are fast capitalisingon the demand for mobile services, recognising that Source: TNS Mobile Life 2012mobile is not just an extension of a company’s web Share this In Focus
  6. 6. About MobileLifeMobile Life is an annual investigation into behaviours, motivations and priorities of the world’s mobile phoneusers. Now in its seventh year, Mobile Life is the most comprehensive view of how the world’s consumers areusing their phones today and the opportunities that this presents for brands. A snapshot of the findings canbe found at About the AuthorAbout InFocus James Fergusson is the Global Head, Digital andInFocus is part of a regular series of articles that takes an in-depth look at a particular subject, region or Technology Practice at TNS, leading a group of globaldemographic in more detail. All articles are written by TNS consultants and based on their expertise gathered experts focused on helping clients to apply digital to fuel their growth strategy.through working on client assignments in over 80 markets globally, with additional insights gained throughTNS proprietary studies, such as Digital Life and Mobile Life. Australian by birth, James has 18 years’ experience in market research, across several agencies. James is aAbout TNS specialist in technology and telecommunications acrossTNS advises clients on specific growth strategies around new market entry, innovation, brand switching and both rapid growth and developed markets. He has worked with most of the world’s major companies instakeholder management, based on long-established expertise and market-leading solutions. With a presence this sector and is increasingly applying working within over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands clients in a more diverse range of sectors.individual human behaviours and attitudes across every cultural, economic and political region of the world.TNS is part of Kantar, one of the world’s largest insight, information and consultancy groups.Please visit for more information. For more information please visitGet in touch www.tnsglobal.comIf you would like to talk to us about anything you have read in this report, please get in touch or Twitter @tns_globalvia or via Twitter @tns_global Share this In Focus